Microsoft has unveiled a major structural overhaul, forming a new engineering division dedicated to advancing artificial intelligence (AI). Named CoreAI – Platform and Tools, the division will be spearheaded by former Meta engineering leader Jay Parikh, marking a pivotal move in Microsoft’s AI-first strategy.
This newly established group consolidates Microsoft’s Developer Division (Dev Div), AI platform teams, and select members of the Office of the CTO team. It aims to design an integrated AI platform and tools ecosystem for Microsoft and its customers, positioning the tech giant as a leader in the AI-driven transformation of application development.
Nadella’s Vision for an AI-First Era
In an internal memo, Microsoft CEO Satya Nadella shared his enthusiasm for the transformative potential of AI, using a cricket analogy to highlight the company’s readiness for the “next innings of this AI platform shift” in 2025. Nadella emphasized that AI is compressing “thirty years of change into three years,” profoundly reshaping application categories.
Outlining his roadmap, Nadella stressed the need for an “AI-first app stack.” This strategy positions Azure as the core infrastructure for AI. It is supported by a powerful platform, including Azure AI Foundry, GitHub, and Visual Studio Code (VS Code). Nadella envisions this stack empowering developers to build advanced AI agents. These agents will transform software as a service (SaaS) applications. This approach aims to elevate Microsoft’s capabilities for both first-party and third-party customers.
Jay Parikh Takes the Helm
Jay Parikh, appointed executive vice president of CoreAI – Platform and Tools, will lead this transformative effort. Having spent over a decade at Meta shaping its engineering framework, Parikh now joins Microsoft’s senior leadership team and reports directly to Nadella.
Several key figures will report to Parikh in this new capacity:
- Eric Boyd, Chief of AI Platform
- Jason Taylor, Deputy CTO of AI Infrastructure
- Julia Liuson, Head of Microsoft’s Developer Division
- Tim Bozarth, Head of Developer Infrastructure
Parikh’s leadership is expected to unify Microsoft’s developer division under an AI-centric focus, propelling innovation in tools and platforms for global developers.
CoreAI’s Strategic Mission
The CoreAI team is tasked with creating an end-to-end Copilot and AI stack to facilitate the seamless development and deployment of AI-powered applications and agents. This aligns with Microsoft’s broader vision of becoming the go-to infrastructure for AI advancements.
Notably, Nadella underscored Azure’s role as the backbone of this transformation, ensuring scalable AI operations across Microsoft’s ecosystem. By integrating Azure AI Foundry, GitHub, and VS Code, Microsoft aims to streamline AI app creation and empower developers to leverage cutting-edge technologies.
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Looking Ahead
Microsoft’s structural changes highlight its dedication to leading the AI revolution. The new CoreAI division aims to transform the company’s approach to AI. It will also shape the future of software development for global customers. With Parikh at the helm and Nadella’s clear vision, Microsoft is well-positioned to lead the AI-first era. This shift will redefine how applications are built and operated across industries.
