The acquisition will bring AI-ready “Snowflake Postgres” to the AI Data Cloud, providing the “uncompromising governance, security and operational standards essential for building and running mission-critical AI applications.”

Artificial intelligence (AI) data cloud company Snowflake, Inc. (SNOW) announced Monday that it intends to acquire database startup Crunchy Data to provide a comprehensive data and AI platform to its customers.

The announcement was made at “Snowflake Summit 2025,” the company’s annual user conference.

According to a CNBC report, the deal is valued at about $250 million.

Crunchy Data, is a provider of open source Postgres technology and products, with the PostgreSQL being a popular enterprise-grade database among developers. 

The acquisition will bring AI-ready “Snowflake Postgres”  to the AI Data Cloud, providing “uncompromising governance, security and operational standards essential for building and running mission-critical AI applications.”

Vivek Raghunathan, SVP of Engineering at Snowflake, 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.”

The company expects to make Snowflake Postgres available in private preview soon. 

Crunchy Data co-founder Paul Laurence said, “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.”

Last month, peer Databricks, a privately held company, announced a nearly $1 billion deal to buy Neon, whose software is also based on PostgreSQL. 

On Stocktwits, retail sentiment toward Snowflake stock was ‘bearish’ (44/100) by late Monday, and the message volume was ‘low.’

SNOW sentiment and message volume as od 3:11 a.m. ET, July 3 | source: Stocktwits

One watcher pointed to the relative strength index (RSI) for Snowflake stock, which is in overbought territory, and recommended shorting the stock.

However, a user who commented on the Crunchy Data deal said they were bullish on the stock.

Snowflake stock is up 36% so far this year, and the rally’s momentum intensified after the company’s quarterly results were released in late May.

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