diff --git a/.gitignore b/.gitignore
index 07f080e26..9a5b85c45 100644
--- a/.gitignore
+++ b/.gitignore
@@ -9,4 +9,4 @@ node_modules/
 /playwright-report/
 /playwright/.cache/
 $__StoryList.tid
-types/generated/
+types/core/
diff --git a/tsconfig.json b/tsconfig.json
index 4ec0bfc31..5398d26ba 100644
--- a/tsconfig.json
+++ b/tsconfig.json
@@ -12,15 +12,16 @@
     "checkJs": true,
     "allowSyntheticDefaultImports": true,
     "declaration": true,
-    "declarationDir": "types/generated",
+    "declarationDir": "types/",
     "declarationMap": true,
     "emitDeclarationOnly": true,
     "lib": ["ES2020", "DOM", "DOM.Iterable"],
     "module": "Node16",
-    "outDir": "types/generated",
+    "outDir": "types/",
     "skipLibCheck": true,
     "target": "ESNext"
   },
-  "include": ["./core/**/*.js", "./core/**/*.d.ts", "types/tw.d.ts"],
-  "exclude": ["types/generated"]
+  "include": ["./core/**/*.js", "./core/**/*.d.ts", "types/*.d.ts"],
+  // Exclude the generated types from the core folder
+  "exclude": ["types/core",]
 }
diff --git a/types/tsconfig.json b/types/tsconfig.json
index b98460aff..04a243375 100644
--- a/types/tsconfig.json
+++ b/types/tsconfig.json
@@ -4,17 +4,16 @@
       // Allow `import('$:/core/modules/...')` instead of `import('../../core/modules/...')`. Only works inside this project.
       "$:/core/*": ["core/*"]
     },
-    "baseUrl": "./generated",
-    "rootDir": "./generated",
+    "baseUrl": "./",
+    "rootDir": "./",
     "noEmit": true,
     "noImplicitAny": false,
     "allowSyntheticDefaultImports": true,
     "declaration": true,
-    "declarationDir": "types/generated",
     "lib": ["ES2020", "DOM", "DOM.Iterable"],
     "module": "Node16",
     "skipLibCheck": true,
     "target": "ESNext"
   },
-  "include": ["./generated/**/*.d.ts"]
+  "include": ["./core/**/*.d.ts"]
 }