Microsoft is forming a new engineering group dedicated to advancing artificial intelligence. This new division, CoreAI – Platform and Tools, will be led by Jay Parikh, former Meta engineering chief. The division combines Microsoft’s Dev Div and AI platform teams, along with select members from the Office of the CTO, to focus on developing AI platforms and tools for both Microsoft and its customers.
In an internal memo, Microsoft CEO Satya Nadella outlined his vision for the new team, using a cricket metaphor (his favorite sport) to explain the shift, stating, "We’re entering the next innings of this AI platform shift" in 2025. Nadella emphasized that AI will transform all application categories, predicting that “thirty years of change is being compressed into three years!”
To prepare for this transformation, Nadella believes in the creation of an AI-first app stack within Microsoft, which will influence how developers create and use AI applications and tools in the future. “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,” Nadella stated. This vision will bring together agents that will ultimately change every category of SaaS applications, with custom application development driven by software-as-a-service (SaaS) principles.
Parikh, who joined Microsoft in October, will now oversee CoreAI – Platform and Tools as the executive vice president. Parikh previously played a key role in Meta’s engineering division for over a decade. In his new role, he reports directly to Nadella and is a part of Microsoft’s senior leadership team. Parikh will also have several key executives reporting to him, 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.
This restructuring means that Microsoft’s entire developer division is now laser-focused on AI. Nadella’s memo highlights the integration of Azure AI Foundry, GitHub, and VS Code, while leaving out mentions of Visual Studio or .NET. The ultimate goal for the CoreAI team is to develop a comprehensive Copilot & AI stack for both first-party and third-party customers to build and operate AI apps and agents.
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