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Microsoft creates new AI platform and tools division, led by former Facebook engineering chief

Microsoft is establishing a new engineering division, headed by the former Facebook (now Meta) global head of engineering, which will be in charge of developing key AI technologies and tools for the company and its users.

Greetings to employees, Monday morning from Microsoft CEO Satya Nadella

Nadella stated that the new division represents the next phase of the industry's AI infrastructure shift. He mentioned that by 2025, AI models will significantly alter the fundamental characteristics of widely used applications.

“More than any previous shift in platforms, every level of the application stack will be affected,” Microsoft’s CEO wrote. “It’s comparable to GUI, internet servers, and cloud-native databases all being introduced at the same time into the app stack. Thirty years of changes are being squeezed into just three years.”

As stated in Nadella’s memo.

CVP, Developer Infrastructure, and their respective teams.

Microsoft will be combining its Developer Division, AI Platform teams, and parts of the Office of the Chief Technology Officer to form a new division. This new grouping will specifically focus on AI agents, supercomputing, and the quality and metrics of engineering.

Nadella emphasized the company's concentration on AI agents in the memo.

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Microsoft's Artificial General Intelligence (AGI) dream is an ambitious undertaking marked by significant milestones, present-day applications, and expected future developments.

We will develop artificial intelligence applications that can make decisions, retain information, and perform actions, leveraging the capabilities of powerful models. These capabilities will be tailored for improved performance and safety in various roles, business processes, and industries. Additionally, the way we create, deploy, and maintain code for these AI applications is also undergoing significant changes, becoming more autonomous.

In recent years, while also continuing to develop and deploy its own artificial intelligence technologies, Microsoft faces strong competition from fellow cloud companies including Amazon Web Services, Google, Salesforce, and many others.

It will spend 80 billion dollars on datacenters to train and deploy AI this fiscal year, which started in July.

Microsoft CFO Amy Hood said in October that the company's AI business is expected to achieve a $10 billion annual revenue growth rate by the quarter that ended in December.

Parikh served as the Vice President and global head of engineering at Facebook (now Meta) for more than 11 years, from 2009 to 2021, before becoming the CEO of security technology company Lacework and compliance company Lacework.

He joined Microsoft in October, with no official position or job description, to spend time getting to know the organization and meeting its leaders, customers, and partners before his actual role was decided.