GitHub is rotting? Microsoft’s brain drain and server meltdowns
Eight years after the marriage of GitHub and Microsoft, the honeymoon is officially over. With top talent fleeing to join Thomas Dohmke at Entire and the platform hitting frequent technical brick walls, the giant seems to be losing its edge.
Following the departure of CEO Thomas Dohmke last summer, Microsoft opted to abandon the search for a successor. Instead, the company folded GitHub’s operations directly into the CoreAI division led by Jay Parikh . This integration has been about as smooth as sandpaper on silk, leading to a mass exodus of engineers, many of whom have defected to Entire, a startup founded by Dohmke himself.
Meanwhile, the platform's once-celebrated AI crown jewel, GitHub Copilot, is bleeding market share to nimbler challengers like Cursor and Claude Code. Microsoft’s strategy of banning internal use of Claude Code while contemplating an acquisition of Cursor highlights a desperate game of catch-up. Technical stability is also hitting the floor, with the Virginia data center struggling to keep up with current traffic demands.
The chaos reached a boiling point when Mitchell Hashimoto pulled the Ghostty project off the platform, citing chronic instability. Microsoft is effectively trying to run a global developer hub as if it were a minor cog in an AI experimentation department, proving that even a trillion-dollar valuation can't buy competence when the corporate structure is allergic to innovation. When the house is on fire, adding more AI branding to the walls rarely puts out the flames.
Source: The Verge
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