Microsoft has reportedly enlisted Amazon Web Services (AWS) to help manage surging demand on GitHub, the popular developer coding platform, after experiencing capacity constraints that strained its infrastructure.
According to Business Insider, Microsoft is partnering with Amazon—its top rival in the cloud computing market—to address GitHub’s growing resource needs. Two sources familiar with the arrangement confirmed the collaboration.
GitHub adopts a multi-cloud approach
Microsoft purchased GitHub in 2018 with the goal of migrating the platform fully to its own Azure cloud by 2027. However, that timeline may need to be adjusted due to current pressures.
GitHub serves as a central hub for developers to host code repositories, coordinate software projects, and work together in real time. Prior to Microsoft’s acquisition, GitHub relied primarily on its in-house data centers for operations.
A significant spike in AI-driven coding tools has dramatically increased activity on GitHub. In April 2026, GitHub’s Chief Operating Officer Kyle Daigle posted on X that code commits—individual changes saved to repositories—were expected to hit 14 billion in 2026, up from just 1 billion in 2025.
To cope with this surge, Microsoft is leveraging additional computing power provided by AWS. While a Microsoft representative acknowledged that GitHub uses multiple cloud providers, they declined to specifically confirm Amazon’s role.
“The explosive growth in agentic development since late 2025 has pushed our systems to their limits,” the spokesperson explained. Microsoft added that it remains committed to moving GitHub to Azure but will continue using a multi-cloud strategy in the interim.
When contacted by Business Insider, an Amazon representative stated the company does not discuss individual customer relationships and did not confirm or deny involvement with Microsoft or GitHub.
This move highlights how intense cloud competition can give way to practical collaboration when infrastructure demands escalate. Both Azure and AWS are major players serving enterprise customers globally.
GitHub has also struggled with reliability this year, suffering numerous major service outages in 2026, according to Business Insider.
Mitchell Hashimoto, co-founder of HashiCorp, publicly criticized GitHub in April, stating it was “no longer reliable for professional work if it locks users out for hours daily.”
At the same time, GitHub faces rising competition from advanced AI coding assistants like Cursor and Anthropic’s Claude Code. Business Insider also revealed that a senior Microsoft executive recently called for a major overhaul of GitHub’s platform, based on internal audio reviewed by the publication.
Legal challenges emerge over Azure spending
Separately, Microsoft is facing legal action from shareholders questioning its Azure cloud revenue reporting and massive investments in AI infrastructure.
As reported by Reuters, investors have filed a proposed class-action lawsuit accusing Microsoft of misleading them about slowing Azure growth rate and the high costs tied to building AI capabilities. The suit was filed in federal court in Seattle and is being led by the City of St. Clair Shores Police and Fire Retirement System in Michigan.
The legal filing came after Microsoft’s share price dropped sharply following its January 2026 quarterly earnings. Shares fell 10% on January 29—the worst single-day drop in almost six years—wiping out roughly $357 billion in market value.
Microsoft dismissed the lawsuit as baseless. The company stated: “We fully stand by the accuracy of our public disclosures and will respond vigorously in court.”
Core issues: Revenue growth and capital spending
For its fiscal second quarter ending December 2026, Microsoft reported a 39% increase in revenue from Azure and related cloud services. While this met analyst expectations, it marked a slowdown from 40% growth in the prior quarter.
The company forecasted 37% to 38% growth in cloud revenue for the first quarter of 2026. It also disclosed capital expenditures totaling $37.5 billion—an increase of nearly 66% year-over-year and above the $34.3 billion that analysts had anticipated.
The lawsuit alleges that Microsoft blamed capacity limitations for both the slower revenue growth and higher spending. It claims the company prioritized directing resources toward AI research, development, and its Copilot products. Microsoft is also a leading investor in OpenAI.
Among those named in the suit are Microsoft CEO Satya Nadella and CFO Amy Hood. The proposed class period covers from May 1, 2025, to January 28, 2026.
The case is still in its early stages.
(Photo by Simon Ray)
Related reading: Anthropic explores Microsoft Maia chips for cloud compute
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