Snowflake Acquires Crunchy Data for $250M, Boosting AI and PostgreSQL Capabilities

Snowflake to acquire database startup Crunchy Data | TechCrunch

The surge in data company acquisitions continued Monday with Snowflake's purchase of Crunchy Data. Cloud data platform Snowflake announced its intent to acquire Crunchy Data, a Postgres database partner, late this afternoon. A source familiar with the matter estimated the deal to be worth around $250 million. The terms weren't disclosed. Snowflake declined to comment on the deal's valuation. It's the latest in a string of tech giants buying data startups to bolster their underlying database offerings that power AI agents. Last week, Salesforce acquired decades-old Informatica to fortify its data management tooling for AI agents. A few weeks ago, Alation acquired Numbers Station to give its customers access to AI agents that could run on top of structured data. And earlier this month, ServiceNow acquired Data.World with AI agents in mind. Crunchy Data gives companies the tools they need to build with Postgres, an open source and object-relational database management system that is popular with developers and works well with the SQL database language. The 13-year-old company works with clients including UPS, SAS, and Moneytree, among others, in addition to public sector organizations like the U.S. Department of Homeland Security. The acquisition will give Snowflake the underlying tech needed to launch Snowflake Postgres, an enterprise-grade PostgreSQL database for its customers, and partners including Blue Yonder and LandingAI. This deal also further bolsters Snowflake's database offerings in the age of AI agents. This tech will be available in private preview soon. "Our vision is to deliver the world's most trusted and comprehensive data and AI platform to our customers," said Vivek Raghunathan, SVP of engineering at Snowflake, in a press release provided to TechCrunch. "Today's announcement of our proposed acquisition of Crunchy Data represents another reason why Snowflake is the ultimate destination for all enterprise data and AI needs. We're tackling a massive $350 billion market opportunity and a real need for our customers to bring Postgres to the Snowflake AI Data Cloud." In 2024, Snowflake launched new connectors for Snowflake customers to PostgreSQL and MySQL. Now, it is bulking up that offering. Snowflake also acquired data management company Datavolo last year.

Snowflake to buy database startup Crunchy Data for about $250 million

Sridhar Ramaswamy, CEO of Snowflake, speaks at the Semafor World Economy Summit in Washington on April 25, 2025. Data analytics software maker Snowflake said Monday it has agreed to buy Crunchy Data, a startup that offers cloud-based database software. Snowflake will pay about $250 million, according to a person familiar with the matter who was not authorized to speak publicly about the deal. Crunchy Data sells access to a cloud-hosted version of the PostgreSQL open-source database, which replaced MySQL as the most popular database in Stack Overflow's annual developer survey in 2023. Crunchy Data's service includes security and performance enhancements in comparison with the standard open-source code. Snowflake rival Databricks last month announced its intent to acquire Neon, whose software is also based on PostgreSQL, for around $1 billion. Snowflake also looked at buying Neon last year but walked away, according to a different person who added that Crunchy Data generates over $30 million in annualized revenue. Neon did not immediately respond to a request for comment. Both Databricks and Snowflake are counting on their respective deals to help them benefit from corporate spending to deliver artificial intelligence agents that carry out tasks on their own. With Crunchy Data, Snowflake will soon provide early access to a PostgreSQL database service, according to a statement. The plan is to simplify the process of moving data into Snowflake with the new service so clients can more easily run queries on a larger supply of data, according to Christian Kleinerman, executive vice president of product at Snowflake. Shares of Snowflake are up around 36% so far this year. In May, Stifel analysts likened the company to top-tier golfer Scottie Scheffler, saying Snowflake had delivered a "Scheffler Like Quarter & Guide," surpassing consensus with 25% year-over-year revenue growth. Stifel has a buy rating on Snowflake stock. "We're helping our customers build a strong foundation to lead in the era of agentic AI," CEO Sridhar Ramaswamy told analysts on a conference call in May. "We're continuing on this momentum, and you'll see even more from us in just a few weeks." Crunchy Data was founded in 2012 and is based in Charleston, South Carolina, with around 100 employees. Investors include Alsop Louie Partners, Gray Ventures, Harbert Growth Partners and Heavybit. Clients include Kyndryl, Thales, UPS and the U.S. Department of Homeland Security. The

