The $1 Billion database bet: What Databricks’ Neon acquisition means for your AI strategy
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Summary
Neon, the serverless PostgreSQL database provider, has raised $46m in series B funding to help AI applications grow.
PostgreSQL is an open-source database that has enjoyed strong adoption and contributions, and its serverless offering allows databases to be built and deployed quickly to meet the needs of AI developers.
The rise of serverless PostgreSQL illustrates the increasing importance of databases to the operational functionality of AI.
Data continues to act as the backbone of AI, with over 80% of databases on Neon’s platform reportedly created by AI agents. This acquisition underscores how companies are increasingly recognising the value of flexible, scalable serverless solutions that can quickly adapt to unpredictable AI workloads.
This will transform database strategies from a technical consideration to a competitive advantage.