Microsoft Launches CoreAI Division with $80B Investment

Microsoft has announced the formation of a new engineering division, CoreAI - Platform and Tools, to focus on advancing its AI capabilities. This division will consolidate existing teams, including the AI Platform, Dev Div, and key units from the Office of the CTO, to develop AI applications and agents, with a strong emphasis on GitHub Copilot. Jay Parikh, a former Meta executive, will lead this new group as Executive Vice President. The division aims to create a comprehensive AI stack to support both first-party and third-party customers, highlighting Microsoft's strategic pivot towards AI-driven solutions. The company plans to invest $80 billion in data centers to support the training and deployment of AI models, positioning Azure as a foundational infrastructure for these efforts. This restructuring underscores Microsoft's commitment to becoming a leader in the AI industry by reshaping application development and focusing on agentic AI technology.