Databricks acquires Electric, the embeddable Postgres startup, terms undisclosed

Databricks acquired Electric, the company behind an embeddable Postgres database for AI agents. Financial terms were not disclosed. Electric had raised $600,000 in pre-seed funding in 2022, so its product rather than its capital likely drew the buyer. Electric turned an earlier proof of concept into an embeddable Postgres build that many projects run every week. Databricks first added PostgreSQL through its May 2025 acquisition of Neon, reported at about $1 billion, and this deal adds a local option for agents. For AI builders, agents need fast, local data access, and infrastructure vendors are buying small database teams to meet that need. Founders should expect large data platforms to acquire adjacent tools, so standard interfaces can keep future exit options open.