OpenAI generated $10 billion in revenue for Microsoft in the quarter ended Sept. 30, about 11% of the Redmond company’s total revenue, according to its quarterly filing Wednesday.

The amount is up sharply. In the fiscal year that ended in June, Microsoft recorded $24.1 billion in revenue from its business with OpenAI, or about $6 billion a quarter on average.

That $10 billion surpasses some of Microsoft’s longest-running businesses. Xbox brought in $5.4 billion in the quarter. Search and advertising, which includes its Bing search engine, generated $6.6 billion. Windows licenses sold through PC makers, along with Surface and other Microsoft devices, brought in $3.6 billion.

The total covers revenue-sharing payments from OpenAI, as well as other business between the companies, such as OpenAI’s use of Azure to train and run its AI models. Microsoft didn’t say how much came from each, or how much of Azure’s growth came from OpenAI.

Azure revenue rose 48% to $33.2 billion in the quarter, beating Wall Street’s expectations and the company’s own forecast of 44% to 45% growth.

Microsoft has begun disclosing its revenue from OpenAI because its stake of about 24% makes OpenAI a “related party” under accounting rules, requiring it to report the business they do with each other.

Microsoft first reported the number in its annual report in July, as a full-year total. This is the first time it has given a quarterly figure.

The original AI alliance: Microsoft first invested in OpenAI in 2019, eventually committing $13 billion, and became its exclusive cloud provider. ChatGPT ran on Azure when it launched in late 2022.

The companies have loosened their ties since then. OpenAI restructured as a public benefit corporation in October 2025, and Microsoft gave up its right of first refusal to supply OpenAI’s computing capacity. OpenAI committed to buy an additional $250 billion in Azure services. An April 2026 agreement gave OpenAI broader freedom to use other cloud providers.

OpenAI has also agreed to keep sharing revenue with Microsoft through 2030.

In addition, Microsoft sells access to OpenAI’s models to business customers through its Azure OpenAI Service, and the models became the foundation for its Copilot products, putting Microsoft at the front of the generative AI boom. That revenue comes from Microsoft’s own customers, so it isn’t part of the $10 billion.

Microsoft, for its part, now builds its own AI models and offers models from Anthropic and others.

Many customers, not a few: Asked by Bernstein Research analyst Mark Moerdler whether AI growth on Azure was coming from big businesses or AI-native companies, Microsoft CEO Satya Nadella didn’t mention OpenAI.

He said he doesn’t want Azure’s AI business to depend on a few big customers, and that broad adoption by businesses is just getting started.

Nadella described it as “a decade-long thing,” and contrasted it with relying on “four customers who buy a lot of capacity from you” to show a few quarters of growth. That, he said, is “not a business as far as I’m concerned.”

He added that Microsoft has large customers who want to buy capacity, “and as long as the pricing is right, we may sell them some. If not, we will be patient.”

Later in the call, Goldman Sachs analyst Gabriela Borges brought up the fact that OpenAI made up 11% of revenue. Nadella didn’t address the number but praised OpenAI’s latest models and said customers are increasingly mixing models from different companies, or training their own.

He cited Microsoft’s tools for routing each task to whichever AI model handles it best. If you use AI coding agents, Nadella said, you want Anthropic and OpenAI “to compete for your workload, not like once a quarter, but for every task.”

New risk language: Microsoft also expanded a warning in its quarterly filing about the risks of depending on outside AI providers. The company builds products such as Copilot on AI models from outside companies, including OpenAI and Anthropic. It now says it has “limited visibility into or control over” how those models are designed, trained, secured and tested.

Without naming OpenAI or Anthropic, the same section notes that some of these AI partners are also “significant customers of Azure,” and that the benefits Microsoft expects from those relationships “may not be realized or sustained.” It says those partners could change how much they buy, and that Microsoft itself may change how it allocates scarce data center capacity or prices it.

Microsoft is an investor in both companies. According to its latest filing, it owns about 24% of OpenAI, down from about 25% in June and about 27% after OpenAI’s restructuring a year ago, and has put $12.0 billion of a promised $13.0 billion into the company.

In addition, Microsoft agreed last year to invest up to $5 billion in Anthropic, and its results for the June quarter included a $3.2 billion gain on that investment. Microsoft hasn’t disclosed the size of its Anthropic stake, and Anthropic’s IPO filing earlier this week didn’t specify it either.

Microsoft’s Azure cloud business brought in $33.2 billion in revenue in the September quarter, up 48% from a year earlier, blowing past the company’s own forecast and beating Wall Street’s expectations.

The growth suggests that Microsoft is selling cloud and AI computing about as fast as it can install it. Azure revenue rose $10.8 billion from a year earlier, driven by demand for services across the platform, Microsoft said in its quarterly filing. That came even as some new data center capacity arrived late.

For investors worried about Microsoft’s record capital spending, it’s a sign that the company’s massive AI and cloud infrastructure buildout is turning into sales. Microsoft’s shares rose nearly 4% in after-hours trading following the earnings report.

Overall, Microsoft reported revenue of $92.3 billion for the first quarter of its 2027 fiscal year, up 19% and above the $90.75 billion analysts expected, according to Yahoo Finance. Earnings were $4.89 per share excluding the impact of its OpenAI investment, compared with expectations of $4.72.

It’s the first time Microsoft has reported Azure’s quarterly revenue figure, not just its growth. The disclosure is part of a new financial structure that took effect this quarter, splitting the company into two segments: Agents and Infra, and Devices and Consumer.

• Agents and Infra (Azure, Microsoft 365, Dynamics, LinkedIn’s recruiting and sales tools, and server and productivity licensing): Revenue rose 25% to $76.8 billion, above Microsoft’s forecast of $75.15 billion to $75.75 billion. Operating income rose 24% to $40.6 billion.
• Devices and Consumer (Windows, Xbox, and search and advertising): Revenue fell 3% to $15.5 billion, above Microsoft’s forecast of $14.7 billion to $15.2 billion. Operating income rose 2% to $5.4 billion.

Capital spending came in below Microsoft’s forecast. The company spent $45.2 billion, including finance leases, short of the more than $50 billion it expected. Some data center capacity that third parties were supposed to deliver in the quarter was delayed, the company said.

Google Cloud, which includes Google’s Workspace productivity apps, brought in $30.7 billion in revenue in the quarter, up 103% from a year earlier, Alphabet reported Wednesday afternoon.

Amazon reports earnings Thursday afternoon, including AWS results.

Update, 3:05 p.m.:Microsoft expects Azure growth to accelerate again this quarter, to 49% to 50% excluding currency changes, CFO Amy Hood said on the earnings call. “Customer demand continues to exceed available supply,” she said.

Hood said Azure’s growth came from Foundry, Microsoft’s service for building AI apps and agents, and from engineering work that let Microsoft sell unused capacity on its existing servers. That helped make up for delays in new data center capacity that outside providers were supposed to deliver.

Those delays pushed some spending later into the fiscal year. Microsoft now expects to spend about $170 billion on capital expenditures in calendar 2026, down from about $175 billion. It expects to spend more than $50 billion this quarter, and Hood said spending will accelerate in the first half of calendar 2027.

Hood also said Microsoft may tap additional sources of financing to help pay for the buildout, “when we believe it is attractive to do so.” The company still expects to bring in more cash than it spends this fiscal year.

Microsoft’s expense forecast for the December quarter includes an estimate for the buyout offer it announced Monday, Hood said, though she didn’t give the amount.

The company expects total revenue of $96 billion to $97.1 billion for the December quarter, above the $95.7 billion analysts expected, according to Yahoo Finance.

— Xbox Chief Operating Officer Helen Chiang has suddenly left Microsoft after 21 years with the company, just months after landing the role in July. Her past roles include leading Mojang and the Minecraft franchise.

Verge first reported the news on Friday, citing a memo from Xbox CEO Asha Sharma that did not disclose the reason for her departure.

An Xbox spokesperson was likewise mum on details. “We don’t discuss individual personnel matters. We’re grateful for Helen’s years of service and wish her well,” the company said in an email to GeekWire.

Xbox has undergone a massive reorganization that included Chiang’s appointment, roughly 3,200 job cuts through the fiscal year — about 20% of the Xbox workforce — the spinoff of four game studios and a plan to dramatically flatten management.

— Seattle-based tech leader Philip Su has joined Anthropic as a member of technical staff on beneficial deployments. The management role focuses on AI applications in global health, life sciences, economic mobility and education.

Su started his tech career with 12 years at Microsoft and later worked for Facebook. He has launched multiple ventures, including Audere, a global health software nonprofit, and Superphonic, a podcast player. In 2021, he worked at an Amazon fulfillment center to experience the holiday rush.

Su also created and leads an annual course for University of Washington computer science students on how to maximize their personal and professional growth.

— More leadership changes are underway at SeekOut, a Bellevue-based recruiting startup launched in 2017. The company announced Monday that co-founder John Tippett is now president, moving from his role as chief client officer.

In April, SeekOut CEO and co-founder Anoop Gupta retired and passed the reins to enterprise software veteran Sean Thompson. In August, co-founder and chief technology officer Aravind Bala took over as CEO. Thompson is now listed as an adviser to the board.

Tippett will lead day-to-day operations and work with Bala “on the company’s direction,” according to a press release. SeekOut said it wants to integrate AI tools into customers’ operations to reduce recruiters’ workload.

SeekOut is No. 68 on the GeekWire 200, a ranked index of the Pacific Northwest’s top startups.

— Fred Hutch Cancer Center has appointed Michael (Mick) Merritt as vice president of strategy and partnerships, effective Dec. 7.

Merritt joins from Penn Medicine, where he was chief operating officer of Penn Signature Services. He has more than 25 years of experience in academic medicine, consulting, strategy, business development and operations.

— Industrial wastewater treatment startup Membrion has named Alexander Demihovsky as director of applications engineering. He joins the Seattle-based company from Xylem. His past employers include Evoqua Water Technologies and Bechtel National.

“Alex helps turn customer needs into viable project plans, mitigate execution risks and develop competitive proposals,” the company said.

