New updates have been reported about Databricks (PC:DTBRK)
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Databricks has announced a significant strategic move by integrating OpenAI’s advanced models, including GPT-5, into its data platform and AI product, Agent Bricks. This collaboration is part of a substantial $100 million multi-year agreement aimed at enhancing Databricks’ offerings for enterprise customers. The integration underscores the growing trend of embedding generative AI into enterprise solutions, as businesses increasingly demand AI tools that can securely leverage corporate data.
Agent Bricks, Databricks’ AI application platform, now offers OpenAI’s latest models, accessible through SQL or API, with GPT-5 positioned as a flagship option for its clientele. This development follows Databricks’ earlier addition of OpenAI’s open-weight models, gpt-oss 20B and gpt-oss 120B, to its platform. The partnership allows Databricks to offer tailored AI solutions by evaluating model performance on specific tasks and fine-tuning them accordingly. While the deal poses a financial commitment for Databricks, with a minimum payment of $100 million to OpenAI, it also presents a potential risk if the generated revenue falls short. Nevertheless, Databricks anticipates strong demand, as evidenced by interest from major clients like Mastercard. This agreement mirrors a previous deal with Anthropic, reflecting Databricks’ strategic focus on expanding its AI capabilities and market presence.