Databricks Acquires Neon to Advance AI and Developer Efficiency
Deal News | May 14, 2025 | PR Newswire Cision Databricks
Databricks, a leader in Data and AI, has announced its intention to acquire Neon, a serverless Postgres company known for its innovative support of AI agentic workflows. This acquisition aims to disrupt the $100-billion database market by integrating Neon's technology into Databricks' Data Intelligence Platform, allowing developers to build AI-driven applications more effectively. The partnership emphasizes scalability, cost-effectiveness, and open-source compatibility with a shared vision to eliminate inefficiencies in AI workloads involving database management. Neon's CEO, Nikita Shamgunov, expresses confidence in accelerating Neon's mission with Databricks' resources, while Databricks CEO, Ali Ghodsi, highlights the transformative potential of AI-native applications. The deal outlines the joining of Neon's team with Databricks post-acquisition, driving innovation in AI agent systems.
Sectors
- Data & AI
- Database Management
- Technology & Software
Geography
- United States – Databricks, headquartered in San Francisco, and its activities play a central role in the article's context.
Industry
- Data & AI – The article involves Databricks, a Data and AI company, acquiring Neon, which focuses on empowering AI-driven development.
- Database Management – Neon specializes in serverless Postgres databases, a critical aspect of this industry's technological advancements.
- Technology & Software – The acquisition focuses on technological innovation, specifically in software solutions that aid AI agentic workflows.
Financials
- $100 billion – The size of the database market that Databricks aims to disrupt with the acquisition of Neon.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Databricks | Acquiring Company | Company | A leading Data and AI company looking to integrate Neon's database solutions. |
| Neon | Target Company | Company | A serverless Postgres company focused on supporting AI agentic workflows and scalable database solutions. |
| Ali Ghodsi | CEO, Databricks | Person | Co-founder and CEO of Databricks, highlighting the strategic fit and transformative potential of the acquisition. |
| Nikita Shamgunov | CEO, Neon | Person | CEO of Neon, expressing views on the acquisition's potential to further Neon’s mission. |