Databricks Acquires Serverless Postgres Startup Neon

Earlier this month, it was reported that data and AI company Databricks was in advanced discussions to acquire Neon, a leading serverless Postgres startup, for $1 billion. Today, through a blog post, Databricks has confirmed the acquisition.

“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," Ali Ghodsi, Co-Founder and CEO at Databricks, said.

We’re excited to announce that we have agreed to acquire Neon, a… | Databricks | 20 comments

We’re excited to announce that we have agreed to acquire Neon, a developer-first serverless Postgres company. The Neon team engineered a new database architecture that offers speed, elastic scaling, and branching and forking. The capabilities that make Neon great for developers are also great for AI agents. Together, we'll deliver an open, serverless database foundation for developers and AI agents. https://lnkd.in/gf_yRMua | 20 comments on LinkedIn

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The acquisition is expected to help Databricks eliminate the traditional limitations of databases that force compute and storage to scale together — a major inefficiency for AI workloads.

By integrating Neon's serverless Postgres architecture with the Databricks Data Intelligence Platform, developers and enterprise teams can more efficiently build and deploy AI agent systems, according to Databricks.

This integration avoids performance bottlenecks from thousands of concurrent agents, while simplifying infrastructure, cutting costs, and accelerating innovation — all backed by Databricks' enterprise-grade security, governance, and scalability.

“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,” Nikita Shamgunov, CEO of Neon, said.