GitHub CEO Departs; Microsoft Integrates Biz into CoreAI Division
In a significant restructuring that signals Microsoft’s intensifying focus on artificial intelligence, GitHub CEO Thomas Dohmke is set to depart his role without a successor, effectively integrating the popular code-hosting platform more deeply into Microsoft’s CoreAI division. Dohmke, who took the helm in November 2021 following Nat Friedman, had overseen GitHub since its $7.5 billion acquisition by Microsoft in 2018.
In an internal memo shared publicly on Monday, Dohmke announced his intention to leave the company by the end of 2025 to pursue the founding of a new venture. He expressed pride in GitHub’s achievements as a remote-first organization and confirmed that GitHub and its leadership team would continue their mission as part of Microsoft’s CoreAI organization, with further details expected soon.
The CoreAI group, established in January under Executive Vice President Jay Parikh, was formed by Microsoft CEO Satya Nadella to accelerate the development of Microsoft’s AI platform and tools for running AI applications and agents. Nadella had previously identified GitHub Copilot, the AI-powered coding assistant, as a key area of focus for this new group. However, it was not immediately clear then that this strategic alignment would lead to GitHub operating without its own chief executive, suggesting a significant reduction in its operational independence.
Financially, GitHub has been a strong performer for Microsoft, reporting an annual run rate of $2 billion in Microsoft’s fiscal year 2024 fourth-quarter results. A substantial portion of this growth is attributed to GitHub Copilot subscriptions, which accounted for 40 percent of the subsidiary’s revenue growth in that period. The AI coding assistant has seen rapid adoption, with Dohmke reporting 20 million users (including both paid and non-paying individuals), a notable increase from 15 million just three months prior. As of the second quarter of 2024, 1.3 million of these were paying customers.
Under the new structure, GitHub’s core functions will be absorbed into Microsoft’s broader developer ecosystem. Julia Liuson, who leads Microsoft’s developer division, will now oversee GitHub’s revenue, engineering, and support operations. Concurrently, Mario Rodriguez, GitHub’s chief product officer, will report directly to Asha Sharma, Vice President of Microsoft’s AI platform.
Sharma, in a LinkedIn post, lauded Dohmke’s contributions and expressed enthusiasm for collaborating with Parikh, Liuson, Rodriguez, and the GitHub leadership team to enhance the developer experience. She emphasized the evolving role of code in the digital economy, stating, “Code is becoming the primary artifact of work in the digital economy — the blueprint for products, services, and experiences.” Sharma further posited that as AI agents increasingly handle the writing, reviewing, and committing of code, the importance of developers and coding itself will only grow. This perspective, however, comes amid a year where Microsoft has undertaken significant workforce reductions, including approximately 15,000 job cuts, raising questions about the practical implications for developer roles within the company.