July 23 (Reuters) - Databricks said on Thursday it would expand its partnership with Microsoft through the ‌2030s, a deal under which it will increase ‌its use of the Azure platform and Microsoft's custom chips. One of the most valuable private companies, the San Francisco-based firm's move marks a ‌sizeable win for ⁠Microsoft's Azure cloud business and comes as enterprise AI adoption accelerates. Databricks said it would increase ⁠Azure usage to run its own core business operations and analytics, and also boost its usage of Azure Cobalt, ​Microsoft's Arm-based ​custom processors, for data-intensive ​and agentic AI workloads. Under ‌the partnership, Microsoft will also continue integrating Databricks' AI capabilities across its products, including Databricks' conversational analytics tool Genie, to strengthen enterprise AI offerings. "With Databricks deepening its investment in Azure Databricks and Azure Cobalt-powered infrastructure, customers will benefit from ‌greater performance, efficiency, and scale ​for their most demanding workloads," said ​Judson Althoff, CEO ​of Microsoft's Commercial Business.