Databricks, one of the most highly valued tech startups, is using some of its fresh capital for acquisitions.Databricks, one of the most highly valued tech startups, is using some of its fresh capital for acquisitions.
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“vibe-coding” tools such as Lovable and Figma’s recently announced Figma Make, is also based on PostgreSQL.
Cloud providers GoogleMicrosoft
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.
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