Microsoft Unveils Core AI: A Bold Leap in Shaping the Future of AI Applications

Microsoft forms Core AI unit to advance AI capabilities, streamline platforms, and drive next-gen applications

Jan 13, 2025

Summary

Microsoft launches Core AI to accelerate AI innovations, uniting teams and expanding GitHub Copilot under new leadership.

Microsoft (MSFT, Financial) introduces Core AI – Platform and Tools, a new engineering organization aimed at advancing its AI capabilities.

Chairman and CEO Satya Nadella explains that this unit combines Dev Div, AI Platform, and teams from the chief technology officer's office, including AI Supercomputer, AI Agentic Runtimes, and Engineering Thrive. The group's goal is to develop a comprehensive AI stack for first-party and third-party customers to create and run AI applications and agents.

Core AI will also expand GitHub Copilot, establishing a feedback loop between AI products and platforms to shape the stack and its roadmap. Jay Parikh takes charge as executive vice president, with Eric Boyd, Jason Taylor, Julia Liuson, Tim Bozarth, and their teams reporting to him.

Nadella highlights 2025 as a transformative year for model-driven applications, predicting rapid changes across the application stack.“Thirty years of change is being compressed into three years,” he states, emphasizing the scope of this AI-driven shift.

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