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8h ago

Databricks Acquires Neon for $1 Billion to Enhance AI Data Platform

The deal integrates Neon's serverless PostgreSQL technology to streamline AI agent deployment and strengthen Databricks' competitive edge in cloud-native data services.

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Overview

  • Databricks has agreed to acquire Neon, a serverless PostgreSQL database startup, for approximately $1 billion, marking its latest move to expand its AI and data platform.
  • Neon, founded in 2021, offers an open-source, cloud-native database system designed for flexibility and scalability, with over 18,000 customers including OpenAI, Adobe, and Boston Consulting Group.
  • Databricks plans to integrate Neon's serverless database capabilities into its platform to enable faster and more efficient deployment of AI agents, a growing demand in the AI-driven data services market.
  • Telemetry data from Neon reveals that 80% of its databases are automatically created by AI agents, highlighting its relevance in AI-native application development.
  • This acquisition follows Databricks' recent purchases of MosaicML for $1.3 billion in 2023 and Tabular for over $1 billion in 2024, underscoring its strategy of leveraging acquisitions to solidify its leadership in the AI and data intelligence space.