Databricks is buying database startup Neon for about $1 billion

Databricks is buying database startup Neon for about  billion


Databricks co-founder and CEO Ali Ghodsi.

Databricks

Data analytics startup Databricks said Wednesday that it’s buying Neon, a cloud-based database software vendor, for about $1 billion.

It’s the latest big deal for Databricks, which bought artificial intelligence model training startup MosaicML for $1.3 billion in 2023 and paid over $1 billion last year for data optimization startup Tabular.

Neon has over 18,000 customers, Databricks said in a statement. Clients include OpenAI, Adobe, Boston Consulting Group, Replit and Vercel, according to Neon’s website.

Many developers have flocked to Neon, which is open source and billed as an alternative to top cloud provider Amazon Web Services’ Aurora Postgres database service. The open-source PostgreSQL database originated in the 1980s. Supabase, a startup whose tools have become popular with “vibe-coding” tools such as Lovable and Figma’s recently announced Figma Make, is also based on PostgreSQL.

Cloud providers Google and Microsoft have their own options for running PostgreSQL databases. Databricks sells software that can help with cleaning up data, executing queries and running AI models.

Microsoft, Snowflake and Databricks have all invested in Neon, whose co-founder and CEO is former Meta and Microsoft engineer Nikita Shamgunov. After leaving Meta, Shamgunov ran database startup SingleStore, formerly known as MemSQL.

Neon charges based on the amount of computing and storage each customer uses per month. Its software can run in Amazon and Microsoft’s clouds.

Founded in 2021, Neon is a distributed company, with over 130 employees, according to a job description.

Databricks, based in San Francisco, was founded in 2013 and was valued at $62 billion in a $10 billion financing announced in December. Some of the money was earmarked for acquisitions.

WATCH: Databricks CEO on new partnership with SAP on ‘business AI’

Databricks CEO on new partnership with SAP on 'business AI'



Source

Mortgage demand flatlines at low levels, as mortgage rates hit 4-week high
World

Mortgage demand flatlines at low levels, as mortgage rates hit 4-week high

A completed planned development is seen in Ashburn, Virginia, on Aug. 14, 2024. Andrew Caballero-Reynolds | AFP | Getty Images Mortgage rates rose last week to the highest level in four weeks, but mortgage demand didn’t really move. Total mortgage application volume increased 0.8% last week from the previous week, according to the Mortgage Bankers […]

Read More
UK ramps up scrutiny of Apple and Google in push for mobile services changes
World

UK ramps up scrutiny of Apple and Google in push for mobile services changes

A series of iPhone 16s on display inside the Apple store at Tun Razak Exchange in Kuala Lumpur, Malaysia, on Sept. 20, 2024. Annice Lyn | Getty Images News | Getty Images Britain’s competition regulators on Wednesday took aim at the mobile ecosystems of Apple and Google, pushing the two companies to make changes to […]

Read More
China’s tech talent are making big strides — they’re creating apps for the world
World

China’s tech talent are making big strides — they’re creating apps for the world

San Francisco-based AI design app Lovart officially launched Wednesday, with North American users in focus. Lovart BEIJING — Chinese developers are powering some of the latest artificial intelligence tools aimed at a global market. Melvin Chen moved to San Francisco from China to co-found AI design startup Lovart, which officially launched Wednesday — after claiming […]

Read More