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Databricks boosts AI with Microsoft's custom processors
23 Jul
Summary
- Databricks will use Azure Databricks for its core business operations.
- Company expands use of Azure Cobalt processors for AI workloads.
- New Cobalt 200 chip offers 50% better performance and encryption.

Databricks has announced a significant expansion of its partnership with Microsoft, agreeing to utilize Azure Databricks for its own fundamental business and analytics operations. This platform is the same powerful solution offered to Databricks' enterprise clients.
The company will also increase its reliance on Microsoft's custom-designed Azure Cobalt processors. These processors are optimized for data-intensive and agentic artificial intelligence workloads. Databricks is transitioning from the current Cobalt 100 chip to the upcoming Cobalt 200.
Microsoft stated that the new Cobalt 200 processor delivers a notable improvement, offering up to 50% better performance. Additionally, it features memory encryption enabled by default, enhancing security for AI computations.