Databricks announced its agreement to acquire Neon, a startup creating an open source alternative to AWS Aurora Postgres, for approximately $1 billion. This acquisition aims to leverage Neonâs serverless relational database management system in conjunction with Databricks' own data intelligence services, optimizing the deployment of AI agents. Founded in 2021, Neon enables developers to clone databases and preview changes with features like automatic scaling and point-in-time recovery. Databricks stated that 80% of databases on Neon are generated by AI, demonstrating the demand for such advanced database capabilities.
"The era of AI-native, agent-driven applications is reshaping what a database must do," said Ali Ghodsi, co-founder and CEO of Databricks.
Databricks said acquiring Neon's tech would let it combine the startup's serverless relational database management system with its own data intelligence services.
Neon offers a managed cloud-based database platform that lets developers clone databases and preview changes before they go to production.
Citing recent telemetry, Databricks said 80% of the databases "provisioned on Neon were created automatically by AI agents rather than by humans."
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