Databricks is reportedly in advanced negotiations to acquire Neon, a rising startup known for its open-source Postgres database engine, in a deal valued at approximately $1 billion, sources told Upstarts. The potential acquisition underscores Databricks’ aggressive push to expand its footprint in the data and AI infrastructure space.
According to four sources familiar with the matter, the deal is not yet finalized and could still fall through. If completed, the final price could exceed $1 billion once employee retention packages are included.
Neon, led by CEO Nikita Shamgunov, has gained traction for reimagining Postgres for the cloud-native era, separating compute and storage for improved scalability. The acquisition would mark another bold move by Databricks following its past purchases in the data stack space, as it continues to position itself as a one-stop platform for data, AI, and machine learning workloads.
Both companies declined to comment on the ongoing talks.
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