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Databricks, OpenAI team up to deliver AI models for enterprise clients – Reuters

By Reuters

Copyright reuters

Databricks, OpenAI team up to deliver AI models for enterprise clients - Reuters

Sept 25 (Reuters) – Analytics firm Databricks said on Thursday it has partnered with OpenAI to integrate the ChatGPT maker’s artificial intelligence models into its platforms for enterprise customers.

As part of the agreement, OpenAI’s AI models will be built directly into Databricks’ cloud platform for enterprise data and analytics, as well as its flagship product, Agent Bricks, which helps customers create, test and scale AI apps and agents.

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The partnership is expected to generate $100 million in revenue, Databricks said.

OpenAI has been expanding beyond Microsoft Azure, its long-standing cloud partner, to accelerate growth of its enterprise business and drive broader adoption of its AI tools among corporate customers.

For Databricks, the latest deal gives it an edge in the enterprise AI race over listed rival Snowflake (SNOW.N), opens new tab, which is still in the early stages of developing its AI capabilities.

“We’re seeing overwhelming demand from enterprise customers looking to build AI apps and agents on their data, tailored to their unique business needs,” Databricks CEO Ali Ghodsi said.

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GPT-5 will be a flagship model to more than 20,000 enterprise customers of Databricks, it said.

The deal builds on the companies’ existing partnership, under which OpenAI leverages Databricks to process AI data, enhancing its products and improving the ChatGPT experience.

Databricks was also one of the first to host gpt-oss, OpenAI’s open-weight language models, which excel in advanced reasoning.

The San Francisco-based company closed a $1 billion funding round earlier this month, securing a valuation of $100 billion, which made it one of the most valuable private companies in the world.

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Reporting by Harshita Mary Varghese in Bengaluru and Krystal Hu in New York; Editing by Shilpi Majumdar

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