From Open Source to AI Cloud: Snowflake Buys Crunchy

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Crunchy Data Joins Snowflake in $250M AI Push

Cloud data company Snowflake has agreed to acquire Crunchy Data, a specialist in open-source PostgreSQL technology, in a deal valued at $250 million.

The acquisition marks a strategic move to strengthen Snowflake’s capabilities in supporting AI powered applications and developer efficiency.

Snowflake Strengthens AI Stack with Crunchy Data Deal

Crunchy Data’s solutions will serve as the foundation for a new product, Snowflake Postgres, aimed at helping developers build and scale AI applications more easily.

This offering will be fully integrated with the Snowflake AI Data Cloud, enabling native support for PostgreSQL workloads within the Snowflake ecosystem. Approximately 100 employees from Crunchy Data will join Snowflake as part of the transition.

According to CEO Sridhar Ramaswamy, the acquisition reinforces Snowflake’s commitment to open source technologies and enhances its ability to serve real-time, production grade AI use cases.

This move follows Databricks’ recent $1 billion acquisition of Neon, underscoring the increasing competition in the AI-first data infrastructure space.