Enterprise alert: PostgreSQL just became the database you can't ignore for AI applications

Join our daily and weekly newsletters for the latest updates and exclusive content on industry-leading AI coverage. Learn More The open-source PostgreSQL (sometimes also referred to as Postgres) is apparently a very hot commodity for big enterprise data platform vendors. Snowflake is acquiring privately-held PostgreSQL provider Crunchy Data, in a deal that is reportedly valued at $250 million. The acquisition comes barely two weeks after Snowflake's rival Databricks acquired serverless PostgreSQL vendor Neon. The pair of PostgreSQL acquisitions highlights the critical importance of the open-source database to modern enterprise data and AI workflows. Unlike Neon, which was only a three-year-old company, Crunchy Data has been around for over a decade, having been founded in 2012. The company's core platform, Crunchy Postgres, is a managed, automated and fully supported version of PostgreSQL. There is also a specific version of the platform for Kubernetes environments and a newer product called Crunchy Data Warehouse that brings the platform to data lakehouse environments. According to Snowflake, Crunchy Data's technology will be the foundation of a new offering known as Snowflake Postgres. It will allow users to combine Crunchy Data's enterprise-grade and developer-friendly Postgres capabilities within Snowflake's secure and governed perimeter. The goal is to simplify how developers build, deploy and scale production-ready AI agents and apps. "In our discussions, it quickly became clear that the same trends that Crunchy Data was seeing from the operational database world were also apparent to Snowflake," Paul Laurence, co-founder of Crunchy Data wrote in a blog post. "With today's announcement, we are targeting the large online transactional processing (OLTP) market, leveraging Snowflake's reach and Crunchy Data's flexible, scalable solutions for enterprise workloads and developers alike. What PostgreSQL support brings to Snowflake Snowflake has its own data cloud platform that provides a cloud data warehouse for its enterprise customers. While Snowflake has a growing customer base, it's not the same as the open-source PostgreSQL community. PostgreSQL has emerged to become a very popular database, not just for traditional enterprise applications but also for agentic AI. After all, that's why Databricks acquired Neon. It also brings in a solid developer community. Data analyst Sanjeev Mohan told VentureBeat that in his view, this is an excellent acquisition. "Unlike Neon, Crunchy is truly enterprise," Mohan said. He added that Crunchy Data has a very deep PostgreSQL community of users and it's also engaged with Kubernetes. Crunchy Data isn't just focused on PostgreSQL for operational workloads; it's also able to support analytics as well. PostgreSQL by default was originally just an OLTP (Online Transaction Processing) database, but it has been expanded by Crunchy Data as well as other vendors like Google with its AlloyDB, to also support OLAP (Online Analytics Processing) database workloads. Mohan is overall extremely positive on the continued prospect of PostgreSQL for enterprise use cases. "The community has continuously added exceptional capabilities not only for traditional relational and SQL use cases but also for time-series, JSON and vector search, while boasting some of the best geospatial features available," he said. Why PostgreSQL matters to the Snowflake and its enterprise users PostgreSQL is widely used in the enterprise. But perhaps even more importantly, developers increasingly use it as a foundation for agentic AI. This is another key reason why Databricks acquired Neon and why Snowflake is now acquiring Crunchy Data. It's all part of a broader multi-year effort at Snowflake to engage with developers in an open way. "The popularity of PostgreSQL with developers, coupled with CrunchyData's support for data warehousing on Iceberg, align well with Snowflake's core strategy," Kevin Petrie, vice president of research at BARC told VentureBeat. Apache Iceberg is an open-source data lake table format that Snowflake supports as part of the company's growing strategies to embrace more open technologies. Petrie noted that it's not too hard to imagine how companies would use CrunchyData technology within the Snowflake platform to build AI applications for common use cases such as telemetry, geospatial and advertisement analytics. He's also not too surprised that Crunchy Data is being acquired. "Crunchy Data's growth seems to have flattened in the last couple of years, so it's not surprising to see them opt for this exit," Petrie said. "The consolidation wave among data tools and platforms continues." Why it matters to the enterprise For enterprise data and AI leaders, Snowflake's acquisition of Crunchy Data reinforces a key point that may have already been obvious to some: PostgreSQL matters. PostgreSQL is no longer just an open-source alternative to proprietary relational databases. It's an open, widely used platform that is rapidly becoming a de facto standard for developers and the enterprises they work for to build agentic AI and enterprise applications at scale. The big hyperscalers, including Google, Amazon and Microsoft, as well as a long list of smaller vendors including EDB, Aiven and Netapp Instaclustr are all already supporting PostgreSQL. Now, with Snowflake and Databricks throwing their support and hundreds of millions of dollars at PostgreSQL, it's clear that enterprises should have it as part of their developer and AI stacks.

