Databricks extends partnership with Microsoft

Databricks has extended its decade-long partnership with Microsoft into the 2030s. Under the agreement, Databricks will deepen its use of Azure Databricks to run core business operations and power its unified lakehouse.

The collaboration will also see Databricks leverage Microsoft’s next-generation Arm-based infrastructure Azure Cobalt to improve performance and efficiency. Databricks currently uses Cobalt 100 and plans to adopt Cobalt 200, which promises up to 50% better performance and supports memory encryption by default.

Microsoft will meanwhile continue integrating the Databricks Data and AI platform across its products, to bring capabilities like Databricks’ AI coworker Genie into customer workflows. Operating the platform as a native Azure service enables the companies to deliver AI capabilities directly within customers’ existing Microsoft environments.

Databricks co-founder and CEO Ali Ghodsi said the renewed partnership is ultimately aimed at helping joint customers build and scale enterprise AI capabilities.

“For nearly a decade, Databricks and Microsoft have helped enterprises innovate with data and AI. Today, our partnership is stronger than ever,” he said. “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. This lets customers get the full benefits of agents and models while controlling costs and ensuring governance.”

Microsoft Commercial Business CEO Judson Althoff added that the next generation of AI will be defined by how effectively organisations turn their unique knowledge into intelligence.

“Microsoft and Databricks are helping customers connect data, AI and business context to accelerate decision-making and drive measurable impact,” he said. “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.”

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