During a recent earnings call, Microsoft CEO Satya Nadella revealed that the total number of users for GitHub Copilot, an AI programming tool, has exceeded 20 million. This figure was confirmed by a GitHub spokesperson, indicating that approximately 5 million new users have tried the tool for the first time in the past three months. Compared to 15 million users in April, GitHub Copilot is attracting more developers at an astonishing pace.

Although GitHub and Microsoft have not disclosed specific monthly or daily active user data, these numbers are likely relatively low. However, the popularity of GitHub Copilot is undeniable. Nadella noted that 90% of the Fortune 100 companies are currently using this tool. The usage rate among enterprise customers has increased by about 75% compared to the previous quarter, showing the strong appeal of GitHub Copilot in the business market.

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Image source note: The image is AI-generated, and the image licensing service provider is Midjourney.

AI programming tools are rapidly rising as one of the few AI products capable of generating significant revenue. Nadella also mentioned that by 2024, the scale of GitHub Copilot's business will surpass the overall size of GitHub when Microsoft acquired it in 2018. Although the user base of AI programming tools is still relatively small compared to chatbots like ChatGPT, developers and their employers in the software engineering field are willing to pay a premium for these tools, demonstrating strong market demand.

Notably, a new AI programming tool called Cursor is striving to challenge GitHub Copilot's market position. According to Bloomberg, Cursor had over 1 million daily active users in March, with annual recurring revenue reaching $200 million. Now, its revenue has surpassed $500 million, indicating that its user base is continuously growing.

Currently, GitHub Copilot and Cursor are gradually converging in certain features, with both launching AI assistants that can review code and detect errors. Additionally, both companies are actively developing AI agents that can automate programmers' workflows, allowing developers to offload heavy tasks. Nadella stated during the call that GitHub has seen good momentum in promoting AI programming agents.

In addition to Cursor, GitHub faces challenges from other well-funded competitors, including Google, Cognition, and OpenAI, which are all actively launching their own AI programming tools in an effort to capture market share in this rapidly evolving industry.