Snowflake buys Crunchy Data to add more bite to its AI agents - SiliconANGLE

Snowflake Inc. said today it's buying a database startup called Crunchy Data Solutions Inc. in a $250 million deal that's expected to close imminently, bolstering its agentic artificial intelligence capabilities. Crunchy Data's team of approximately 100 employees will join Snowflake once the deal closes, with its technology becoming the foundation of a new offering called Snowflake Postgres, the companies said. The startup has developed a cloud-based database platform that makes it simple for businesses and government agencies to use PostgreSQL without having to manage the underlying infrastructure. PostgreSQL is an open-source relational database system that dates back to the 1980s. Although it's old, the technology is enduring for it has become extremely popular with developers, thanks to the way it pairs perfectly with the Structured Query Language database language. Crunchy Data was founded in 2012, and boasts hundreds of enterprise clients, including SAS Institute Inc., United Parcel Service of America Inc. and Moneytree Inc., as well as government agencies such as the U.S. Department of Homeland Security. In a blog post, Snowflake Executive Vice President of Product Christian Kleinerman and Crunchy Data founder and Chief Executive Paul Laurence explained that the upcoming Snowflake Postgres platform will "simplify how developers build, deploy and scale agents and apps". They were referring to AI agents, which are widely expected to become the next big thing after generative AI, taking actions on behalf of humans to automate complex work with minimal human supervision. When it launches as a technology preview in the coming weeks, Snowflake Postgres will be an enterprise-grade PostgreSQL offering that will give developers the full power and flexibility found in the original, open-source Postgres database, together with the superior operational standards, governance, security and flexibility of Snowflake's cloud data warehouse. According to Snowflake, it will help developers to speed up the development of new AI agents and simplify the way they access data "Access to a PostgreSQL database directly within Snowflake has the potential to be incredibly impactful for our team and our customers, as it would allow us to securely deploy our Snowflake Native App, LandingLens, into our customers' account, said Dan Maloney, CEO of a Snowflake customer called Landing AI Inc. "This integration is a key building block in making it simpler to build, deploy and run AI applications directly on the Snowflake platform." The deal will help Snowflake to keep pace with its biggest rival in the enterprise data space, coming just weeks after Databricks Inc. snapped up a similar Postgres database startup called Neon Inc. for around $1 billion. At the time, Databricks said the aim was to provide developers with a serverless Postgres that can "keep up with agentic speed, pay-as-you-go economics and the openness of the Postgres community." Snowflake's cloud data warehouse platform enables enterprises to store, organize and analyze data across multiple cloud providers, including Amazon Web Services, Microsoft Azure and Google Cloud. It's going head-to-head with Databricks, which provides many of the same capabilities, as both scramble to attract businesses that want to build AI agents and other apps that can utilize their own data. The advantage of having a PostgreSQL offering is that it is flexible enough to be the underlying database for AI agents that leverage data from their respective cloud platforms. Snowflake has been pushing heavily into AI tech for quite some time now, and in a recent earnings call it said more than 5,200 businesses are using its AI capabilities every week, including its family of Cortex large language models, which can serve as the basis of AI agents. Data-focused startups have become popular acquisition targets in recent months. Last week, Salesforce Inc. said it's going to pay $8 billion to snap up the decades-old data management company Informatic Inc. so it can leverage its capabilities for AI agents. Also last month, the data intelligence firm Alation Inc. revealed it's buying Numbers Station Inc. so it can build AI agents that can tap into structured data, while ServiceNow Inc. bought a startup called Data.World Inc. to bolster its own agentic capabilities.