Membrion is No. 160 on the GeekWire 200.

— Marine geothermal energy startup Endurance Energy has named Marty Calvert as the director of turbomachinery. Calvert joins the Seattle startup from Blue Origin. He was previously a turbomachinery engineer at NASA for more than 13 years.

Endurance completed its fifth deployment to the ocean floor last month, testing Adélie, a 100-kilowatt geothermal generator named for a penguin.

— Lattice Semiconductor, a Hillsboro, Ore.-based company, has added two directors to its board:

• Raejeanne Skillern, former VP and chief marketing officer of Amazon Web Services, who returns to Lattice after serving on the board from 2022 to 2024
• John McCool, senior vice president and special adviser to the CEO at Arista Networks

Update, 10/28: Microsoft’s Azure cloud business brought in $33.2 billion in revenue in the September quarter, up 48% from a year earlier, blowing past the company’s own forecast and beating Wall Street’s expectations. Read the full story.

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Microsoft’s earnings report Wednesday will come two days after the company offered buyouts to about 60,000 people, roughly a quarter of its employees. The call gives executives their first chance to say what the offer will cost, and to explain how it fits with the company’s long-term view of its workforce.

Whether or not they go into those details, it’s one of several issues to watch in Wednesday’s report, the first under Microsoft’s new reporting structure. Anthropic’s IPO filing on Monday adds another storyline, showing how much the Claude maker has agreed to spend on Microsoft’s cloud.

Coming into the report, Microsoft’s stock is near its high. Microsoft closed Monday at $532.60, about 2% below its record close of $543.45 on Oct. 13, after gaining roughly $1.4 trillion in market value since late June.

Here are the key numbers and issues heading into Microsoft’s results for the first quarter of its 2027 fiscal year, ended Sept. 30.

Core numbers: Analysts expect revenue of $90.75 billion, up nearly 17% from a year ago, and earnings of $4.72 per share, up 14%, according to Yahoo Finance. Microsoft’s own forecast was $89.85 billion to $90.95 billion, so Wall Street is looking for a result near the top of that range.

In July, Microsoft reported $90 billion in revenue for the June quarter, well above the $87.7 billion analysts expected.

A new scorecard: Microsoft announced in September that it would sort its business into two groups instead of the three it had used since 2015. This is the first quarter under the new setup.

The first, dubbed Agents and Infra, includes Azure, Microsoft 365, Dynamics, LinkedIn’s recruiting and sales tools, and server and productivity licensing. It brought in 81% of Microsoft’s revenue and 88% of its operating income in fiscal 2026, based on figures Microsoft recast under the new structure.

Microsoft expects Agents and Infra revenue of $75.15 billion to $75.75 billion this quarter, which would be growth of about 22% to 23%, by GeekWire’s calculation.

The other group, Devices and Consumer, includes Windows, Xbox and search advertising. Microsoft expects it to bring in $14.7 billion to $15.2 billion, down 5% to 8% from a year earlier.

Azure, in dollars: Microsoft started disclosing Azure’s annual revenue last year, when it passed $75 billion, and topped $100 billion in fiscal 2026. Starting this quarter, it reports the figure every quarter. It also changed what counts as Azure: GitHub’s cloud business and Security Copilot now fall under Microsoft 365, and its healthcare cloud moved to a new industry unit.

Counted that way, Azure brought in $29.4 billion in the June quarter, up 42%. Microsoft expects growth of 44% to 45% this quarter, not counting currency fluctuations, which would put Azure at roughly $32 billion, by GeekWire’s calculation. That compares with the roughly 45% Microsoft projected in July, under the old definition.

Hitting that forecast may not be enough. Investors are looking for about 46%, BNP Paribas analyst Stefan Slowinski wrote in a note Monday. In January, Azure beat Microsoft’s own forecast and the stock still fell 10%, because investors had privately expected more.

“Azure moves the stock, but the read that matters is whether capacity is absorbed as fast as it lands,” wrote Dan Ives of Yorkville Ives in a note last week.

Capital spending: Microsoft expects capital expenditures of more than $50 billion for the quarter, which would be a record. That’s up from $41 billion in the June quarter and $34.9 billion a year earlier.

An accounting change reduces what Microsoft reports as capital spending, without reducing its planned investment. Microsoft now assumes its data center buildings will last 25 years instead of 15. As a result, more of its data center leases will be classified in a way that doesn’t count as capital spending, CFO Amy Hood said on the July earnings call.

That change alone lowered Microsoft’s capital spending estimate for calendar 2026 to about $175 billion, from the roughly $190 billion it projected in April. Hood said the company’s actual spending plans hadn’t changed.

Cloud margins: Microsoft Cloud gross margin came in at 65% last quarter, better than expected but down from a year earlier. Microsoft said it expects the figure to be relatively stable this quarter. It also expects operating margins to be roughly flat with a year ago.

Workforce: The new “voluntary exit” offer, announced Monday by Chief People Officer Amy Coleman, covers participating teams in the U.S., Canada, the U.K. and India. It has no age or tenure requirement and extends to some vice presidents. Employees have until the first week of December to decide, and Microsoft hasn’t said how much the offer will cost or when it will record the charge.

For the spring retirement program, Hood disclosed the cost on the April earnings call: about $900 million, with roughly $350 million in cost of revenue and $550 million in operating expenses. The charge showed up in the following quarter. About 30% of the 8,750 eligible employees accepted.

The new offer is less generous. It matches Microsoft’s standard severance, without the extended healthcare of the spring program, and the company expects a much smaller share of people to take it. But the pool of eligible employees is nearly seven times larger.

Microsoft says the offer doesn’t mean it needs fewer people. Coleman said in July that the company was studying whether to make voluntary exits a regular part of managing its workforce. It has told investors to expect operating margins roughly flat this quarter and down less than a point for the full fiscal year, even with record capital spending.

Nadella has addressed this before. In a July 2025 memo to employees, after Microsoft laid off about 15,000 people, he acknowledged the “uncertainty and seeming incongruence” of thriving financially while cutting jobs. “This is the enigma of success in an industry that has no franchise value,” he wrote.

In his annual shareholder letter last week, he focused on Microsoft’s spending on AI infrastructure. “Based on the demand we see and the efficiencies we are driving, I am confident in the long-term returns on our investments,” Nadella wrote. “We are building against a growing book of business tied to this secular shift.”

Microsoft had about 223,000 employees as of June 30, before it cut 4,800 jobs in July and more in September. The Information reported this month that Azure President Girish Bablani told leaders in his group to find ways to cut costs by at least 20%. Microsoft called the report inaccurate and said Azure leadership had not directed teams to develop cost-cutting plans.

Copilot: Microsoft said in July that businesses were paying for more than 30 million Microsoft 365 Copilot seats, up from 20 million in April. That’s still only about 7% of the more than 450 million commercial Microsoft 365 seats.

The bigger change is in how Microsoft charges for Copilot and its other AI tools. In July it added usage-based billing alongside per-seat pricing. It’s also pushing customers toward E7, a new premium bundle that includes Copilot. Microsoft expects Microsoft 365 commercial cloud revenue to grow about 17% this quarter, not counting currency swings, a number that now includes GitHub.

The BNP Paribas analyst Slowinski, who attended Microsoft’s Frontier Tour event in London last week, wrote that partners are seeing more customers roll out Copilot company-wide. Partners also told him that Microsoft now ties 35% of E7 sales incentives to how much customers use features like Cowork.

Anthropic and OpenAI: Anthropic’s S-1 filing shows the company has committed to spend at least $44.9 billion with Microsoft from November 2026 to May 2033, up from the $30 billion Azure commitment announced last November. That’s well below its minimum commitments to Amazon ($110 billion) and Google ($114.5 billion).

Microsoft agreed last year to invest up to $5 billion in Anthropic. Its results for the June quarter included a $3.2 billion gain on that investment.

OpenAI remains the bigger factor. Microsoft’s commercial remaining performance obligation (RPO), the measure of signed contracts it hasn’t yet delivered on, reached $678 billion last quarter, up 84% from a year earlier. Without OpenAI, the backlog grew 25%. OpenAI told investors its annualized revenue approached $50 billion at the end of September, The Information reported, lower than earlier reports of about $70 billion.

Windows: Microsoft expects revenue from Windows licenses sold to PC makers, along with its own devices, to fall a little more than 20%. Higher memory prices are making PCs more expensive, and PC makers are still working through extra inventory.

What’s next: Alphabet also reports Wednesday afternoon, and Amazon reports Thursday, setting up a side-by-side look at Azure, Google Cloud and AWS.

Anthropic is aiming to go public the week of Nov. 16, according to the Wall Street Journal.

Check back Wednesday afternoon for coverage.

Anthropic’s IPO filing reads like a ledger of who’s getting paid in the AI boom. The Seattle region’s tech giants are on the list, but they aren’t at the top.

The prospectus, filed Monday with the Securities and Exchange Commission, details more than $750 billion in computing deals, including firm commitments and estimated future spending, and offers clues about what its founders and biggest investors stand to gain ahead of the company’s planned Nasdaq listing under the ticker ANT.

Amazon and Microsoft have invested billions in Anthropic and won high-profile spending commitments from the Claude maker. But both trail Google, chipmaker Broadcom and Elon Musk’s SpaceX in their shares of Anthropic’s planned spending on computing power, the filing shows.

Following the compute money: Google’s chips are the biggest winner. Anthropic has lined up roughly $400 billion in computing capacity, mostly over the next seven years, based on Google-designed AI chips, known as tensor processing units or TPUs.

That total includes $114.5 billion to Google directly through July 2033, $161.2 billion in equipment leases with chipmaker Broadcom, and an estimated $125 billion to $150 billion in additional TPU capacity from 2028 to 2031.

Broadcom’s leases are the largest single arrangement in the filing. The five-year leases provide TPU-based hardware for data centers operated by other companies on Anthropic’s behalf.

Elon Musk’s SpaceX is next. Anthropic agreed to spend up to $120.5 billion through 2029 for computing capacity from SpaceX’s AI subsidiary, formerly known as xAI, which runs a rival AI lab.

