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Microsoft Unifies Windows Engineering to Accelerate AI

30 Sep 2025- Microsoft centralizes Windows engineering under one organization led by Pavan Davuluri, consolidating core teams to accelerate AI features and create an "Agentic OS," while some components remain with Azure.

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30 Sep 2025

Microsoft is reorganizing its Windows engineering structure to bring most client and server engineering back under a single organization. In an internal memo seen by The Verge, Windows president Pavan Davuluri said the move “unifies Windows engineering work under a single organization,” and that “moving the teams working on Windows client and server together into one organization brings focus to delivering against our priorities.”

The change makes leaders of Core OS, Data Intelligence and Fundamentals, Security, and Engineering Systems report to Davuluri, consolidating the bulk of Windows engineering under one division leader rather than the split arrangement that placed core platform work with Azure after the 2018 reorg. Microsoft will still keep some low-level components with Azure — for example, storage, networking, security, kernel, virtualization and Linux teams will remain part of Azure Core where they provide foundational support for client scenarios, silicon enablement, and WSL.

The reorg is positioned to accelerate Microsoft’s push to add AI to the operating system. Davuluri said it will help “deliver our vision of Windows as an Agentic OS.” Microsoft has recently launched Windows AI Labs and added features to Windows 11 such as Copilot Vision and an AI-powered Settings agent as part of that effort.

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