Databricks Agrees to Acquire Neon to Deliver Serverless Postgres for Developers, AI Agents

Chennai: Databricks, the Data and AI company, today announced its intent to acquire Neon, a leading serverless Postgres company. As the $100-billion-plus database market braces for unprecedented disruption driven by AI, Databricks plans to continue innovating and investing in Neon’s database and developer experience for existing and new Neon customers and partners.

Neon: An Open, Serverless Foundation for Developers and AI Agents

AI agents are becoming increasingly integral components for modern developers, and Neon is purpose-built to support their agentic workflows. Recent internal telemetry showed that over 80 percent of the databases provisioned on Neon were created automatically by AI agents rather than by humans, underscoring how explosively agentic workloads are growing. These workloads differ from human-driven patterns in three important ways:

Speed + flexibility: Agents operate at machine speed and traditional database provisioning often becomes a bottleneck — Neon can spin up a fully isolated Postgres instance in 500 milliseconds or less and supports instant branching and forking of not only database schema but also data, so experiments never disturb production.

Cost proportionality: Agents demand a cost structure that scales precisely with usage — Neon’s full separation of compute and storage keeps the total cost of ownership for thousands of ephemeral databases proportional to the queries they actually run.

Open source ecosystem: Agents expect to leverage the rich Postgres community — Neon is 100 percent Postgres-compatible and works out of the box with popular extensions.