The filing says payments will reach about $3.1 billion a month once all the capacity is delivered, which Anthropic expects in December. The agreements run into 2029, though either side can cancel on 90 days’ notice after early 2027.

Amazon is still a big winner. Anthropic committed in April to spend at least $110 billion with Amazon Web Services over 10 years, through April 2036, and AWS Trainium is one of four chip families that Anthropic uses to train and run its models.

Microsoft’s piece is smaller, which reflects its later start. The company was aligned closely with OpenAI for years before striking its own deal with Anthropic.

Anthropic has committed to spend at least $44.9 billion on Microsoft’s Azure cloud from November 2026 through May 2033, the filing shows. That’s up from the $30 billion Azure deal announced in November 2025. The deal has been amended twice since, most recently this month.

Claude is built into Microsoft 365, and former Microsoft CFO Chris Liddell joined Anthropic’s board in February.

Two smaller providers have deals in the same range as Microsoft’s. Anthropic agreed to spend up to about $44.6 billion with Nscale, a U.K.-based AI infrastructure company, and about $41.3 billion with GPU cloud provider Lambda, both for capacity powered by Nvidia chips, according to the filing.

Will Anthropic need it all? Most of the commitments can’t be canceled, and the deals with Microsoft, Google and Amazon require Anthropic to pay “regardless of actual usage,” according to the filing.

So far, the demand is there. Anthropic’s revenue hit $11.6 billion in the second quarter, up from $787 million a year earlier, and the company posted its first operating profit, $974 million. It still had a $66.3 billion net loss, mostly from accounting charges tied to its soaring valuation.

The company says it has “consistently operated in a compute-constrained environment where customer demand exceeds available compute.”

Its compute commitments assume that demand keeps growing. Anthropic spent less than $2 billion a month on compute and infrastructure in the second quarter. The SpaceX deal alone is expected to cost about $3.1 billion a month at full capacity.

Paper fortunes: Amazon’s biggest payoff is its stake, which it valued at $190.4 billion as of June 30 in its quarterly SEC filing. That includes convertible notes with $6.2 billion in principal that Amazon valued at $97.9 billion. The notes would convert into stock, subject to a 12% ownership cap that Amazon can waive.

Amazon is scheduled to report third-quarter results Thursday, its first earnings report since Anthropic’s filing. The Seattle-based company has updated the value of its Anthropic holdings in each of its quarterly filings this year, so a new number could come this week.

Google put $10 billion into Anthropic’s latest funding round and can invest up to $20 billion more under a March financing deal. The filing doesn’t give ownership percentages for Amazon, Google or Microsoft. It says only that the three companies have each made “significant equity investments” in Anthropic.

Anthropic’s seven co-founders hold roughly 230 million to 245 million shares each, worth about $14 billion apiece at the latest private funding price. The company also gave its own Public Benefit Fund about 847 million shares, or 5% of its fully diluted stock as of June 30, worth about $50 billion at that price.

Anthropic could begin formally marketing its IPO to investors as soon as the week of Nov. 9, Bloomberg reported, citing people familiar with the matter. It is aiming to go public the following week, according to the Wall Street Journal. The company expects the offering to match or beat the size of SpaceX’s IPO, according to Bloomberg. SpaceX raised $75 billion in June, the largest IPO on record.

A startup led by former GitHub CEO Thomas Dohmke is introducing its own platform for storing, reviewing and shipping code written by AI agents, competing with the company he used to run.

The startup, Entire, on Monday unveiled what it calls a Git forge — a service for hosting code, reviewing changes and running builds, the core of what GitHub does — designed for teams whose AI agents write code faster than people can review it. The company is pitching it as an alternative to GitHub.

The news comes two days before GitHub’s annual Universe conference in San Francisco. Microsoft acquired GitHub for $7.5 billion in 2018 and has since folded it into its CoreAI division.

The biggest change is Trails, Entire’s replacement for the pull request, the standard way developers propose and review code changes. The pull request “has become an audit log that only the agent reads,” Dohmke wrote in a blog post Monday. Instead of reading through every changed line, developers see a dashboard of scores from AI agents evaluating the code on each update.

According to Entire, multiple AI agents check the quality of each change, so developers can merge code without reading every line. Teams can also require a person’s sign-off, or passing automated tests, before any code goes in, the company said.

The launch comes as GitHub strains under the load from AI agents. The platform has had several significant outages in recent months, including one in August that lasted nearly eight hours. GitHub is moving from its own data centers to Microsoft’s Azure cloud to add capacity. GitHub said developers and agents made 7.38 billion commits, or saved code changes, on the platform in September alone.

Dohmke, who is based in Bellevue, Wash., left GitHub last year after nearly four years as CEO. Entire says it now has 50 employees. The company is fully remote.

Entire isn’t alone in rethinking code hosting for AI agents. AI coding company Cursor launched its own code-hosting service, Origin, in August. And Anthropic recently described building its own source control system as the number of code changes it merged each day grew from about 2,500 in May to more than 30,000 in September.

With the latest updates, Entire now lets developers host private code repositories directly on its service in the U.S., Europe, India and Australia, and says its service can handle up to 89 times as many code pushes per second as GitHub, based on its own benchmarks. It’s partnering with Buildkite and Depot on build and test pipelines, giving developers a way to move off GitHub Actions. Public repositories and self-hosting are on the roadmap.

Entire is also adding what it calls Continuous Memory, which lets AI agents search past coding sessions for the context behind earlier changes. The company says one part of it, a map of the codebase, cut token use by up to 71% in its testing.

That goes beyond the startup’s July launch, which mirrored existing GitHub repositories on a faster network rather than replacing them. Developers can still mirror from GitHub, or now move their code to Entire instead.

Microsoft’s venture arm M12 was among the backers of Entire’s $60 million seed round in February. Felicis led the round, with participation from Seattle-based Madrona and Basis Set Ventures, along with individual investors such as Yahoo co-founder Jerry Yang and Y Combinator CEO Garry Tan.

“Code review was always a bottleneck,” Dohmke said at a Madrona event last month. “I’ve never worked in a software company where I didn’t wait for somebody else to review my pull request, and you have to ping people in Slack three times. And there was this one guy that had to review everything because he knew what to look for. And now that bottleneck is 10 times bigger.”

Microsoft is making a new buyout offer to a much broader group of employees, this time including some executives — signaling that it’s not done shrinking its workforce despite thousands of layoffs and retirements this year.

The Voluntary Exit Offer, announced Monday in a memo to employees, is open to about 60,000 people in participating teams in the U.S., Canada, the U.K. and India, the company told GeekWire. That’s about a quarter of its workforce, which numbered 223,000 people at last count.

Microsoft didn’t provide a projection for how many employees will accept, but the company told GeekWire it anticipates a much smaller share than the roughly 30% who took its earlier voluntary retirement offer, which went to longtime employees more likely to take the deal.

“This offer gives eligible employees who may be considering a future outside the company a new choice to make that transition now with support,” wrote Amy Coleman, Microsoft’s chief people officer, in the memo to employees.

It also gives participating organizations within the company “another way to adapt their workforce to changing needs,” she added.

Microsoft’s count of 223,000 full-time employees as of June 30 was down from 228,000 a year earlier, according to its annual filings. That latest number came before its July layoffs.

However, Microsoft says the offer isn’t a sign that it needs fewer employees. Instead, a company spokesperson described it as one of several ways it’s adjusting to changing business needs.

The Voluntary Exit Offer includes financial support and career planning resources, according to the memo. It says eligible employees will receive the details by email.

The package is equivalent to Microsoft’s standard severance, according to the company, including base pay based on tenure and level, continued stock vesting, healthcare coverage for a fixed period and career transition services. It doesn’t include the extended healthcare that was a major draw of the retirement program. Employees have until the first week of December to decide.

The new offer does not come with any age or tenure requirement, and performance isn’t a factor, the company said. It goes up to level 70 on Microsoft’s internal scale, which includes general managers and some employees with vice president titles, but not corporate vice presidents.

That’s a big change from the voluntary retirement program that Microsoft offered this spring, which was the first in its history. That program was limited to U.S. employees at the senior director level (level 67) and below whose age plus years at the company reached a minimum threshold. The company described that as a one-time initiative.

Buyouts are still relatively rare among the largest tech companies, which have generally relied on layoffs, stricter performance reviews and return-to-office mandates to thin their ranks.

Like its peers, Microsoft is under pressure from Wall Street to hold down operating expenses as it pours tens of billions of dollars into data centers and AI infrastructure.

Microsoft cut 4,800 jobs in July, about 2% of its global workforce, including about 600 in Washington state, followed by hundreds more across the company in September. The company cut more than 15,000 jobs in 2025.

The company said the new offer is not a replacement for layoffs, which will remain part of the company’s approach depending on business conditions.

When Microsoft offered the retirement program this spring, about 30% of the roughly 8,750 eligible U.S. employees took the deal. Coleman told GeekWire in July that the results reduced the size of the layoffs Microsoft announced that month.

At the time, Coleman said Microsoft was studying how to make voluntary exits a more regular part of how it manages its workforce, possibly on an annual or ongoing basis.

Among the other changes this time, Microsoft is leaving it to business leaders to decide whether their groups participate, the company said. The company’s sales organization is not participating, nor are some engineering groups and corporate functions.

“There is no one-size-fits-all approach for every team or every employee,” Coleman wrote in the memo, explaining that participation by different groups “varies based on each business’s priorities, customer commitments, and workforce needs.”

She said Microsoft will keep helping employees build new skills and, where it makes sense, move into other jobs inside the company. Microsoft said in July that it had redeployed more than 4,000 employees into new roles over the previous year.

Microsoft reports quarterly earnings Wednesday afternoon, which could include projections for the cost of the new buyout offer. The company disclosed a $900 million charge for the retirement program in its April earnings report.

