Microsoft Corp. (NASDAQ: MSFT) and Databricks announced an expansion of their strategic partnership on July 23, extending their collaboration into the 2030s, according to a joint press release.

Under the agreement, Databricks will run its own core business operations and analytics on Azure Databricks and will increase its use of Microsoft's Azure Cobalt, an Arm-based infrastructure platform. Databricks currently uses Azure Cobalt 100 and plans to adopt Cobalt 200, which Microsoft says delivers up to 50% better performance and includes memory encryption enabled by default.

Microsoft will deepen integration of the Databricks Data and AI platform across its product stack, including Microsoft 365, Teams, Copilot, Power BI, Microsoft Purview, and Microsoft Foundry. Databricks' Genie AI tool and Unity AI Gateway will be integrated into Microsoft customer workflows.

"With Databricks Genie and Unity AI Gateway deeply integrated across Microsoft's products, we're helping enterprises unify their data and ground AI in business knowledge," said Ali Ghodsi, co-founder and CEO of Databricks.

Judson Althoff, CEO of Microsoft Commercial Business, said Databricks' decision to run its own operations on Azure Databricks "gives customers confidence in a platform proven at enterprise scale."

The companies said thousands of joint customers, including Banco Bradesco, Electrolux, SMBC, and Unilever, already use Azure Databricks for data and AI workloads.