Databricks in Talks to Acquire Neon, a Serverless Database Startup, for Around $1 Billion

If the deal closes, it would give Databricks direct ownership of a modern, AI-aligned transactional database and further deepen its infrastructure stack.
Databricks is in advanced negotiations to acquire Neon, a San Francisco-based startup that builds a serverless, PostgreSQL-compatible cloud database optimized for modern and AI-driven applications, according to people familiar with the matter. The potential deal is expected to be valued at approximately $1 billion, though the total amount could exceed that once employee retention packages are included. While some insiders consider the deal close to final, the discussions remain active and could still fall through. Neon has raised more than $130 million in funding from investors including Microsoft’s M12 venture fund. Its platform is built around a serverless architecture that separates compute and storage, allowing each to scale independently based on real-time usage. The system autom
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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
25 July 2025 | 583 Park Avenue, New York
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