Databricks Buys Database Startup Neon for $1 Billion to Power AI Agents

San Francisco, USA: Data analytics powerhouse Databricks has acquired Neon, a cloud-based database startup, for $1 billion in a push to streamline the development of autonomous AI agents. Databricks CEO Ali Ghodsi says Neon’s technology is the missing piece that lets AI bots query, update, and store data seamlessly, enabling more sophisticated “agentic” use cases. This move arrives amid booming enterprise interest in generative AI systems that can handle tasks like scheduling, customer interactions, or large-scale data monitoring. Observers note that while Databricks was already a leader in big data, possessing Neon's specialized database expertise strengthens its appeal to customers seeking AI-driven solutions.