The $1 Billion database bet: What Databricks’ Neon acquisition means for your AI strategy

The importance of the database to the modern enterprise cannot overturn AI transactions.

The data helps the exercise and land aiAnd more than one research reports, without the necessary information, AI efforts are tend to fail. With tendencies like Vibe coding and agentic AI, if necessary in a server approach for modern development efforts, having database technology is also increasingly important.

In this environment, the database should not be a surprise that the database is especially valuable.

This weekIt was shown with this truth Databricks‘Self-free PostgreSQL startup purchase Neonwhich established . Collected $ 46 million a number in the financing round.

It’s especially interesting This data in data itself is a data seller Information Lakehouse Platform. At different points in the company’s history, the information that users can make inquiries have an alternative to traditional databases that provide a survey. So what’s missing, and why did they need a datingricksi Do you spend a billion dollars? What does this mean and the company really needs the AI?

Functionally, all this has the needs of developers to create agent agent AI applications. According to Neon, more than 80% of the database created on its platform was created by AI agents.

What is the serverless postgresql and why is it important?

Although neon is a start, the main database technology is not new.

Postgresql is one of the oldest and most established open source database platforms, Dating by 1996. This is a relational database technology that is tables and rows along with extremely stable features that have been trusted for decades. Core Open Source PostgreSQL database is already updated in the annual edition cadence. Was the latest fixed update Postgresql 17, which He made debut on September 2024.

As open source technology, PostgreSQL enjoyed extensive adoption and contributions. In a time, as an alternative option, it was compared to other property relational database options, including Oracle. In 2025, PostGrescl stands in itself.

Currently DB-engines backpack PostGrescl is the fourth most popular database used today, Microsoft SQL Server, MySQL and Oracle. PostgreSQL State 2024 sheet On the floor As a selection database for AI applications, the open source database determines the rising recovery. The well-established and understandable nature of the database and Extensive existence is one of the numerous factors that make it attractive.

PostgreSQL is the only database of self-database. It is an operation and placement activity running as a serverless offer. The promise of any server-free database is the convenience of transactions. Instead of requiring a specific database placement of a private database, which is continuously employed by special sources, increases the requirement as required. To build applications, it is a particularly attractive option for developers as a way to build. AI-based development is even more attractive because the database can be built and placed in a program.

Server-free postgrezql views have a large number of vendors

Each cloud has a certain form of the postgreller service of the Hypgreller service and has been years.

There are more than one offer including Google AlloyduMicrosoft has azure database for postgresql, AWS has Amazon RDS and Amazon RDS for Amazon Aurora. Each of them has a taste of server-free proposals, ie there is a database on demand.

Timescale, EDB and NetApp Instaclustr, including a large number of smaller vendors. In fact, about two years ago, the Data Market has obtained the Server-free PostgreSQL bit.io, It was the early opponent of neo.

When leaving, the goals and opportunities of Bit.io are completely different from neon.

“With the Neon team, we are waiting for the most developing and AI-agent-friendly database platform,” Phil Shin, CEO of Corporate Development and Databricks, Director General of Enterprises, Venturebeat. “On the contrary, the acquisition of Bit.io was actually in the process of testing, but in the process of testing and self-service.”

Shin added that the acquisition of the acquisition of Bit.io has a great impact on the overspredal registration experience.

How does the server-free postgresql match the voice of the enterprise’s database

Neon has been on the work of the trading dealer with the introduction of the server for a few years.

Matt Yonkovit, VP product EDB, Venturebeat said that the acquisition of Neo is a powerful confidence vote for postgres postgres as a basic technology for AI and analysts.

“This strongly strengthens our belief: the postgres are increasingly directed to modern information,” Yonkovit. “It is an excellent compatibility for Serverless, Dev / Test environments, and AI projects are an excellent compatibility for quick walk, but it uses the scale of these situations, enterprises need work, compliance and control over the sovereign platform.”

Yonkovit noted that it is good for short explosions and smaller work loads. It can completely close the gap whenever it is empty or completely reduces the costs, strength and storage costs. But in his opinion, there is a trade.

“There can be a problem with a server, so that the data can be mixed, because the data is processed, unlimited sources of limited sources are not available,” Yonkovit said.

Server-free postgresql power for Agentic AI

Neon’s server-free postgresql approaches to storage and calculation, evolving and EU-local. It also allows automated scales, as well as how to turn on a similar approach to how the Git version management system works for the code.

The concepts of Amalgam have noted the CEO and a chief analyst Hyoun park that Databricks has been a pioneer in placing and scaling AI projects.

“One of the big problems in the EU manages the storage and calculation report related to the information,” he said. “Each of these needs should be increasingly predicted that the ultimate user instructions and desires may result in unexpected requirements or unexpected requirements to solve the problem.

The park explained that Neon’s Server-free automation approach is important for the AI, because the agent and AI projects allow the artificial merger and grow together without needing together. Added that for the transactions, it is useful to support both agent and special models that have built over the past few years Mosaic Ai Purchase.

What does the enterprise mean for the AI ​​leaders

This procurement for enterprises wishing to lead the road in the EU is a turn in infrastructure requirements for successful AI application.

The information is critical for AI; This is not a surprise. Especially deep, although the ability to twist the database quickly is important for the EI success. The transaction confirms that even developed data companies need a specific server-free database capabilities to support and manage the database and manage.

Organizations can limit the AI ​​initiatives of traditional database approaches, flexible, immediately measured server-free solutions, allow the dynamic resource requiring modern AI applications.

For companies planning for AI Roadmaps, the database infrastructure decisions must prioritize the unexpected AI workload. This will make a database strategy to compete in a technical point of view, responsible, efficient AI solutions.