Has Microsoft Lost Its Mojo (Again)?

Microsoft is facing internal and external challenges as its Copilot AI products struggle to gain traction and competitors like Anthropic gain ground in agentic coding. Despite efforts by leadership to pivot toward agentic AI, the company is grappling with technical instability at GitHub and a loss of developer confidence.
Why it matters
As a dominant force in software development, Microsoft's ability to maintain the trust of the developer community is critical to its long-term success in the AI era.
Photo-Illustration: WIRED Staff; David Ryder/Getty Images Comment Loader Save Story Save this story Comment Loader Save Story Save this story This week, Satya Nadella kicked off Microsoft’s annual Build developer’s conference with typical boasts about new products and a sunny view of AI. The focus of his speech was how Microsoft was going gaga for agentic AI. But there was a cloud over the gathering at San Francisco’s Fort Mason, and I’m not talking about Azure .
The article provides a critical business analysis of Microsoft's current strategic position without clear partisan political bias.
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