Microsoft’s GitHub was positioned to win the AI coding race. Outages got in the way
GitHub is facing challenges in the rapidly growing AI-assisted coding market. Despite being an early player with Copilot, it has lost ground to competitors like Cursor and Claude Code. The company is now looking to improve its service and pricing structure to retain customers.
- ▪GitHub Copilot was announced in 2021 but has seen a decline in market share to competitors like Cursor.
- ▪A recent survey indicated that GitHub Copilot is less widely used than Claude Code and Google's Gemini Code Assist.
- ▪GitHub plans to change its pricing model in June, which may lead some developers to abandon the service.
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| Canonical URL | https://www.cnbc.com/2026/05/22/microsoft-was-positioned-to-win-in-ai-coding-outages-got-in-the-way.html |
| Publication time | Fri, 22 May 2026 12:00:01 GMT |
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For GitHub, it's a particularly inopportune moment to be losing customers. Few markets are growing faster than AI-assisted coding. OpenAI said in April that 4 million people were actively using its Codex coding agent, up from 3 million less than two weeks earlier. Anthropic's Claude Code tool has shot up in popularity this year, a big reason why the company's private market valuation recently climbed to $900 billion from $380 billion in February. Cursor has continued to gain rapid usage, and forged a deal with SpaceX in April, giving Elon Musk's company the right to acquire it for $60 billion. Cursor overtook GitHub Copilot in market share about a year ago and has kept the lead among customers that use Ramp, according to that company's data.
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