Databricks Inc. is in advanced discussions to acquire Neon Inc., a startup specializing in a commercial version of the open-source PostgreSQL database, with the deal anticipated to exceed billion. Neon, based in San Francisco, has raised over 0 million in funding, including contributions from Microsoft's M12 fund. Neon’s PostgreSQL distribution features a serverless architecture that dynamically adjusts hardware resources based on workload demands, allowing for separate provisioning of storage and processing power. It also includes an innovative connection pooling feature to minimize resource drain when establishing network connections. Neon enhances its offering with a cybersecurity tool for granular user access control and the ability to revert databases to previous states in case of data loss. Databricks' interest in Neon may be linked to its suitability for AI applications, as it supports vector storage and can provision new database instances in as little as one second. Databricks has been actively pursuing acquisitions to enhance its AI capabilities, including recent purchases of Fennel AI Inc., Lilac AI Inc., and MosaicML Inc.