Databricks is in advanced talks to acquire Neon, a startup that provides a commercial version of the open-source PostgreSQL database, with the deal valued at over billion. Neon, based in San Francisco, has raised more than million from investors, including Microsoft's M12 fund. Neon’s PostgreSQL version features a serverless architecture, automatic hardware scaling, separate allocation of storage and computing power, and connection pooling to enhance performance. Neon also offers a security tool for user access management and the ability to restore databases to previous states. Databricks' interest in Neon is likely linked to AI applications, as Neon’s database supports vector storage and can launch new database instances in one second. Databricks has previously acquired several startups to enhance its AI capabilities, including Fennel AI, Lilac AI, and MosaicML Inc.