This week, Microsoft’s annual Build developer conference kicked off with CEO Satya Nadella painting a rosy picture of new products and the expansive future of AI, especially “agentic AI.” Yet, beneath the surface of these optimistic announcements, a few challenges seemed to cast a shadow over the event held at San Francisco’s Fort Mason.
While competitors’ valuations have soared, Microsoft’s stock has seen a dip this year. The company’s workplace AI products, all under the “Copilot” umbrella, have experienced disappointing adoption rates. Furthermore, despite Microsoft’s early lead in coding tools, Anthropic’s Claude Code has emerged as a formidable contender with its innovative agentic approach, prompting Microsoft to discontinue its Claude Code licenses to push developers toward Copilot.
Adding to the concerns, GitHub, Microsoft’s crucial code repository, has suffered unprecedented downtimes. This has led to frustration among long-time users, with some even defecting and a Reddit post openly asking, “Has GitHub become a dumpster fire?” For Microsoft, losing the trust of the coding community would be a significant blow, recalling former CEO Steve Ballmer’s famous mantra: “Developers! Developers! Developers!”
Navigating the Agentic AI Wave
Scott Hanselman, a Microsoft VP and member of the GitHub technical staff, finds himself at the heart of Microsoft’s efforts to embrace the agentic AI revolution. Having spent years engaging with developers and championing GitHub and AI, Hanselman’s journey took an unexpected turn late last year. Contemplating leaving Microsoft after 18 years, he was reignited by the “agentic coding revolution” sparked by Claude Code and OpenClaw in November.
Hanselman played a pivotal role in bringing the open-source OpenClaw into Microsoft and was a key presence in Nadella’s Build keynote. He demonstrated how Microsoft’s “copilots” could automate tasks for coders, knowledge workers, and even everyday users. He seemed the ideal person to discuss what’s truly happening at Microsoft, especially after the company’s initial strong lead in generative AI. Has Microsoft lost its innovative edge?
Addressing GitHub’s “Hiccups” and Agent Adoption
Recent complaints from GitHub users about frequent downtimes have raised concerns about complacency. Hanselman acknowledges the issue, comparing the current traffic to GitHub to the early days of social media bots or email spam. He explains that current usage involves as many bots as human users, putting immense pressure on the platform. He believes GitHub is effectively scaling to meet this demand and views these instances as mere “hiccups.”
Hanselman stresses that while outages are noticeable, GitHub is operational 99% of the time. The sheer volume and speed of bot traffic are the primary culprits. Microsoft’s significant announcement at Build involved agents and the adoption of OpenClaw through a new product called Scout. Hanselman’s involvement was crucial, even bringing OpenClaw founder Peter Steinberger into the process, highlighting the synergy that emerges when open-source communities collaborate.
The “agentic coding rabbit hole” that captivated the tech world last November was a transformative period for Hanselman. He spent his holidays immersed in coding agents, and the journey has been a “rocket ship ride” ever since. When asked about Claude Code’s perceived lead over Microsoft’s Copilot, Hanselman respectfully disagrees, emphasizing that coding models are just one part of Microsoft’s broader commitment to developers and the open platform of Windows.
Trust, Tolerance, and the Future of AI
Microsoft envisions Scout’s adoption by productivity workers and consumers, but the prevalence of AI agents making mistakes and “hallucinating” raises questions about user tolerance. Hanselman acknowledges this challenge, suggesting a “trust but verify” approach. He advises users to start with small tasks, gradually increasing an agent’s responsibilities once its reliability is established. He cites a personal example of giving OpenClaw access to his blood sugar data as a Type 1 diabetic, finding proactive notifications “super useful” rather than controversial.
Hanselman recognizes that many people are skeptical or even hostile to AI. He views the current period as a “chaotic time” similar to the introduction of any new tool, whether a chainsaw or the internal combustion engine, as humanity learns to optimize it. He emphasizes personal choice, stating he doesn’t use AI for image or video generation, but finds it “a joy” for coding.
Despite the resistance outside the coding community and the underperformance of Microsoft’s AI productivity tools, Hanselman remains optimistic about agentic AI. He draws parallels to the initial skepticism surrounding the Walkman, which eventually became ubiquitous. While he doesn’t believe Microsoft is in “catch-up mode,” he acknowledges the “thumb war” nature of innovation where leads constantly shift. He proudly reminds critics that Microsoft pioneered the “Copilot” term, which has since become a widely adopted descriptor.
Ultimately, Hanselman feels this year’s Build conference has firmly re-established Microsoft’s position in the AI race. He recounts a moment backstage where even Mac users were impressed by the new Surface Laptop Ultra and developer tools, begrudgingly admitting, “Dang it, you’re going to make me get a Surface, aren’t you?”
Source: Wired – AI
