Microsoft is embarking on a transformative journey with the launch of Core AI, a new division focused on developing an AI-first application stack. CEO Satya Nadella emphasizes the urgency to innovate, as the next three years will see rapid advancements akin to decades of change. Core AI will integrate various teams to enhance developer productivity and build powerful AI applications, ensuring Azure becomes the backbone for this evolution.2. **:**

Introducing Core AI: Microsoft’s Ambitious New Platform
Microsoft has just unveiled its latest initiative, Core AI – Platform and Tools. This marks a significant shift in the AI landscape, as the company prepares for a new era of AI-first applications.
What’s New in Core AI?
Satya Nadella, Microsoft’s CEO, emphasized that 2025 will usher in model-forward applications that will reshape all categories of software. This transformation is expected to compress thirty years of technological change into just three years.
“More so than any previous platform shift, every layer of the application stack will be impacted.”
Core AI aims to create agentic applications equipped with memory, entitlements, and action space. These applications will leverage powerful model capabilities, enhancing performance and safety across various business processes and industry domains.
Major Updates: A New AI-First App Stack
Microsoft is reimagining the application stack, introducing new UI/UX patterns and runtimes designed for building and orchestrating multiple agents. Azure will serve as the backbone for this AI infrastructure, while tools like Azure AI Foundry, GitHub, and VS Code will be integrated into the new platform.
“Our AI platform and tools will come together to create agents, and these agents will come together to change every SaaS application category.”
This integration aims to facilitate the creation of custom applications, driven by the concept of “service as software.” The company has been refining these systems for over two years, ensuring a robust foundation for the upcoming changes.
What’s Important to Know
A new engineering organization, CoreAI – Platform and Tools, will spearhead these developments. This division will combine various teams, including the AI Platform and the Office of the CTO, to create a cohesive AI stack for both first-party and third-party applications.
Jay Parikh will lead this new group, focusing on optimizing the tech stack for performance and efficiency. The collaboration between teams will enhance developer productivity and ensure that Microsoft remains at the forefront of AI innovation.
As Microsoft’s cloud infrastructure continues to expand, the company is committed to delivering quality, security, and innovation. The goal is clear: to build the best AI platform, tools, and infrastructure for customers and partners alike.
In conclusion, Core AI represents a bold step into the future of technology. Microsoft is not just adapting; it’s redefining the landscape of AI applications.
From the The Official Microsoft Blog