Databricks plans to acquire Neon, a company specializing in serverless Postgres technology, to enhance its AI-driven database offerings and developer workflows. The acquisition reflects Databricks' commitment to the evolving database market, which is increasingly influenced by artificial intelligence. Neon’s technology is designed for AI agents, with over 80% of databases on its platform provisioned automatically by AI. Key features of Neon's platform include rapid provisioning of Postgres instances, cost efficiency through separated compute and storage, and full compatibility with the open-source Postgres ecosystem. The integration aims to address limitations of traditional databases, streamline infrastructure, and support the development of AI agent systems. Upon completion of the acquisition, Neon's team will join Databricks, and both companies aim to simplify data architecture and enhance AI agent capabilities. The acquisition is subject to regulatory approvals. Neon was founded in 2021 and focuses on serverless Postgres solutions, while Databricks serves over 10,000 organizations globally with its Data Intelligence Platform.