Snowflake Acquires Crunchy Data to Launch Enterprise-Ready Postgres Offering | AIM

Postgres is widely used by developers due to its open-source foundation, flexibility and support for features like vector embeddings. Snowflake has announced the acquisition of Crunchy Data, a provider of open-source PostgreSQL solutions, to launch Snowflake Postgres, a managed PostgreSQL database designed for AI and transactional workloads within the Snowflake AI Data Cloud. The acquisition is expected to close soon. According to CNBC, Snowflake will pay about $250 million to bring Crunchy Data's operational experience, compliance capabilities, and Postgres expertise into its platform. According to the company, this move will help meet the rising demand for enterprise-grade Postgres solutions that can support production-scale applications and AI systems. "Snowflake Postgres will give developers the full power and flexibility of open-source Postgres while providing the uncompromising governance, security and operational standards that enterprises require," the company said. Postgres is widely used by developers due to its open-source foundation, flexibility and support for features like vector embeddings. However, many enterprises face limitations with traditional Postgres deployments in areas such as security, compliance and scale. "Handling sensitive data, powering essential AI agents and applications, and operating within highly-regulated industries requires proven security, compliance and reliability," Snowflake said. "These imperatives go far beyond what's offered by platforms built for quick experimentation and 'vibe coding'." Snowflake Postgres aims to address these challenges by offering a fully managed, secure and compliant Postgres option integrated into the Snowflake platform. This integration is expected to help reduce operational silos and simplify development workflows. Once live, Snowflake Postgres will support Postgres-based applications without the need for significant code rewrites, while also enabling new development. "Companies deeply invested in the Postgres ecosystem will be able to migrate and run existing applications on Snowflake without rewriting code," the company stated. The new offering will complement Unistore, Snowflake's solution for unifying transactional and analytical data, and will help expand the use of Snowflake for AI workloads. Crunchy Data brings experience in managed Postgres, Kubernetes-based deployments and compliance-focused infrastructure. "Crunchy Data's deep commitment to developers and the open source community, combined with their enterprise readiness... makes them the ideal partner," Snowflake said. The Crunchy platform includes built-in metrics, connection pooling, logging support and developer tooling. "Their solutions span managed cloud services, Kubernetes deployments and on-premise solutions, demonstrating their versatility," Snowflake added. Early responses from Snowflake's customer base reflect interest in the Postgres integration. Chris Burchett, SVP of generative AI at Blue Yonder, said, "Bringing PostgreSQL technology into the Snowflake ecosystem is an opportunity for our development teams to accelerate and simplify benefits for our customers." Dan Maloney, CEO of Landing AI, said, "Access to a PostgreSQL database directly within Snowflake has the potential to be incredibly impactful for our team and our customers... This integration is a key building block in making it simpler to build, deploy and run AI applications directly on the Snowflake platform." Snowflake stated that the move supports its long-term vision of becoming the central platform for enterprise data workloads.

