Microsoft has announced the formation of a new engineering division, CoreAI—Platform and Tools, indicating a significant shift in its AI strategy.
This organization is responsible for merging the company's developer division (Dev Div) and AI platform teams while combining crucial aspects from other divisions. This initiative aims to create a strong AI-first app stack to help first-party and third-party clients develop advanced AI apps.

CoreAI is led by Jay Parikh, a former Meta engineering head with over a decade of expertise in building transformational technologies.
Parikh, who reports directly to CEO Satya Nadella, will manage teams managed by key Microsoft executives, including Eric Boyd (AI Platform), Jason Taylor (AI Infrastructure), Julia Liuson (Developer Division), and Tim Bozarth (Developer Infrastructure). Parikh's appointment marks a significant milestone in Microsoft's strategic pivot toward AI.
In an internal memo, Nadella emphasized that the AI platform shift is a tremendous revolution that will compress decades of change into a few short years. He sees Azure as the foundation of Microsoft's AI infrastructure, enabling the development of agentic applications with memory, entitlements, and action spaces.
These innovations aim to revolutionize software development by making it more adaptable, intelligent, and industry-specific.

The CoreAI division will work on integrating tools like GitHub Copilot, Azure AI Foundry, and VS Code into a unified environment. It aims to reshape the AI environment by transforming applications' development, deployment, and maintenance.
Using Parikh's skills and Nadella's strategic vision, Microsoft is at the forefront of the AI revolution, creating technologies that enhance its products and empower developers worldwide.