In a deal valued at around$ 1 billion, the company announced plans to buy Neon, a serverless Postgres database startup, from Databricks, a market leader for data and AI solutions.
The consolidation aims to strengthen Databricks ‘ position in the rapidly expanding AI-driven database market, where computerized AI agents are now more adept at managing data tasks. The acquisition, according to Databricks, did enable the business to provide a more adaptable and versatile database platform that can be used to meet the needs of contemporary AI agents.
Databricks are drawn to Neon’s AI-friendly collection.
A cloud-native, open-source Postgres collection created by Nikita Shamgunov, Heikki Linnakangas, and Stas Kelvich is provided by Neon, which was founded in 2021 by Nikita Shamgunov, Heikki Linnakangas, and Stas Kelvich. Its cloud infrastructure has been consistently gaining developer favor.
According to databricks, “more than 80 % of the data provided on Neon were automatically created by AI agencies rather than people” according to recent internal data. Database devices capable of rapid deployment, versatile scaling, and consumption-based pricing models are necessary for these types of agent-driven jobs.
In a media release, Ali Ghodsi, co-founder and chief executive officer of Databricks, said that the age of AI-native, agent-driven software is changing what a collection may do. ” Neon proves it: four out of every five data on their program are spun up by code, not individuals,” says Neon.
Through the merger, Databricks intends to integrate Neon’s infrastructure into its Data Intelligence Platform. The intention is to offer developers and businesses the ability to create and deploy AI agents at scale, without the use of conventional databases.
By including Neon into Databricks, developers are gaining cloud Postgres that you match agentic speed, said Ghodsi.
Ghodsi wrote on Linked In,” Together, we’ll provide an open, serverless collection foundation for developers and AI agencies.
Nikita Shamgunov, the CEO of Neon, shared that sentiment:” Four years ago, we set out to create the best Postgres for the fog that was linux, very scalable, and available to everyone. With the assistance and resources of an AI giant, we intend to promote that mission with this merger.
A drive as part of a larger M&
This consolidation is the most recent significant move by Databricks as it violently expands into the area involving AI and data infrastructure. The business previously purchased Tabular for close to$ 1.3 billion and MosaicML for$ 1.3 billion.
Databricks, which is supported by more than$ 9 billion in funding and recently valued at$ 62 billion, is putting its capital to work in shaping the future of intelligent data platforms. In addition, Neon has raised$ 29.6 million from shareholders like Menlo Ventures, General Catalyst, Notable Capital, and Microsoft’s M12.
Following regulatory approvals, the offer is anticipated to close. Neon’s team will work for Databricks once it is finalized, and the businesses intend to share more information at the Data + AI Summit in San Francisco, which will take place June 9 through June 12; the firms plan to hold a press conference there.
