GitHub's best month ever came after a billing change for Copilot, a senior executive said at an internal meeting. The usage surge may start showing up in Microsoft's cloud revenue by late October.
GitHub recorded its best month ever after a billing change for the Copilot AI coding tool drove a surge in customer usage, a senior executive told staff at an internal all-hands meeting.
The disclosure came during a company-wide gathering and was reported by an attendee who described the remarks. The executive attributed the jump to a shift from per-seat pricing to a per-user model that lets developers subscribe for individual months without a recurring commitment. GitHub did not release specific numbers.
GitHub is the Microsoft-owned platform that hosts more than 100 million developers. Copilot auto-completes code and can generate entire functions. Microsoft bought GitHub in 2018 for $7.5 billion and has since integrated the AI tool into its broader commercial-cloud strategy. Azure revenue rose 22% in the most recent quarter, with executives citing AI workload adoption as a driver.
The billing change removed a friction point. Developers who used Copilot only on some projects could rejoin without a subscription lock-in. The executive said the flexibility brought back lapsed users and attracted new teams from companies that had resisted the old per-seat model.
Copilot competes with Amazon's CodeWhisperer and Google's Duet AI for developers. The category is still embryonic; most coding is done without AI help, and the tools have trouble with complex multi-file changes. The GitHub data suggests that pricing and billing simplicity, not raw model capability, may be the main gate for wider adoption.
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The revenue effect from the Copilot usage jump will likely appear in Microsoft's Intelligent Cloud segment with a one-quarter lag. July-quarter results are due late October. An analyst at DA Davidson said in a note that the per-user shift could accelerate Azure's AI contribution if the trend sustains, though he noted the billing change was still new.
For investors, the question is whether the improved adoption shows up in measurable subscription growth. The executive at the all-hands meeting did not provide a revenue figure or a subscriber count. The next quarterly earnings call, expected around late October, should offer more detail.
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