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Microsoft is flirting with Databricks, OpenAI is watching with interest

  • August 18, 2023
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Microsoft may want to offer Databricks’ AI platform through its Azure cloud. A marriage of the two companies could be an upside for OpenAI. Microsoft makes no secret

Databrick's Microsoft OpenAI

Microsoft may want to offer Databricks’ AI platform through its Azure cloud. A marriage of the two companies could be an upside for OpenAI.

Microsoft makes no secret of the fact that it is fully committed to offering AI services and would like to consider Databricks as a partner. This is what The Information and Reuters write, among others, with the proviso that neither company has officially confirmed the news. A deeper collaboration between Microsoft and Databricks would not sound unreasonable, since the Databricks data lakehouse is already available today via the Azure cloud.

Good for databricks

At least for Databricks, it would be a good thing. It can be much easier to add AI-related software services in Azure to Microsoft’s vast customer database. Because Databricks also has big ambitions when it comes to artificial intelligence.

The company is also looking for additional capital to fund AI research. A cash injection would also partially offset the $900 million operating loss over the past two fiscal years. So far, there are no sources claiming that Microsoft is one of the potential investors, so for now the flirtation is limited to a technological relationship.

Less good for OpenAI

Where there are winners, there are always losers, and in a three-way relationship with Microsoft and Databricks, OpenAI would feel like the betrayed partner. So far, OpenAI has been able to rely on Microsoft’s billion-euro investment to stay afloat. If Microsoft starts staring at other partners, the company’s survival could be at stake. Although OpenAI currently has other legal cats to flog.

The alleged flirtation with Databricks shows once again that Microsoft and OpenAI are no picnic. Rumor has it that Microsoft still believes that OpenAI grabbed the attention with the launch of ChatGPT in late 2022, while the announcement of Bing Chat a few months later should mark the big breakthrough of generative AI. The impact of Bing Chat was therefore more limited than hoped. It now remains to be seen whether Microsoft and Databricks will be caught red-handed.

Source: IT Daily

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