In a recent interview with CNBC, Databricks CEO Ali Ghodsi made a bold prediction about the future of the database industry, asserting that the rise of “agentic” AI—where artificial intelligence agents autonomously create and manage databases—will fundamentally disrupt the sector. Ghodsi’s comments came during a discussion at the Data + AI Summit, where he highlighted the transformative potential of this new era, driven by technological advancements and strategic acquisitions like that of Neon, a serverless Postgres company.

The Agentic AI Revolution

Ghodsi pointed out a staggering statistic from Neon, noting that 80% of their databases are now created by AI agents rather than humans, a sharp rise from just 30% a year ago. He speculated that this figure could reach 99% within the next year, signaling a seismic shift in how data infrastructure is built and managed. This trend, according to Ghodsi in his CNBC interview, challenges the decades-old database technologies that have remained largely unchanged for 40 years, often locking companies into rigid systems with little flexibility to migrate data.

The implications of agentic AI are profound. As AI agents take over database creation, they could dismantle the entrenched market positions of tech giants like Oracle, Microsoft, and Amazon, who have long dominated this space. Databricks’ recent launch of Lakebase, a platform designed to make data more accessible and useful for the AI era, positions the company to compete directly in this contested territory, leveraging the agentic trend to redefine data management.

Strategic Moves and Market Positioning

Databricks’ acquisition of Neon, as discussed by Ghodsi on CNBC, is a critical piece of this strategy. Neon’s technology, which supports serverless relational database management, aligns with the growing role of AI agents in backend operations, enabling more efficient data utilization. This move, combined with Databricks’ focus on AI-native solutions, underscores its ambition to lead in a market ripe for disruption. Ghodsi’s confidence stems from the company’s early bet on AI, even when the field was still known by the esoteric term “machine learning,” a decision that positioned Databricks as a darling of the AI world following the 2022 ChatGPT explosion.

Moreover, Databricks is addressing key bottlenecks in AI adoption, particularly around evaluations and benchmarks for AI agents. Ghodsi emphasized the launch of Agent Bricks, a tool designed to teach agents to self-evaluate their performance on specific tasks. Without such mechanisms, he warned on CNBC, companies risk deploying agents into the workforce without understanding their impact, potentially causing havoc.

Talent Wars and Future Outlook

The competitive landscape extends beyond technology to talent, with Ghodsi noting the fierce and dynamic nature of the AI talent wars. He described rapid shifts in researcher mobility, with sudden exoduses from popular companies creating opportunities for Databricks to attract top talent. This volatility, unseen in the past 15 years, adds another layer of complexity to the industry’s evolution.

As for future plans, Ghodsi remained coy about an IPO during his CNBC interview, hinting at an open window but offering no firm timeline. For now, Databricks continues to ride its momentum as number three on CNBC’s Disruptor 50 list, up from fifth last year, cementing its role as a key player in the agentic AI era that could redefine the database industry.