Databricks will bake OpenAI models into its products in $100M bet to spur enterprise adoption

TechCrunch
TechCrunch
3M ago
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Databricks has entered a $100 million deal to integrate OpenAI's models, including GPT-5, into its platform, aiming to enhance enterprise AI adoption.
Databricks will bake OpenAI models into its products in $100M bet to spur enterprise adoption
A What happened
In a significant move to enhance enterprise AI capabilities, Databricks has secured a $100 million multi-year agreement with OpenAI to integrate its advanced models, including GPT-5, into its data platform and AI product, Agent Bricks. This partnership is designed to meet the growing demand for AI tools that can securely access and utilize corporate data. Agent Bricks enables organizations to create AI applications and agents tailored to their specific needs, leveraging OpenAI's models. The deal ensures that Databricks will pay a minimum of $100 million to OpenAI, regardless of revenue outcomes, providing OpenAI with predictable income as it expands its infrastructure. The collaboration follows a similar agreement with Anthropic earlier this year, reflecting Databricks' commitment to enhancing its offerings in the competitive AI landscape.
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Key insights

  • 1

    Enterprise AI Demand: Growing interest in AI tools for secure corporate data utilization.

  • 2

    Predictable Revenue for OpenAI: The deal provides OpenAI with stable income amidst expansion efforts.

  • 3

    Customization of AI Applications: Agent Bricks allows tailored AI solutions based on performance metrics.

Takeaways

The partnership positions Databricks to capitalize on the increasing enterprise demand for AI solutions.

Topics

Technology & Innovation Artificial Intelligence