Snowflake to expand database stack with Crunchy Data deal

Snowflake announced its intention to acquire Crunchy Data, a Postgres database partner, on Monday. The acquisition will provide Snowflake with technology required to launch Snowflake Postgres, an enterprise-grade PostgreSQL database. While deal terms were not disclosed, a source familiar with the matter estimates the deal to be worth around $250 million. Snowflake declined to comment on the deal's valuation. Crunchy Data provides tools for companies to build with Postgres, an open source and object-relational database management system. The 13-year-old company's clients include UPS, SAS, Moneytree, and the U.S. Department of Homeland Security. According to a press release provided to TechCrunch, Vivek Raghunathan, SVP of engineering at Snowflake, stated, "Our vision is to deliver the world's most trusted and comprehensive data and AI platform to our customers." He added, "Today's announcement of our proposed acquisition of Crunchy Data represents another reason why Snowflake is the ultimate destination for all enterprise data and AI needs. We're tackling a massive $350 billion market opportunity and a real need for our customers to bring Postgres to the Snowflake AI Data Cloud." Salesforce brings on Moonhub talent as part of AI HR push The acquired technology will soon be available in private preview. Partners include Blue Yonder and LandingAI. Snowflake launched new connectors for Snowflake customers to PostgreSQL and MySQL in 2024. Last year, Snowflake also acquired data management company Datavolo.

Snowflake Sets Sights On $350 Billion Database Market With Crunchy Data Acquisition - Snowflake (NYSE:SNOW)

Snowflake Inc. SNOW announced its intent to acquire Crunchy Data at Snowflake Summit 2025, bringing enterprise-grade PostgreSQL capabilities to its AI Data Cloud platform. The acquisition addresses growing demand for secure, compliant database solutions in artificial intelligence applications. What Happened: The deal will integrate Crunchy Data's PostgreSQL technology into Snowflake Postgres, targeting the $350 billion database market opportunity. PostgreSQL remains the preferred choice among 49% of developers globally, making this acquisition strategically significant for Snowflake's enterprise customers. "We're tackling a massive $350 billion market opportunity and a real need for our customers to bring Postgres to the Snowflake AI Data Cloud," said Vivek Raghunathan, SVP of Engineering at Snowflake. The company positions this as part of its comprehensive data and AI platform strategy. Crunchy Data brings specialized expertise in regulated environments, including FedRAMP compliance, essential for federal agencies and Fortune 500 financial institutions. "Our deep-rooted commitment to stringent security and comprehensive compliance has made us the trusted Postgres partner for organizations across regulated industries," said Paul Laurence, Co-Founder at Crunchy Data. See Also: Elizabeth Warren Says Trump 'Approved' The Largest Meat Company In World To Be Listed On NYSE Ignoring Corruption And Bribery History, Demands Answers Why It Matters: Snowflake recently reported strong first-quarter performance with revenue of $1.04 billion, up 26% year-over-year, beating analyst estimates of $1.01 billion. The company expects second-quarter product revenue of approximately $1.03-$1.04 billion, representing 25% growth. The acquisition requires regulatory approval and customary closing conditions. Snowflake Postgres will be available in private preview following deal completion, with the company committing to support existing Crunchy Data customers and the broader PostgreSQL community. Price Action: Snowflake stock closed at $210.17 on June 2, up 2.19%. After hours, it rose slightly to $210.20. Year to date, the stock is up 33.43%, according to data from Benzinga Pro. SNOW shows weak growth and valuation metrics based on the Benzinga Edge Stock Ranking. However, the stock is experiencing positive momentum and a favorable short- to long-term price trend. Click here for the full stock breakdown. Read Next: Bitcoin, Ethereum, Dogecoin Rise As China Counters Trump's Trade Deal Breach Claim: Analyst Says BTC Success Riding On Health Of US Economy Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo courtesy: Tada Images / Shutterstock.com SNOWSnowflake Inc$210.200.01%Stock Score Locked: Want to See it? Benzinga Rankings give you vital metrics on any stock - anytime. Reveal Full ScoreEdge RankingsMomentum90.93Growth14.39QualityNot AvailableValue6.15Price TrendShortMediumLongOverviewMarket News and Data brought to you by Benzinga APIs

