capital · May 20, 2026
Databricks to Buy Open Source Database Startup Neon for $1B
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Databricks announced on May 14, 2025, that it will acquire Neon for about $1 billion to strengthen its platform for AI agents. Neon has raised $129.6 million total with backers including Microsoft’s M12, General Catalyst, Menlo Ventures and Notable Capital. The deal combines Neon’s serverless relational database with Databricks data intelligence services. Ali Ghodsi said Neon proves four out of every five databases are spun up by code, not humans. The acquisition aims to provide developers with serverless Postgres that supports agentic speed and openness of the Postgres community.
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