Source Credit : CNBC
On Wednesday, data analytics startup Databricks announced its acquisition of Neon, a cloud-based database software vendor, for approximately $1 billion. This strategic move underscores Databricks' commitment to enhancing its data management capabilities and expanding its offerings in the rapidly evolving cloud computing landscape.
Databricks has recently made headlines with its significant acquisition of MosaicML, an artificial intelligence model training startup, for $1.3 billion in 2023. This follows the company's strategic investment of over $1 billion in the previous year to acquire Tabular, a data optimization startup. These moves underscore Databricks' commitment to enhancing its capabilities in the rapidly evolving field of AI and data management.
In a recent statement, Databricks announced that Neon boasts a customer base exceeding 18,000 clients. Among these esteemed clients are industry leaders such as OpenAI, Adobe, the Boston Consulting Group, Replit, and Vercel, as highlighted on Neon's official website.
Numerous developers have gravitated towards Neon, an open-source platform positioned as a compelling alternative to Amazon Web Services' Aurora PostgreSQL database service. The PostgreSQL database itself has a rich history, originating in the 1980s. Additionally, Supabase, a burgeoning startup, has gained traction with its tools that resonate with the "vibe-coding" movement, including popular applications like Lovable and the recently unveiled Figma Make. Notably, Supabase is also built on the PostgreSQL foundation, further highlighting the database's versatility and enduring relevance in modern development.
Cloud providers such as Google and Microsoft offer robust solutions for managing PostgreSQL databases. Additionally, Databricks provides advanced software designed to streamline data cleaning, facilitate query execution, and support the deployment of artificial intelligence models.
Microsoft, Snowflake, and Databricks have all made significant investments in Neon, a company co-founded and led by Nikita Shamgunov, a former engineer at Meta and Microsoft. Following his tenure at Meta, Shamgunov took the helm of SingleStore, previously known as MemSQL, where he played a pivotal role in advancing database technology.
Neon operates on a usage-based pricing model, charging customers according to their monthly consumption of computing and storage resources. The company's software is compatible with both Amazon Web Services and Microsoft Azure, providing flexibility and scalability for users. Established in 2021, Neon is a distributed organization with a workforce exceeding 130 employees, as noted in a recent job posting.
Databricks, headquartered in San Francisco, was established in 2013 and recently achieved a valuation of $62 billion following a $10 billion financing round announced in December. A portion of these funds has been designated for strategic acquisitions, underscoring the company's commitment to growth and innovation in the data analytics sector.
