Microsoft creates new internal unit for AI development

Microsoft is creating a new engineering group focused on artificial intelligence: Core AI — Platform and Tools. The group combines the company’s Developer Division with the AI Platforms work teams and some employees who previously reported to Microsoft’s CTO. According to The Verge, the group will be led by Jay Parikh, the former CTO at Meta and who joined Microsoft in October 2024.

Core AI — Platform and Tools will focus on building an AI platform and tools for both Microsoft’s own use and for the company’s customers. Microsoft CEO Satya Nadella wrote in a blog post that AI will require a record-breaking pace of development, which means Microsoft needs an AI-focused application stack to build AI apps and tools in the future.

“In this world, 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 said. “In other words, our AI platform and tools will work together to create agents, and these agents will work together to transform every category of SaaS application, and to build custom applications powered by software (i.e. ‘service as software’).”