Freelance software developers and contractors are on high alert following Microsoft’s decision to integrate GitHub into its new CoreAI division. This article explores the potential ramifications for freelancers and fixed-term contractors, the future of open-source projects, and the growing ecosystem of GitHub alternatives.

In a significant move that signals a new chapter for the world’s largest developer platform, Microsoft has integrated GitHub into its new CoreAI division.

This decision follows the resignation of GitHub CEO Thomas Dohmke, effectively ending the platform’s independent operations and placing it at the heart of Microsoft’s artificial intelligence strategy.

Auf Wiedersehen, GitHub ♥️

I am stepping down as GitHub CEO to build my next adventure. GitHub is thriving and has a bright future ahead. The following is the internal post I sent to GitHub employees (Hubbers) this morning announcing my departure.

-Thomas Dohmke

While Microsoft’s 2018 acquisition of GitHub for $7.5 billion was framed as a commitment to open-source developer freedom, this latest restructuring could reignite a debate about the platform’s future, particularly concerning its impact on contractor jobs, project diversity, and the potential emergence of strong alternatives.

New AI-First reality for developers?

GitHub’s shift into the CoreAI division is a direct result of the growth of GitHub Copilot, the AI-powered coding assistant. According to a report by GeekWire, Copilot’s success has tied GitHub’s future more closely to its parent company’s AI ambitions, with enterprise customers growing 75% quarter-over-quarter.

This intense focus on AI-driven development raises critical questions for contract and freelance software developers. While some, like Microsoft co-founder Bill Gates, believe coders are safe from being replaced by AI, other tech leaders have expressed a different view.

Salesforce CEO Marc Benioff, for instance, has publicly debated the necessity of hiring more software engineers in light of AI’s capabilities, according to Windows Central.

As AI tools become more adept at generating and reviewing code, the demand for traditional, task-oriented contract work could diminish, potentially shifting the landscape toward more specialised roles focused on managing and architecting AI-assisted projects.

Concerns over open source ethos

The initial acquisition of GitHub sparked widespread concern within the open-source community that Microsoft might favour its own tools and services, thereby compromising GitHub’s neutrality. The European Commission ultimately approved the merger, concluding that Microsoft would have no incentive to undermine the open nature of the platform.

However, the recent integration into CoreAI could once again shake developers’ trust. As a report from RedMonk points out, Microsoft competitors and other organisations with private repositories might re-evaluate their reliance on a platform now so deeply intertwined with a rival’s core strategy.

The fear is that a Microsoft-owned entity with “unrestricted access” to the world’s most significant developer dataset could leverage that information to its advantage, potentially weakening competition and reducing the diversity of projects that call GitHub home.

The rise of GitHub alternatives

With each major change at GitHub, the conversation around alternatives becomes more urgent. Following the 2018 acquisition, many developers flocked to rival platforms, a trend likely to accelerate with the latest news. GitLab has emerged as a top contender, offering a fully integrated DevOps platform that is itself open-source, giving it a strong appeal for projects prioritising independence.

According to an article by Itsfoss, GitLab is often the number one choice for developers seeking to replace GitHub. Other notable alternatives include Bitbucket, which is popular with teams already using Atlassian’s ecosystem tools like Jira, and SourceForge, a long-standing platform that has regained popularity for its focus on open-source projects.

For those who want more control, platforms like Codeberg and Gitea offer lightweight, self-hosted solutions. This growing ecosystem of alternatives suggests that the developer community may not put all its eggs in one basket, ensuring a more competitive market for code hosting and collaboration.

Contractors watching every move

The folding of GitHub into Microsoft’s CoreAI is a watershed moment, shifting the platform from an independent entity to a strategic asset in the age of artificial intelligence. This move will likely accelerate the adoption of AI-powered development, but it also raises legitimate concerns for contract workers and open-source project diversity.

As Microsoft prioritises the integration of GitHub Copilot and other AI tools, the developer community will be closely watching whether the platform can maintain its foundational ethos of openness and neutrality.

In the meantime, the rise of any independent alternatives ensures that developers will continue to have options to develop new software. A Dohmke startup is already on the horizon, as the exiting GitHub CEO has revealed in a blog post:

My startup roots have begun tugging on me and I’ve decided to leave GitHub to become a founder again. 

GitHub and its leadership team will continue its mission as part of Microsoft’s CoreAI organization, with more details shared soon.

I’ll be staying through the end of 2025 to help guide the transition and am leaving with a deep sense of pride in everything we’ve built as a remote-first organization spread around the world.