Databricks expands Microsoft Azure partnership, to use more custom chips

July 23 (Reuters) - 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, 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.

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)

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