The name Frank X. Shaw isn’t as well known outside the company as those of Microsoft’s other senior leaders, and that’s the nature of the job. But behind the scenes, the company’s longtime communications chief has shaped its public image for nearly three decades, working for all three of its CEOs and handling its biggest stories along the way, from antitrust to AI.

Shaw announced in September that he’s leaving Microsoft at the end of the year. On this week’s GeekWire Podcast, he sits down for what amounts to an exit interview. We’re joined in the conversation by longtime Microsoft beat reporter Mary Jo Foley, editor in chief of Directions on Microsoft and a GeekWire contributing writer.

Shaw talks candidly about working for Bill Gates, Steve Ballmer and Satya Nadella, and about the situations he’d handle differently. He describes his behind-the-scenes dealings with some of the top reporters in tech, from an executive’s objection to a single word to the heated argument that changed how he saw his job.

He also reflects on how communications and media are changing in the AI era, and explains why trust still comes down to a belief in the person telling the story.

Listen below, and continue reading for highlights.

On Microsoft’s three CEOs: Shaw says intensity is what the three have in common, expressed differently: “Steve was outwardly intense. Satya is quietly intense, and Bill is cuttingly intense.”

Ballmer was the hardest to explain to the public, he says, because the loud-salesman caricature hid a thoughtful, detail-oriented leader who often played the boisterous public role because Microsoft’s sales force needed it.

On the clarity of hindsight: Big decisions look obvious once they work out, Shaw says. His example is the board’s choice of Satya Nadella as CEO. It’s seen as a no-brainer now, but at the time there was a lot of debate, there were other candidates, and it was a hard, complicated decision.

“When you get a decision right, it always looks easy afterwards,” he says. “If you get it wrong, you were just an idiot all along.”

On speaking up: A communications leader should weigh in when a decision could damage the brand, Shaw says, and he learned that the hard way.

When Mary Jo asks how he decides when to push back on executives, she raises the Kin as an example. Shaw says he thought the phone would fail. It was late to market, and it would cost more than people expected because it required a data plan. Engineers he talked to had their doubts, too.

But when Ballmer went around the table asking whether to launch it, Shaw stayed quiet, unsure a communications executive had standing to weigh in. Microsoft pulled it within weeks.

In hindsight, he says, framing it as a brand risk would have given him standing to speak: if the Kin failed, it would cause significant brand damage and hurt Microsoft with the younger audience it was trying to reach. He doubts speaking up would have changed the decision, but says he would have felt better about it.

On underestimating a story: A story that doesn’t get much initial attention can still define a company for years. Shaw’s example: Vanity Fair’s 2012 “lost decade” story.

As he recounts it, reporter Kurt Eichenwald told him, “If you don’t give me Steve and Bill, I’m just going to write a hit piece,” and then did. Shaw says he should have escalated to Vanity Fair sooner, and he underestimated how a story that got little immediate pickup would shape how reporters described Microsoft for the next four years.

On narratives: Continuing on that theme, Shaw says facts can be disputed but “narratives are sticky,” and a company can only change one by changing its own behavior. In the 2000s, he says, every story described Microsoft as “a convicted monopolist,” and ending stack ranking was part of how the company moved past the lost-decade image.

On what makes a good story: Shaw recalls having a shouting match with Rob Guth, then a Wall Street Journal reporter, over an article Shaw no longer remembers. It got heated enough that Shaw pulled his car over in Madison Park to keep arguing. (Guth now works as a writer and researcher for Bill Gates.)

Guth told him he was bad at his job because he thought the job was getting positive stories. What Shaw should want, Guth said, were interesting stories that showed something real about the company. Some would be less flattering, but they would be more memorable.

Shaw told him he was wrong. But after thinking it over, he concluded Guth was exactly right. A story about a product built perfectly that everyone loves is boring, he says. “That’s like the plane landed safely. Nobody cares.” The coverage worth hoping for illuminates part of the company in a memorable way, and that always comes with tension.

On taking risks with reporters: Cooperating on a story you can’t control is a risk worth taking when the result shows something real about the company, Shaw says. Asked by Mary Jo for an example, he points to The New Yorker’s long piece on Microsoft’s relationship with OpenAI, featuring Kevin Scott, the Microsoft chief technology officer.

Microsoft agreed to it knowing that the writer, Charles Duhigg, would talk to many people and test a thesis along the way, so there was no telling what would come out. Then Sam Altman’s brief ouster from OpenAI happened right before the story went to press. It was a risky story, Shaw says, but it captured the company at a revealing moment.

On corrections: Shaw’s test is whether something is “irritating” or “damaging.” Only factual errors that matter are worth pursuing, he says.

His example is a Bloomberg story by Dina Bass that described an executive as having “wooed” customers. The executive hated the word and wanted it changed, so Shaw made what he calls the run up the hill, pressing Bass on the exec’s behalf and asking her to check with her editors.

She pointed out that she hadn’t quoted the executive using the word, and the editors left it alone. The executive didn’t like it, Shaw says, but it wasn’t wrong.

On speaking with one voice: Shaw says a big part of his job was trying to ensure that a company of Microsoft’s size made sense to the world.

He recalls a Seattle Times reporter who got 26 pitches from Microsoft in one week and asked him which ones Microsoft thought were important. Sending pitches indiscriminately was a mistake, he says. The company needed to decide what three or four things mattered most and focus its messaging on those.

On building in public: Asked about recent internal memos pointing Microsoft toward more voices and less central messaging as he departs, Shaw says the company already has many employees talking about its products on LinkedIn, X and Reddit, and that’s a good thing.

Someone from Microsoft answering questions in a Reddit Excel thread doesn’t need to be babysat by the communications team, he says. He sees it as a continuation of what Microsoft did with Channel 9 and thousands of MSDN blogs.

At the same time, he says, there are moments, such as a big event or a major launch, when the company needs to break through.

“Every once in a while you want the world to know Microsoft had something to say today,” he says. That’s hard, it takes real effort, and it can’t happen every week or even every month, so the company has to pick those moments and do them right.

On AI and the media: AI can help spokespeople prepare, Shaw says, but asking it what Mary Jo will ask, for example, produces “generic Mary Jo questions.” The best interviewers, he says, deliberately avoid the predictable question.

On reporters’ styles: Preparing a spokesperson means knowing how a particular reporter works, Shaw says, and that comes from people who have sat through many of their interviews. His example is Steven Levy, the veteran tech journalist and Wired editor at large, who Shaw says can lull you with 10 minutes of easygoing conversation, then hit you with one sharp question after another.

Other reporters always sound negative in interviews but write straightforward stories, he says, and an executive who reads too much into the tone risks getting knocked off their game.

Asked to name the toughest reporter he has dealt with, Shaw pushes back on the label. Good reporters are tricky to work with because their job is to find things out and surprise you with what they know, he says. That doesn’t make them tough. What makes a situation difficult is usually a story with real conflict and tension, not the reporter.

On Microsoft in the AI era: Shaw sees AI in a transitional moment, moving away from a constant focus on the models themselves. Right now, he says, every new model release or manifesto makes everyone stop and look.

He hopes the attention will shift from new models to whether AI is actually useful, and he says that’s where Microsoft has historically been strongest.

Acknowledging that he’s still on the payroll and rooting for the company, he offers an analogy that will resonate with anyone who learned to drive a stick shift. The AI model companies want to drop a bigger, more powerful engine into businesses, and the result is often a lot of grinding of gears.

“We’re the clutch,” he says. Microsoft’s infrastructure, in his telling, lets companies absorb that power and get moving without the disruption of a new engine and a demand to go 110 miles per hour.

On journalism: “People trust what they hear because they trust the people,” Shaw says. Deep knowledge of a beat becomes more valuable as the world gets more transactional, he says, even as the business behind it becomes less sustainable.

On what’s next: Shaw plans to take some time off and isn’t making any big decisions. People have suggested consulting, another big communications job or board seats, he says, but he doesn’t want to rush into anything.

Mary Jo has a suggestion: run PR for OpenAI, “because man, they need somebody to help.” Shaw’s characteristically dry reply: “That would be such a low-stress job.”

Related links

• Microsoft comms chief Frank Shaw to exit after nearly three decades shaping the company’s message
• Internal memos: Microsoft shakes up communications as Nadella makes a push to build in public
• Microsoft’s ‘lost decade’: Vanity Fair piece accurate but incomplete
• Frank X. Shaw: Things I’m Thinking About
• Mary Jo Foley’s GeekWire stories

Edited and produced by Curt Milton; Music by Daniel L.K. Caldwell. 

I saw the news via GeekWire that after 17 years, the Microsoft Garage, which I co-founded, is coming to an end.

In software, 17 years is a very, very long time. I’m proud of how long it lasted.

The funny thing about the Garage is that it never should have existed. When we started it, Microsoft already had bigger, better-funded grassroots innovation programs. And none of us had any idea what we were doing. We’d never built anything like it.

And yet the Garage outlasted all of them. And grew bigger than any of them.

Some of that was luck. But I’d like to believe some of it was smart choices. Here are four that I think mattered, in hopes they help someone else with a similar opportunity.

In case you don’t want to read the whole thing, here’s the short version:

1. Doers, not talkers.
2. Make it a potluck.
3. Don’t worry about the billions.
4. Don’t be afraid to do epic shit.

1. Doers, not talkers

When the Garage started, the other innovation groups at Microsoft had one thing in common. They were built around ideas. Submit an idea. Vote on the ideas. Fund a few winners.

This was bad for a couple of reasons.

First, it attracted people who liked talking about things more than doing them.

Second, voting doesn’t work. Put ideas to a vote and the obvious ones win. But if an idea is obvious, someone has probably already built it. What you’re really looking for is someone with a special insight. Committees are terrible at spotting special insights.

So the Garage focused on people building small projects. Nobody had to vote. Nobody had to agree. If you wanted to build it, you built it.

That meant someone could build a test tool that made one annoying part of their job easier. Clark Roberts, Victor Boctor, and Mike Cook thought code reviews were too painful, so they co-built CodeFlow as a Garage project. It spread across Microsoft’s development teams and eventually into Visual Studio. Philip Su coded up Dr. Who, the fastest way to look someone up inside the company. Truong Do wanted one mouse and keyboard for all his computers, so he built Mouse Without Borders, which became the first Garage project released to the public.

