Microsoft is shaking up its commercial business in a sweeping reorganization aimed at accelerating its next phase of artificial intelligence growth.

In a communication to employees published on the official Microsoft blog, CEO Satya Nadella announced the restructure, consolidating key functions under one umbrella. Judson Althoff will lead the expanded commercial division as Microsoft faces what Nadella called a “tectonic AI platform shift.”

Making Microsoft the ‘partner choice’ for AI transformation

Nadella told Microsoft employees that artificial intelligence, like other general-purpose technologies before it, has the potential to deliver “step changes in productivity and GDP growth” worldwide. Microsoft, he said, is positioned to help customers realize that promise.

Nadella emphasized that the company’s success will depend on enabling both commercial and public sector clients to integrate human capital with AI capabilities, making Microsoft the “partner of choice for AI transformation.”

He said Microsoft must bring together sales, marketing, operations, and engineering more closely to accelerate this shift, ensuring its commercial business drives growth while meeting customer demands with greater speed and consistency.

Who is Judson Althoff?

Nadella named veteran sales chief Althoff CEO of Microsoft’s commercial business.

A Microsoft executive since 2013, he has led global sales and is credited with building Microsoft Customer and Partner Solutions into what Nadella called its “most important growth engine.”

Before joining Microsoft, Althoff held senior sales posts at Oracle and EMC. Under his leadership, the company has posted uninterrupted commercial cloud revenue growth, driven by close partnerships with customers pursuing digital and AI transformation. Althoff also serves on the board of Ecolab and is a graduate of the Illinois Institute of Technology (IIT).

Unifying sales, marketing, and operations

Althoff’s expanded role puts him in charge of Microsoft’s sales, services, support, marketing, operations, and revenue growth worldwide. Marketing chief Takeshi Numoto and his team will move into the division, while continuing to work directly with Nadella on brand, consumer marketing, and corporate planning.

The company’s operations group will also shift under Althoff, which Nadella said will tighten the feedback loop between customer needs and delivery. Chief Transformation Officer Carolina Dybeck Happe will continue to report to Nadella but will remain closely partnered with Althoff.

In addition, Althoff will oversee product strategy, go-to-market readiness, and executional rigor across the business.

Not just evolution, but reinvention

Nadella said the shakeup will allow Microsoft’s engineering leaders to focus on data center buildouts, systems architecture, AI science, and product innovation. He urged employees to “rapidly learn new skills” and “stay close to the metal” to keep pace with the demands of the new platform era.

Calling the moment “not just evolution, it’s reinvention,” Nadella framed the restructuring as essential to ensure Microsoft is positioned to lead the next wave of AI transformation.

The reorganization follows a string of heavy bets on AI infrastructure, including Microsoft’s record investment to expand its footprint in the UK.