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Power AI applications with scalable Postgres
Engineers building AI-driven platforms rely on Neon for its ability to handle fluctuating data loads and integrate with LLMs, ensuring fast data access for model training and inference.
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Serverless Postgres that scales to zero, branches like Git, and ships with a free tier that actually ships.
- Database branching creates instant schema copies for each developer and PR — just like Git branches for your database
- Autoscaling compute scales to zero between requests, eliminating idle compute costs in serverless architectures
- Point-in-time restore and instant database cloning make dev and staging environments trivial to provision
- Neon Free tier is genuinely useful with 0.5 GB storage and 10 compute hours — strong for side projects
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About Neon
Quick answer: Neon is a serverless PostgreSQL platform that separates compute from storage, letting your database scale up, down, and to zero automatically. Its standout features are Git-like database branching, a generous free tier (0.5 GB storage, 191.9 compute hours/month), and instant provisioning that takes seconds. It's the strongest Postgres-first alternative to Supabase for teams who don't want a bundled BaaS.
- Best for: Modern web apps, AI/vector workloads, preview environments, and any team that hates paying for idle databases.
- Pricing: Free tier is production-usable; paid plans start around $5/month (Launch) and scale by compute + storage.
- Killer feature: Branching — clone your full database in under a second for every PR, then delete it.
- Watch out for: The pending Databricks acquisition (announced May 2024) and cold-start latency on the free tier after scale-to-zero.
- Verdict: Buy for new projects; wait-and-watch if you're running mission-critical workloads and worried about ownership churn.
What is Neon?
Neon is a fully managed, serverless PostgreSQL database service built on a custom architecture that decouples compute from storage. Instead of running a persistent Postgres process on a VM, Neon stores your data in a distributed, append-only storage layer (based on object storage like S3) and spins up stateless Postgres compute nodes on demand to serve queries.
The company was founded in 2021 by Nikita Shamgunov, a former CTO of MemSQL (now SingleStore), and is headquartered in San Francisco. It emerged from stealth in 2022 and quickly became the default Postgres layer for Vercel deployments, Next.js apps, and a growing share of the AI startup ecosystem thanks to native pgvector support.
In May 2024, Databricks announced its intent to acquire Neon, a deal that — as of early 2026 — has positioned Neon as the Postgres engine that will underpin Databricks' Lakebase offering. The product roadmap, pricing, and free tier remain intact, and the company continues to ship independent features.
Key features
Compute–Storage Separation
Storage lives in a custom distributed layer while compute is ephemeral Postgres. This is what makes scale-to-zero and instant autoscaling possible without dropping connections.
Database Branching
Copy your production database in under a second using copy-on-write. Each branch is a full Postgres instance with its own data, perfect for preview deployments and feature testing.
Scale-to-Zero
When your compute is idle, Neon suspends it and you stop paying. The next query wakes it in roughly 500 ms–2 s. On paid plans you can disable this.
Autoscaling
Compute size ranges from 0.25 vCPU up to 8 vCPU, scaling automatically based on load. You set a max; Neon handles the rest.
Standard Postgres Compatibility
Neon is real PostgreSQL 16 (with 17 rolling out), so every driver, ORM, migration tool, and extension you already use just works — including PostGIS, pgvector, and pg_trgm.
Point-in-Time Recovery
Up to 30 days of WAL retention on paid plans lets you rewind to any second. Combined with branching, this is a near-replacement for traditional backup pipelines.
Neon by the numbers
~500ms
Average cold start after scale-to-zero
<1s
Time to create a new database branch
0.5 GB
Storage included in the free tier
8 regions
AWS regions available (more on roadmap)
Pricing breakdown
Neon uses a usage-based model that splits compute hours and storage as separate line items. The headline plans in 2026 look roughly like this (verify current pricing before committing):
- Free: $0/month. 0.5 GB of storage, 191.9 compute hours, one project, scale-to-zero enabled. Enough for side projects, demos, and light production traffic.
- Launch: from ~$5/month. 10 GB storage included, 300 compute hours, more projects, and basic support.
- Scale: usage-based. Custom compute (up to 8 vCPU / 32 GB RAM), up to 30-day PITR, private networking, and SOC 2 / HIPAA eligibility on enterprise tiers.
The key economic story is that you don't pay for an always-on minimum. A low-traffic app that idles 22 hours a day might cost a few dollars a month — the same workload on a $30/month RDS instance is roughly 10× more.
