Microsoft AI Spotlight

GitHub Copilot GPT-5.5, Desktop App, Usage-Based Billing

GitHub Copilot GPT-5.5, Desktop App, Usage-Based Billing

Key Questions

What new features are being added to GitHub Copilot?

GitHub Copilot is introducing GPT-5.5, a desktop app for agentic workflows with Agent Merge, and VS Code 1.121 remote agents supporting Claude. These updates aim to enhance developer productivity.

How is GitHub Copilot changing its billing model?

Microsoft is moving GitHub Copilot to usage-based billing by replacing Premium Requests with GitHub AI Credits starting June 1. This shift affects Pro and Pro+ plans.

What challenges has GitHub faced recently?

Outages have impacted GitHub's position in the AI coding race against competitors like Cursor and Claude Code. The issues arose amid rising popularity of vibe coding.

What recognition has GitHub received for AI-assisted development?

GitHub was named a Gartner Leader for AI-assisted development. This acknowledges its contributions despite recent outages.

What does the Copilot desktop app enable?

The desktop app supports agentic workflows including Agent Merge capabilities. It is part of broader tooling updates for developers.

What is happening with Claude Code licenses at Microsoft?

Microsoft is canceling Claude Code licenses and shifting developers toward its own Copilot CLI tool. This reflects an internal push to consolidate on Copilot.

Can Copilot Enterprise index company codebases?

Yes, Copilot Enterprise can index a company's codebase and provide GitHub-native chat for answering questions about the code.

What is the status of GitHub Copilot for Eclipse?

GitHub Copilot for Eclipse has been made open source. This allows users to explore the implementation of chat, code completions, and other features.

Desktop app for agentic workflows with Agent Merge. VS Code 1.121 remote agents and Claude. Outages impacting position vs Cursor/Claude Code; GitHub named Gartner Leader for AI-assisted development.

Sources (42)
Updated May 23, 2026
What new features are being added to GitHub Copilot? - Microsoft AI Spotlight | NBot | nbot.ai