Databricks plans to acquire Neon, a serverless Postgres provider designed for automation and AI-driven database interactions. Neon's architecture allows for 80% of databases on its platform to be provisioned automatically by AI agents, enabling rapid execution and unpredictable scaling. It can provision fully isolated Postgres instances in under 500 milliseconds and features instant schema and data forking. Neon's usage-based pricing model charges organizations only for executed queries, addressing cost inefficiencies of traditional databases. It is fully compatible with Postgres and supports common extensions, facilitating ease of use for developers. After the acquisition, Neon's team will join Databricks to support existing users and develop tools for AI-native systems.