Artificial intelligence

Databricks Plans to Acquire Neon to Boost AI Agent Development 

AI

Databricks has planned to acquire Neon to deliver serverless Postgres for developers and AI agents.

Takeaway points

  • Databricks plans to acquire Neon.
  • Neon’s talented team is expected to join Databricks after the transaction closes.
  • The two companies will empower organizations to remove data silos, simplify architecture, and build AI agents.
  • Databricks plans to share more at the Data + AI Summit in San Francisco, taking place June 9–12..
  • Databricks is headquartered in San Francisco, with offices around the globe.

Databricks to Acquire Neon

Databricks, the data and AI company, announced on Wednesday that it plans to acquire Neon, a leading serverless Postgres company. As the $100-billion-plus database market braces for unprecedented disruption driven by AI, Databricks plans to continue innovating and investing in Neon’s database and developer experience for existing and new Neon customers and partners. 

Ali Ghodsi, Co-Founder and CEO at Databricks, commented, “The era of AI-native, agent-driven applications is reshaping what a database must do. Neon proves it: four out of every five databases on their platform are spun up by code, not humans. By bringing Neon into Databricks, we’re giving developers a serverless Postgres that can keep up with agentic speed, pay-as-you-go economics and the openness of the Postgres community.”

Nikita Shamgunov, CEO of Neon, said, “Four years ago, we set out to build the best Postgres for the cloud that was serverless, highly scalable, and open to everyone. With this acquisition, we plan to accelerate that mission with the support and resources of an AI giant. Databricks was founded by open source pioneers committed to making it easier for developers to work with data and AI at any scale. Together, we are starting a new chapter on an even more ambitious journey.”

AI Agents

Recent internal telemetry showed that over 80 percent of the databases provisioned on Neon were created by AI agents rather than by humans, showing how explosively agentic workloads are growing. 

According to the report, Neon’s talented team is expected to join Databricks after the transaction closes, and the team brings deep expertise and continuity for Neon’s vibrant community. 

The two companies will empower organizations to remove data silos, simplify architecture, and build AI agents that are more responsive, reliable, and secure.

Databricks said it plans to share more at the Data + AI Summit in San Francisco, taking place June 9–12.

About Neon

Neon was founded in 2021 by a team of experienced database engineers and Postgres contributors with a singular goal: to build a serverless Postgres platform that helps developers build reliable and scalable applications faster, from personal projects to startups, all the way to enterprises. 

About Databricks

Databricks is a data and AI company. More than 10,000 organizations worldwide — including Block, Comcast, Condé Nast, Rivian, Shell, and over 60% of the Fortune 500 — rely on the Databricks Data Intelligence Platform to take control of their data and put it to work with AI. Databricks is headquartered in San Francisco, with offices around the globe, and was founded by the original creators of Lakehouse, Apache Spark™, Delta Lake, and MLflow. 

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