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Databricks is buying database startup Neon for about $1 billion

  • Databricks announced on May 14, 2025, that it will acquire the database startup Neon for about $1 billion.
  • Databricks aims to enhance its Data Intelligence Platform by integrating Neon's serverless Postgres to support growing AI agent workloads.
  • Neon's cloud-based Postgres platform, used by over 18,000 customers, sees more than 80% of its databases being provisioned through AI agents instead of manual human intervention.
  • Databricks CEO Ali Ghodsi stated that Neon offers developers a serverless Postgres solution designed to support fast AI agent workloads, flexible usage-based pricing, and the collaborative strengths of the Postgres ecosystem.
  • This acquisition will likely accelerate Databricks’ mission to scale AI-native agent-driven applications through enhanced database capabilities.
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Databricks announces the acquisition of Neon, a company specializing in serverless PostgreSQL databases.The aim of this strategic decision is to lay the foundations for a new generation of databases, which is geared to the requirements of AI applications.The combination of the two technologies promises a powerful, flexible and future-proof platform for developers and companies alike.The change through AI: New requirements for databases With the …

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Databricks to acquire Neon for AI-driven serverless Postgres

Databricks plans to acquire Neon, a serverless Postgres firm, boosting AI-driven database capabilities amid the $100bn market upheaval.

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ChannelNews broke the news in on Wednesday, May 14, 2025.
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