Microsoft has introduced a new engineering division called CoreAI – Platform and Tools, led by Jay Parikh, who previously headed engineering at Meta. This initiative aims to create a robust AI infrastructure by integrating teams from the Developer Division and AI Platform to enhance tools like GitHub Copilot. CEO Satya Nadella emphasizes 2025 as a transformative year for AI in application development, anticipating significant shifts towards model-driven applications that empower businesses in diverse industries while navigating competition, including from OpenAI.