Microsoft Forms New AI Group to Build Apps for Customers

Microsoft is launching a new group focused on AI applications and tools, named CoreAI – Platform and Tools, to develop the end-to-end Copilot and AI stack for both first-party and third-party customers.

The new initiative will be led by Jay Parikh, former CEO of cybersecurity startup Lacework and ex-engineering head at Meta. This announcement, made by CEO Satya Nadella, reflects Microsoft’s growing commitment to AI development.

The group will work on AI apps and agents, with Parikh collaborating closely with Mustafa Suleyman, who leads Copilot AI initiatives, and other top executives like Scott Guthrie and Kevin Scott.

Parikh joined Microsoft in October 2024, and the group will combine efforts from teams working on developer and AI platforms.

This move comes nearly a year after Microsoft hired Suleyman to lead Copilot AI initiatives. Microsoft’s investment in AI has been significant, particularly with OpenAI‘s large language models, which are integral to Microsoft’s internal AI tools and cloud services.

Parikh’s role is pivotal as Microsoft competes with OpenAI and other AI-driven companies while continuing to partner with OpenAI.

Nadella emphasized that organizational boundaries are irrelevant to customers and competitors, underscoring the importance of having the best AI platform and infrastructure for future success.

Parikh’s previous experience includes leading Lacework, which achieved a valuation of $8.3 billion before being acquired by Fortinet for $149 million in 2024. This new group aims to solidify Microsoft’s position in the rapidly evolving AI landscape.