Satya Nadella, Chairman and CEO of Microsoft, addressed employees with a bold vision for the company as it enters a transformative phase in AI development. Highlighting the acceleration of technological progress, he emphasized that “thirty years of change is being compressed into three years,” with 2025 poised to be a pivotal year for model-forward applications.
Nadella detailed how AI is reshaping every layer of the application stack, likening the shift to revolutionary moments in tech history, such as the advent of graphical user interfaces and cloud-native databases. Microsoft aims to lead this transformation by building “agentic applications” that integrate memory, entitlements, and action space, enhancing performance and safety across industries and business processes.
To achieve this vision, Microsoft is creating a new engineering organization, CoreAI – Platform and Tools, which will unify its AI platform, development divisions, and key teams from the Office of the CTO. This division will be tasked with building an end-to-end Copilot and AI stack to empower both first-party and third-party customers in developing AI-driven applications and agents.
Jay Parikh will head the new group as Executive Vice President, with leadership support from Eric Boyd, Jason Taylor, Julia Liuson, Tim Bozarth, and their teams. This team will work closely with other senior leaders to optimize Microsoft’s tech stack for efficiency and performance.
CoreAI’s mission includes advancing GitHub Copilot, ensuring a feedback loop between cutting-edge AI-first products and platform development. The division will also focus on developer productivity and fostering engineering excellence across the company.
As Microsoft’s cloud infrastructure business continues to grow, Nadella reaffirmed the importance of delivering innovation, quality, and security to support customers’ critical applications and AI workloads. He stressed the need to operate as “One Microsoft,” breaking down internal silos to prioritize customer needs, drive accountability, and deliver on the company’s mission.
With a reimagined AI-first app stack, enhanced tools, and robust infrastructure, Microsoft is poised to shape the next era of AI innovation. “We have a tremendous opportunity ahead,” Nadella concluded, “and together, I’m looking forward to building what comes next.”
