More storage on the Free plan

The Neon Free plan now gives you 1 GB of database storage per project, up from 0.5 GB. Existing projects pick up the new limit automatically. It was one of the most requested Free plan changes.

The extra storage builds on an already-generous plan: you get up to 100 projects on the Free plan, each with its own compute, storage, and egress. Spin up a new project for every app idea, experiment, or client demo, without paying for each project separately.

Read more in the blog post: Neon gives you 100 projects for free, with 1 GB of Postgres storage each, or see Neon plans for the full breakdown.

Embedding models in the Neon AI Gateway

The Neon AI Gateway now supports embedding models, so you can turn text into vectors through the same OpenAI-compatible endpoint and Neon credential you already use for chat. Call /v1/embeddings with either model:

import OpenAI from 'openai';

const client = new OpenAI({
  apiKey: process.env.NEON_AI_GATEWAY_TOKEN,
  baseURL: `${process.env.NEON_AI_GATEWAY_BASE_URL}/v1`,
});

const { data } = await client.embeddings.create({
  model: 'qwen3-embedding-0-6b', // or 'gte-large-en'
  input: 'The quick brown fox jumps over the lazy dog.',
  encoding_format: 'float',
});
// data[0].embedding is a 1024-dimension vector

Both models (qwen3-embedding-0-6b and gte-large-en) return 1024-dimension vectors and are billed on input tokens only. Store and search the vectors on the same branch as your data with Lakebase Search or pgvector. For the full reference, including the dimensions parameter and response format, see the Embeddings guide.

Effect bindings for the Neon SDK

Effect is a TypeScript library for building resilient apps, with typed errors, retries, timeouts, and cancellation built in. The new @neon/effect package wraps the Neon Management SDK in Effect v4, so managing your Neon projects fits that model: every API call returns an Effect, paginated lists return a Stream, and SDK errors are tagged for Effect.catchTag. Interrupting a fiber cancels the in-flight request and readiness polling, so retries, timeouts, and cancellation compose with the rest of your program.

import { Neon, layerConfig } from '@neon/effect';
import { Effect, Stream } from 'effect';

const program = Effect.gen(function* () {
  const neon = yield* Neon;
  return yield* neon.projects.list().pipe(Stream.take(10), Stream.runCollect);
});

Effect.runPromise(program.pipe(Effect.provide(layerConfig)));

Install @neon/effect alongside effect v4. Read more in the blog post: Announcing @neon/effect, or see the Effect bindings reference.

Fixes & improvements