Databricks announced on Wednesday that it is buying database business Neon in a deal worth around $1 billion. The company said Neon is "purpose-built" to support artificial intelligence agents, noting that over 80% of the databases provisioned on Neon were created automatically by AI.

"Together, Neon and Databricks will empower organizations to eliminate data silos, simplify architecture and build AI agents that are more responsive, reliable and secure," Databricks said in a press release. The transaction should close by the end of July, when Neon’s team is expected to join Databricks.