Databricks, a prominent data and AI company, announced on May 14, 2025, its intent to acquire Neon, a leading serverless Postgres provider. This strategic move aims to enhance the capabilities of developers and AI agents by integrating Neon's innovative database technology into the Databricks Data Intelligence Platform, addressing the growing demands of AI-driven applications.
Databricks to acquire Neon, a serverless Postgres company.
Over 80 percent of Neon's databases are created by AI agents.
Neon spins up Postgres instances in under 500 milliseconds.
Offers cost-efficient, usage-based pricing for AI workloads.
Fully compatible with the open-source Postgres ecosystem.
Acquisition to simplify infrastructure and boost AI innovation.
Neon is designed to support the rapid growth of AI agent workloads, with over 80 percent of its databases provisioned automatically by AI rather than humans. As Ali Ghodsi, Co-Founder and CEO at Databricks, states, "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." This acquisition enables Databricks to provide a serverless Postgres solution that aligns with the speed and flexibility required by modern AI applications.
Neon's serverless architecture allows it to create fully isolated Postgres instances in 500 milliseconds or less, supporting instant branching and forking of both schema and data. This capability ensures that experiments do not disrupt production environments, making it ideal for AI agents operating at machine speed. The integration with Databricks will further enhance scalability, preventing performance bottlenecks from thousands of concurrent agents.
Neon's separation of compute and storage ensures costs scale proportionally with usage, a critical feature for managing thousands of ephemeral databases. Additionally, Neon is 100 percent Postgres-compatible, working seamlessly with popular extensions. Nikita Shamgunov, CEO of Neon, notes, "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."
The acquisition of Neon by Databricks marks a significant step toward redefining database infrastructure for AI-driven applications. By combining Neon's serverless Postgres with Databricks' platform, organizations can eliminate data silos, streamline operations, and accelerate innovation, all while maintaining robust security and governance.
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.
Databricks is the 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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