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Microsoft creates new internal unit for AI development

by Priya Kapoor
2 minutes read

Microsoft’s Strategic Move: Establishing Core AI — Platform and Tools

In a strategic move towards advancing artificial intelligence (AI) development, Microsoft has recently announced the creation of a new engineering group, Core AI — Platform and Tools. This innovative group is a fusion of Microsoft’s Developer Division with the AI Platforms work teams, along with select employees who previously reported to the company’s Chief Technology Officer.

Jay Parikh, a seasoned professional who formerly held the position of CTO at Meta and recently transitioned to Microsoft in October 2024, will lead this dynamic team. With a wealth of experience in the tech industry, Parikh is poised to drive Microsoft’s AI initiatives to new heights.

The primary objective of Core AI — Platform and Tools will revolve around the construction of a cutting-edge AI platform and tools tailored for Microsoft’s internal operations and its broad customer base. This strategic move underscores Microsoft’s commitment to staying at the forefront of AI innovation and empowering its users with state-of-the-art AI capabilities.

Microsoft’s CEO, Satya Nadella, emphasized the critical role of AI in the future landscape of technology. In a blog post, Nadella highlighted the necessity for a rapid pace of AI development, prompting the need for a specialized AI application stack. This stack will enable the creation of AI applications and tools that are set to redefine the way businesses operate and interact with technology.

Nadella outlined Microsoft’s vision for the future, stating, “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.” This strategic approach signifies Microsoft’s commitment to integrating AI seamlessly into its existing ecosystem, thereby facilitating the creation of intelligent agents that can revolutionize various sectors and empower the development of custom AI-driven applications.

By establishing Core AI — Platform and Tools, Microsoft is not only investing in its own AI capabilities but also laying the groundwork for a future where AI plays a central role in driving innovation and transformation across industries. This strategic move underscores Microsoft’s dedication to empowering developers and businesses to harness the power of AI effectively, setting the stage for a new era of intelligent technologies and applications.

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