Microsoft plans to partners with Databricks to expand AI offerings, potentially competing with OpenAI

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Microsoft is expanding its AI offerings by partnering with Databricks. Why is it a big news? Because it was noted that Databricks had positioned itself somewhat as an alternative to OpenAI. In June, Databricks announced the acquisition of MosaicML, a generative AI platform seen as a competitor to OpenAI, for around $1.3 billion. Things could go from bad to worse for OpenAI as they face a lawsuit from the New York Times over AI content copyrights.

According to reports, Microsoft’s Azure cloud-server unit will soon sell the Databricks software. This software allows:

  • Creation of AI models from scratch
  • It allows the reuse of open-source models, potentially serving as a substitute for OpenAI’s licensed proprietary models.

During the Databricks Data + AI Summit, Microsoft CEO Satya Nadella and Databricks co-founder and CEO Ali Ghodsi discussed the future of generative AI. Ghodsi noted that all Databricks engineers use Microsoft’s Copilot.

Nadella highlighted the strong partnership between Microsoft and Databricks and suggested integrating Azure, OpenAI, and Databricks for a joint project.

Microsoft’s collaboration with Databricks for AI expansion seems to have a multi-pronged intent. It could indicate a desire to diversify AI offerings, respond to rising demand, explore alternatives to OpenAI, enhance competitiveness, strategically acquire assets like MosaicML, or maybe to stay agile in a fast-evolving AI landscape.

via The Information (paywalled)