Microsoft Corp. and Databricks revealed an extension of their long-standing strategic partnership, which will continue into the 2030s.

Databricks will enhance its utilization of Azure Databricks for essential business functions and develop its integrated lakehouse, taking advantage of Azure Cobalt, Microsoft's next-gen Arm-based framework, to boost performance and efficiency.

Microsoft will further integrate the Databricks Data and AI platform into its offerings, incorporating features such as Genie, Databricks' AI assistant, seamlessly into user workflows. The companies are collaborating to assist enterprises in developing AI tailored to their specific business context, offering the cost efficiency, control, and options required for successful scaling.

Businesses seek AI capable of grasping their customers, products, operations, metrics, and business processes, all while operating securely in their work environments. However, many continue to face challenges in linking AI with reliable business insights, managing models and agents in a uniform manner, and keeping expenses in check.

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Ali Ghodsi, Co Founder and CEO of Databricks says, “For nearly a decade, Databricks and Microsoft have helped enterprises innovate with data and AI. Today, our partnership is stronger than ever. 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.”

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Judson Althoff, CEO, Microsoft Commercial Business says, “The next generation of AI will be defined by how effectively organizations 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."

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"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,” adds Judson .