Microsoft has announced the creation of a new engineering division called CoreAI, focused on artificial intelligence (AI). The former head of engineering at Meta✴, Jay Parikh, has been appointed head of the company and will now be responsible for creating AI platforms and tools for both internal Microsoft use and for the company’s clients.
Microsoft CEO Satya Nadella emphasized in an internal address that 2025 will be a key milestone in the development of AI platforms and will “transform every application category.” In his opinion, artificial intelligence will have an impact on every level of the software stack, and global transformations that usually take three decades will be completed in just three years. According to The Verge, Nadella is confident that “artificial intelligence will impact all levels of application work and fundamentally change the approach to software development and AI tools.”
To prepare for these large-scale changes, Microsoft plans to create the so-called AI-first app stack – an infrastructure that will allow the development and use of modern AI applications. According to Nadella, the Azure platform, on the basis of which tools such as Azure AI Foundry, GitHub and VS Code will be developed, will become the basis for the implementation of these tasks. It will allow the creation of new AI agents capable of transforming the SaaS application market.
We note that the appointment of Jay Parikh, who previously held key engineering positions at Meta✴ for more than ten years, was the first major personnel change at Microsoft since his arrival at the company in October 2024. Now he has taken the post of executive vice president of the CoreAI – Platform and Tools division and joined the senior management team of the company, reporting directly to Satya Nadella.
In turn, Parikh will report to executives including Eric Boyd, Head of AI Platform, Associate CTO of AI Infrastructure Jason Taylor, Head of Dev Div Julia Liuson, and Head of Developer Infrastructure Tim Bozarth (Tim Bozarth).
In fact, Microsoft has refocused its entire development division on AI work. And while Nadella’s address mentions Azure AI Foundry, GitHub, and VS Code, he doesn’t mention Visual Studio or .NET. That’s because the new CoreAI team, as The Verge notes, is looking to “build an end-to-end Copilot and AI stack for first-party and third-party clients designed to build and run AI applications and AI agents.”