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Neon and Supabase are two managed PostgreSQL platforms with distinct approaches. Neon adopts a serverless architecture that separates storage and compute, allowing databases to scale to zero when idle and enabling rapid database branching. Supabase, in contrast, provides a comprehensive backend-as-a-service that includes authentication, file storage, real-time subscriptions, and edge functions, all built around PostgreSQL. In 2025, Databricks acquired Neon for approximately billion, motivated by the observation that around 80% of databases created on Neon were generated by AI agents. Post-acquisition, users experienced reduced storage costs and improved pricing structures, although concerns arose regarding Neon's independence. Neon features instant database branching and a scale-to-zero capability, while Supabase offers a fully integrated backend with built-in authentication and storage. Neon operates on a usage-based pricing model, whereas Supabase has a flat-tier pricing structure. Both platforms support the pgvector extension for AI applications, but Supabase is fully open-source and allows for self-hosting, unlike Neon. The developer community recognizes Supabase for its ease of use and rapid application development capabilities, while Neon is praised for its innovative serverless features and cost efficiency. Migration between the two platforms is simplified due to their shared PostgreSQL foundation.