Reynold Xin, co-founder of Databricks, highlighted the outdated nature of online transaction processing (OLTP) databases, which have not evolved significantly since the 1990s and face issues like over-provisioning and performance challenges. Databricks is introducing Lakebase, a product that separates compute from storage to enhance the efficiency of transactional databases, particularly for AI applications. Lakebase allows for instantaneous branching of databases, significantly improving workflow efficiency. Built on open-source Postgres, it supports various open storage formats and offers a copy-on-write capability to reduce costs. The separation of compute and storage is essential as streaming data becomes more integral to enterprises, enabling scalability and timely insights. Databricks aims to manage the entire data lifecycle, ensuring data remains within its ecosystem for rapid reporting and analytics. The integration of Lakebase with existing infrastructure enhances developer experience and operational maturity. The architecture supports extensive experimentation at minimal cost, fostering innovation. As AI agents become more prevalent, the focus on data evaluation and reliability will grow, necessitating a deeper examination of model accuracy.