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Databricks Expands Microsoft Azure Partnership, to Use More Custom Chips

Databricks will run core operations on Azure Databricks and adopt Cobalt 200 chips, which Microsoft says can deliver up to 50% better performance.

  • On Wednesday, Microsoft Corp. and Databricks announced an expansion of their strategic partnership through the 2030s, strengthening collaboration on enterprise AI, Azure infrastructure, and data platform integration.
  • Databricks will deepen its use of Azure infrastructure to run core business operations and analytics, while leveraging Microsoft Azure Cobalt to improve performance and efficiency for data-intensive workloads.
  • Integrating Databricks Genie and Unity AI Gateway across the Microsoft stack, Databricks CEO Ali Ghodsi said the partnership helps enterprises unify data and ground AI in business knowledge.
  • Over 20,000 organizations, including 70% of Fortune 500 companies, rely on the Databricks platform to build and scale data and AI apps, with thousands already using Azure Databricks for critical workloads.
  • The San Francisco-based firm recently signed off on a funding round valuing the company at $188 billion, marking a win for Microsoft's Azure cloud business as enterprise AI adoption accelerates.
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14 Articles

ReutersReuters
+3 Reposted by 3 other sources
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Databricks expands Microsoft Azure partnership, to use more custom chips

·London, United Kingdom
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SecurityBrief AustraliaSecurityBrief Australia
+3 Reposted by 3 other sources

Databricks deepens Microsoft tie-up into the 2030s

The expanded deal aims to help customers ground AI in their own data while easing governance and cost concerns across Microsoft tools.

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Reuters broke the news in London, United Kingdom on Thursday, July 23, 2026.
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