Microsoft CEO Satya Nadella has announced a dramatic restructuring of the company's engineering organization, which is pivoting the company's focus to developing the tools that will underpin agentic AI.

Dubbed "CoreAI - Platform and Tools," the new division rolls the existing AI platform team and the previous developer division (responsible for everything from .NET to Visual Studio) along with some other teams into one big group.

As for what this group will be doing specifically, it's basically everything that's mission-critical to Microsoft in 2025, as Nadella tells it:

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