Microsoft plans AI service with Databricks that could hurt OpenAI: report

Microsoft is planning to start selling a new version of Databricks software that helps customers make AI apps for their businesses, The Information reported on Thursday, citing people with direct knowledge of the plan.

Databricks - a data analytics platform that uses artificial intelligence, which Microsoft would sell through its Azure cloud-server unit - helps companies make AI models from scratch or repurpose open-source models as an alternative to licensing OpenAI's proprietary ones, the report added.

Microsoft and Databricks did not immediately respond to a Reuters request for comment.


In July, Microsoft laid out an aggressive spending plan to meet demand for its AI services.

The company has started integrating AI functionality across its products such as Azure, Microsoft 365, GitHub and several developer tools.