Databricks and Microsoft Expand Long-Term Partnership to Drive Next-Gen AI Innovation on Azure Databricks

Databricks

At the 2025 Data + AI Summit in San Francisco, Databricks and Microsoft announced an early renewal and multi-year extension of their strategic partnership, reaffirming their commitment to empowering organizations with cutting-edge data and AI capabilities through Azure Databricks. First launched in 2018 as a Microsoft first-party service, Azure Databricks has become a foundational platform for thousands of customers looking to build secure, intelligent, and scalable AI-driven solutions.

The renewed collaboration will deepen technical integration across Microsoft’s cloud ecosystem, including Azure AI Foundry, Microsoft Power Platform, and the soon-to-launch SAP Databricks on Azure. These enhancements aim to deliver a seamless, unified experience for developers and enterprise users, accelerating their ability to innovate with trusted data and AI tools.

“We are entering a new era where every application will be intelligent, and every business will be data-driven,” said Ali Ghodsi, Co-founder and CEO of Databricks. “This extended partnership with Microsoft shows our long-term joint commitment to helping organizations innovate faster with a unified, open, and governed platform for data and AI on Azure Databricks. Together, we’re laying the foundation for the next generation of AI-powered enterprises.”

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Judson Althoff, Executive Vice President and Chief Commercial Officer at Microsoft, added, “Democratizing data and AI is a critical component for any organization seeking to drive pragmatic innovation and unlock greater business opportunity. By deepening our long-standing partnership with Databricks and enhancing interoperability, we are delivering significant value to enterprise and IT developers by enabling tighter integration across the Azure ecosystem—from Azure AI Foundry and Power Platform to SAP. Together, we are empowering our customers with Azure Databricks to help them harness the full potential of their data, build the next generation of autonomous systems and accelerate AI Transformation.”

As organizations increasingly seek to operationalize AI at scale, the partnership will continue to focus on advancing Azure Databricks with features like centralized governance, open data formats, embedded warehousing, and AI-native capabilities. Powered by the Databricks Data Intelligence Platform, Azure Databricks democratizes access to data and AI by simplifying the development of intelligent applications and domain-specific agents, reinforcing its role as a trusted foundation for the AI-first enterprise.