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

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More The importance of databases to modern enterprise AI operations cannot be overstated. Data helps to train and ground AI, and multiple research reports show that without proper data, AI efforts tend to fail. With trends like vibe coding and agentic AI, it’s also increasingly important to have database technology that can be spun up as needed in a serverless approach to modern development efforts. In that environment, it should come as no surprise that databases are a particularly valuable commodity. This week, that fact was on display with Databricks‘ acquisition of privately held serverless PostgreSQL startup Neon, which was founded in 2022. The deal is reportedly valued at a staggering $1 billion, which is shocking given that barely two years ago, the company raised $46 million in a series B round of funding. What is also particularly interesting is that D ... Read full article.