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Databricks reportedly could acquire serverless database startup Neon for $1B+

  • Databricks Inc. is reportedly in talks to acquire Neon Inc., a startup offering a commercial version of PostgreSQL database with a serverless architecture.
  • Neon's PostgreSQL distribution allows for automatic addition or removal of hardware resources based on workload requirements, avoiding unnecessary hardware spending.
  • Neon's database implementation includes a connection pooling feature that enhances database performance by quickly assigning standby connections to applications.
  • Databricks' interest in Neon could be due to the database's suitability for AI use cases, as Neon is capable of storing vectors and quickly provisioning new database instances for AI coding assistants.

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