Databricks, a Data and AI company, announced its intent to acquire Neon, a serverless Postgres company. Databricks plans to continue innovating and investing in Neon’s database and developer experience for existing and new Neon customers and partners.
Recent internal telemetry showed that over 80 percent of the databases provisioned on Neon were created automatically by AI agents rather than by humans. These workloads differ from human-driven patterns in three ways:
- Speed + flexibility: Neon can spin up a fully isolated Postgres instance in 500 milliseconds or less and supports instant branching and forking of database schema but also data, so experiments never disturb production.
- Cost proportionality: Neon’s full separation of compute and storage keeps the total cost of ownership for thousands of ephemeral databases proportional to the queries they actually run.
- Open source ecosystem: Neon is Postgres-compatible and works out of the box with popular extensions.
Databricks and Neon will work to remove the traditional limitations of databases that require compute and storage to scale in tandem — an inefficiency that hinders AI workloads. The integration of Neon’s serverless Postgres architecture with the Databricks Data Intelligence Platform will help developers and enterprise teams efficiently build and deploy AI agent systems.
https://www.databricks.com/company/newsroom/press-releases/databricks-agrees-acquire-neon-help-developers-deliver-ai-systems ■ https://neon.tech
