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Microsoft forms new AI engineering team under ex-Meta leader
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Microsoft has created a new AI-focused engineering division called CoreAI – Platform and Tools, led by former Meta executive Jay Parikh, combining its developer division with AI platform teams to build comprehensive AI solutions.

Strategic reorganization; Microsoft CEO Satya Nadella is positioning the company for what he describes as a transformative AI platform shift in 2025 that will reshape all application categories.

  • The new CoreAI division combines Microsoft’s Dev Div, AI platform teams, and select members from the Office of the CTO
  • Parikh, who joined Microsoft in October, will serve as executive vice president of CoreAI – Platform and Tools, reporting directly to Nadella
  • Several key executives now report to Parikh, including AI platform chief Eric Boyd, deputy CTO Jason Taylor, and developer division head Julia Liuson

Technical vision and infrastructure; Microsoft aims to establish Azure as the foundation for AI while building an integrated platform of developer tools across Azure AI Foundry, GitHub, and VS Code.

  • The company is developing what Nadella calls an “AI-first app stack” to transform how developers build and utilize AI applications
  • The platform will focus on creating agents that will impact every Software-as-a-Service (SaaS) application category
  • This shift represents a fundamental change in how custom applications will be developed, moving toward a “service as software” model

Leadership structure and scope; The reorganization places Microsoft’s entire developer division under an AI-focused mandate, signaling a significant shift in the company’s technical priorities.

  • The new division will be responsible for building the end-to-end Copilot and AI stack for both internal and external customers
  • Notable focus is placed on Azure AI Foundry, GitHub, and VS Code, while traditional products like Visual Studio and .NET receive less emphasis
  • The restructuring suggests Microsoft’s developer tools and platforms will be increasingly AI-centric

Market implications; Microsoft’s organizational changes reflect Nadella’s belief that thirty years of technological change will be compressed into just three years, highlighting the urgency behind this strategic shift.

  • The creation of CoreAI indicates Microsoft’s commitment to maintaining its competitive edge in the rapidly evolving AI landscape
  • The appointment of Parikh, with his extensive experience at Meta, brings valuable expertise in scaling engineering operations
  • This restructuring positions Microsoft to better compete in the enterprise AI market while supporting both internal development and external customers

Looking ahead: The formation of CoreAI represents Microsoft’s most significant organizational shift toward AI-first development, though the success of this transformation will depend on how effectively the company can integrate its various developer tools and platforms while maintaining its existing customer base.

Microsoft creates new AI engineering group led by former Meta executive

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