Draft:Neon
Submission declined on 20 May 2026 by ChrysGalley (talk). This draft's references do not show that the subject meets Wikipedia's criteria for inclusion for organizations and companies. The draft requires multiple published secondary sources that:
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Comment: Evidence of AI usage, particularly towards the end of the article. In addition the article does not show corporate depth via independent sources. The Register and Reuters sources are reporting matters covered by corporate trivia under WP:SIRS. It would be unusual for a new company of this profile to be able to get over the notability criteria, most companies cannot do so. ChrysGalley (talk) 15:41, 20 May 2026 (UTC)
| Neon | |
Company type | Subsidiary |
| Industry | Database software |
| Founded | 2021 |
| Founders | Nikita Shamgunov; Stas Kelvich; Heikki Linnakangas |
| Headquarters | , United States |
| Products | Serverless PostgreSQL platform |
| Parent | Databricks (2025–present) |
Neon is an American cloud database company based in San Francisco, California, that develops a serverless PostgreSQL platform.[1] Founded in 2021 by Nikita Shamgunov, Stas Kelvich, and Heikki Linnakangas, the company built a cloud-native architecture that separates storage from compute and adds features such as database branching, autoscaling, and point-in-time recovery.[2][3][4][5][6] In May 2025, Databricks announced that it had agreed to acquire Neon; by 2026, Neon described itself as a Databricks company and Databricks described Neon as the core technology behind its Lakebase PostgreSQL service.[7][8][9]
History
Neon was founded in 2021 by Nikita Shamgunov, Stas Kelvich, and Heikki Linnakangas.[1] Kelvich later wrote that the company began as an incubation at Khosla Ventures.[2] Neon's public company timeline places its first commit in March 2021.[8]
The company released a technical preview on June 15, 2022, opened access more broadly in December 2022, and announced general availability on April 15, 2024.[8][10] In July 2022, Neon said that it had completed a $30 million Series A-1 round, bringing total disclosed funding to $54.3 million.[2] In August 2023, it announced another $46 million funding round.[11]
In August 2024, Neon announced a $25 million strategic investment led by Microsoft's M12 to support expansion into Azure.[12] TechCrunch reported that the company had raised $130.6 million in total and planned to expand its workforce from about 100 to 120 employees.[1]
Products and technology
Neon's main product is a managed, usage-based PostgreSQL service with free and paid plans.[1][13] The company has described the service as a serverless, cloud-native reworking of Postgres in which storage and compute are separated while maintaining compatibility with upstream PostgreSQL.[3][10] Neon documentation highlights branching, autoscaling, scale to zero, and instant restore as core platform features.[4][5][14][6]
In Neon, a branch is a copy-on-write clone of data that can be created from a current or past state.[4] Autoscaling adjusts compute resources in response to load, while scale to zero suspends inactive compute after five minutes and resumes it automatically when queried again.[5][14] Instant restore, which Neon also describes as point-in-time restore, allows a root branch to be restored to an earlier point in time within its restore window.[6]
| Platform | Primary description in cited sources | Features highlighted in cited sources |
|---|---|---|
| Neon | Serverless managed PostgreSQL platform with storage and compute separated.[3][1] | Branching, autoscaling, scale to zero, and point-in-time restore.[4][5][14][6] |
| PostgreSQL | Open-source object-relational database system.[15] | SQL extensibility, ACID compliance, and point-in-time recovery through continuous archiving.[15][16] |
| Databricks lakehouse | Data management architecture combining elements of data lakes and data warehouses for analytics and AI.[17][18] | Unified governance, scalable storage and processing, and support for business intelligence, machine learning, and AI workloads.[17][18] |
Acquisition
On May 14, 2025, Databricks announced that it had agreed to acquire Neon.[7] Databricks said the deal was intended to give developers and AI systems a serverless Postgres foundation that could better support agent-created databases and other high-frequency workloads.[7][13] Neon said the transaction would give it the scale and backing to accelerate its mission.[19]
Databricks' official press release said the proposed acquisition was subject to customary closing conditions and any required regulatory clearances, but it did not state a purchase price.[7] Reuters and TechCrunch reported the deal at about US$1 billion.[20][13]
