Databricks announced Thursday that it is broadening its relationship with Microsoft, extending the partnership through the 2030s in a deal that includes significantly increased use of the Azure cloud platform and Microsoft’s proprietary chips.
The San Francisco-based company provides a platform that enables businesses to collect, analyze, and develop AI-powered applications using large amounts of data from multiple sources.
Regarded as one of the most valuable privately held companies in the world, Databricks’ decision to deepen its Microsoft ties represents a notable victory for the Azure cloud division at a time when businesses are rapidly embracing artificial intelligence.
As part of the expanded agreement, Databricks will ramp up its use of Azure to power its own internal business operations and data analytics. The company will also increase its reliance on Azure Cobalt — Microsoft’s custom Arm-based processors — to handle data-heavy and advanced AI tasks.
The partnership also calls for Microsoft to continue weaving Databricks’ AI tools into its own product lineup, including Databricks’ conversational analytics feature called Genie, with the goal of enhancing enterprise AI capabilities.
Judson Althoff, CEO of Microsoft’s Commercial Business, commented on the expanded arrangement: “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.”
Databricks revealed last week that it had finalized a new funding round that puts the company’s value at $188 billion, with that round expected to be completed later this summer. The platform is currently used by more than 20,000 organizations around the world, including 70% of Fortune 500 companies.
