Databricks' $1 billion acquisition of Neon highlights how serverless PostgreSQL has become essential for agentic AI development.

Databricks acquires Neon to integrate its serverless Postgress database, enabling AI agents to deploy scalable, fast-provisioning data workloads.

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.