The wave of big data company acquisitions keeps rolling, and this Monday, cloud data giant Snowflake announced plans to acquire Crunchy Data, a specialist in Postgres databases. While the official deal terms remain under wraps, sources estimate the purchase to be around $250 million.
Why This Matters
Crunchy Data, a 13-year-old company, is a trusted partner for developers working with PostgreSQL — a popular open-source, object-relational database system loved for its power and flexibility. Crunchy Data’s clients include heavyweights like UPS, SAS, and even government agencies such as the U.S. Department of Homeland Security.
For Snowflake, this acquisition is a strategic move to strengthen its database offerings, especially as AI-powered tools demand ever more sophisticated data infrastructure. It paves the way for Snowflake to launch Snowflake Postgres, an enterprise-grade PostgreSQL database built right into its platform. This will not only serve Snowflake’s own customers but also partners like Blue Yonder and LandingAI, fueling the AI data cloud ecosystem.
The Bigger Picture
This deal fits neatly into a larger trend where tech giants are snapping up startups to build stronger AI and data management stacks. Just recently, Salesforce bought Informatica, and ServiceNow acquired Data.World — all aiming to support AI agents that thrive on rich, well-managed data.
Snowflake’s Senior VP of Engineering, Vivek Raghunathan, summed it up perfectly:
“Our vision is to deliver the world’s most trusted and comprehensive data and AI platform to our customers. This acquisition of Crunchy Data takes us a big step closer to bringing Postgres into the Snowflake AI Data Cloud, addressing a huge $350 billion market opportunity.”
What’s Next?
Snowflake is already testing new PostgreSQL and MySQL connectors and acquired data management company Datavolo last year. The Crunchy Data acquisition strengthens this foundation, with the new technology expected to be available soon in private preview.
For those watching the AI and data space, this deal signals Snowflake’s growing muscle and commitment to building a versatile, enterprise-ready data cloud — designed for the demands of modern AI applications.
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