Snowflake Acquires Open Source PostgreSQL Startup Crunchy Data
The acquisition will lead to the development of Snowflake Postgres, a new offering
Snowflake has announced its acquisition of Crunchy Data, a leading provider of open-source PostgreSQL solutions, in a deal valued at approximately $250 million.
This strategic move aims to bolster Snowflake's capabilities in supporting businesses that want to develop their own artificial intelligence (AI) agents.
The acquisition will lead to the development of Snowflake Postgres, a new offering designed to combine the flexibility of open-source Postgres with the security and operational standards required for enterprise-scale AI and transactional systems.
"This means developers can keep using the tools they know and love, with the performance, governance, and scale Snowflake is known for. Together, we’ll enable customers to run their most critical, AI-powered applications on Postgres—right inside Snowflake," Vivek Raghunathan, Senior Vice President of Engineering at Snowflake, said.
Crunchy Data's expertise in providing enterprise-ready Postgres solutions, particularly within FedRAMP-compliant environments, will be integrated into Snowflake's AI Data Cloud.
“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. This integration is a key building block in making it simpler to build, deploy and run AI applications directly on the Snowflake platform,” Dan Maloney, CEO of Landing AI, said.
This integration is expected to enhance Snowflake's ability to support mission-critical AI applications across various industries, including finance, SaaS, and government sectors.
The acquisition is anticipated to close in the coming weeks, subject to customary closing conditions.
Once finalised, Crunchy Data's team will join Snowflake, contributing to the advancement of Snowflake Postgres and the broader AI Data Cloud platform.
Earlier this year, the company also crossed a major milestone with quarterly revenue hitting $1.04 billion, a 26% year-over-year increase and above the $1.01 billion expected.
Product revenue, which reflects customer consumption of compute, storage, and bandwidth, reached $996.8 million—again up 26% and topping forecasts of $962 million.