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Databricks is buying database startup Neon for about $1 billion

  • Databricks announced on May 14, 2025, it will acquire cloud-based database startup Neon for about $1 billion.
  • Databricks aims to expand its data intelligence platform to support AI agent workloads requiring scalable, serverless databases.
  • Neon, founded in 2021, offers a serverless PostgreSQL platform used by over 18,000 customers and supports AI agents creating 80% of its databases.
  • CEO Ali Ghodsi stated that the acquisition will enable developers to access a serverless Postgres solution designed to support fast-paced AI workflows, flexible payment options, and the transparency of the Postgres community.
  • By integrating Neon’s technology, Databricks expects to accelerate AI application deployment and strengthen its position amid growing AI demand.
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ChannelNews broke the news in on Wednesday, May 14, 2025.
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