Snowflake Acquisition Expands Postgres Capabilities Of Its AI Data Cloud

Snowflake is buying Crunchy Data, a provider of PostgreSQL database products, technology and services that will serve as the foundation for Snowflake's new Postgres offering. Snowflake is expanding the Postgre database services of its AI Data Cloud platform with a deal to acquire Crunchy Data, a provider of open-source PostgresSQL technology, products and support services With the acquisition, Snowflake will offer Snowflake Postgres, an "AI-ready, enterprise-grade and developer-friendly" PostgreSQL database on the company's AI Data Cloud, Snowflake said in an announcement of the Crunchy Data acquisition. Snowflake Postgres will provide developers with the full capabilities of the PostgreSQL database combined with the governance, security and operational standards needed for building and running mission-critical AI applications, according to the company. [Related: Snowflake Stock Surges After $1 Billion Sales Report] The acquisition news comes on the eve of Snowflake Summit 2025, the company's annual conference being held this week in San Francisco. "Our vision is to deliver the world's most trusted and comprehensive data and AI platform to our customers. Today's announcement of our proposed acquisition of Crunchy Data represents another reason why Snowflake is the ultimate destination for all enterprise data and AI needs," said Vivek Raghunathan, Snowflake senior vice president of engineering, in a statement. "We're tackling a massive $350 billion market opportunity and a real need for our customers to bring Postgres to the Snowflake AI Data Cloud." PostgreSQL is a popular open-source database for developing and running data-intensive, enterprise-scale applications and, more recently, AI applications and AI agents. The database is published by the PostgreSQL Global Development Group and the database is available under the PostgreSQL "free and open-source software" license. PostgreSQL is the foundation for a number of commercial databases across the IT industry including EDB Postgres AI, Amazon Web Services' Relational Database Service (RDS) and the Amazon Aurora database. According to the 2024 Stack Overflow developer survey, 48.7 percent of all developers use PostgreSQL and 51.9 percent of all professional developers do so. Crunchy Data, founded in 2012 and headquartered in Charleston, S.C., has a product portfolio that includes Crunchy Bridge, a fully managed edition of the Crunchy Postgres database on AWS, Microsoft Azure or the Google Cloud Platform. Offered self-managed editions include the production-ready Crunchy Postgres, Crunchy Postgres for Kubernetes, and Crunchy Hardened Postgres to support advanced security requirements. In April the company debuted Crunchy Data Warehouse. "We built Crunchy Data with the vision to become a Postgres solution of choice for leading enterprise organizations. Our deep-rooted commitment to stringent security and comprehensive compliance has made us the trusted Postgres partner for organizations across regulated industries, including federal agencies, Fortune 500 financial institutions and high-scale SaaS companies," said Paul Laurence, Crunchy Data co-founder, in a statement. Snowflake cited Crunchy Data's essential performance metrics, robust scaling capabilities and "powerful" user interface as competitive advantages for developers. The company said Crunchy Data's successful track record within FedRAMP compliant environments is another plus from the acquisition. Once the acquisition is closed, Snowflake will integrate the Crunchy Data technology into the Snowflake Postgres offering to manage the entire lifecycle of building, deploying and operating enterprise PostgreSQL workloads. Snowflake Postgres will be "available soon" in private preview, Snowflake said. "Snowflake's platform serves as the foundation for Blue Yonder's vast amount of supply chain data. Bringing PostgreSQL technology into the Snowflake ecosystem is an opportunity for our development teams to accelerate and simplify benefits for our customers," said Chris Burchett, senior vice president of generative AI at Blue Yonder, a developer of end-to-end supply chain management applications, in a statement. "Access to a PostgreSQL database directly within Snowflake has the potential to be incredibly impactful for our team and our customers, as it would allow us to securely deploy our Snowflake native app, LandingLens, into our customers' account, said Dan Mahoney, CEO of LandingAI, in a statement. "This integration is a key building block in making it simpler to build, deploy, and run AI applications directly on the Snowflake platform. Snowflake said its Postgres offerings represent "a further advancement" in the company's support of transactional data that began with Unistore, which unifies transactional and analytical data within a single database on the Snowflake platform. The company said Snowflake Postgres complements Unistore by providing "an enterprise-ready solution for transactional applications" that require PostgreSQL compatibility. Terms of the acquisition were not disclosed. Snowflake said closing the acquisition deal is subject to receipt to required regulatory approvals and customary closing conditions. Snowflake also said it will make a "strong commitment to the Postgres community" and continue to support existing Crunchy Data customers.

