Databricks to Acquire Neon, Intensifying AI Database Race

Databricks has agreed to acquire Neon, a serverless Postgres database startup, for about $1 billion, pending regulatory approval. Neon’s technology, with over 80% of its databases created by AI agents, is expected to help Databricks support businesses developing autonomous AI agents and bots. The acquisition aims to provide developers with a unified platform for analytics and low-latency transactions, eliminating data silos and simplifying architecture for AI applications. Databricks, valued at $62 billion after a recent funding round, has made other major acquisitions like MosaicML and Tabular to strengthen its AI and data infrastructure offerings. The deal is expected to further intensify competition with Snowflake, a leading cloud data-management company. This move underscores the rising importance of agentic workloads and serverless database technologies in enterprise AI.