Microsoft (MSFT) Faces Challenges With GitHub Amid AI Demand

Microsoft (MSFT) has experienced setbacks with GitHub, which it acquired for $7.5 billion in 2018, facing outages and increased competition from tools like Cursor and Claude Code. Recent incidents include a security breach where 3,800 code libraries were compromised, leading some enterprises to seek alternatives. Despite GitHub hosting six times more developers than at the time of its purchase and being the most popular tool for collaboration per Stack Overflow’s survey, Microsoft’s stock price has dropped 13% this year. This decline reflects its difficulties in the AI space despite previous successes in cloud computing.