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157 2026 Predictions: Microsoft Buys an AI Coding Startup

The Information
Aaron Holmes @ The Information 3 place · today 09:00 EDT

2026 Predictions: Microsoft Buys an AI Coding Startup

Two years ago, Microsoft dominated the market for AI coding tools, which automatically generate code for developers.

That’s because it got early access to OpenAI’s models through its partnership with the startup, and at the time, Microsoft led the pack in code generation. As a result, Microsoft moved quickly to launch GitHub Copilot as the first widely available AI coding product in 2022.

Today, Microsoft has lost a lot of ground to tools like Cursor and Anthropic’s Claude Code, which closely compete with

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