Microsoft Plans AI Service With Databricks That Could Hurt OpenAI

Microsoft is planning to start selling a new version of Databricks software that helps customers make AI apps for their businesses, The Information reported on Thursday, citing people with direct knowledge of the plan.

Databricks – a data analytics platform that uses artificial intelligence, which Microsoft would sell through its Azure cloud-server unit – helps companies make AI models from scratch or repurpose open-source models as an alternative to licensing OpenAI’s proprietary ones, the report added.

Microsoft and Databricks did not immediately respond to a Reuters request for comment.

In July, Microsoft laid out an aggressive spending plan to meet demand for its AI services.

The company has started integrating AI functionality across its products such as Azure, Microsoft 365, GitHub and several developer tools.

Meanwhile, Microsoft said on Thursday it would pull the plug on Xbox 360’s online store and marketplace next year, as it focuses on its latest consoles and subscription service Game Pass.

Xbox 360 Store and Xbox 360 Marketplace will be shut on July 29, 2024, and gamers using the old console will not be able to purchase and download new games, according to a post on Xbox’s website.

Microsoft is, however, allowing users to play with their already purchased Xbox 360 games and older titles that are compatible with the console.

“A lot has changed since the Xbox 360 launched in 2005. Technology has evolved, expectations from players have shifted, and we are focused on making Xbox Series X|S the best place to play now and in the future," Xbox said.

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