None of those would have survived a vote. All of them were useful.

It also attracted a certain kind of person. The best coders are often the best because they just love to code. They code all day at work, then go home and code on nights and weekends. Those were Garage people.

Folks like Philip, who went on to be a tech CEO and site lead for Facebook and OpenAI. Vijaye Raji, who built Small Basic as a side project long before he founded Statsig and became CTO of Applications at OpenAI. And the CodeFlow crew: Victor, now a Technical Fellow at Airbnb; Clark, who leads engineering at TaxBit; and Mike, now an engineering leader at Clipboard Health.

As Chris puts it, they fell somewhere between startup founder and safe corporate employee. They wanted the security of a day job and also wanted to chase a dream. No surprise so many went on to do amazing things.

They weren’t interested in sitting around talking about ideas. They wanted to build things that solved their own problems.

It’s also why Ben Gilbert, now of Acquired fame, was the perfect person to take over the Garage after I left. Ben had always been a Garage type of person, building his own iPhone apps on the side. It’s the same doers-not-talkers spirit that led him and David Rosenthal to start hacking on Acquired way back before podcasts had blown up.

2. Make it a potluck

The Garage had a tiny budget. Me, one amazing contractor, Liane, and a little money for pizza and poster boards.

Meanwhile, one of the other groups had a chocolate fountain at their event.

Our tiny budget looked like a weakness. It turned out to be one of our biggest assets.

When people asked us to do something, we couldn’t just pay for it. When employees at Microsoft’s Hyderabad campus asked us to put on a science fair, we said: we’d love to support you, but you’ll need to find a way to fund it.

Two good things happened.

First, it was a great screen. Only the really motivated people made it happen. And when people know they’re expected to lead, they do.

Second, they went to their local leadership and got them to pay for it. And once leadership paid for it, it was their science fair. Not something some outside group was telling them to do.

This happened again and again. Bing wanted a science fair, so Bing sponsored it. The Developer Division wanted one, so DevDiv sponsored it. And because they were paying for it, their leaders wanted it to succeed. They showed up. And each one made the next easier. We could point to a science fair that had worked somewhere else instead of starting cold.

The Garage became something lots of people owned. The well-funded groups never got that. They were islands. Leaders saw them as distractions, and probably a little arrogant for thinking they knew how to innovate.

Turns out a potluck beats a chocolate fountain.

3. Don’t worry about the billions

I remember when Steve Ballmer visited Office Labs. Chris Pratley said that after the visit, Steve just asked: “So where’s my next billion-dollar idea?”

That one question explains a lot about why innovation is so hard at big companies.

If you’re an entrepreneur, a business doing $10M, $20M, or $30M a year is a huge success. At Microsoft, it’s a distraction. Big companies are looking for multi-billion-dollar businesses, and they’ll shut down things that are only tens of millions.

So the medium ideas get killed for being too small. And the big ideas need so many resources that they rarely make it either.

The irony is that billion-dollar businesses rarely look like it at the start. Facebook and Twitter didn’t even have a way to make money early on. Demand a path to a billion before you start, and you kill grassroots innovation.

We sidestepped all of that. The Garage was never about finding billion-dollar ideas. It was about supporting people doing grassroots innovation. Helping them build skills, ship things, make friends across the company, and make their own teams better.

Nobody could ask us where the billions were. We never promised any.

People always asked Ben, who ran the Garage after me, “What came out of it?” His answer: mostly culture. And keeping great people at Microsoft who went back to their day jobs re-energized. Look at that list of alumni again. Pretty good return on pizza and poster boards.

4. Don’t be afraid to do epic shit

One of my favorite Garage stickers said “Do epic shit.” We stole it from J Allard, who’d used it on Xbox.

It was controversial. People worried that a swear word in our materials wouldn’t be appreciated by everybody. They were right. It wasn’t.

But it had a very different energy from the rest of Microsoft. That was the point.

When you’re doing something like this, it helps to step outside the corporate culture and have a little fun. We never wanted to be arrogant. But we did do really fun stuff. Like a giant volcano, built by two pyromaniacs, that got bigger and bolder every time. Or giving people access to a laser cutter with only minimal training.

“Doers, not talkers” had the same tension. People worried it excluded folks who couldn’t code. And honestly, it did. But to have an identity, you have to say what you are and what you aren’t.

When you’re small and scrappy, you have to take risks. And you have to be willing to have an identity that isn’t for everybody.

Thank you

The Garage is ending, but I don’t think it’s really going away. It lives on in the people who built things there and took that habit with them. It definitely lives on in my network.

To everyone who ever hacked on something in the Garage, came to a science fair, ate pizza at Stay Late and Code, or set something on fire on purpose: thank you.

To those who got to be there at the beginning and in the middle of it all (Chris Pratley, Liane Donald, Ben Gilbert, Jen Michelstein, Joe Coplen, and others): it was a blast.

And if you only remember four things let them be: Find the doers. Make it a potluck. Forget the billions. Do epic shit.

— Kymeta has appointed former CIA Deputy Director Elizabeth Kimber as chief growth officer.

Kymeta, a Redmond, Wash.-based mobile satellite communications company, is working to increase sales with the Department of Defense, the intelligence community and other organizations in national security.

Kimber had a 37-year career with the CIA, departing in 2022 as the agency’s deputy director for operations. She most recently worked as a vice president with Two Six Technologies and has served on Kymeta’s board of directors for two years.

— Alaska Airlines has named Amaresh Siva as its first chief information technology officer. Siva joins from CVS Health and has held technology leadership roles for more than two decades at companies including Lowe’s, Target and GE Money.

“Technology touches nearly every part of how we run our airline and serve our guests, and Amaresh will bring our technology and digital teams together under one leader,” said Ben Minicucci, CEO of Alaska Air Group, in announcing the news.

— Vijaye Raji, founder and former CEO of Bellevue, Wash.-based Statsig and now OpenAI’s CTO of applications, has joined the board of Amplitude, a digital analytics and product intelligence company. OpenAI acquired Statsig last year, and Statsig and Amplitude announced a strategic partnership in May in which Amplitude would build on Statsig’s brand and customers.

“Statsig continues as a platform and brand within Amplitude,” Raji said. “Joining the board is an opportunity for me to help carry that mission forward as Amplitude and Statsig build their next chapter together.”

Here are four departures and arrivals for Microsoft leaders:

— Vasu Jakkal has left her role as Microsoft corporate vice president of security, compliance, identity, management and privacy after more than six years. She has joined Armadin, a Palo Alto, Calif.-based cybersecurity company, as chief strategy and business officer.

Jakkal is based in the San Francisco Bay Area and previously held executive roles at FireEye and Intel. She praised Armadin’s mission, which she described as building “autonomous security to stay ahead of attackers and build a safer world for all.”

— Microsoft VP Hans Yang is leaving. The Los Angeles-based leader, most recently focused on AI transformation, product strategy and growth, was formerly a general manager for Microsoft for Startups and Microsoft Learn.

“I think my next hill to climb is helping companies capture real ROI from AI,” Yang said, adding, “If you know a company that is struggling to get started with AI, or has invested but is not yet seeing meaningful value, I would welcome any introductions.”

— Venky Chandrasekharan is returning to Microsoft for the role of general manager of Windows commercial category and investments. He left the company in 2021 after 12 years and worked at Qualcomm and Acuity Brands in the interim.

“Having spent some of my most formative years at Microsoft, there’s definitely a sense of familiarity — but I’m coming back with new experiences, a broader perspective, and a lot of excitement for what’s ahead,” Chandrasekharan said.

— Meg O’Conor Bannecker has left Microsoft after two years leading communications for the company’s Washington state team. Past roles include communications leadership at NanoString Technologies, Bannecker Public Affairs and Pier 70 Ventures.

— Patrick Miller has been appointed as global division president of real estate company JLL’s technology sector. Miller joins from Snap, where he served as senior director of global workplace services. He previously oversaw real estate operations for Amazon’s Seattle-area headquarters for more than three years and has worked for Facebook and DTZ.

“I’ve spent my career on the client side … so I know exactly what it feels like to need a partner who shows up, tells you the truth, and solves real problems,” Miller said.

— DigniFi, a Bellevue, Wash.-based fintech company providing repair financing for autos, RVs, ATVs and other motorized vehicles, has named Jefim Piekarz as chief product officer. Piekarz joins from Arch, and his past employers include Skylab74, Welo, Octane and Etsy. Launched in 2012, DigniFi has facilitated more than $575 million in transactions for automotive merchants in the U.S.

— Seattle-based global logistics company Tideworks Technology has named two C-suite leaders:

• Mark Traynor, chief product and technology officer, joins from Lynxis. He is an entrepreneur who has worked in port, rail and terminal logistics for more than 20 years.
• Guenter Schmidmeir, chief revenue officer, joins from Avlino and has decades of maritime leadership from Germany.

— Adaptiva, a Kirkland, Wash.-based company automating software updates across computers, has named Allison Armstrong VP of product marketing. She joined from Elemica and has worked for Transmit Security, Hopin, Qualtrics, Apptio and others.

— Smarsh, a Portland, Ore.-based company providing communications data and insights, has appointed Alessandro Silva as its first chief growth officer. He joins from ACI Worldwide, and his past employers include Western Union and Carlyle Group. Silva is also a board member for Teach for America.

— Seattle-based Yoodli has named Mike Mather as chief learning advisor. The startup recently expanded from helping people practice speeches, sales pitches and job interviews to providing corporate training across wide-ranging skills. Mather is CLO for the accounting firm KPMG US and was previously a partner at EY, IBM and PwC.

“For most of my career, the hardest part of [learning and development] was the gap between training and the moment someone actually has to perform,” Mather said. “Yoodli closes that gap.”

— DigiStor, a company with offices in Austin, Texas, and Vancouver, Wash., that offers secure data storage products, has appointed Peter Bell to its board of directors. Bell co-founded StorageNetworks and serves as managing partner at Stowe Capital, among other roles.

