(Reuters) - Databricks said on Wednesday it has agreed to buy database startup Neon in a deal valued at about $1 billion, as the company aims to bolster its capabilities in AI-powered data management.

The acquisition will enable Databricks to deploy AI agents more efficiently, meeting the growing demand from customers for automated systems with minimal human intervention.

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Founded in 2021, Neon is a cloud-based database platform that helps developers and AI agents build applications and websites.

Databricks said Neon's team is expected to join the data analytics company after the transaction closes, although no timeline for the closure was provided.

The acquisition will allow businesses to speedily connect the necessary data when deploying AI agents to operate their services, according to Databricks.

Databricks, which secured a $62 billion valuation after raising a whopping $10 billion last year, offers a platform designed to help users ingest, analyze and build artificial intelligence applications using complex data from various sources.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Tasim Zahid)

Source: Reuters