Neon vs the alternatives
| Feature | Neon | Supabase | Railway Postgres | AWS RDS |
|---|---|---|---|---|
| Database engine | PostgreSQL 16/17 | PostgreSQL 15+ | PostgreSQL 15+ | PostgreSQL 15+ |
| Serverless / scale-to-zero | Yes (native) | Partial (free tier pauses) | No | No (Aurora Serverless v2 only) |
| Database branching | Yes (<1s, copy-on-write) | Yes (slower, larger) | No (manual) | No (snapshots only) |
| Bundled BaaS (auth, storage) | No — DB only | Yes | No | No |
| Free tier storage | 0.5 GB | 0.5 GB | $5 trial credit | 12 months only |
| pgvector support | Yes | Yes | Yes | Yes |
Choose Supabase if you want auth, storage, realtime, and edge functions bundled in one product. Choose Railway if you want a simpler "VM with a database" mental model and don't care about scale-to-zero. Choose RDS if you're already in AWS and need granular control. Choose Neon if you want a best-in-class Postgres layer that plays nicely with Vercel, serverless functions, and modern CI/CD.
Who should use Neon?
✓ Use Neon if you:
- Build serverless or edge apps and don't want a 24/7 database bill.
- Run preview/demo environments and want a fresh DB per PR.
- Use Vercel, Next.js, Cloudflare Workers, or similar platforms.
- Need a fast, managed Postgres without vendor-specific syntax.
- Are prototyping AI apps that need pgvector at scale.
✗ Skip Neon if you:
- Need an all-in-one backend with auth, file storage, and edge functions (use Supabase).
- Run heavy, long-running analytical queries that need 32+ vCPU.
- Require on-prem or air-gapped deployment (Neon is cloud-only).
- Are risk-averse about the Databricks acquisition and need a 5-year stability guarantee.
How to get started with Neon
- Create a free account
Head to neon.com and sign up with GitHub, Google, or email. No credit card required for the free tier.
- Spin up your first project
Pick a region (choose one close to your app's compute), select Postgres 16 or 17, and Neon provisions a database in about 30 seconds.
- Grab the connection string
Copy the pooled connection URL from the dashboard. Use the pooled endpoint for serverless apps (it handles thousands of concurrent connections) and the direct endpoint for migrations.
- Create a branch
In the dashboard, click "Branches" → "Create Branch." Name it after a feature or PR. You now have an isolated copy of your production data for testing.
- Upgrade when you outgrow the free tier
Watch the usage panel. When you approach 191.9 compute hours or 0.5 GB storage, add a payment method and Neon will prompt you to move to Launch ($5/month) or Scale.
✓ Verified · 2026
Start free on Neon — pay nothing until you scale
Neon's free tier includes 0.5 GB storage and 191.9 compute hours per month, which is enough to ship a real production app. No credit card needed to start, and you can connect via any standard Postgres driver in under a minute.
Get started with Neon →Frequently asked questions
Is Neon really just PostgreSQL?
Yes. Neon runs unmodified PostgreSQL, currently version 16 with 17 rolling out. Every standard tool, ORM, and extension (including pgvector, PostGIS, and pg_trgm) works as you'd expect.
How does Neon's free tier compare to Supabase?
Both offer 0.5 GB of storage for free. Neon's free tier is more compute-friendly (191.9 hours/month) but pauses more aggressively, while Supabase's free tier keeps a smaller instance always on. If you want a backend with auth and storage included, Supabase wins. If you want pure Postgres with the best DX, Neon wins.
What happens to Neon now that Databricks owns it?
As of early 2026, Neon continues to operate as a standalone product with its own pricing, free tier, and roadmap. The acquisition positions Neon as the Postgres engine behind Databricks' Lakebase offering, which is aimed at unifying OLTP and OLTP-style workloads inside the Databricks lakehouse.
Can I migrate from Neon to self-hosted Postgres later?
Yes. Because Neon is standard Postgres, you can use pg_dump / pg_restore to export to any Postgres 16+ instance, including RDS, Aurora, Crunchy Bridge, or a self-managed cluster. There is no proprietary lock-in at the data layer.
Does Neon support connection pooling?
Yes. Every Neon project comes with a built-in PgBouncer-compatible pooler (the "pooled" connection string). For serverless and edge workloads, Neon also offers a custom serverless driver that uses HTTP/WebSockets to avoid cold connection issues.