— Seattle-area tech leader Jake Varghese has been promoted to chief product and technology officer for Dayforce, a Minneapolis company providing HR, payroll and related technology. He previously worked for companies including Microsoft, ServiceNow, Tanium and ConnectWise.

— The Association of Washington Business Institute has appointed Meagan Darrow as executive director. Darrow is also an adjunct professor at Evergreen State College and was most recently executive director of the American Diabetes Association. The AWB Institute is the nonprofit research and education affiliate of the association, a longtime organization advocating on behalf of its 8,000 members.

— Five Seattle-area physicians were appointed to the National Academy of Medicine:

• Dr. Susan Stern, professor emeritus and founding chair of UW Medicine’s Department of Emergency Medicine
• Dr. Elizabeth Swisher, professor in the Fred Hutch Clinical Research Division and UW Medicine’s Division of Gynecologic Oncology, as well as deputy director of the Fred Hutch/UW/Seattle Children’s Cancer Consortium
• Dr. Leslie Walker, chair and professor of UW Medicine’s Department of Pediatrics and chief academic officer at Seattle Children’s
• Dr. Dimitri Christakis, professor in UW Medicine’s Department of Pediatrics, pediatrician at Seattle Children’s and chief health officer with Special Olympics International
• Dr. Christopher Longhurst, CEO of Seattle Children’s and clinical professor with UW Medicine’s Department of Pediatrics

When Stripe co-founder John Collison interviewed Satya Nadella on his company’s podcast last fall, he asked the Microsoft CEO for advice on building a platform business. Collison will soon get to see how Microsoft does it up close.

Collison, 36, the co-founder and president of the Bay Area-based payments platform, has been nominated to Microsoft’s board, the tech giant disclosed Wednesday in its annual proxy statement.

He would fill one of two board seats opening up at Microsoft’s Dec. 8 annual meeting. LinkedIn co-founder Reid Hoffman said in June that he would leave, and the proxy reveals that Disney CFO Hugh Johnston, who chairs the board’s audit committee, is not seeking re-election either. Both have served on the board since 2017.

The proxy also notes that former EY CEO Carmine Di Sibio, appointed to the board in May, will stand for election by shareholders for the first time.

Microsoft’s board currently has 13 members, including Di Sibio. With Hoffman and Johnston leaving and Collison joining, it will go back to 12, the same number it had before Di Sibio joined in May.

Microsoft says Collison “brings extensive entrepreneurial and operational experience, along with deep expertise in technology.” He started Stripe with his brother, Patrick, in 2010, and businesses using Stripe processed $1.9 trillion in payments in 2025. Collison does not sit on any other public company board.

The board determined that he is independent, after considering ordinary business dealings between Microsoft and companies tied to its directors. The proxy doesn’t mention any business between Microsoft and Stripe, but the two companies already work together.

Stripe helps power Copilot Checkout, which Microsoft launched in January to let U.S. users of its AI assistant buy from Etsy sellers and other retailers without leaving the chat. In 2023, the companies teamed up to let businesses take card payments for paid events in Microsoft Teams.

The companies’ work together came up in the November episode of Stripe’s “Cheeky Pint” podcast. Collison said Stripe was building a platform business in agentic commerce, in which AI agents shop and pay on behalf of people, and asked Nadella what advice he had for a company building in such an early market.

Nadella said the key would be making it simple for small merchants to sell through AI agents, without asking them to set up servers or adopt a string of new technical protocols themselves.

The relationship goes back years. Nadella said he first visited Stripe’s San Francisco office when he was running Microsoft’s cloud business, before he became CEO.

He said Stripe reminded Microsoft of something it had once been good at, “following the developer, being where the startups are,” and said that thinking “led me even to GitHub,” the code-sharing platform Microsoft acquired in 2018 for $7.5 billion.

Microsoft is winding down The Garage as a companywide program, ending a 17-year run for the effort that gave employees space and tools for side projects and ran the company’s Global Hackathon, according to an internal FAQ viewed by GeekWire.

The program, with a flagship location on Microsoft’s Redmond campus and more than a dozen other sites from Vancouver, B.C., to Beijing, became part of the company’s push for a more experimental culture under Satya Nadella, who took over as CEO in 2014.

In the FAQ, Microsoft says the experimentation that started in dedicated programs and spaces like The Garage now happens “every day within each of our teams,” as employees build new skills and adopt new tools in their regular work. The FAQ says the company is “reinventing how we foster innovation, learning, and experimentation” across Microsoft.

The move comes as Microsoft spends heavily on AI, much of it for data centers and other infrastructure, while cutting costs and jobs in other parts of the business.

“We regularly evaluate how we use our physical spaces to best support our employees, customers and partners,” a Microsoft spokesperson said in a statement. “As part of that ongoing work, we’re making changes to some Garage spaces. Innovation and a builder mindset remain central to how we work every day.”

The company declined to comment further, including on the effect on Garage employees.

The Garage will no longer operate “as a centralized function,” according to the FAQ, and the impact on each physical space “will vary by location.” Some Garage spaces could be restricted as early as Friday, Oct. 23. Neither the FAQ nor Microsoft’s statement says which spaces are affected, including the flagship location in Redmond. Employees can’t take equipment, tools or materials with them.

The future of the Global Hackathon is also unsettled. The FAQ says the hackathon team is “reimagining the program” and that Microsoft will have more to share later.

Microsoft’s public Garage website, which showcased hackathon projects and experimental apps, was redirecting to the Microsoft homepage as of Tuesday morning.

Other longtime fixtures of Microsoft’s campus have closed this year. The company shut down its campus libraries in Redmond, Hyderabad, Beijing and Dublin in January, describing the move as a shift to a “modern, AI-powered learning experience,” and closed its Visitor Center in Redmond’s Building 92 a month later.

From Office Labs to companywide: The Garage started in 2009 inside Microsoft’s Office Labs group in Redmond, with the slogan “Doers. Not Talkers.” The idea was to support employees who were already building their own projects, rather than collecting ideas and funding the most popular ones.

The program took on a bigger role under Nadella. In July 2014, The Garage ran Microsoft’s first companywide hackathon, which drew more than 11,000 registrants from 80 countries. The event became an annual fixture of Microsoft’s culture.

The Garage also released experimental apps to the public, including Mouse without Borders, a tool for controlling multiple PCs with one keyboard and mouse, and Arrow Launcher, which became Microsoft Launcher for Android.

As of this year, Microsoft listed Garage locations in 15 regions, including Redmond, Vancouver, B.C., the Bay Area, New York City, Ireland, Israel, India and Beijing.

Employee reaction: On Blind, the anonymous workplace app that verifies users’ employers, a post titled “Amy kills the Garage” drew more than 70 comments. The poster attributed the move to cost-cutting by Microsoft CFO Amy Hood.

Another employee wrote that The Garage was where they met their friends on campus and made connections that advanced their career.

“The Garage offices were one of the last few cool things about Microsoft,” one commenter wrote.

Microsoft is coming out with new security tools that treat AI agents as potential insider threats, continuously assessing their risk and restricting their access when something changes.

The features, announced Monday, are part of Microsoft 365 E7, the company’s top-tier bundle of workplace software and AI tools, and its Project Perception security system.

They escalate the company’s competition with rivals such as Google, Amazon Web Services, CrowdStrike and Okta to become the system businesses use to control their AI agents.

Microsoft’s new features come amid a steady stream of news about AI agents doing things they weren’t supposed to do, including high-profile reports from Anthropic about test agents taking unauthorized actions on government websites, and from OpenAI about agents escaping test environments and stealing credentials.

The move builds on Microsoft CEO Satya Nadella’s Oct. 10 blog post arguing that the controls on AI models need to come from outside the models themselves.

“The most trustworthy Super Intelligence system will not be the one with the model we trust most,” Nadella wrote. “It will be the one that enables us to trust the model the least.”

Microsoft’s tools include a continuously updated risk assessment for each agent, based on signals such as what data it can reach and whether its actions are starting to depart from the task it was given. When the risk level rises, the system can take away the agent’s ability to make changes while still letting it read data, require a person to approve a high-stakes step, or shut the agent down.

In addition, the company is expanding its ability to find AI agents running on employees’ computers, increasing the number of agent types it can detect to 60, up from 25. The list includes popular tools such as Anthropic’s Claude Code, OpenAI’s Codex and GitHub Copilot.

Microsoft is also adding “Guardian Agents” to Project Perception, an AI security system it unveiled in July that uses AI agents to find and fix security problems. The new agents can investigate why another agent’s risk changed and recommend or take steps to contain it.

The company’s new features are in private preview, with broader availability planned for Microsoft’s Ignite conference, Nov. 17-19 in San Francisco.

The E7 licensing level, which launched in May, costs $99 per user per month. It also includes the Microsoft 365 Copilot AI assistant, the company’s E5 suite of productivity and security tools, its Entra Suite identity tools and Agent 365, a service for managing AI agents.

Microsoft committed $10 million to President Trump’s White House ballroom project, and Amazon and T-Mobile each chipped in $5 million, according to an internal donor list obtained by the Washington Post and reported by the newspaper Thursday morning.

The commitments are drawing scrutiny because the ballroom donations aren’t subject to campaign finance limits or disclosure requirements. The money goes through a nonprofit, the Trust for the National Mall, into a White House account the president directly controls.

Of the $333 million raised so far, the vast majority came from companies and wealthy people with interests before the federal government, the Post found, raising concerns among experts that companies could be buying influence with the administration, or feeling pressured to give.

The White House publicly named Microsoft, Amazon and T-Mobile among the ballroom’s donors last October but didn’t disclose the amounts. Other donors asked to keep their names out of it entirely, the Post found, including a subsidiary of mortgage lender Rocket, which committed $10 million weeks after a federal agency approved its acquisition of Mr. Cooper.

The Seattle-area companies have a wide range of dealings with the government as suppliers, regulated businesses and targets of federal scrutiny. Microsoft and Amazon are two of the federal government’s largest technology providers, and T-Mobile requires regulatory approval across its business, from wireless spectrum to acquisitions.

