Global cloud data platform Snowflake is set to acquire Crunchy Data, a leading provider of enterprise PostgreSQL solutions, as part of its strategic move to strengthen its database ecosystem in the age of AI-driven applications. Though financial terms of the deal remain undisclosed, sources familiar with the matter estimate the acquisition to be valued at approximately $250 million.
This marks the latest in a wave of acquisitions within the tech industry aimed at reinforcing foundational data infrastructure to support AI agent technologies. Recently, tech majors like Salesforce, ServiceNow, and Alation have also acquired data-focused startups to enhance their AI capabilities, underlining a global trend toward tighter integration of structured data systems and AI.
What Crunchy Data Brings to Snowflake
Founded over a decade ago, Crunchy Data is known for its robust tools and services built around PostgreSQL, an open-source, object-relational database system widely favored by developers for its performance, reliability, and support for SQL. Crunchy’s client list includes Fortune 500 companies like UPS, SAS, and Moneytree, as well as U.S. government agencies such as the Department of Homeland Security.
Through this acquisition, Snowflake will be able to offer a new enterprise-grade solution named Snowflake Postgres, enhancing its appeal to businesses looking to leverage trusted relational databases within its cloud ecosystem. The offering will initially be available in private preview, and will benefit both new and existing Snowflake customers and partners, including names like Blue Yonder and LandingAI.
Strategic Implications
In 2024, Snowflake introduced new connectors for PostgreSQL and MySQL, and this acquisition significantly builds on that initiative. It also follows Snowflake’s previous acquisition of Datavolo, another data management company, as the firm aggressively positions itself at the intersection of cloud, data, and AI.
Commenting on the development, Vivek Raghunathan, SVP of Engineering at Snowflake, stated:
“Our vision is to deliver the world’s most trusted and comprehensive data and AI platform to our customers. The acquisition of Crunchy Data is another key milestone toward that goal. We are tackling a $350 billion market opportunity and addressing the growing demand from enterprises to bring Postgres to the Snowflake AI Data Cloud.”
Why This Matters for Indian Enterprises
India’s rapidly growing digital economy is increasingly reliant on robust, scalable data solutions especially in sectors like finance, logistics, public services, and e-commerce. The integration of PostgreSQL into Snowflake’s AI Data Cloud can be a game-changer for Indian businesses looking to combine structured data handling with AI-powered insights at scale. With this move, Snowflake positions itself as a strong contender for enterprises in India exploring next-gen cloud data infrastructure with AI at its core.
