Databricks, a company focused on data and AI solutions, has announced its intention to acquire Neon, which specializes in serverless Postgres databases, to strengthen its AI and developer infrastructure capabilities. As demand for faster, scalable, and cost-efficient database solutions grows, particularly for AI applications, Databricks aims to enhance Neon's offering and support its community. With a focus on AI agent-based workflows, Neon has seen over 80% of its database instances created by automated agents instead of human users. These agent-driven demands call for faster provisioning, lower operating costs, and support for open-source tools. Neon meets these needs through its architecture, which separates compute and storage and enables near-instant instance creation.
Integrating Neon's serverless technology with the Databricks Data Intelligence Platform is expected to ease challenges in scaling AI systems. By removing the traditional constraints of monolithic database scaling, Databricks and Neon aim to support developers in building high-performance, cost-effective agent-based applications. The acquisition will bring Neon’s experienced team into Databricks, ensuring continuity for current users while expanding the capabilities of both platforms. Nikita Shamgunov, CEO of Neon, commented, “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.”
