Microsoft, Databricks Extend Partnership to Deepen Enterprise AI Integration

Microsoft and Databricks announced on July 23 that they have expanded their decade-long strategic partnership into the 2030s, with Databricks committing to run its core business operations on Azure Databricks while both companies deepen integration across Microsoft's AI and productivity ecosystem.

The agreement extends beyond infrastructure. It combines Azure Databricks, Microsoft 365, Teams, Copilot, Power BI, Microsoft Purview, Microsoft Entra, and Microsoft Fabric with Databricks' Data and AI Platform, including Genie, Genie Ontology, and Unity AI Gateway, to help enterprises build AI applications grounded in their own business data rather than standalone foundation models.

The companies said the expanded collaboration is designed to address challenges enterprises continue to face in connecting AI systems to trusted business knowledge while maintaining governance, security, and cost control.

Databricks Co-Founder and CEO Ali Ghodsi said the deeper integration would allow enterprises to unify their data and business knowledge while deploying AI agents and models with governance and cost controls. Microsoft Commercial Business CEO Judson Althoff said organizations increasingly need AI systems that can turn proprietary enterprise knowledge into actionable intelligence.