
Microsoft CEO Satya Nadella has announced the formation of CoreAI - Platform and Tools, a new engineering organization that will consolidate the company's AI development resources. The division, led by former Meta engineering head Jay Parikh, aims to create a comprehensive platform for building and deploying AI applications and agents.
Key Points:
- The new CoreAI division combines Microsoft's Developer Division, AI Platform, and select teams from the Office of the CTO
- Jay Parikh, former Lacework CEO and Meta engineering executive, will lead the organization as EVP
- The group will focus on developing both the Copilot ecosystem and tools for third-party AI applications
Microsoft is positioning itself to lead the next era of software development, focusing on AI-first architectures that promise to reshape industries. This integration of resources aims to simplify the development of agentic applications—AI tools capable of making decisions, managing tasks, and learning dynamically.
According to Nadella's internal memo to employees, we're witnessing a compression of "thirty years of change" into just three years, with AI reshaping every layer of the application stack simultaneously.
"This is leading to a new AI-first app stack — one with new UI/UX patterns, runtimes to build with agents, orchestrate multiple agents, and a reimagined management and observability layer," Nadella wrote in his communication to Microsoft employees.
CoreAI will unite resources from various engineering teams, including those behind AI Supercomputer and AI Agentic Runtimes, to create a unified AI stack. This group will oversee GitHub Copilot development, ensuring tight integration between AI tools and platforms.
Jay Parikh, former Lacework CEO and Meta engineering head, will lead CoreAI as Executive Vice President. Parikh will collaborate with other senior leaders, including Scott Guthrie and Mustafa Suleyman, to optimize Microsoft’s AI strategy.
Azure remains central as the infrastructure backbone, supporting AI workloads and new AI-first application stacks. Microsoft aims to create tools that not only innovate but also ensure performance, safety, and efficiency across various use cases.
Microsoft’s approach highlights a shift toward “service as software,” where AI capabilities become embedded in business processes, reducing complexity for end users. By uniting its resources and expertise under CoreAI, Microsoft is not just building tools for today’s developers but also laying the groundwork for the next generation of AI-powered applications. As industries adapt to this shift, the ability to build scalable, safe, and efficient AI solutions will be a critical differentiator.