GitHub’s AI explosion puts Microsoft under Amazon’s control

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Microsoft is turning to its biggest cloud rival Amazon to help address capacity issues in its GitHub coding platform following a series of AI-driven outages, according to two people familiar with the plans.

GitHub, acquired by Microsoft in 2018, is a popular place for engineers to store and manage code and collaborate on projects. As an independent company, GitHub primarily operated its own data centers, but Microsoft had plans to fully migrate its coding platform to Azure cloud services by 2027.

Now, the boom in demand for AI is forcing Microsoft to turn to Amazon. AI coding tools have made it easier for developers to create more software. This flooded GitHub with new code, taxing computing resources.

GitHub commits (a record of code changes that serve as a proxy for development activity) are on pace to reach 14 billion in 2026, up from 1 billion in 2025, Chief Operating Officer Kyle Daigle wrote for X in April.

To handle this surge in activity, Microsoft is adding additional computing power through Amazon Web Services, the people said.

The move is notable as Microsoft is competing with AWS for market share in the cloud market. Giving more business to its biggest rival, rather than serving GitHub’s needs through its own Azure cloud service, may not be an ideal move for Microsoft.

But AI-driven demand is so strong that other big tech companies are being forced to make similar deals.

Earlier this month, SpaceX and Google unveiled a new agreement in which Google will pay SpaceX $920 million per month for AI computing power from October 2026 to June 2029. The deal comes just two months after Google’s own cloud business agreed to sell its AI computing power to Anthropic.

GitHub’s “multi-cloud” strategy

A Microsoft spokesperson confirmed that GitHub leverages multiple cloud providers, but declined to comment on Amazon’s involvement.

“The incredible surge in agent development that began late last year tested the limits of our infrastructure,” the spokesperson said. To meet this demand, Microsoft is “accelerating our migration to Azure and continuing to explore multicloud strategies to ensure the future capacity, compute elasticity, and horizontal scale needed to support continued growth.”

An Amazon spokesperson said the company does not comment on individual customers, but added, “Customers choose AWS because they need global infrastructure that operates reliably, securely, and efficiently at scale, and we’re committed to delivering the best performance regardless of the workload.”

Keep the service running

These deals may seem strange, but the main goal is to continue providing popular services for your customers, regardless of who you have to work with.

For Microsoft, this is likely the same situation as GitHub, which is in trouble. There will be dozens of major failures in 2026.

Mitchell Hashimoto, co-founder of startup HashiCorp, wrote in April that GitHub is “no longer a place to do serious work if it’s just blocked for hours a day, every day.”

GitHub held an early lead among engineers. But these days, it faces more competition from AI tools like Cursor and Anthropic. claude code.

Microsoft recently predicted that capital spending for the 2026 calendar year would reach $190 billion, primarily for data center capacity expansion. However, many data center projects have been delayed, and Microsoft has many other important AI projects and businesses that it must support with computing power.

At an internal meeting late last year, Microsoft executives talked about the need for: GitHub overhaul According to audio reviewed by Business Insider, it competes with Cursor and Claude Code.

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