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.