WASHINGTON (dpa-AFX) - Databricks, the San Francisco-based data and AI platform valued at $62 billion, announced plans to acquire Neon, a cloud-native, open-source PostgreSQL database startup, for approximately $1 billion.
The acquisition underscores Databricks' strategy to strengthen its position in cloud-based data infrastructure and follows its recent billion-dollar deals for MosaicML and Tabular.
Founded in 2021 by former Meta and Microsoft engineer Nikita Shamgunov, Neon has quickly gained traction with over 18,000 customers, including OpenAI, Adobe, Boston Consulting Group, Replit, and Vercel.
The company's database technology separates compute from storage, offering improved scalability and cost efficiency-key advantages over Amazon Web Services' Aurora Postgres and other traditional database services.
'What Nikita has built is remarkable,' said Databricks CEO Ali Ghodsi, noting that Neon's architecture enables more economical and high-performance database solutions. While Shamgunov's post-acquisition role has yet to be determined, his leadership and technical background are seen as valuable assets for Databricks' future direction.
Neon's pay-as-you-go model charges customers based on computing and storage usage, and it supports deployment on both Amazon and Microsoft cloud platforms. The startup operates as a distributed company with over 130 employees.
This acquisition enhances Databricks' growing suite of tools for data management, analytics, and AI development. It aligns with the company's broader goal to provide a unified, open platform for enterprises working across multiple cloud environments.
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