News

Microsoft's New CoreAI Division To Focus on Bringing AI Agents to Orgs

Microsoft has spun up a new internal division focused specifically on developing on delivering an "end-to-end Copilot and AI stack."

Announced on Monday by Microsoft CEO Satya Nadella, the new CoreAI organization 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 create 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."

CoreAI 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 CoreAI 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 tools like 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."

About the Author

Chris Paoli (@ChrisPaoli5) is the associate editor for Converge360.

Featured

  • Notebook

    Microsoft Centers AI, Security and Partner Dogfooding at MCAPS

    Microsoft's second annual MCAPS for Partners event took place Tuesday, delivering a volley of updates and directives for its partners for fiscal 2026.

  • Microsoft Layoffs: AI Is the Obvious Elephant in the Room

    As Microsoft doubles down on an $80 billion bet on AI this fiscal year, its workforce reductions are drawing scrutiny over whether AI's ascent is quietly reshaping its human capital strategy, even as official messaging avoids drawing a direct line.

  • An image of planes flying around a globe

    2025 Microsoft Conference Calendar: For Partners, IT Pros and Developers

    Here's your guide to all the IT training sessions, partner meet-ups and annual Microsoft conferences you won't want to miss.

  • Microsoft CSPs To Start Selling Windows 10 ESU this Fall

    Organizations that want to extend the life of their Windows 10 PCs can begin buying extension plans from Microsoft's Cloud Solution Provider (CSP) partners on Sept. 1.