Supabase, the startup that sells a hosted service built on the open-source PostgreSQL database, has raised $150 million and agreed to acquire fellow database company Turso, SiliconANGLE reported Friday. The company also launched Supabase Compute, a hosted sandbox service for AI agents that run for long periods.

What Happened

Singapore sovereign wealth fund GIC led the round. Alphabet's growth fund CapitalG, IronArc and SquarePeg also took part. Supabase did not disclose a valuation, and the price of the Turso deal was not made public.

According to SiliconANGLE, the money will go toward liquidity for employees and toward new features for AI agents. Co-founder and CEO Paul Copplestone framed the deal around the volume of software that agents now generate, saying agents are creating millions of databases for the prototypes, dashboards and apps they build.

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Turso develops a database derived from SQLite, the embedded engine that ships inside phones, browsers and countless desktop programs. Because it is lightweight, Turso's database can be started almost instantly and can run on low-power hardware. SiliconANGLE said Turso adds capabilities that plain SQLite lacks, including encryption applied page by page and built-in support for embeddings, the numerical representations AI models use to search and compare data. Turso's core features are free, and the company charges for a cloud service that automates the underlying infrastructure.

In its own announcement, Turso said its platform will keep running as before, with existing databases, APIs and workflows unchanged. Its database remains open source and under active development. Co-founder Glauber Costa becomes head of agentic services at Supabase, and co-founder Pekka Enberg and the rest of the team are joining as well. Costa wrote that his long-standing ambition has been to serve more than a billion databases, a goal he said the merger brings much closer.

Why It Matters

Supabase built its business on Postgres, a full-featured relational database that typically runs as a dedicated server. Its existing service already bundles backups, user login management, storage for embeddings and an MCP server, the interface that lets AI models call outside tools. Adding Turso gives it a second, much lighter engine for a different job.

The pitch is aimed at agent-driven development. When a coding agent spins up a throwaway prototype or an internal dashboard, the database behind it may be used briefly and then abandoned. Provisioning a full Postgres instance for each of those projects is slow and costly; a SQLite-style file that starts in an instant is cheaper to create in bulk. Supabase Compute, which hosts the agents themselves, is the product SiliconANGLE expects to benefit most from Turso's technology.

Turso described the combination as a growth path. Projects can start on its small SQLite-based databases and later move to standard Postgres on Supabase, scaling up to petabyte size through Multigres, Supabase's project for running Postgres across many machines.

What to Watch

The open questions are how quickly Turso's engine is built into Supabase Compute and whether Turso's pricing and separate brand survive the integration. Turso has promised deeper ties between the two platforms in the coming months but has not given a timeline.

Developers will also watch how the company handles two open-source codebases with different designs. Turso has said its database stays open source; whether Supabase keeps investing in it independently, or folds it into its own stack, will shape how the existing Turso community responds.