21 Satya Nadella, chairman and CEO of Microsoft, is establishing a new engineering division to focus on building AI applications and agents for both Microsoft and its customers. The new CoreAI – Platform and Tools division will be led by former Meta engineering chief Jay Parikh with input from leaders of multiple Microsoft teams. These executives will include Mustafa Suleyman CEO of Microsoft AI; Scott Guthrie, executive vice president at Microsoft; Kevin Scott, chief technology officer; and Charlie Bell, executive vice president of security. The new team will work to create an “end-to-end Copilot and AI stack for our first-party and third-party customers to build and run AI apps and agents”, according to Nadella. This will enable operators to build with agents and use multiple agents at the same time, all under a new user interface. “It’s an honour to support a team that has already built such an incredible foundation during this pivotal moment in AI,” said Parikh. “CoreAI must lead in defining and building what software application development for humanity will look like.” Microsoft has also a new arrangement with its longstanding partner OpenAI, which it hopes will “drive the next phase of AI”. Key elements of the 2019 agreement will remain in place until 2030, including the existing revenue sharing arrangements, Microsoft’s right to use OpenAI’s intellectual property within products such as Copilot, and OpenAI’s access to Azure. However, the new agreement gives Microsoft the right of first refusal to host new OpenAI work on the cloud, as well as an Azure commitment to continue to support all OpenAI products and training. OpenAI and Microsoft will also partner on Stargate, a $500 billion project to build new AI infrastructure in the USA over the next four years. The project, which will receive an investment of $100 billion “immediately”, is being funded by lead partners OpenAI and SoftBank, as well as Oracle and MGX, and will use chips designed by NVIDIA. Development is underway in Texas with further potential sites across the country still under evaluation. The project is expected to create 100,000 new jobs. Microsoft launches new division to drive AI innovation Led by former Meta engineering chief Jay Parikh, the CoreAI team will develop an AI stack to empower Microsoft and its customers to build and run apps and agents
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