Snowflake to Acquire Crunchy Data to Strengthen AI Agent Business | PYMNTS.com

Snowflake plans to acquire Crunchy Data to enhance its ability to help enterprises build and deploy artificial intelligence (AI) agents and applications. The planned acquisition will add Crunchy Data's open-source Postgres technology and products to Snowflake's AI Data Cloud, the companies said in a Monday (June 2) press release. The closing of the acquisition is subject to regulatory approvals and customary closing conditions, according to the release. The planned combination will help add a PostgreSQL database called Snowflake Postgres to the AI Data Cloud, according to the release. PostgreSQL, or Postgres, is an open-source, relational database that can serve as the underlying database for customers creating AI agents with data stored in the platforms of companies like Snowflake, The Wall Street Journal (WSJ) reported Monday. It is used by 49% of all developers, according to the Monday press release. Snowflake Postgres will enable those who use PostgreSQL to ship faster and operate more efficiently, the release said. "We're tackling a massive $350 billion market opportunity and a real need for our customers to bring Postgres to the Snowflake AI Data Cloud," Snowflake Senior Vice President of Engineering Vivek Raghunathan said in the release. Crunchy Data Co-Founder Paul Laurence said in the release that Crunchy Data's security and compliance have made it a trusted Postgres partner for organizations in regulated industries. "We're excited to join forces with Snowflake to provide their customers who already rely on Postgres the ability to run mission-critical regulated workloads with increased confidence and security on the Snowflake platform," Laurence said. "By bringing Neon into Databricks, we're giving developers a serverless Postgres that can keep up with agentic speed, pay-as-you-go economics and the openness of the Postgres community," Databricks Co-Founder and CEO Ali Ghodsi said at the time in a press release.

Snowflake expands AI capabilities with $250 million Crunchy Data deal - WSJ By Investing.com

Investing.com -- Snowflake Inc (NYSE:SNOW) will acquire Crunchy Data for roughly $250 million, according to a report from the Wall Street Journal citing people familiar with the matter, as the cloud data firm expands its footprint in artificial intelligence. The deal is a strategic move aimed at capturing enterprise demand for AI agents tailored to specific datasets, and markets have responded, sending Snowflake stock up 2% ahead of close. The acquisition puts Snowflake in more direct competition with Databricks, which recently acquired Neon in a $1 billion transaction. Both moves reflect a broader industry trend toward consolidating database technology to power next-generation AI tools. Crunchy Data offers a managed PostgreSQL database platform used by large enterprises and U.S. government agencies to streamline infrastructure management. Through the acquisition, Snowflake plans to fold Crunchy into a new offering called Snowflake Postgres, according to the company. Around 100 employees from Crunchy Data are expected to join Snowflake as part of the deal, which is anticipated to close in the coming weeks. Snowflake Postgres is intended to serve as a key layer for developers running AI applications directly on their enterprise data. Snowflake's push into AI-ready infrastructure reflects broader efforts to position itself against tech giants like Nvidia (NASDAQ:NVDA) and OpenAI. These efforts align with Snowflake's prior acquisition of generative AI startup Neeva in 2023 for an undisclosed sum. Snowflake has seen rapid adoption of its AI tools, with more than 5,200 customers now reportedly using its platform weekly for AI workloads. The company also surpassed $1 billion in quarterly revenue for the first time in the period ending April 30, beating analyst expectations. Snowflake's platform continues to benefit from multicloud support across Amazon (NASDAQ:AMZN) Web Services, Microsoft (NASDAQ:MSFT) Azure, and Google (NASDAQ:GOOGL) Cloud, a factor that has fueled demand as organizations retire on-premise data systems. With the Crunchy Data acquisition, Snowflake further embeds itself in the backend infrastructure that enterprise AI development increasingly relies on.