New Microsoft team focuses on AI development

In a strategic move to boost its AI capabilities, Microsoft has formed a new internal division to streamline AI software and infrastructure development, bringing in a high-profile leader from Meta.

Microsoft is pausing its $1 billion data centre project in Ohio, reflecting shifting demand for AI infrastructure as the company adapts its scaling strategy to customer needs.

Microsoft has created a new internal division, CoreAI Platform and Tools, to accelerate its development of AI technologies. The restructuring brings together its developer teams and AI platform under one unit, aimed at making AI a central pillar of the company’s software strategy.

Jay Parikh, a former engineering leader at Meta and CEO of cloud security startup Lacework, will head the new organisation. Reporting directly to CEO Satya Nadella, Parikh will oversee various teams focused on AI infrastructure and tools. His appointment signals Microsoft’s continued push to lead in the fast-evolving AI space.

CoreAI’s formation reflects Microsoft’s increasing emphasis on “model-forward” applications, which Nadella described as reshaping software development across all categories. The company’s recent efforts include embedding AI tools across its productivity suite and cloud services, solidifying its place in the growing AI market.

This latest move builds on Microsoft’s broader strategy to remain a leader in AI innovation, following its high-profile partnership with OpenAI and ongoing investments in cloud-based AI solutions.