Databricks and Microsoft extend Azure partnership through 2030s with custom chip focus

Databricks expands Microsoft Azure partnership, to use more custom chips

July 23 (Reuters) - Databricks said on Thursday it would expand its partnership with Microsoft (MSFT.O), opens new tab through the 2030s, a deal under which it will increase its use of the Azure platform and Microsoft's custom chips. Databricks offers a platform that helps users ingest, analyze and build AI applications using complex data from various sources. One of the most valuable private companies, the San Francisco-based firm's ⁠move marks a sizeable win for Microsoft's Azure cloud business and comes as enterprise AI adoption accelerates. Databricks said it would increase Azure usage to run its own core business operations and analytics, and also boost its usage of Azure Cobalt, Microsoft's Arm-based (O9Ty.F), opens new tab custom processors, for data-intensive and agentic AI workloads. Under the partnership, Microsoft will also continue integrating Databricks' AI ⁠capabilities across its products, including Databricks' conversational analytics tool Genie, to strengthen enterprise AI offerings. "With Databricks deepening its investment in Azure Databricks and Azure Cobalt-powered infrastructure, customers will benefit from greater performance, ⁠efficiency, and scale for their most demanding workloads," said Judson Althoff, CEO of Microsoft's Commercial Business. Databricks said last week it had ⁠signed off on a funding round that values the firm at $188 billion, with the round expected to close later this ⁠summer. The company's platform is used by over 20,000 organizations globally, including 70% of the Fortune 500 companies. Reporting by Deborah Sophia in Bengaluru; Editing by Tasim Zahid Our Standards: The Thomson Reuters Trust Principles., opens new tab

Databricks and Microsoft expand Azure partnership into the 2030s

Databricks Inc. and Microsoft Corp. today said they're extending their strategic partnership into the 2030s as the companies seek business from enterprises building artificial intelligence applications grounded in proprietary data and business context. Under the expanded agreement, Databricks will increase its use of Microsoft Azure to operate its own business. The company plans to run core operations and analytics on Azure Databricks while building its unified data lakehouse on the platform. Databricks will also expand its use of Azure Cobalt, Microsoft's Arm-based computing infrastructure, for data-intensive and agentic AI workloads. Databricks currently uses Cobalt 100 processors and plans to adopt Cobalt 200, which Microsoft says delivers up to 50% better performance and provides memory encryption by default. Microsoft, in turn, said it will continue integrating Databricks' data and AI technology across products that include Microsoft 365, Teams, Copilot, Power BI, OneLake, Purview and Microsoft Foundry. The integrations will include Databricks Genie, an AI assistant that connects users and agents with an organization's business data. Genie Ontology provides the business concepts and relationships needed to interpret that data, while Unity AI Gateway gives companies a centralized way to govern models, agents, usage and costs. The companies are targeting a persistent obstacle to enterprise AI adoption: Although organizations possess large amounts of operational data, they often struggle to connect models and agents to trusted business knowledge while maintaining security, governance and cost controls. "The next generation of AI will be defined by how effectively organizations turn their unique knowledge into intelligence," said Judson Althoff, chief executive of Microsoft's commercial business. He said Databricks' increased use of Azure Databricks and Cobalt infrastructure should improve performance, efficiency and scalability. The companies said Azure Databricks is already used by thousands of organizations, including Banco Bradesco SA, Electrolux AB, Sumitomo Mitsui Banking Corp., Unilever PLC and Major League Baseball's Cincinnati Reds.

Databricks expands Microsoft Azure partnership, to use more custom chips

Databricks will extend its Microsoft partnership through the 2030s. The company will increase its use of the Azure platform and Microsoft's custom chips. This move marks a significant win for Microsoft's Azure cloud business. Databricks will run core operations and analytics on Azure infrastructure. Microsoft will also integrate Databricks' AI capabilities across its products. Databricks said on Thursday it would expand its partnership with Microsoft through the 2030s, a deal under which it will increase its use of the Azure platform and Microsoft's custom chips. Databricks offers a platform that helps users ingest, ⁠analyse and ⁠build AI applications using complex data from various sources. One of the most valuable private companies, the San Francisco-based firm's move marks a sizeable win for Microsoft's Azure cloud business and comes as enterprise AI adoption accelerates. Databricks said it would increase Azure ⁠usage to run its own core business operations and analytics, and also boost its usage of ⁠Azure Cobalt, Microsoft's Arm-based custom processors, for data-intensive and agentic AI workloads. Under the partnership, Microsoft will also continue integrating Databricks' AI capabilities across its products, including Databricks' conversational analytics tool Genie, to strengthen enterprise AI offerings. "With Databricks deepening its investment in Azure Databricks and Azure Cobalt-powered infrastructure, customers will benefit from greater performance, efficiency, and scale for their most demanding workloads," said Judson Althoff, CEO ⁠of Microsoft's Commercial Business. Databricks said last week it had signed off on a funding round that values the firm at $188 billion, with the round expected to close later this summer. The company's platform is used by over 20,000 organizations globally, including 70% of the Fortune 500 companies.

Databricks Expands Partnership with Microsoft to Increase Use of Azure Platform and Microsoft's Custom Chips

Databricks announced that it would expand its partnership with Microsoft through the 2030s, a deal under which it will increase its use of the Azure platform and Microsoft's custom chips. Databricks offers a platform that helps users ingest, analyze and build AI applications using complex data from various sources. One of the most valuable private companies, the San Francisco-based firm's move marks a sizeable win for Microsoft's Azure cloud business and comes as enterprise AI adoption accelerates. Databricks said it would increase Azure usage to run its own core business operations and analytics, and also boost its usage of Azure Cobalt, Microsoft's Arm-based custom processors, for data-intensive and agentic AI workloads. Underthe partnership, Microsoft will also continue integrating Databricks' AI capabilities across its products, including Databricks' conversational analytics tool Genie, to strengthen enterprise AI offerings.