Microsoft tries to get back in the AI coding game with new model (1 minute read)

# Report: Microsoft tries to get back in the AI coding game with new model Source: [https://sherwood.news/tech/report-microsoft-tries-to-get-back-in-the-ai-coding-game-with-new-model/](https://sherwood.news/tech/report-microsoft-tries-to-get-back-in-the-ai-coding-game-with-new-model/) [](https://sherwood.news/) [](https://sherwood.news/tech/)[Microsoft](https://robinhood.com/us/en/stocks/MSFT/?source=sherwood)wants to fight its way back into the AI coding field by releasing a new model next week at its annual Microsoft Build developer conference, The Information reports\. The company is expected to announce a new family of models as Microsoft AI CEO Mustafa Suleyman seeks to shore up the company’s own AI offerings and gradually wean it off OpenAI’s technology over the remainder of their $13 billion partnership\. Microsoft was initially well positioned to meet software developers with AI\-enhanced tools\. It owns GitHub, the most popular platform for hosting and sharing code, and GitHub’s Copilot AI\-powered coding tool was released months before OpenAI’s ChatGPT debuted in 2022\. But it[fumbled one of the biggest first\-mover advantages in history](https://sherwood.news/tech/github-may-have-fumbled-one-of-the-biggest-first-mover-advantages-in-history/)as Anthropic’s Claude Code, OpenAI’s Codex, and Cursor rolled out coding tools that developers loved\. Microsoft was initially well positioned to meet software developers with AI\-enhanced tools\. It owns GitHub, the most popular platform for hosting and sharing code, and GitHub’s Copilot AI\-powered coding tool was released months before OpenAI’s ChatGPT debuted in 2022\. But it[fumbled one of the biggest first\-mover advantages in history](https://sherwood.news/tech/github-may-have-fumbled-one-of-the-biggest-first-mover-advantages-in-history/)as Anthropic’s Claude Code, OpenAI’s Codex, and Cursor rolled out coding tools that developers loved\. [https://sherwood.news/tech/tesla-has-just-42-unsupervised-robotaxis-on-the-road-in-texas-alphabets-waymo-has-577/](https://sherwood.news/tech/tesla-has-just-42-unsupervised-robotaxis-on-the-road-in-texas-alphabets-waymo-has-577/)Forty\-two is the answer to life, the universe, and everything in Douglas Adams’ classic “The Hitchhiker’s Guide to the Galaxy\.” It’s also the number of unsupervised Robotaxis[Tesla](https://robinhood.com/us/en/stocks/TSLA/?source=sherwood)has on the road in Texas, the only state where it’s operating autonomous service, according to records from a[newly required](https://www.txdmv.gov/AVprogram)government[database](https://txmccs.txdmv.gov/automated-vehicles/operators)in the state\. That’s much lower than CEO Elon Musk had hoped, as the company[struggles](https://sherwood.news/tech/report-teslas-robotaxi-trainers-dont-think-its-ready-for-prime-time/)to ready its camera\-only autonomous vehicles for commercial scale\. In 2025, Musk[said](https://sherwood.news/markets/musk-thinks-tesla-has-some-rough-quarters-ahead-as-it-waits-and-waits-for/)that the service would be available to “half the population of the US by the end of the year\.” Even smaller competition has more: Avride has 317 and Nuro has 47\. Meanwhile, Tesla’s chief rival,[Alphabet](https://robinhood.com/us/en/stocks/GOOGL/?source=sherwood)subsidiary Waymo, has 577 in operation in the state\. Nationwide, Waymo’s fleet currently numbers more than 3,000\. Unfortunately for Tesla, figuring out how to actually scale its robotaxi fleet remains the ultimate question\. [](https://sherwood.news/tech/)An[in\-depth report from Reuters](https://www.reuters.com/investigations/why-teslas-ai-trainers-dont-trust-its-self-driving-tech-or-its-safety-stats-2026-05-28/)that interviewed nine former “data labelers” and a former Tesla self\-driving engineer paints a picture of highly massaged safety stats, vehicles failing to execute basic driving functions, and a behind\-the\-scenes reality where the supposedly “autonomous” tech relies heavily on the exact kind of localized, labor\-intensive mapping and training Musk has publicly[mocked](https://www.foxbusiness.com/lifestyle/elon-musk-waymos-autonomous-tech)\. The skepticism runs so deep that one former insider told reporters they wouldn’t ride in a Robotaxi “if you f\-\-\-ing paid me\.” Currently, the service is operating about[30 unsupervised vehicles](https://robotaxitracker.com/?provider=tesla&area=austin)across three Texas cities — a much more circumscribed execution than Musk had initially planned\. The problem, for Tesla, is that the success of its Robotaxi business is now integral to the company’s[value proposition](https://sherwood.news/tech/a-chronological-look-at-teslas-changing-value-proposition/)\. An[in\-depth report from Reuters](https://www.reuters.com/investigations/why-teslas-ai-trainers-dont-trust-its-self-driving-tech-or-its-safety-stats-2026-05-28/)that interviewed nine former “data labelers” and a former Tesla self\-driving engineer paints a picture of highly massaged safety stats, vehicles failing to execute basic driving functions, and a behind\-the\-scenes reality where the supposedly “autonomous” tech relies heavily on the exact kind of localized, labor\-intensive mapping and training Musk has publicly[mocked](https://www.foxbusiness.com/lifestyle/elon-musk-waymos-autonomous-tech)\. The skepticism runs so deep that one former insider told reporters they wouldn’t ride in a Robotaxi “if you f\-\-\-ing paid me\.” Currently, the service is operating about[30 unsupervised vehicles](https://robotaxitracker.com/?provider=tesla&area=austin)across three Texas cities — a much more circumscribed execution than Musk had initially planned\. The problem, for Tesla, is that the success of its Robotaxi business is now integral to the company’s[value proposition](https://sherwood.news/tech/a-chronological-look-at-teslas-changing-value-proposition/)\. ### Latest Stories Sherwood Media, LLC and Chartr Limited produce fresh and unique perspectives on topical financial news and are fully owned subsidiaries of Robinhood Markets, Inc\., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc\., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Money, LLC, Robinhood U\.K\. 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