Microsoft is expanding its presence in the artificial intelligence (AI) market by teaming up with software company Databricks. According to insiders, the tech giant is planning to offer a new version of Databricks’ software that will allow customers to develop their own AI applications. The software will be sold through Microsoft’s Azure cloud-server unit, providing an alternative to OpenAI’s proprietary models that require licensing.
The move comes on the heels of Microsoft CEO Satya Nadella’s discussion of generative AI’s future with Databricks CEO Ali Ghodsi. During the Databricks Data + AI Summit in June, Ghodsi praised the partnership between Microsoft and Databricks, noting the success they have achieved in joint projects around data and AI. Nadella expressed his enthusiasm for the collaboration, hinting at the possibility of a project involving Azure, OpenAI, and Databricks.
However, Databricks is positioning itself as an anti-OpenAI entity. In late June, the company announced its acquisition of MosaicML, a leading generative AI platform and competitor to OpenAI, for approximately $1.3 billion. This move indicates Databricks’ intention to offer accessible generative AI models to organizations by allowing them to build, own, and secure their own AI models with their unique data.
Microsoft’s continued investments in AI have paid off, as evidenced by its recent financial success. The company reported $56.2 billion in sales and a net profit of $20.1 billion for the April to June 2023 quarter, surpassing earnings expectations. The growth was largely driven by Microsoft’s cloud unit, which heavily relies on AI. The company’s cloud sales now account for more than half of its overall sales.
This partnership between Microsoft and Databricks holds great promise for the development and deployment of AI technology. It presents customers with new opportunities to create AI applications tailored to their specific business needs. With the added accessibility of the Databricks software through Microsoft’s Azure cloud-server unit, organizations can now explore AI development from scratch or repurpose open-source models.
As the AI market continues to evolve, collaborations and acquisitions like these will shape the industry’s landscape. The integration of Databricks’ software with Microsoft’s ecosystem opens up a wide range of possibilities for customers, allowing them to leverage the power of AI for their businesses. With both companies’ expertise and resources combined, the future of AI development looks promising, and customers can expect innovative solutions that drive their businesses forward.
