Microsoft is creating a new engineering group that’s focused on artificial intelligence. Led by former Meta engineering chief Jay Parikh, the new CoreAI – Platform and Tools division will combine Microsoft’s Dev Div and AI platform teams together, alongside some employees on the Office of the CTO team, to focus on building an AI platform and tools for both Microsoft and its customers.
Microsoft CEO Satya Nadella outlined his vision for this new team in an internal memo today, using a cricket reference (his favorite sport) to note that “we’re entering the next innings of this AI platform shift” in 2025 that will “reshape all application categories.” Nadella believes that every part of the application stack will be impacted by AI, and that “thirty years of change is being compressed into three years!”
To get ready for all this change, Nadella sees the need for an “AI-first app stack” inside Microsoft that will impact how its own developers use and build AI apps and tools in the future. “In this world, Azure must become the infrastructure for AI, while we build our AI platform and developer tools — spanning Azure AI Foundry, GitHub, and VS Code — on top of it,” says Nadella. “In other words, our AI platform and tools will come together to create agents, and these agents will come together to change every SaaS application category, and building custom applications will be driven by software (i.e. “service as software”).”
Parikh will lead this new group as the executive vice president of CoreAI – Platform and Tools, after previously being instrumental to Meta’s engineering efforts for more than a decade. Microsoft announced Parikh’s hire in October, and this is the first major engineering shakeup since he joined the software giant. Parikh also reports directly to Nadella and is a member of Microsoft’s senior leadership team. He now has a number of other Microsoft executives reporting up to him in his new role, including AI platform chief Eric Boyd, deputy CTO of AI infrastructure Jason Taylor, head of Microsoft’s developer division Julia Liuson, and head of developer infrastructure Tim Bozarth.
Microsoft is essentially taking its entire developer division and ensuring it’s focused on AI. While there’s a mention of Azure AI Foundry, GitHub, and VS Code, Nadella doesn’t call out Visual Studio or .NET in his memo. That’s probably because the mission, as Nadella describes it, is for this new CoreAI team to now “build the end-to-end Copilot & AI stack for both our first-party and third-party customers to build and run AI apps and agents.”