diff --git a/src/api/providers/__tests__/openai.test.ts b/src/api/providers/__tests__/openai.test.ts
index 950b2165410..a516605ee51 100644
--- a/src/api/providers/__tests__/openai.test.ts
+++ b/src/api/providers/__tests__/openai.test.ts
@@ -392,4 +392,55 @@ describe("OpenAiHandler", () => {
 			expect(lastCall[0]).not.toHaveProperty("stream_options")
 		})
 	})
+
+	describe("Databricks AI Provider", () => {
+		const baseDatabricksOptions = {
+			...mockOptions,
+			openAiModelId: "databricks-dbrx-instruct",
+		}
+
+		const databricksUrls = [
+			"https://adb-xxxx.azuredatabricks.net/serving-endpoints",
+			"https://myworkspace.cloud.databricks.com/serving-endpoints/myendpoint",
+			"https://anotherworkspace.gcp.databricks.com/serving-endpoints/anotherendpoint",
+		]
+
+		it.each(databricksUrls)("should initialize with Databricks AI configuration for %s", (url) => {
+			const options = { ...baseDatabricksOptions, openAiBaseUrl: url }
+			const databricksHandler = new OpenAiHandler(options)
+			expect(databricksHandler).toBeInstanceOf(OpenAiHandler)
+			expect(databricksHandler.getModel().id).toBe(options.openAiModelId)
+		})
+
+		it.each(databricksUrls)(
+			"should exclude stream_options when streaming with Databricks AI for %s",
+			async (url) => {
+				const options = { ...baseDatabricksOptions, openAiBaseUrl: url }
+				const databricksHandler = new OpenAiHandler(options)
+				const systemPrompt = "You are a helpful assistant."
+				const messages: Anthropic.Messages.MessageParam[] = [
+					{
+						role: "user",
+						content: "Hello!",
+					},
+				]
+
+				const stream = databricksHandler.createMessage(systemPrompt, messages)
+				await stream.next() // Consume one item to trigger the mock call
+
+				expect(mockCreate).toHaveBeenCalledWith(
+					expect.objectContaining({
+						model: options.openAiModelId,
+						stream: true,
+					}),
+					{}, // Expecting empty options object as second argument
+				)
+
+				// Verify stream_options is not present in the last call's arguments
+				const mockCalls = mockCreate.mock.calls
+				const lastCallArgs = mockCalls[mockCalls.length - 1][0]
+				expect(lastCallArgs).not.toHaveProperty("stream_options")
+			},
+		)
+	})
 })
diff --git a/src/api/providers/openai.ts b/src/api/providers/openai.ts
index fc739b31105..b879bd319a6 100644
--- a/src/api/providers/openai.ts
+++ b/src/api/providers/openai.ts
@@ -138,13 +138,14 @@ export class OpenAiHandler extends BaseProvider implements SingleCompletionHandl
 			}
 
 			const isGrokXAI = this._isGrokXAI(this.options.openAiBaseUrl)
+			const isDatabricksAI = this._isDatabricksAI(this.options.openAiBaseUrl)
 
 			const requestOptions: OpenAI.Chat.Completions.ChatCompletionCreateParamsStreaming = {
 				model: modelId,
 				temperature: this.options.modelTemperature ?? (deepseekReasoner ? DEEP_SEEK_DEFAULT_TEMPERATURE : 0),
 				messages: convertedMessages,
 				stream: true as const,
-				...(isGrokXAI ? {} : { stream_options: { include_usage: true } }),
+				...(isGrokXAI || isDatabricksAI ? {} : { stream_options: { include_usage: true } }),
 			}
 			if (this.options.includeMaxTokens) {
 				requestOptions.max_tokens = modelInfo.maxTokens
@@ -268,6 +269,7 @@ export class OpenAiHandler extends BaseProvider implements SingleCompletionHandl
 			const methodIsAzureAiInference = this._isAzureAiInference(this.options.openAiBaseUrl)
 
 			const isGrokXAI = this._isGrokXAI(this.options.openAiBaseUrl)
+			const isDatabricksAI = this._isDatabricksAI(this.options.openAiBaseUrl)
 
 			const stream = await this.client.chat.completions.create(
 				{
@@ -280,7 +282,7 @@ export class OpenAiHandler extends BaseProvider implements SingleCompletionHandl
 						...convertToOpenAiMessages(messages),
 					],
 					stream: true,
-					...(isGrokXAI ? {} : { stream_options: { include_usage: true } }),
+					...(isGrokXAI || isDatabricksAI ? {} : { stream_options: { include_usage: true } }),
 					reasoning_effort: this.getModel().info.reasoningEffort,
 				},
 				methodIsAzureAiInference ? { path: AZURE_AI_INFERENCE_PATH } : {},
@@ -346,6 +348,15 @@ export class OpenAiHandler extends BaseProvider implements SingleCompletionHandl
 		return urlHost.includes("x.ai")
 	}
 
+	private _isDatabricksAI(baseUrl?: string): boolean {
+		const urlHost = this._getUrlHost(baseUrl)
+		return (
+			urlHost.endsWith(".azuredatabricks.net") ||
+			urlHost.endsWith(".cloud.databricks.com") ||
+			urlHost.endsWith(".gcp.databricks.com")
+		)
+	}
+
 	private _isAzureAiInference(baseUrl?: string): boolean {
 		const urlHost = this._getUrlHost(baseUrl)
 		return urlHost.endsWith(".services.ai.azure.com")