Microsoft Restructures GitHub Teams to Focus on AI Agents

Microsoft is reportedly implementing significant changes within GitHub’s teams to strengthen its focus on AI development. According to a Business Insider report, the company has begun reorganizing internal structures to prioritize AI agents, aiming to position GitHub as more than just a code repository.

The restructuring comes as competition intensifies from AI-driven developer tools like Cursor and Anthropic’s Claude Code, which have gained popularity among programmers. Microsoft, which acquired GitHub in 2018 for $7.5 billion, is now realigning its workforce to adapt to the growing demand for generative AI and automated coding assistants.

In January 2025, Microsoft formed a new division called CoreAI Platform and Tools, led by former Facebook engineer Jay Parikh. This group unites Microsoft’s developer division, AI platform team, and GitHub to accelerate AI innovation. Recent changes include transferring a small group of Microsoft engineers directly into GitHub to enhance collaboration and streamline efforts.

Parikh has emphasized the need to transform GitHub into the “center of gravity” for AI-powered software development, envisioning it as an “agent factory” where multiple AI agents can be managed seamlessly. Microsoft’s goal is to make GitHub’s AI tools accessible across different developer environments, not limited to a single application.

Beyond AI, the company is also investing in GitHub’s core features. Planned upgrades include improvements to GitHub Actions (for automated build, test, and deployment), advanced analytics and insights tools, stronger security measures, and compliance with local data storage regulations to expand GitHub’s availability in new regions.