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About Neon
What is Neon?
Neon is a serverless Postgres database built for modern apps and AI agents. It separates compute and storage to autoscale CPU, memory, and storage based on workload, so you only pay for what you use. Originally a standalone product, Neon is now part of the Databricks platform, offering Lakebase Postgres, managed authentication, object storage, and an AI gateway.
What problem does it solve?
Traditional databases have fixed resources, leading to over-provisioning and cost waste. Neon's autoscaling prevents performance degradation and saves costs—it prevents 54,210 performance degradations daily. Instant branching lets you create copy-on-write database clones for development and testing, with anonymization and auto-deletion features.
Who is it for?
Neon is for developers and teams building serverless apps, AI agents, or SaaS products that need a scalable, low-maintenance Postgres backend. It's great for startups and enterprises needing compliance (HIPAA, SOC2) without high upfront fees. Not ideal for those needing fixed-resource databases with eventual consistency.
Real use cases
Powering serverless applications, AI agent backends, and microservices. For example, CommSync uses Neon to run Lakebase Search for text, vector, and hybrid search, achieving 1000x latency improvement vs. cold-start GIN. It's also used for rapid prototyping and testing with ephemeral branches.
Key features
- Advanced Autoscaling — Automatically scales compute and storage to fit workload, preventing incidents and saving costs.
- Instant Branching — Create copy-on-write database copies for efficient development and testing, with automatic cleanup.
- Managed Better Auth — Built-in authentication with users and sessions stored in Postgres, no platform fees.
- Object Storage — S3-compatible blob storage that branches with your projects (Beta).
- AI Gateway — All AI models, one API, one bill, powered by Databricks (Beta).
- Private Networking — PrivateLink to keep traffic off public internet at no extra cost.
- Point-in-time Recovery — Restore instantly to any moment, with configurable history windows.
SaaSpartout Score
7.8
/10
Editorial score from our review methodology — not user ratings.
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Neon Pricing
Neon pricing: Free plan available; usage-based from $0.106/CU-hr. Billing model: Freemium.
For comparison: the median starting price in Analytics & Data is $29/month, measured across 274 tools we track. See the full SaaS Pricing Index →
Free
$0/month. 100 projects, 100 CU-hours monthly per project, 0.5 GB storage per project, sizes up to 2 CU (8 GB RAM), unlimited team members. Includes Managed Better Auth, Object Storage (Beta), Functions (Beta). No time limits or credit card required.
Launch
Usage-based with typical spend $15/mo. Includes 100 projects, $0.106 per CU-hr, $0.35 per GB-month, sizes up to 16 CU (64 GB RAM), 3-day metrics/logs in UI. Also includes Managed Better Auth, Object Storage, Functions, AI Gateway (Beta).
Scale
Usage-based with typical spend $701/mo. Includes 1,000+ projects, $0.222 per CU-hr, $0.35 per GB-month, sizes up to 56 CU (224 GB RAM), SLAs, HIPAA, private network. Also includes all backend features and AI Gateway (Beta).
Frequently asked questions
Is Neon free to use?
Yes, Neon offers a free plan with 100 projects, 100 CU-hours per month, and 0.5 GB storage per project, no credit card required.
How much does Neon cost after the free plan?
Pricing is usage-based. The Launch plan typically costs around $15/month with $0.106 per CU-hour and $0.35 per GB-month. The Scale plan is higher with more features.
What is Neon best for?
Neon is best for developers building serverless apps or AI agents that need autoscaling Postgres with instant branching and low maintenance.
What are the top alternatives to Neon?
Common alternatives include Supabase (hosted Postgres with autoscaling), PlanetScale (MySQL-compatible serverless), and AWS Aurora Serverless. But Neon is known for its branch-based workflow and AI features.
Does Neon support AI features?
Yes, Neon includes an AI Gateway (Beta) for accessing multiple AI models and vector search via Lakebase, as well as built-in authentication and object storage.
