Microsoft has established a new engineering organization called CoreAI, aimed at enhancing AI infrastructure and software development. Jay Parikh, formerly at Meta, will lead this division, reporting directly to CEO Satya Nadella. The CoreAI team merges existing developer and AI platform groups to prioritize AI initiatives. Nadella emphasized a 'model-forward' approach for the upcoming year, focusing on transforming application categories. This strategic move reflects Microsoft's commitment to integrating AI across its software offerings, paving the way for innovative developments in technology.