Databricks, Microsoft announce expansion of strategic partnership

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New Delhi, July 24: Tech companies Databricks and Microsoft are expanding their decade-long strategic partnership, extending into the 2030s, they announced today.
Under the expanded partnership, Databricks, a Data and AI company, will deepen its use of Azure Databricks to run core business operations and build its unified lakehouse,
Microsoft will also continue integrating Databricks Data and AI platform across its products, bringing capabilities like Genie, Databricks’ AI co-worker, directly into customer workflows.
Together, the companies are helping enterprises build AI grounded in their own business context with the cost efficiency, control, and choice needed to scale successfully.
Enterprises want AI that understands their customers, products, operations, metrics, and business processes, all while running securely where work happens. Yet, most still struggle to connect AI to trusted business knowledge, govern models and agents consistently, and control costs. Microsoft and Databricks are helping customers close that gap.

 

Databricks Runs Core Business Operations on Azure Databricks
As part of this latest deal, Databricks deepens its commitment to Azure, running its own core business operations and analytics on Azure Databricks, using the very platform it delivers to customers at scale.
Advancing Performance with Azure Cobalt
Databricks will also expand its use of Azure Cobalt, Microsoft’s next-generation Arm-based infrastructure, to improve performance and efficiency for agentic and data-intensive workloads. Databricks currently uses Cobalt 100 and plans to adopt Cobalt 200, which delivers up to 50% better performance and includes memory encryption enabled by default.
Deep Integrations for Databricks Genie and Unity AI Gateway with Microsoft Product Stack
By combining the Databricks Data + AI Platform with Azure’s global scale, customers can accelerate AI transformation while maintaining control and reliability.
As a native Azure service, Azure Databricks makes its AI capabilities available directly within customers’ existing Microsoft environment, grounding and operating agents on enterprise data with Genie and Genie Ontology, and governing models, agents, and cost through Unity AI Gateway.
Deeply integrated across the Microsoft ecosystem spanning Microsoft Entra, Azure Data Lake Storage, Azure security, Microsoft OneLake, Power BI, Microsoft Purview, Microsoft Foundry, Power Platform, Microsoft 365, Teams and Copilot, these capabilities bring governed, real-time data and AI into business workflows, giving organizations the context, control, choice, and cost efficiency needed to drive impact. (BVI)
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