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Microsoft and Databricks announced a long--term expansion of their strategic partnership on July 23, 2026, extending the collaboration into the 2030s. Under the agreement, Databricks will increase its commitment to Azure and become a primary adopter of Microsoft’s custom "Azure Cobalt 200" Arm--based processors to drive performance for data--intensive AI workloads. Microsoft will integrate Databricks' "Genie" AI assistant and "Unity AI Gateway" into its enterprise suite, including Microsoft 365 and Teams, to improve data governance and provide deeper business context for autonomous AI agents.

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