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[ARTICLE · art-16607] src=sherwood.news pub= topic=artificial-intelligence verified=true sentiment=· neutral

Report: Microsoft tries to get back in the AI coding game with new model

Microsoft plans to release a new AI coding model at its Build developer conference next week, according to The Information, as the company seeks to reclaim its position in the competitive AI coding tool market. The new model family, led by Microsoft AI CEO Mustafa Suleyman, aims to reduce Microsoft's reliance on OpenAI's technology amid their $13 billion partnership. Microsoft initially held a first-mover advantage with GitHub Copilot but lost ground to rivals including Anthropic's Claude Code, OpenAI's Codex, and Cursor.

read1 min publishedMay 28, 2026

Microsoft wants to fight its way back into the AI coding field by releasing a new model next week at its annual Microsoft Build developer conference, The Information reports.

The company is expected to announce a new family of models as Microsoft AI CEO Mustafa Suleyman seeks to shore up the company’s own AI offerings and gradually wean it off OpenAI’s technology over the remainder of their $13 billion partnership.

Microsoft was initially well positioned to meet software developers with AI-enhanced tools. It owns GitHub, the most popular platform for hosting and sharing code, and GitHub’s Copilot AI-powered coding tool was released months before OpenAI’s ChatGPT debuted in 2022.

But it fumbled one of the biggest first-mover advantages in history as Anthropic’s Claude Code, OpenAI’s Codex, and Cursor rolled out coding tools that developers loved.

Microsoft was initially well positioned to meet software developers with AI-enhanced tools. It owns GitHub, the most popular platform for hosting and sharing code, and GitHub’s Copilot AI-powered coding tool was released months before OpenAI’s ChatGPT debuted in 2022.

But it fumbled one of the biggest first-mover advantages in history as Anthropic’s Claude Code, OpenAI’s Codex, and Cursor rolled out coding tools that developers loved.

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