Image Source: Snowflake
Snowflake is acquiring Crunchy Data, a provider of Enterprise-grade open source Postgres technology and products. Deal terms were not disclosed but CNBC and TechCrunch report a transaction value of roughly $250 million, quoting undisclosed people familiar with the matter.
Crunchy Data is a Charleston, S.C. based company that specializes in Enterprise-grade PostgreSQL databases. It gives Snowflake a crucial foothold in the fast-growing market for AI-ready structured data infrastructure. The deal was announced by Snowflake at its annual summit in San Francisco today.
Founded in 2012, Crunchy Data is one of the leading providers of hardened, cloud-hosted PostgreSQL databases—a category that has surged in popularity among developers and AI startups. PostgreSQL surpassed MySQL as the most popular database among developers in Stack Overflow’s 2023 survey and has become foundational for companies looking to build scalable applications and autonomous agents.
The deal comes amid a wave of strategic consolidation across the data landscape, driven by a growing need to integrate structured data stores with AI orchestration and agentic automation platforms. Just weeks earlier, Snowflake rival Databricks agreed to acquire Neon, a New York-based cloud-native PostgreSQL startup, in a deal valued at approximately $1 billion. Like Crunchy Data, Neon’s architecture is optimized for developer workflows and has seen increasing adoption by AI agents, which now account for the majority of new databases created on its platform.
Snowflake had reportedly explored a deal for Neon but ultimately walked away, according to reporting by CNBC.
The Crunchy Data deal marks Snowflake’s second major acquisition aimed at deepening its database capabilities in the past year, following its purchase of Datavolo. Snowflake said it plans to roll out early access to a managed PostgreSQL service, called Snowflake Postgres, later this year. Clients such as UPS, Kyndryl, and the U.S. Department of Homeland Security already rely on Crunchy’s secure Postgres deployments.
The broader data infrastructure space has seen a flurry of deal activity in recent months. Salesforce announced its intent to acquire Informatica to strengthen its data pipeline tooling, while ServiceNow snapped up Data.World and Alation bought Numbers Station AI —both aiming to power AI agent development atop enterprise datasets.
ClickHouse, another fast-scaling database startup, raised $350 million at a $6.35 billion valuation last week in a round led by Khosla Ventures , underscoring investor enthusiasm for fast-query analytics engines optimized for AI workloads. ClickHouse CEO Aaron Katz noted the company’s software is increasingly being used to support AI-driven applications at customers like Tesla and Anthropic.
Snowflake is betting that integrating enterprise-grade Postgres directly into its cloud offering will further solidify its position as a one-stop platform for AI development. It is racing hard to catch up with Databricks, which continues to use M&A to fortify its strong momentum in and around Enterprise AI and Agentic AI use cases.
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