Databricks and Neon both emphasized the platform's role in AI-agent workflows. Databricks said internal telemetry showed that more than 80% of databases provisioned on Neon were being created automatically by AI agents rather than by humans; Neon made a similar claim in its own announcement.[7][19] At Databricks' Data + AI Summit in June 2025, the company introduced Lakebase, a fully managed PostgreSQL database for data applications and AI.[21] By December 2025, Databricks said Lakebase's autoscaling, branching, and recovery features were enabled by combining technology from the Neon acquisition with Databricks infrastructure.[22]
Reception and impact
Coverage of Neon in the technology press often framed it as part of a resurgence of Postgres-focused developer tooling. TechCrunch described Neon as an open-source alternative to Amazon Aurora PostgreSQL and reported in 2024 that hundreds of thousands of developers used its free tier, with thousands of startups and small and medium-sized businesses paying for premium services.[1] Reuters reported in 2025 that Neon had partnered with Vercel, Replit, Cloudflare, GitHub, and Microsoft to integrate its serverless PostgreSQL service into widely used developer tools and platforms.[20]
Coverage of the Databricks transaction linked it to a broader convergence of operational databases, analytics, and AI infrastructure. Reuters said Databricks wanted Neon to help enterprises develop and use AI agents more easily.[20] The Register later wrote that Databricks and Snowflake had both moved to bring PostgreSQL-based transactional systems onto their platforms, and in 2026 it quoted IDC analyst Devin Pratt as describing this as a broader trend in which vendors pair operational databases with analytics to support real-time and agentic AI workflows.[23][24] In January 2026, Databricks said that on Neon, AI agents were creating 80% of databases and 97% of database branches, and described Neon as the core technology behind Lakebase.[9]
References
- ^ a b c d e f Wiggers, Kyle (2024-08-07). "Database startup Neon nabs a Microsoft investment". TechCrunch. Retrieved 2026-05-19.
- ^ a b c Kelvich, Stas (2022-07-26). "Neon doubles funding to $54M". Neon. Retrieved 2026-05-19.
- ^ a b c Linnakangas, Heikki (2022-07-08). "Architecture decisions in Neon". Neon. Retrieved 2026-05-19.
- ^ a b c d "Branching". Neon Docs. Retrieved 2026-05-19.
- ^ a b c d "Autoscaling". Neon Docs. Retrieved 2026-05-19.
- ^ a b c d "Instant restore". Neon Docs. Retrieved 2026-05-19.
- ^ a b c d e "Databricks Agrees to Acquire Neon to Deliver Serverless Postgres for Developers + AI Agents". Databricks. 2025-05-14. Retrieved 2026-05-19.
- ^ a b c "About Us". Neon. Retrieved 2026-05-19.
- ^ a b Marwah, Kunal; Force, Mason; Murali, Ram (2026-01-27). "Enterprise AI agent trends: Top use cases, governance + evaluations and more". Databricks. Retrieved 2026-05-19.
- ^ a b Shamgunov, Nikita (2024-04-15). "Neon: A New Approach to Database Development". Neon. Retrieved 2026-05-19.
- ^ Shamgunov, Nikita (2023-08-02). "We Raised another $46M – What's Next?". Neon. Retrieved 2026-05-19.
- ^ Shamgunov, Nikita (2024-08-07). "Neon is coming to Azure". Neon. Retrieved 2026-05-19.
- ^ a b c Iyer, Ram (2025-05-14). "Databricks to buy open source database startup Neon for $1B". TechCrunch. Retrieved 2026-05-19.
- ^ a b c "Scale to Zero". Neon Docs. Retrieved 2026-05-19.
- ^ a b "PostgreSQL: About". PostgreSQL. Retrieved 2026-05-19.
- ^ "PostgreSQL: Documentation: 18: 25.3. Continuous Archiving and Point-in-Time Recovery (PITR)". PostgreSQL. Retrieved 2026-05-19.
- ^ a b "Data Lakehouse Architecture". Databricks. Retrieved 2026-05-19.
- ^ a b "What is a data lakehouse?". Databricks Docs. Retrieved 2026-05-19.
- ^ a b Shamgunov, Nikita (2025-05-14). "Neon and Databricks". Neon. Retrieved 2026-05-19.
- ^ a b c Singh, Jaspreet; Hu, Krystal (2025-05-14). "Databricks continues M&A spree, will buy Neon for $1 billion in AI-agent push". Reuters. Retrieved 2026-05-19.
- ^ Dange, Jasraj; Dragus, Andrei; Nettleton, Dave; Norheim, Hans; Pierce, Susan; Xin, Reynold (2025-06-11). "Announcing Lakebase Public Preview". Databricks. Retrieved 2026-05-19.
- ^ "Lakebase Holiday Update". Databricks. 2025-12-16. Retrieved 2026-05-19.
- ^ "Snowflake and Databricks bank PostgreSQL acquisitions". The Register. 2025-06-10. Retrieved 2026-05-19.
- ^ "Snowflake plugs PostgreSQL into its AI Data Cloud". The Register. 2026-02-03. Retrieved 2026-05-19.
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