Supabase, the open-source database startup that positions itself as an alternative to Google's Firebase, said Oct. 2 that it is acquiring rival Turso and raising $150 million in new funding, betting that the rise of AI coding agents requires rethinking how databases get created and managed.
The round was led by Singapore's sovereign wealth fund GIC, with participation from Alphabet's growth-stage investment arm CapitalG, along with IronArc and SquarePeg, according to Supabase's announcement. Terms of the Turso acquisition itself were not disclosed. Some of the new funding will also go toward providing liquidity to Supabase employees, the company said.
Supabase's pitch centers on a shift in who — or what — is creating databases. The company says AI agents and automated tools are now spinning up more than a million databases a week on its platform, for prototypes, dashboards and one-off apps that often get used briefly and discarded. That pattern, Supabase argues, strains database infrastructure designed around a much smaller number of long-lived databases built by human developers, and demands tools that can provision and tear down large numbers of lightweight, isolated databases cheaply and quickly.
That's the problem Turso was built to solve. The San Francisco-based startup, built around the open-source SQLite database engine, specializes in spinning up large numbers of small, isolated databases at low cost, with support for both public-cloud and "bring your own cloud" deployments. Supabase, by contrast, has built its business on Postgres, the heavier-duty database favored by traditional application developers. The company says existing customers won't see changes to their setup, and that Turso will keep operating its own platform while the two build connective tissue between them. Turso founder Glauber Costa is joining Supabase as head of agentic services, according to a Supabase co-founder's social media post.
The deal comes just four months after Supabase closed a $500 million Series F in June that valued the company at roughly $10.5 billion, underscoring how quickly investor enthusiasm — and competitive pressure — has built around infrastructure for AI-driven software development. Supabase did not disclose a new valuation alongside this week's $150 million raise.
Not every open question has been answered. The acquisition announcement did not include a closing date, a purchase price, or firm commitments on how long Turso's current service terms and support levels will hold, prompting some independent analysts to advise Turso customers to get their existing terms in writing before the deal closes. Supabase says more detail on the combined product roadmap will follow.
