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Microsoft open source project hacked, AI development tools infected with password-stealing malware
Microsoft recently removed dozens of open-source repositories from GitHub after hackers infiltrated them and injected malicious code designed to steal user passwords. The move prompted strong reactions across the developer community.
Precision Targeting of AI Developers
Security firm Cloudsmith and malware analysis platform OpenSourceMalware were the first to detect the anomaly. Reports indicate that the affected projects were primarily tied to Microsoft Azure cloud services and several popular AI development tools, including components associated with AI coding applications like Claude Code, the Gemini CLI, and VS Code.
The attackers executed targeted software supply chain attacks by embedding malicious code into these tools. When developers opened the compromised tools locally through AI coding applications, the malware ran silently, attempting to steal local passwords and other sensitive credentials.
Emergency Removal for Risk Investigation
Microsoft later confirmed that, as a security measure, it had temporarily taken down at least 70 related code repositories while investigating potential malicious content. Some have since been restored after security reviews, while others remain disabled due to ongoing risks.
During the internal investigation, Microsoft sent security notifications to a small number of customers who may have downloaded affected content. Despite Microsoft’s strong security resources and protections, this marks the second time in recent weeks that its open-source projects have been compromised—highlighting the serious security challenges facing the current AI development ecosystem.
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Microsoft recently removed dozens of open-source repositories from GitHub after hackers infiltrated them and injected malicious code designed to steal user passwords. The move prompted strong reactions across the developer community.
Precision Targeting of AI Developers
Security firm Cloudsmith and malware analysis platform OpenSourceMalware were the first to detect the anomaly. Reports indicate that the affected projects were primarily tied to Microsoft Azure cloud services and several popular AI development tools, including components associated with AI coding applications like Claude Code, the Gemini CLI, and VS Code.
The attackers executed targeted software supply chain attacks by embedding malicious code into these tools. When developers opened the compromised tools locally through AI coding applications, the malware ran silently, attempting to steal local passwords and other sensitive credentials.
Emergency Removal for Risk Investigation
Microsoft later confirmed that, as a security measure, it had temporarily taken down at least 70 related code repositories while investigating potential malicious content. Some have since been restored after security reviews, while others remain disabled due to ongoing risks.
During the internal investigation, Microsoft sent security notifications to a small number of customers who may have downloaded affected content. Despite Microsoft’s strong security resources and protections, this marks the second time in recent weeks that its open-source projects have been compromised—highlighting the serious security challenges facing the current AI development ecosystem.
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