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Microsoft Announces Core AI, Aimed at AI App Development and Deployment
In an internal memo on Monday, Microsoft CEO Satya Nadella announced the formation of Core AI, an engineering division focus on developing and delivering AI-based apps to customers.
Core AI will consolidate teams from Dev Div, AI Platform, and key groups from the Office of the CTO, including AI Supercomputer, AI Agentic Runtimes, and Engineering Thrive. Together, they will develop what Nadella described as the "end-to-end Copilot and AI stack," a comprehensive framework designed to empower both first- and third-party customers to build and deploy AI-powered applications and agents.
"We will build agentic applications with memory, entitlements, and action space that will inherit powerful model capabilities," said Nadella, in a corporate blog post. "And we will adapt these capabilities for enhanced performance and safety across roles, business processes, and industry domains. Further, how we build, deploy, and maintain code for these AI applications is also fundamentally changing and becoming agentic."
The division will be led by Jay Parikh, the former global head of engineering at Meta. Parikh will oversee a team whose initial focus will be on evolving Microsoft's AI platform and tools, said Nadella. Central to this effort is GitHub Copilot, which will play a pivotal role in shaping the roadmap for AI-driven software development.
The overall goal of Core AI will be the development of "agentic" applications, designed to leverage advanced AI capabilities such as memory, entitlements and action spaces. The new app stack will introduce modernized user experience patterns, agent-building runtimes and enhanced management tools for observability and orchestration.
Nadella said that the formation of CoreAI aligns with Microsoft's vision to establish Azure as the foundational infrastructure for AI, complemented by its tools such as Azure AI Foundry, GitHub and Visual Studio Code. This initiative will further the "One Microsoft" approach, which places the overall focus of everything Microsoft does on the customer.
"Our success in this next phase will be determined by having the best AI platform, tools, and infrastructure," said Nadella. "We have a lot of work to do and a tremendous opportunity ahead, and together, I'm looking forward to building what comes next."