Microsoft’s $7.5 billion GitHub acquisition drives AI coding growth
Microsoft’s $7.5 billion acquisition of GitHub has proven to be a successful investment, with the AI business hitting a $37 billion annual run rate.
The acquisition, which was announced in June 2018 and closed in October of the same year, has returned 340% for MSFT shares, with the stock currently at $415.40 and a market cap of roughly $3.08 trillion.
Nearly 140,000 organizations use GitHub Copilot Enterprise, which has tripled year-over-year, validating the company’s strategy. GitHub usage-based pricing is set to launch on June 1, 2026, which may pressure Q4 margins but is expected to drive longer-term revenue acceleration.
The acquisition price of $7.5 billion is now a small fraction of Microsoft’s scale, with the company’s market cap reaching $3.08 trillion