Amazon is facing an FTC antitrust trial next year, focused on its treatment of third-party sellers on its online marketplace. The FTC and 22 states also sued Amazon in August, accusing it of rigging ad auctions to overcharge advertisers.

Microsoft is at odds with Vice President JD Vance and the Labor Department over claims that the company laid off American workers while sponsoring foreign workers for permanent residency, leading the department to suspend the company from the program.

Apple and Nvidia were among the top contributors at $25 million each, according to the list of 67 donations above $10,000. Microsoft’s $10 million puts it in the next tier with Palantir and Lockheed Martin, while Amazon and T-Mobile joined Meta, Cisco and ServiceNow at $5 million.

White House spokesman Davis Ingle told the Post that the donors are “a wide array of great American companies and generous individuals, all of whom are contributing to make the People’s House better for generations to come.”

A Microsoft spokesperson said the company didn’t have a comment beyond what has been publicly reported. We’ve contacted Amazon and T-Mobile for comment.

Microsoft President Brad Smith says someone apparently “failed to inform the vice president accurately about our numbers” before the Trump administration cut off the company’s ability to sponsor foreign workers for permanent residency.

In an interview with Politico, published Thursday, Smith rejected Vice President JD Vance’s accusations of fraud and called his claim that Microsoft replaced laid-off Americans with foreign workers “completely off base.” He said Microsoft has “always been committed to a high integrity and high compliance” approach to immigration.

“We will stand by our record,” Smith said. “And I hope that folks at the White House might look again and look at what we think is a more accurate picture.”

At a White House news conference last week, Vance said Microsoft laid off 6,000 American workers last year while receiving 6,300 H-1B visas and nearly 3,000 green cards.

“If you do the math, for every worker that Microsoft laid off, they replaced that worker with one and a half foreign indentured servants,” Vance said, after asserting that there “has been no company in the United States, unfortunately, that has abused the system more than Microsoft.”

Critics of the visa programs say tech companies have used them to displace U.S. workers, and that the job ads companies must run before sponsoring workers for green cards often appear in places few American job seekers will see. Labor Department records show Microsoft’s required print ads ran mostly in The Seattle Times.

Smith said most of Microsoft’s recent visa and green card applications were for people already working at the company, many of them for years, because of long green card backlogs. He also said Microsoft hired 9,200 American workers in its last fiscal year, a number he said was “left out of the narrative.”

The Microsoft executive also rejected the idea that the company pays visa holders less. “It doesn’t matter whether you came on a visa or you’re an American worker,” he said. “Everybody has the same compensation system.”

He warned that the crackdown could send “the most talented next wave” of engineers to other countries. Five of the six tech leaders President Trump honored with national medals last week, including Microsoft CEO Satya Nadella, came to the U.S. as immigrants, Smith noted, and their companies together account for more than 25% of the value of the S&P 500.

“Let’s not put that at risk,” he said.

The suspension doesn’t stop Microsoft from hiring foreign workers on H-1B visas. Those are temporary work visas, typically granted for three years at a time and generally limited to six.

Amazon led in H-1B approvals for new employment in fiscal 2025, with 4,644, followed by Meta with 1,555 and Microsoft with 1,394, according to an analysis of USCIS data by the National Foundation for American Policy.

What Microsoft lost is access to a key step toward permanent residency. The program, known as PERM, is run by the Labor Department. Companies use it to sponsor foreign employees for permanent residency, also known as a green card. The employer has to advertise the job and show the department that no qualified, available U.S. worker can fill it.

PERM is commonly used for employees already working in the U.S. on temporary visas, including H-1Bs.

The interview didn’t address Microsoft’s outsized use of PERM. The company had more PERM cases decided than any other employer in fiscal 2025 and the first nine months of fiscal 2026, according to a GeekWire analysis of Labor Department data. Other big tech companies, including Amazon and Google, sharply reduced their PERM filings after early 2023.

In less than four months, Microsoft has added roughly half an Amazon to its market value.

The tech giant’s stock has gained about $1.4 trillion in value since early summer, rising from $352.83 on June 25, its lowest close in more than a year, to a record close of $543.45 on Tuesday, giving it a market value just above $4 trillion. The increase over that period is nearly as much as Tesla is worth.

As stock turnarounds go, it’s extraordinary. In January, Microsoft lost $357 billion in a single day, the biggest one-day drop in its history, as investors worried about the company’s AI spending and its reliance on OpenAI. By midsummer, Microsoft was the worst performer this year among the big tech stocks known as the “Magnificent Seven,” according to Morningstar.

The rebound accelerated in late July, when Microsoft reported that Azure, its cloud platform, grew 43% and topped $100 billion in annual revenue. The stock jumped 15.5% the next day. It has mostly kept climbing since, as Microsoft rolled out a revamped Copilot app, a new AI push for Windows and new AI chips.

Microsoft isn’t rising alone. The broader stock market has also been hitting record highs, led by AI stocks. The S&P 500 closed above 7,800 for the first time last week, even as the benchmark 10-year Treasury yield reached its highest level since 2002.

Microsoft CEO Satya Nadella has been making a broader pitch along the way. In an essay posted on X in July, he warned that companies relying on outside AI labs “pay for intelligence twice, once with money, and again with something even more valuable,” meaning their own knowledge.

He urged businesses to keep control of that knowledge and avoid tying themselves to any one AI model. Microsoft sells access to models from OpenAI, Anthropic and others, along with its own.

Last weekend, he took up a related theme, calling on X for an “emergency brake” on advanced AI models. That means “separating the model from the harness that orchestrates its work,” he wrote. “We must assume a model is compromised and contain it from the start.”

The message also fits Microsoft’s business interests. As companies use AI models from multiple providers, the advantage could shift to companies like Microsoft that run the cloud and workplace software where businesses keep their data.

Microsoft reports its next quarterly results Oct. 28.

When Peter Lee announced two weeks ago that he was leaving Microsoft, he said only that his next job would fulfill “a dream I’ve had since childhood.”

The dream, it turns out, comes with a pit crew.

The longtime Microsoft Research leader, who is leaving his post as president of Microsoft Science after more than 16 years at the company, plans to join the Mercedes Formula 1 team in a newly created AI advisor role, according to a report by Fortune.

As a career turn, it isn’t as much of a surprise as it might seem. Lee raced karts and Formula Ford as a kid, and he was once a licensed auto body technician, he told GeekWire last year. He had a replica 1955 Porsche 550 Spyder converted to electric and was in the middle of converting a 1968 Ford Mustang GT Fastback last year.

He called cars “a great laboratory” for AI models that decide an agent’s next move.

“The thing I’ve always loved about cars, and why I love to work on cars, is you actually finish something,” he said in that interview. “That never happens in software.”

At Mercedes, he’ll focus on using AI to tackle physics problems for the team’s car, breaking down organizational and data silos, building financial and predictive models, and advising the team on how F1’s regulators might govern AI. He’s expected to join on a one-year contract with an option for a second. His exact title is still being worked out, according to the report.

“I’m completely thrilled, and I’m in disbelief that they would think of me for something like this,” he told Fortune.

His exit is part of a broader wave of senior departures from Microsoft this year, including LinkedIn and Office chief Ryan Roslansky and communications chief Frank Shaw.

Microsoft plans to run most of its AI services on chips it designs itself, a shift that could save the company billions of dollars and reduce its dependence on industry juggernaut Nvidia.

The company on Monday unveiled Maia 300, the third generation of its custom AI chip, saying it will begin large-scale deployments in 2027. In a blog post, Azure chief Scott Guthrie said Maia will become “the primary AI inference system for Microsoft products and services.”

Microsoft CEO Satya Nadella called it “our biggest bet yet on our own silicon” in a post on X.

Maia 300 will produce 40% more AI output for the same amount of power as leading GPU-based systems, which Nvidia dominates, according to the company.

A full rack of the new chips will produce up to seven times as much AI output as the current generation, the company says. They’re designed for the kinds of tasks that are growing fastest, such as AI agents that work through multistep jobs and models that handle long documents or conversations.

The Redmond company designs the chips and relies on Taiwan Semiconductor Manufacturing Co. (TSMC) to make them, rather than buying finished chips from Nvidia. More-efficient chips also let Microsoft run AI services using less electricity, at a time when power supply has become one of the biggest constraints on AI expansion.

Microsoft and Nvidia remain big partners. Nadella and Nvidia CEO Jensen Huang shared the stage last week to launch Windows PCs built on Nvidia chips. Nvidia also remains a key supplier for Microsoft’s data centers, and Nadella said on the company’s July earnings call that Microsoft will be among the first cloud providers to deploy next-generation systems based on Nvidia’s Vera Rubin and AMD’s Helios.

Microsoft’s move is part of a larger trend among tech giants to design their own AI chips. Google has started selling its Tensor Processing Units directly to some customers, and Amazon has won over AI companies including Anthropic with its Trainium chips. Meta has rolled out its own AI chips, and OpenAI unveiled its first custom chip, built with Broadcom, in June.

Microsoft has been playing catch-up. Unlike Google’s and Amazon’s chips, Maia isn’t available for outside customers to rent. Microsoft’s first Maia chip, announced in 2023, was followed by a second-generation Maia 200 this January after delays. As of this summer, Maia 200 was running in just two U.S. data centers, The Information reported in August.

Maia 200, the current generation, already powers Microsoft 365 Copilot and runs models from OpenAI as well as Microsoft’s own. It’s now being deployed across the U.S., Europe and Australia, according to Microsoft. GitHub Copilot and Microsoft Foundry are set to move onto it by the end of the year.

The shift will take time. Evercore ISI analysts estimate that Maia will account for about 10% of Microsoft’s spending on AI chips by early 2027, CNBC reported.

Microsoft says it will share more details next month at its Ignite conference in San Francisco.

Satya Nadella arrived in the U.S. from India in 1988 to study computer science. Over the next three decades, he went from a temporary work visa to permanent residency to American citizenship, and rose up the ranks at Microsoft to become only the third CEO in its history.

