Databricks announced its acquisition of Neon, an open-source, serverless Postgres startup, for approximately $1 billion, marking another major investment in AI-driven data infrastructure. By integrating Neon’s serverless relational database technology, Databricks aims to enhance its data intelligence platform, enabling customers to deploy AI agents with greater efficiency and scalability.
Neon, founded in 2021 by CEO Nikita Shamgunov, Heikki Linnakangas, and Stas Kelvich, offers a managed cloud database platform designed for dynamic workloads, with automatic scaling and advanced features like database branching and point-in-time recovery.
Databricks CEO Ali Ghodsi highlighted that the acquisition addresses the demands of AI-native applications, where 80% of Neon’s databases are now provisioned autonomously by AI agents.
