capital · May 20, 2026
Databricks Agrees to Acquire Neon Serverless Postgres Startup for $1 Billion
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Databricks agreed to acquire Neon, the serverless Postgres database company, for about $1 billion on May 14, 2025. Neon co-founders Nikita Shamgunov, Heikki Linnakangas and Stas Kelvich join Databricks to deliver serverless Postgres at production scale for developers and AI agents. Neon raised $129.6 million previously with investors including Microsoft M12, General Catalyst, Menlo Ventures and Notable Capital. Neon’s architecture features decoupled storage and compute, instant branching and elastic scaling that supports AI agent workloads where over 80 percent of databases are created by code. Ali Ghodsi stated the acquisition gives developers a serverless Postgres that keeps up with agentic speed and pay-as-you-go economics.