Databricks intends to acquire Neon, a cloud-based serverless Postgres platform, for approximately USD 1 billion. Neon, founded in 2021, offers a managed, open-source Postgres service with features like effortless database cloning, isolated environment testing, and point-in-time data restoration. Over 80% of databases on Neon are created by AI agents. The acquisition aims to enhance Databricks' infrastructure for AI-native applications, allowing developers to create isolated Postgres instances quickly and decouple compute and storage resources. Neon has raised USD 129.5 million from investors, while Databricks has secured over USD 19 billion in funding, with a valuation of USD 62 billion. The acquisition is subject to regulatory approvals, and Neon's team will join Databricks post-acquisition.