Databricks said it will acquire Neon, which offers serverless Postgres database services. Databricks' move into the database market is part of its plan to enable agentic AI workloads.
Terms of the deal weren't disclosed, but various reports put the purchase price at about $1 billion.
According to Databricks, more than 80% of databases provisioned on Neon were created by AI agents rather than humans. Databricks is betting that the database market is going to need more scale for AI agents.
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Neon has more than 18,000 customers and competes with AWS Aurora Postgres database service. Microsoft Azure and Google Cloud also have Postgres database services.
Databricks CEO Ali Ghodsi said in a statement that Neon will give developers "a serverless Postgres that can keep up with agentic speed, pay-as-you-go economics and the openness of the Postgres community."
According to Databricks, Neon's serverless Postgres architecture will be integrated with the Databricks Data Intelligence Platform.
This acquisition is just the latest for Databricks, which recently added Fennel. Databricks typically acquires larger startups around its Data + AI Summit in June.
- Databricks adds on to the Lakehouse, acquires MosaicML for $1.3 billion
- Databricks acquires Arcion for $100 million
