Microsoft’s $25.6 Million Bet on Neon Could Transform AI and Postgres Integration

Neon sees an acceleration in growth as software — and now AI — continues to eat the world.
Neon, a San Francisco, CA-based provider of a serverless Postgres database built for developers, has raised $25.6 million in funding. The round, which brought the total amount to $130.6 million, was led by M12, Microsoft's Venture Fund, with participation from Abstract Ventures, General Catalyst, Menlo Ventures, and Notable Capital. According to Neon's CEO, Nikita Shamgunov, the company intends to use the funds to expand its development efforts and business reach, accelerating the next generation of AI applications built on Azure. Neon helps developers and teams ship faster with Postgres by delivering it as a serverless cloud platform. By separating the compute and storage components without breaking away from core Postgres, it brings the database into the modern developer workflow, mak
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Anshika Mathews
Anshika is the Senior Content Strategist for AIM Research. She holds a keen interest in technology and related policy-making and its impact on society. She can be reached at anshika.mathews@aimresearch.co
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