Snowflake on Monday said it will acquire startup Crunchy Data as it builds out a broader cloud data-management software platform that competes with rival Databricks and others. Snowflake stock has advanced 36% in 2025.
Databricks recently acquired database startup Neon in a $1 billion deal. Snowflake did not disclose terms of the Crunchy Data purchase. Some reports pegged Snowflake's Crunchy Data deal at $250 million.
Both Crunchy Data and Neon platforms are based on the popular open-source database PostgreSQL, a relational database that dates back to the late 1980s.
Snowflake Stock: Summit Conference
Snowflake and Databricks are focused on helping companies use proprietary data to customize artificial intelligence applications. Many companies are in trials with autonomous, goal-driven "AI agents."
In a news release, Snowflake stated: "Snowflake Postgres significantly simplifies how developers build, deploy and scale production-ready AI agents and apps. It leverages Crunchy Data's technology, which has been engineered not just for quick experimentation, but for the entire life cycle of building, deploying and operating the most important enterprise workloads."
Snowflake will host its Summit customer conference in San Francisco this week. Snowflake hosts an investor day Tuesday afternoon coinciding with the event. It's not expect to update long-term financial guidance.
On the stock market today, Snowflake shares dipped a fraction to near 210.
Also, Snowflake stock owns a Composite Rating of 96 out of a best-possible 99, according to IBD Stock Checkup.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
