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Microsoft, Databricks Expand Enterprise AI Partnership

Jul 29, 2026, 9:15 AM

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425 Business

Originally published on 425 Business.

Software company Databricks and Microsoft are expanding their partnership to further integrate data management and artificial-intelligence technologies for business customers.

The updated agreement extends the companies’ collaboration into the next decade and focuses on connecting enterprise data with AI applications across Microsoft’s cloud platform and productivity tools.

Under the agreement, Databricks will increase its use of Microsoft Azure infrastructure, including Azure Cobalt processors, to support its own data and AI workloads. Microsoft also plans to expand integration of Databricks technologies, including its Genie conversational analytics platform, into Microsoft 365 and other enterprise products to help users access information from their organizations’ data.

“The next generation of AI will be defined by how effectively organizations turn their unique knowledge into intelligence,” said Judson Althoff, CEO of Microsoft Commercial Business, in a press release. “Microsoft and Databricks are helping customers connect data, AI, and business context to accelerate decision-making and drive measurable impact. 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’ decision to run its own core business operations on Azure Databricks also gives customers confidence in a platform proven at enterprise scale.”

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