Microsoft Announces New CoreAI – Platform and Tools Division

Microsoft CEO Satya Nadella announced this morning the creation of a new CoreAI – Platform and Tools division within the company. The new organization will be led by Jay Parikh, a former Vice President and Global Head of Engineering at Meta who joined Microsoft two months ago.

In an internal communication sent to Microsoft employees today, Satya Nadella explained that the company needed a new engineering organization to better apprehend the “AI platform shift” the company has been anticipating for more than two years. According to Nadella, this will require Microsoft to develop the best AI platform, tools, and infrastructure to be successful throughout this new platform shift.

“2025 will be about model-forward applications that reshape all application categories,” Nadella explained. “More so than any previous platform shift, every layer of the application stack will be impacted. It’s akin to GUI, internet servers, and cloud-native databases all being introduced into the app stack simultaneously. Thirty years of change is being compressed into three years!”

In practice, Parikh will oversee the work of different teams with Eric Boyd, CVP of AI Platform, Jason Taylor, CVP, Deputy CTO, AI Infrastructure, Julia Liuson, President of Developer Division, and Tim Bozarth, CVP, Developer Infrastructure reporting to him. As Microsoft’s new EVP of Core AI – Platform and Tools, Parikh will report directly to Nadella

“This new division will bring together Dev Div, AI Platform, and some key teams from the Office of the CTO (AI Supercomputer, AI Agentic Runtimes, and Engineering Thrive), with the mission to build the end-to-end Copilot & AI stack for both our first-party and third-party customers to build and run AI apps and agents,” Nadella explained. “This group will also build out GitHub Copilot, thus having a tight feedback loop between the leading AI-first product and the AI platform to motivate the stack and its roadmap.”

Nadella also said today that Parikh will be working closely with Rajesh Jha, EVP of Experiences + Devices, Mustafa Suleyman, the CEO of the new Microsoft AI organization, and other executives to “optimize our entire tech stack for both performance and efficiency.” Microsoft was all about AI last year, as were other big tech companies, and you can expect this to continue in 2025.