Microsoft and Databricks extend partnership into the 2030s, bringing Genie to Microsoft 365

Microsoft and Databricks said on July 23 they will extend their partnership into the 2030s, with Databricks adopting Microsoft’s Arm-based Azure Cobalt chips and integrating its Genie AI co-worker into Microsoft 365.

Under the expanded agreement, Databricks will deepen its use of Azure Databricks and move data-intensive workloads onto Azure Cobalt, Microsoft’s custom Arm-based server processor. Microsoft says Cobalt delivers up to 50% better performance for agentic and data-heavy workloads, a vendor figure that has not been independently verified.

The user-facing piece is Genie, Databricks’ AI agent for querying business data in plain language. Databricks said it will bring Genie into Microsoft 365 through native integrations with its Unity AI Gateway, so the agent can draw on a company’s governed data inside everyday productivity apps.

The extension deepens a tie-up that predates the current AI cycle and keeps Databricks anchored to Azure at a moment when data platforms are central to enterprise AI. Databricks said more than 20,000 organizations use its platform, including 70% of the Fortune 500, with named customers such as Banco Bradesco, Electrolux, SMBC and Unilever.

The test is adoption. Extending a contract into the 2030s signals intent; whether enterprises actually route Genie queries through Microsoft 365 and shift workloads onto Cobalt will show whether the deeper integration changes how the two companies’ customers work.