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by mk_chan 594 days ago
The reason here is Microsoft is trying to make copilot a platform. This is the essential step to moving all the power from OpenAI to Microsoft. It would grant Microsoft leverage over all providers since the customers would depend on Microsoft and not OpenAI or Google or Anthropic. Classic platform business evolution at play here.
2 comments

I'm sure there are multiple reasons, including lowering the odds of antitrust action by regulators. The EU was already sniffing around Microsoft's relationship with OpenAI.
I think the reason here is that Copilot is very very obviously inferior to Cursor, mostly because the model at its core is pretty dumb.
The Copilot team probably thinks of Cursor's efforts as cute. They can be a neat little product in their tiny corner of the market.

It's far more valuable to be a platform. Maybe Cursor can become a platform, but the race is on and they're up against giants that are moving rather surprisingly nimbly.

Github does way more, you can build on top of it, and they already have a metric ton of business relationships and enterprise customers.

A developer will spend far more time in the IDE than the version control system so I wouldn't discount it that easily. That being said, there are no network effects for an IDE and Cursor is basically just a VSCode plugin. Maybe Cursor gets a nice acquihire deal