India, May 15 -- Databricks has signalled its intent to acquire serverless Postgres startup Neon in a deal reported to be valued at approximately USD 1 billion. Neon is a startup that offers a modern, flexible type of database service based on popular open-source technology called PostgreSQL.

Databricks intends to buy Neon to help its customers build and use the latest AI tools, specifically programs called AI Agents, which need speedy and adaptable databases to work effectively. For years, Databricks has been synonymous with the the data lakehouse, bridging the gap between data warehousing and data lakes to handle diverse data types and workloads. However, the rise of sophisticated AI agents - programs capable of performing complex task...