On September 30, 2025, Microsoft made a significant announcement regarding a comprehensive reorganization of its Windows engineering team. The move involves reintegrating the core Windows development unit into a single, cohesive organization, all under the unified stewardship of Pavan Davuluri, who serves as the President of the Windows and Devices Group. This strategic realignment is designed to pool resources effectively, propelling Microsoft's AI-driven operating system agenda forward and bringing its vision of an "intelligent agent-based operating system" to fruition.

Following this reorganization, team leaders across various relevant departments will now report directly to Davuluri. This centralization ensures that the majority of Windows' engineering capabilities are overseen by a single, streamlined department. At present, while certain foundational elements of Windows continue to be maintained by the Azure team, the core operations of Windows have been consolidated under a unified management structure. Additionally, Microsoft has recently unveiled the "Windows AI Lab" initiative and has introduced a host of AI-centric features within Windows 11, further underscoring its commitment to innovation and technological advancement.