Databricks buys Neon for ~$1B because AI agents spin up databases faster than people

Databricks agreed on May 14, 2025 to acquire Neon, the serverless Postgres company, for about $1B. The tell in the announcement: over 80% of the databases created on Neon were being provisioned by AI agents rather than humans, which is why Databricks wanted a database that forks in milliseconds.

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