Databricks acquired a small database company called Neon, which is a wrapper around PostgreSQL, known for helping build basic apps.
Databricks traditionally focused on analytical workflows while Neon is more transactional, leading to confusion among developers.
Speculations suggest Databricks aims to expand into the operational market to stay competitive in the AI field where open-source alternatives are challenging their dominance.
Neon's AI agent-focused development and ease of use via API could offer Databricks the opportunity to integrate their production database for apps built using AI agents.