Neon vs Amazon Web Services (AWS)

Databricks Powers Agentic Future with $7B Run Rate

Databricks, the data and AI company, has revealed it has surpassed a $7 billion revenue run rate, growing 80% year-over-year, and is valued at $190 billion. The company, which began as a Spark-based data processing platform, has evolved through multiple technology S-curves—Spark, Lakehouse, Lakebase, and now AI agents. Databricks' Lakehouse architecture unifies data lakes and warehouses, while its new Lakebase product, built on the acquisition of Neon, brings operational databases onto the same lakehouse foundation. The company is positioning itself as the 'system of record for agents,' with tools like Genie and Agent Bricks enabling employees to build and manage AI agents. With over 17 million databases launched by agents daily, Databricks is betting on the rise of agentic automation transforming the nature of work and the structure of firms, shifting from managerial hierarchy to human-agent collaboration.

• Databricks surpassed $7 billion revenue run rate, growing 80% year-over-year.
• Databricks is valued at $190 billion.
• More than 17 million databases are launched by AI agents on Databricks every day.

Major update to our Free Plan: now with 1 GB of Postgres storage per project, 100 projects included

Database storage on the Neon Free plan is now 1 GB per project, up from 0.5 GB. You still get 100 projects, with existing projects getting the new limit automatically.

Kyndryl and AWS Launch Agentic Modernization Solution

Kyndryl announced an integrated agentic modernization solution with Amazon Web Services (AWS), combining Kyndryl's services-as-software with AWS Transform to help enterprises modernize applications and infrastructure at scale. The solution uses the Kyndryl Agentic Framework and Kyndryl Bridge to deliver pre-built agentic workflows, reducing transformation risk and enabling AI-ready foundations. Kyndryl's global modernization report found that nearly 50% of organizations are behind schedule on modernization goals, but early adopters of agentic AI report better progress (67% ahead/on track vs. 51%). The partnership positions Kyndryl as a launch partner for AWS Transform, offering customers a scalable, repeatable approach to continuous modernization.

• Kyndryl and AWS launched an integrated agentic modernization solution.
• The solution combines Kyndryl Agentic Modernization services-as-software with AWS Transform.
• Kyndryl is a launch partner for AWS Transform.

Amazon Says External AI Agents Aren't Hurting Its Ad Business

Amazon reported its highest-ever operating margin of 13.9% in Q3 2026, with advertising revenue reaching $19.6 billion for the quarter (up 11% year-over-year) and $78 billion over the trailing twelve months. Despite concerns that external AI shopping agents like ChatGPT, Gemini, or Meta's Muse could threaten Amazon's ability to deliver sponsored listings and display ads, the company's ad business continues to grow strongly. AWS also showed accelerated growth, with revenue up 39% to $46 billion, driven by its Bedrock AI platform and new agreements with Meta, NVIDIA, and OpenAI. The company highlighted strong performance for its 'Thursday Night Football' on Prime Video, with viewership up 17%.

• Amazon's Q3 ad revenue rose 11% year-over-year to $19.6 billion.
• Amazon's 12-month advertising revenue reached $78 billion.
• Amazon reported its highest-ever operating margin of 13.9% in Q3.

Amazon Q3 Report: Cloud Revenue Surges, Misses Overall

Amazon reported Q3 earnings that missed revenue and EPS expectations, although AWS exceeded forecasts with 39% year-over-year growth. However, free cash flow turned sharply negative at -$42.4 billion over the trailing twelve months, driven by heavy investments in AI infrastructure. This spending is part of a broader trend, as Alphabet, Amazon, Meta, and Microsoft have announced combined capital expenditures exceeding $740 billion this year, with some companies resorting to debt—raising $326 billion in 2026, triple the prior year. The market reacted negatively, with the Nasdaq falling 2.9% and Alphabet losing $500 billion in market value. Investor concerns about spending and profitability persist, potentially affecting Anthropic's IPO.

• Amazon's Q3 total revenue was $201.9 billion, missing analysts' expectation of $202.2 billion.
• AWS revenue grew 39% year-over-year to $45.98 billion, beating expectations.
• Amazon reported negative free cash flow of $42.4 billion over the past 12 months.