Databricks has announced the acquisition of the startup Neon for $1 billion, which specializes in developing serverless databases focused on artificial intelligence. The deal will help strengthen Databricks’ position in the AI agent market and expand the company’s capabilities in this area.
This is reported by Бізнес • Медіа
Neon, founded in 2021 by engineers Mykyta Shamgunov, Heikki Linnakangas, and Stas Kelvich, offers a cloud platform based on PostgreSQL with scalability and instant recovery features. It is known that 80% of databases in Neon are created by automated agents, highlighting new trends in the development and use of technologies.
Integration of New Technologies to Enhance Services
According to the press release, Neon technologies will be integrated into the Databricks stack, allowing for improved support of applications and AI agents operating in real-time. The company’s head, Ali Ghodsi, emphasized that the new serverless open-source model is the ideal solution for the modern needs of developers.
“OLTP databases represent a $100 billion market dominated by products created decades ago. We believe it is time for developers and AI agents to disrupt this market. Together with the Neon team, we look forward to creating the most developer-friendly and AI agent-friendly database platform,” said Ali Ghodsi.
Neon has already raised $129.5 million in investments from General Catalyst, Menlo Ventures, Microsoft M12, and other funds. With this acquisition, Databricks strengthens its position as one of the key players in the field of generative artificial intelligence infrastructure.