Microsoft has introduced Core AI – Platform and Tools, a new engineering division aimed at accelerating advancements in artificial intelligence (AI) infrastructure and software applications.
Led by Jay Parikh, an experienced technology executive with a history of scaling large-scale infrastructure projects, the division will unify several key teams to create an “AI-first application stack” that is designed to revolutionize how AI applications are built, deployed, and managed.
According to CEO Satya Nadella, the launch of Core AI marks a pivotal moment in Microsoft’s AI journey. ““Thirty years of change is being compressed into three years” Nadella wrote in an email to employees announcing the formation of the new group.
He emphasized the importance of this initiative in adapting to the rapid evolution of the AI sector and its growing influence on software development.
The Core AI division brings together the Developer Division (Dev Div), the AI Platform, and teams from the Office of the CTO that specialize in AI supercomputers, agentic runtimes, and engineering innovation.
Its purpose is to create an end-to-end AI stack that supports both first-party Microsoft products and third-party developers. By consolidating these efforts, Microsoft aims to streamline the development process and establish Azure as the foundational infrastructure for AI workloads.
GitHub Copilot and the Feedback Loop
One of Core AI’s focal points is enhancing GitHub Copilot, the AI-powered code assistant integrated into Visual Studio Code. Copilot is designed to provide developers with real-time coding suggestions powered by OpenAI’s Codex, enabling faster and more efficient programming.
As part of Core AI, GitHub Copilot will benefit from a continuous feedback loop that connects the tool’s capabilities with Microsoft’s broader AI platform.
This integration underscores Microsoft’s goal of aligning its AI tools and platforms to foster innovation in application development. The company envisions a future where developers can seamlessly build AI-driven applications using a unified stack, with GitHub Copilot acting as a critical bridge between AI capabilities and practical implementation.
Jay Parikh to Lead Core AI Division
Jay Parikh, who joined Microsoft in late 2024, will lead Core AI as executive vice president. Parikh brings extensive experience from his previous roles at Meta, where he oversaw the development of global data centers, subsea cable projects, and experimental connectivity initiatives like the Aquila drone.
These efforts contributed to Meta’s ability to scale its technical infrastructure to support billions of users.
After leaving Meta in 2021, Parikh served as the CEO of cloud security firm Lacework, where he further honed his expertise in scalable infrastructure and enterprise solutions.
His leadership at Core AI will focus on optimizing Microsoft’s technical stack for both performance and efficiency, ensuring the company remains at the forefront of AI development.
Parikh’s appointment reflects Microsoft’s broader strategy of leveraging experienced leaders to navigate the complexities of AI-driven innovation. He will work closely with Eric Boyd, Jason Taylor, Julia Liuson, and other key executives to align the company’s AI and developer strategies under a cohesive vision.
Advancing Agentic Applications
A core element of Core AI’s mission is the development of “agentic applications,” a new category of software that incorporates memory, entitlements, and task management capabilities. These applications are designed to operate independently within defined parameters, enabling them to adapt to specific roles and industries.
Agentic applications represent a shift in how software interacts with users and environments. By leveraging powerful AI models, these systems can automate complex workflows, enhance decision-making, and improve productivity across a wide range of use cases.
Related: Microsoft Expands Microsoft 365 Copilot with Five Specialized AI Agents
Nadella highlighted the transformative potential of these applications, describing them as a key focus of Microsoft’s AI roadmap.
Building More AI Infrastructure
The division will also play a significant role in advancing Microsoft’s AI supercomputing capabilities. These high-performance systems are essential for training and deploying large-scale AI models, which require massive computational resources.
Related: xAI Expands Colossus Supercomputer Tenfold to 1 Million GPUs
Microsoft’s investment in custom chips and scalable cloud infrastructure positions it to compete with industry leaders like Google and Amazon in the race to dominate generative AI development.
Azure, Microsoft’s cloud platform, will serve as the backbone of these efforts. By integrating Azure AI Foundry with Core AI, the company aims to provide developers with the tools and resources needed to build robust AI solutions. This approach aligns with Microsoft’s vision of creating an ecosystem where AI applications can thrive.
The launch of Core AI reflects Microsoft’s strategic response to the rapid evolution of the AI sector. The company’s collaboration with OpenAI has positioned it as a leader in generative AI, but the competitive landscape remains fierce.
Rivals such as Google, Amazon, and Meta are also investing heavily in AI tools and infrastructure, driving innovation across the industry.