Has Microsoft Lost Its Mojo (Again)?
Microsoft pushed agentic AI at Build, but weak Copilot uptake, GitHub outages, and Anthropic’s coding lead raised doubts about its momentum.
Intelligence analysis by GPT-5.4 Mini
WIRED frames Microsoft’s Build conference as a test of whether the company still leads the AI wave or is starting to look defensive. Scott Hanselman argues the recent pain points are temporary, while the article points to real pressure on Copilot, GitHub, and Microsoft’s developer credibility.
Microsoft is like a big school that used to lead the class, but now some other kids are showing off better projects. It is trying to win people back with smart helper software, but broken homework tools and slow adoption make some people wonder if it is slipping.
Analysis
Microsoft’s current pressure point
The article opens with Satya Nadella presenting Microsoft’s annual Build conference as a forward-looking push into agentic AI. But the mood around the company is less celebratory than the keynote suggests. Microsoft’s stock has lagged this year, its Copilot workplace tools have not taken off as strongly as hoped, and its lead in coding tools has been challenged by Anthropic’s coding-focused approach.
GitHub and developer trust
A major concern in the piece is GitHub reliability. The article says the code platform has suffered unusual downtime, which has frustrated longtime users and even pushed some to leave. Scott Hanselman, a Microsoft vice president on the GitHub technical staff, argues that the traffic burden is being driven by bots as much as people and describes the outages as a temporary pressure problem rather than a sign of decline.
Microsoft’s response to the agent era
Hanselman says Microsoft has moved quickly into agentic AI, including adopting OpenClaw through a product called Scout. He describes the company as trying to bring these tools to developers, workers, and even consumers. At the same time, he pushes a cautious approach: start with small tasks, verify results, and expand access only after trust is earned.
The bigger question
The story suggests Microsoft still has major assets: Windows, GitHub, and a huge developer base. But it also shows the company facing a credibility test. If its AI tools stay underused and its developer platforms keep stumbling, rivals may continue to define the pace of the AI coding race.
Key points
- Microsoft used Build to highlight agentic AI and its latest push around Scouts and copilots.
- The article says Copilot’s workplace products have seen disappointing uptake.
- GitHub outages have frustrated users and fueled criticism that Microsoft is losing ground with developers.
- Scott Hanselman argues the GitHub problems are mostly a bot-driven scaling issue, not complacency.
- The piece frames Microsoft’s core challenge as restoring developer trust while proving its AI tools are actually useful.
If Microsoft’s agentic AI tools prove useful, the company could regain developer excitement and broaden adoption beyond coders into workplace and consumer products. Hanselman’s argument is that small, trust-building uses can make AI feel practical instead of risky.
If Copilot keeps underperforming and GitHub reliability problems continue, developers may keep drifting toward rivals. The article suggests that losing trust from the coding community would be especially damaging because Microsoft has long depended on that audience.