“I don’t think my story would be possible anywhere else,” Nadella wrote in his 2017 book, “Hit Refresh.” “I am proud today to call myself an American citizen.”

On Thursday, President Trump personally handed the Microsoft CEO the National Medal of Technology and Innovation. The award cited his “transformative leadership of a critical American technology company, which led to its rejuvenation for a new era of cloud computing.”

Nadella thanked Trump on X, writing that he was “humbled to stand alongside so many giants of American innovation.” The other honorees were Dell Technologies CEO Michael Dell, who also received the technology medal; and Elon Musk, Google co-founder Sergey Brin, Nvidia CEO Jensen Huang and AMD CEO Lisa Su, who received the National Medal of Science.

Five of the six were born outside the country.

Hours earlier, the Trump administration had suspended Microsoft from the federal program it uses to help foreign workers take the same path to permanent residency. Vice President JD Vance said the company had abused the system by laying off American workers while hiring foreign workers, and called H-1B workers “foreign indentured servants.”

“Our message to Microsoft is you’re a great American company, but you’ve got to hire great American workers,” Vance said at a White House news conference.

Two different programs: The suspension doesn’t stop Microsoft from hiring foreign workers on H-1B visas. Those are temporary work visas, typically granted for three years at a time and generally limited to six years, with some exceptions. They’re overseen by U.S. Citizenship and Immigration Services.

Amazon is the bigger user of H-1B visas. It received more than 19,000 approvals for H-1B petitions in fiscal 2025, about three times Microsoft’s total, according to an analysis of USCIS data by the National Foundation for American Policy. The totals include renewals and extensions, so they don’t represent individual workers.

The program to which Microsoft lost access comes later in the process.

Known as PERM, it’s run by the Labor Department and is usually the first step when a company sponsors an employee to stay in the U.S. permanently. The employer has to advertise the job and show that no qualified, available U.S. worker can fill it. Most applications are for people already working in the U.S. on H-1B visas.

Microsoft is the biggest user of PERM. The Labor Department ruled on 3,161 of its applications in the fiscal year that ended in September 2025, more than for any other employer in the country, according to a GeekWire analysis of the agency’s data. Microsoft also led in the first nine months of fiscal 2026, with 1,683 applications decided through June.

Amazon and Google filed thousands of PERM applications in 2022 and early 2023, then largely stopped. The Labor Department ruled on 39 applications from Amazon and its subsidiaries last fiscal year, including Whole Foods, Audible and Zappos, and three from Google.

The suspension could hit hardest for Microsoft employees already on H-1B visas. Many count on the company to start the permanent residency process in time to extend their visas past the usual six-year limit, and the Labor Department says it won’t process Microsoft’s pending applications either.

Some Microsoft employees on H-1B visas were surprised by the news and unsure whether it would affect them, The Seattle Times reported. The paper noted that the White House hasn’t provided evidence of fraud by Microsoft.

Microsoft’s response: In a statement posted Thursday, Microsoft pushed back on criticism of its hiring and said it looks forward to “providing the Administration with additional information.” The statement focused on H-1B visas and didn’t address the PERM suspension specifically.

The company said about 80% of the roughly 6,000 H-1B applications it filed last fiscal year were to extend or change the status of people who already work at Microsoft. “These were not to hire new people,” it said.

The rest were for new hires already living in the U.S. legally, a group equal to about 1% of Microsoft’s U.S. workforce. “They are not new arrivals to our country,” the company said.

Microsoft also said it files H-1B petitions only for workers who meet “the rigorous standards of this visa category,” pays them “the same as any other employees doing comparable work,” and offers wages “among the highest of all H-1B filings.”

The vast majority of its U.S. employees are Americans, the company said.

Nadella’s own path: Nadella’s route to citizenship wasn’t a straight line, as he described in “Hit Refresh.” He was working at Microsoft when he married his wife, Anu, in India in December 1992. The next summer, her application for a visa to join him in the U.S. was rejected because she was married to a permanent resident.

Spouses of permanent residents faced long waits, and Microsoft’s immigration lawyer told Nadella it could take five years or more to bring her to the U.S.

Nadella considered quitting Microsoft and moving back to India. Then the lawyer suggested a different approach: give up his permanent residency and go back to a temporary H-1B visa, which would let his wife join him right away.

In June 1994, Nadella went to the U.S. embassy in New Delhi, past the long lines of people hoping to get visas, and told a clerk he wanted to give up his permanent residency. The clerk was dumbfounded, Nadella wrote. The plan worked, and Anu joined him in Seattle, where they started a family. Nadella eventually got back on the path to permanent residency and later became a U.S. citizen.

But in the meantime, back in Redmond, Nadella became known around the Microsoft campus as the guy who gave up his green card. Colleagues called him for advice. One, Kunal Bahl, later left Microsoft when his H-1B ran out before his permanent residency came through. He returned to India and founded the e-commerce company Snapdeal.

“Such is the perverse logic of this immigration law,” Nadella wrote.

GeekWire is profiling over the next few weeks some of the people and teams that are shaping the evolution of Microsoft in what we’re calling its “Microsoft 2.5” era.

A delicate dance: In August 2025, Microsoft moved to integrate GitHub into the mothership, under its CoreAI division, after having allowed it to run as a quasi-independent entity since acquiring it in 2018. At the same time, GitHub CEO Thomas Dohmke announced he would leave the company at the end of the year.

A number of developers feared the worst: GitHub would become just another arm of Microsoft and lose the community-mindedness that had made it attractive to developers of all stripes, and especially open-source ones.

GitHub Chief Operating Officer Kyle Daigle — a 13-plus-year GitHub veteran — had been one of the main champions of the need to “keep GitHub GitHub.” He maintained that stance even after he added the “Chief Marketing Officer of Developer” title for all of Microsoft to his COO role in January 2026.

So, how has Microsoft done this past year with managing GitHub? In an interview with GeekWire, Daigle acknowledged that GitHub’s relationship with Microsoft has changed since the end of the standalone CEO era. But the goal is no longer just “don’t break GitHub.” It’s to export GitHub’s community, developer-first ethos and learnings across Microsoft.

GitHub has influence beyond just the GitHub product set now, Daigle said. And the fact that Microsoft opted to consolidate its developer-facing messaging and community outreach under Daigle, someone who came from GitHub, not from Microsoft’s traditional DevDiv organization, gives weight to his claim.

“Bringing teams together — engineering teams and marketing teams and everyone that wasn’t talking to each other before — has been a really big part of the work,” Daigle said. “I see all these opportunities for GitHub to directly help and impact the overall mission of Microsoft versus keeping it cloistered in a way that isn’t helping either GitHub’s mission or Microsoft’s mission.”

These days, developer teams across Microsoft and GitHub are sharing foundations and the GitHub Copilot software development kit across organizations “in a way that would have seemed improbable before,” he said.

As Microsoft historians know, “Microsoft’s challenge isn’t creating products. It’s connecting them,” Daigle said.

Growing pains: At the same time, the rise of AI agents has strained GitHub’s infrastructure. Over the past few months, GitHub has experienced some significant outages, including one in August that lasted nearly eight hours.

GitHub officials have said they are migrating from their own datacenters to Azure to try to ease some of the capacity issues. Daigle said it’s not a simple lift-and-shift process; rather, it’s a major re-architecture for the platform.

GitHub is roughly 60% through its Azure migration as of early October, he said.

It’s working with Azure storage teams on separating compute and storage for the Git distributed version control system to help alleviate bottlenecks caused by developers and agents working concurrently in the same repositories. Developers and agents made 7.38 billion commits on GitHub in September alone, according to the company.

GitHub’s recent growth would not have been manageable without Microsoft scaling expertise and Azure support, Daigle said. GitHub is in a unique position of being able to request major additional capacity, such as millions of CPUs, and work with Microsoft teams to provision it, he said.

The GitHub app and agent store: GitHub got its start as a platform for source control and collaboration. But its role is evolving as part of its Microsoft integration. In addition to developing and supporting Microsoft’s most successful Copilot, GitHub Copilot, GitHub has an important place in Microsoft’s agent-centric strategy.

GitHub is becoming “the store for anything that needs to be coded and needs some verification,” Daigle said. “We’ll connect you to whatever the right tool inside of Microsoft is for you to run that or whatever tool you’re using, not just (from) the Microsoft product suite.”

In the new world order, GitHub isn’t just the store for apps. Increasingly, it’s also the store for agents, which means GitHub is acting as the developer layer for Microsoft’s “agent factory” strategy.

(Microsoft co-founder Bill Gates envisioned Microsoft as a “software factory” that could produce software at scale. These days, CEO Satya Nadella and team talk about Microsoft as an “agent factory,” helping customers create agents at scale.)

GitHub currently serves more than 200 million developers, plus an unknown but quickly growing number of agents.

Developers need to be thinking in new ways when it comes to agents, Daigle said. They need to consider ideas such as scaling application programming interfaces (APIs) for agents separately from humans, creating APIs designed specifically for agents, rewriting documentation and tooling so agents can consume GitHub efficiently, and treating agent access as a fundamentally different workload from human access.

In the longer term, Daigle said he expects AI to make software economically viable for smaller audiences, such as a family, an individual or a single team. The app-store model may change substantially in the coming years, as people create highly specialized applications. GitHub could help like-minded users discover software for specific interests, such as a narrowly focused household or community use case.

GitHub historically has considered anyone who has seen or touched code to be part of the developer community. Daigle’s vision is for GitHub and Microsoft to let both professional developers and newer builders create and run software and agents without needing to manage token costs, uptime, monitoring or operational overhead.

GitHub will have more to say about its plans at the GitHub Universe conference in San Francisco, Oct. 28-29. The event won’t focus on code generation alone; it will include information on tools covering the full lifecycle, proactive security approaches and how to determine whether software is working well after deployment.

“We’re looking to solve the core parts of the platform, like Git, like Actions, in a way that I hope will make people excited and feel like they can absolutely trust GitHub for the next decade to come,” Daigle said.