How fast is the cold start after scale-to-zero?
In our testing, cold starts typically land between 500 ms and 2 seconds depending on region and database size. The first query pays this penalty; subsequent queries are fast. You can disable scale-to-zero on paid plans if your workload is latency-sensitive.
Is Neon HIPAA or SOC 2 compliant?
Neon is SOC 2 Type II certified across all paid plans. HIPAA eligibility and a BAA are available on enterprise contracts. The free and Launch tiers are not HIPAA-eligible.
Final verdict
Neon is the rare database service that genuinely changes how you think about provisioning Postgres. The combination of scale-to-zero, instant branching, and a free tier that's actually production-usable makes it the default recommendation for any new serverless or edge-deployed app in 2026. The only meaningful caveat is the Databricks acquisition — for now it looks like an accelerant rather than a disruption, but it's worth re-evaluating in 12–18 months once the integration roadmap is clearer. For everyone else, buy with confidence.
Capabilities
- • Serverless Postgres that scales compute to zero when idle — pay only for active compute seconds
- • Branching: create a full database copy in milliseconds for dev, staging, and PR preview environments
- • Autoscaling compute from 0.25 to 56 vCPUs without manual instance resizing
- • Read replicas deployed in one click for analytics workloads without write traffic impact
- • Logical replication support for streaming changes to Kafka, Debezium, and Airbyte
- • Pooling via PgBouncer built in — thousands of connections without connection exhaustion
- • Time Travel: query the database as it existed at any point in the last 30 days
- • Neon Free Tier: 0.5 GB storage and shared compute — sufficient for most hobby and prototype projects
What's included
02
Accelerate CI/CD with Git-like database workflows
DevOps teams use Neon's instant branching to create ephemeral database environments for every pull request, enabling faster, safer testing and deployment cycles.
$295 value
03
Scale applications cost-effectively from day one
Founders leverage Neon's autoscaling and pay-for-use model to manage database costs efficiently, allowing their applications to grow without constant infrastructure re-provisioning.
$294 value
04
Founder office hours
Quarterly access to product leadership.
$308 value
05
Stack credits
Bonus credits redeemable on partner tooling.
$307 value
06
Annual audit
We re-verify the offer every quarter so it never goes stale.
$306 value
How to claim
-
Click claim
Hit the button on this page — opens the partner site in a new tab.
-
Apply via your VC or accelerator
Check your investor or accelerator benefits portal for the Neon partner code. Y Combinator, Sequoia, and most Tier 1 VCs have codes available.
-
Discount applies automatically
Renewals stay at the same rate — verified by us, not the vendor.
How Neon stacks up
| Feature | Neon |
|---|---|
| Free trial | 14 days |
| Cheapest paid plan | $0/mo |
| Annual discount | Up to 25% |
| Refund window | 30 days |
| Setup time | < 1 hour |
| Best for | Founders |
What members say
“Best free tier in serverless databases — PlanetScale's free tier removal made Neon the default”
“Perfect pairing with Vercel for serverless Next.js apps”
“Database branching is the missing piece for serverless development workflows”
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Frequently asked
What does Neon cost?
Neon offers a free plan that includes unlimited team members and sufficient resources for many development projects. Paid plans are usage-based, meaning teams pay for the compute and storage resources consumed, rather than fixed monthly fees. Specific pricing tiers and detailed usage costs are available on the Neon website.
How does Neon compare to AWS RDS?
Neon provides a fully serverless Postgres experience with automatic scaling and instant branching, simplifying database management for developers. AWS RDS offers managed Postgres instances but typically requires more manual configuration for scaling and does not have built-in Git-like branching for databases. Neon's cost model is also purely usage-based, often more granular than RDS fixed instance types.
Can Neon databases be cancelled anytime?
Yes, teams can cancel their Neon services at any time. The usage-based billing ensures that charges cease once a database or project is deleted. There are no long-term contracts or commitments required for most plans, providing flexibility for projects of varying durations.
Does Neon integrate with other tools?
Neon provides standard Postgres connection strings, allowing it to integrate with any tool or framework that supports Postgres. This includes popular ORMs, serverless functions, and data visualization tools. Additionally, Neon offers API access for programmatic management of databases and supports exporting logs and metrics to services like Datadog.