Snowflake Acquires Crunchy Data to Supercharge AI Database Capabilities

Snowflake, a leading cloud data platform, has announced its intent to acquire Crunchy Data, a PostgreSQL database specialist, for approximately $250 million. Unveiled at Snowflake Summit 2025, this strategic move aims to enhance Snowflake's AI Data Cloud with enterprise-grade PostgreSQL capabilities, positioning the company to compete more fiercely with rivals like Databricks.

The acquisition, expected to close in the coming weeks, will integrate Crunchy Data's 100 employees and technology into Snowflake, enabling the launch of Snowflake Postgres, a robust solution tailored for AI-driven applications.

Strategic $250 Million Investment in PostgreSQL

The $250 million acquisition reflects Snowflake's commitment to bolstering its database offerings for the burgeoning AI market, estimated at $350 billion. Crunchy Data, generating over $30 million in annualized revenue, brings expertise in secure, compliant PostgreSQL solutions trusted by enterprises and U.S. government agencies.

This deal follows Databricks' $1 billion acquisition of Neon, another PostgreSQL-based startup, highlighting an industry trend toward consolidating database technologies to power AI agents.

Snowflake's stock surged 2% after the announcement, with shares trading near a 52-week high and boasting a 51% return over the past year, signaling strong market confidence.

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Snowflake Postgres: A Game-Changer for AI Applications

Snowflake's acquisition of Crunchy Data will introduce Snowflake Postgres, an AI-ready, enterprise-grade PostgreSQL database designed to streamline development for mission-critical applications.

Unlike Snowflake's current Unistore, which combines transactional and analytical data but doesn't fully support PostgreSQL, Snowflake Postgres will provide better security options, like allowing customers to manage their own encryption keys, and built-in AI features such as vector support.

This integration will enable customers such as Blue Yonder and LandingAI to consolidate application stacks, accelerate development, and leverage PostgreSQL's flexibility for AI-driven workloads.

The solution will soon be available in private preview, promising seamless data streaming from transactional databases into Snowflake's AI Data Cloud.

Did You Know?
PostgreSQL, now the most popular database among developers according to the 2024 Stack Overflow Developer Survey, is used by nearly 49% of developers worldwide, surpassing MySQL due to its versatility in handling geospatial, time series, JSON, and vector database workloads.

Global Expansion of AI Data Cloud

Snowflake continues to expand its AI Data Cloud, now supporting over 40 cloud regions across AWS, Google Cloud Platform, and Microsoft Azure. Recent advancements include zonal repositories in select EU deployments to meet data residency requirements and new support for Microsoft Azure Mexico, reducing latency for Latin American customers like Oxxo.

This worldwide presence, along with Crunchy Data's strong knowledge of PostgreSQL for businesses, allows Snowflake to meet the increasing need for safe, compliant, and AI-ready database solutions, helping organizations create and use autonomous AI agents effectively.