Microsoft Splits Into Two Divisions: 'Agents and Infra' and 'Devices and Consumer'

Microsoft is reorganizing into two divisions, "Agents and Infra" and "Devices and Consumer," replacing its three traditional reporting segments, according to the Wall Street Journal. The change reflects CEO Satya Nadella's view that AI is reshaping the company's structural boundaries. "Agents and Infra" will encompass Microsoft's AI models, GitHub, Azure cloud infrastructure, and Microsoft 365 with Copilot features. "Devices and Consumer" will cover Xbox, Windows, search, and advertising, including Bing and LinkedIn. The former is projected to generate about $75 billion in revenue next quarter, versus $15 billion for the latter. The new names continue Microsoft's history of distinctive internal jargon, such as "dogfooding" for using its own products and "accountability margin" for profit margin. The restructuring follows former CEO Steve Ballmer's "One Microsoft" initiative aimed at unifying the company.