Databricks said on Wednesday it would buy database startup Neon in its latest deal valued at about $1 billion, aiming to strengthen its analytics platform with technology that can help businesses develop and use artificial intelligence agents more easily.

Databricks is signaling its intent to get ahead in this next generation of app building, announcing it will purchase open-source serverless Postgres company Neon. The startup’s platform can spin up new database instances in less than a second, making it purpose-built to support agentic workflows.

Databricks to acquire serverless Postgres startup Neon for USD 1B to boost its platform for AI agent workloads and expand in the database market, news