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Scoop: Databricks In Talks To Acquire Startup Neon For About $1 Billion
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Scoop: Databricks In Talks To Acquire Startup Neon For About $1 Billion

An Upstarts paid subscriber special edition: acquisition-hungry data and AI unicorn Databricks is in advanced talks to buy the startup behind a popular open-source version of Postgres, sources say.

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Alex Konrad
May 05, 2025
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Scoop: Databricks In Talks To Acquire Startup Neon For About $1 Billion
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Databricks is busy buying up a bunch of startups to join its San Francisco office. CREDIT: Smith Collection/Gado/Getty Images

Data and AI unicorn Databricks is in talks to make a splash with another startup acquisition, Upstarts has learned.

Databricks is in advanced talks to acquire startup Neon, a maker of an open-source database engine, four sources tell Upstarts exclusively. Databricks is expected to pay in the ballpark of $1 billion for Neon, two of the sources say.

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But despite some industry insiders describing the deal as if it’s done, the talks remain ongoing and could still fall through, several sources add. The total amount could also still exceed $1 billion when employee retention packages are factored in.

Neon and CEO Nikita Shamgunov did not respond to a comment request. Databricks declined to comment through a spokesperson.

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