Microsoft just pulled its Windows engineering teams back together after years of division. The company announced today that all Windows client and server teams will now report to Windows chief Pavan Davuluri, marking the biggest Windows reorganization since 2018. The move signals Microsoft's urgent push to transform Windows into what Davuluri calls an "Agentic OS" powered by artificial intelligence.
Microsoft is betting big on AI, and it's reshaping Windows to prove it. The company announced today that it's bringing its scattered Windows engineering teams back under one roof, with newly promoted Windows and devices president Pavan Davuluri now overseeing the entire operation.
"This change unifies Windows engineering work under a single organization," Davuluri wrote in an internal memo obtained by The Verge. "Moving the teams working on Windows client and server together into one organization brings focus to delivering against our priorities."
The timing isn't coincidental. Microsoft has been aggressively pushing AI features into Windows 11, from Copilot integration to experimental AI labs testing cutting-edge capabilities. But the company's fragmented engineering structure was slowing things down. Now, teams responsible for Core OS, Data Intelligence and Fundamentals, Security, and Engineering Systems all report directly to Davuluri instead of being split between Windows and Azure divisions.
This represents the biggest Windows shake-up since 2018, when former Windows chief Terry Myerson's departure led Microsoft to split Windows across two major divisions. The core Windows platform team moved to Azure, while client-facing features went to the Experiences & Devices group. The idea was to leverage Azure's cloud expertise, but it created coordination headaches as Windows became increasingly important to Microsoft's AI strategy.
Davuluri has been gradually consolidating power since taking over Windows leadership. He clawed back some teams in 2020, but the core engineering remained divided until now. His recent promotion to president of Windows and devices earlier this month signaled that bigger changes were coming.
The reorganization puts enormous pressure on Davuluri to deliver on Microsoft's AI ambitions. The company has been rolling out AI features at breakneck speed, including the recent Windows AI Labs program for testing experimental capabilities and tools like Copilot Vision and AI-powered Settings agents.