Databricks intends to acquire Neon, a startup known for its open-source alternative to AWS Aurora Postgres, in a deal valued at approximately billion. The acquisition aims to integrate Neon’s serverless relational database management system with Databricks' data intelligence services, enhancing the deployment of AI agents. Neon, founded in 2021, offers a managed cloud-based database platform with features like automatic scaling, database cloning, and point-in-time recovery. Recent data shows that 80% of databases on Neon are provisioned by AI agents. Neon has raised .6 million from investors including Microsoft’s M12, while Databricks has raised over billion, recently closing a .3 billion funding round. Databricks has previously acquired Tabular and MosaicML to strengthen its position in the AI landscape.