By: Maxim Lukiyanov, PhD, Principal PM Manager; Abe Omorogbe, Senior Product Manager; Shreya R. Aithal, Product Manager II; Swarathmika Kakivaya, Product Manager II
Today, at Microsoft Ignite, we are announcing a new PostgreSQL database service - Azure HorizonDB. You can read the announcement here, and in this blog you can learn more about HorizonDB’s AI features and development tools.
Azure HorizonDB is designed for the full spectrum of modern database needs - from quickly building new AI applications, to scaling enterprise workloads to unprecedented levels of performance and availability, to managing your databases efficiently and securely.
To help with building new AI applications we are introducing 3 features: DiskANN Advanced Filtering, built-in AI model management, and integration with Microsoft Foundry. To help with database management we are introducing a set of new capabilities in PostgreSQL extension for Visual Studio Code, as well as announcing General Availability of the extension. Let’s dive into AI features first.
DiskANN Advanced Filtering
We are excited to announce a new enhancement in the Microsoft’s state of the art vector indexing algorithm DiskANN – DiskANN Advanced Filtering. Advanced Filtering addresses a common problem in vector search – combining vector search with filtering. In real-world applications where queries often include constraints like price ranges, ratings, or categories, traditional vector search approaches, such as pgvector’s HNSW, rely on multiple step retrieval and post-filtering, which can make search extremely slow.
DiskANN Advanced Filtering solves this by combining filter and search into one operation - while the graph of vectors is traversed during the vector search, each vector is also checked for filter predicate match, ensuring that only the correct vectors are retrieved. Under the hood, it works in a 3-step process: first creating a bitmap of relevant rows using indexes on attributes such as price or rating, then performing a filter-aware graph traversal against the bitmap, and finally, validating and ordering the results for accuracy. This integrated approach delivers dramatically faster and more efficient filtered vector searches. Initial benchmarks show that enabling Advanced Filtering on DiskANN reduces query latency by up to 3x, depending on filter selectivity.
AI Model Management
Another exciting feature of HorizonDB is AI Model Management. This feature automates Microsoft Foundry model provisioning during database deployment and instantly activates database semantic operators. This eliminates tens of setup and configuration steps and simplifies the development of new AI apps and agents.
AI Model Management elevates the experience of using semantic operators within PostgreSQL. When activated, it provisions key models for embedding, semantic ranking and generation via Foundry, installs and configures the azure_ai extension to enable the operators, establishes secure connections, integrates model management, monitoring and cost management within HorizonDB.
What would otherwise require significant manual effort and context-switching between Foundry and PostgreSQL for configuration, management, and monitoring is now possible with just a few clicks, all without leaving the PostgreSQL environment. You can also continue to bring your own Foundry models, with a simplified and enhanced process for registering your custom model endpoints in the azure_ai extension.
Microsoft Foundry Integration
Microsoft Foundry offers a comprehensive technology stack for building AI apps and agents. But building modern agents capable of reasoning, acting, and collaborating is impossible without connection to data. To facilitate that connection, we are excited to announce a new PostgreSQL connector in Microsoft Foundry. The connector is designed using a new standard in data connectivity – Model Context Protocol (MCP). It enables Foundry agents to interact with HorizonDB securely and intelligently, using natural language instead of SQL, and leveraging Microsoft Entra ID to ensure secure connection. In addition to HorizonDB this connector also supports Azure Database for PostgreSQL (ADP).
This integration allows Foundry agents to perform tasks like:
- Exploring database schemas
- Retrieving records and insights
- Performing analytical queries
- Executing vector similarity searches for semantic search use cases
All through natural language, without compromising enterprise security or compliance.
To get started with Foundry Integration, follow these setup steps to deploy your own HorizonDB (requires participation in Private Preview) or ADP and connect it to Foundry in just a few steps.
PostgreSQL extension for VS Code is Generally Available
We’re excited to announce that the PostgreSQL extension for Visual Studio Code is now Generally Available. This extension garnered significant popularity within the PostgreSQL community since it’s preview in May’25 reaching more than 200K installs. It is the easiest way to connect to a PostgreSQL database from your favorite editor, manage your databases, and take advantage of built-in AI capabilities without ever leaving VS Code. The extension works with any PostgreSQL whether it's on-premises or in the cloud, and also supports unique features of Azure HorizonDB and Azure Database for PostgreSQL (ADP).
One of the key new capabilities is Metrics Intelligence, which uses Copilot and real-time telemetry of HorizonDB or ADP to help you diagnose and fix performance issues in seconds. Instead of digging through logs and query plans, you can open the Performance Dashboard, see a CPU spike, and ask Copilot to investigate. The extension sends a rich prompt that tells Copilot to analyze live metrics, identify the root cause, and propose an actionable fix. For example, Copilot might find a full table scan on a large table, recommend a composite index on the filter columns, create that index, and confirm the query plan now uses it. The result is dramatic: you can investigate and resolve the CPU spike in seconds, with no manual scripting or guesswork, and with no prior PostgreSQL expertise required.
The extension also makes it easier to work with graph data. HorizonDB and ADP support open-source graph extension Apache AGE. This turns these services into fully managed graph databases. You can run graph queries against HorizonDB and immediately visualize the results as an interactive graph inside VS Code. This helps you understand relationships in your data faster, whether you’re exploring customer journeys, network topologies, or knowledge graphs - all without switching tools.
In Conclusion
Azure HorizonDB brings together everything teams need to build, run, and manage modern, AI-powered applications on PostgreSQL. With DiskANN Advanced Filtering, you can deliver low-latency, filtered vector search at scale. With built-in AI Model Management and Microsoft Foundry integration, you can provision models, wire up semantic operators, and connect agents to your data with far fewer steps and far less complexity. And with the PostgreSQL extension for Visual Studio Code, you get an intuitive, AI-assisted experience for performance tuning and graph visualization, right inside the tools you already use.
HorizonDB is now available in private preview. If you’re interested in building AI apps and agents on a fully managed, PostgreSQL-compatible service with built-in AI and rich developer tooling, sign-up for Private Preview: https://aka.ms/PreviewHorizonDB.
Microsoft