Microsoft is intensifying its focus on artificial intelligence by deeply integrating GitHub into its AI strategy. This move coincides with the departure of GitHub CEO Thomas Dohmke, who is leaving to pursue entrepreneurial ventures. The restructuring will see GitHub become part of Microsoft's CoreAI division, a new engineering group led by former Meta executive Jay Parikh.

Dohmke, who became GitHub's CEO in 2021 after joining Microsoft in 2018 following the company's $7.5 billion acquisition of GitHub, will remain with the company until the end of 2025 to assist with the transition. He stated his decision to leave was driven by a desire to return to his startup roots. Dohmke noted GitHub has over 1 billion repositories and forks, and more than 150 million developers. He also highlighted the doubling of AI projects within the last year.

Microsoft's CoreAI division was formed in early 2025 to develop AI technologies and tools for the company and its customers. The group brings together Microsoft's platform, developer tools, and infrastructure teams. Integrating GitHub into CoreAI signifies Microsoft's intention to centralize its AI efforts and leverage GitHub's vast resources and community to accelerate AI-driven development.

The integration means GitHub will no longer operate as a separate entity. Microsoft will not be replacing Dohmke's CEO role. Instead, GitHub's leadership team will report directly to Microsoft's CoreAI division. This move has sparked debate about GitHub's future independence and open collaboration culture. Some developers fear that tighter Microsoft control could undermine the platform's foundational ethos of openness and neutrality.

GitHub Copilot, an AI-powered coding assistant, has been a major driver of GitHub's growth and a key factor in Microsoft's decision to deepen its AI integration. Copilot has over 20 million users and is considered a leader in the AI-assisted coding market. Microsoft CEO Satya Nadella said GitHub Copilot had become a larger business on its own than all of GitHub was when Microsoft bought it. CoreAI's efforts will focus on advancing AI capabilities, aiming to build new AI agent factories for code generation and workflow automation.

The restructuring comes amid increasing competition in the AI-powered coding tools market. Companies like Anthropic, Google, and OpenAI are launching their own AI products targeted at software development. Microsoft's deeper integration of GitHub into its AI strategy is seen as a move to strengthen its position in this competitive landscape.

The integration of GitHub into Microsoft's CoreAI division has significant implications for freelance software developers and contractors. As Microsoft prioritizes AI-driven development, the developer community will be watching to see whether the platform can maintain its commitment to openness and neutrality. The rise of independent alternatives ensures that developers will continue to have options for software development.