Snowflake Sets Sights On $350 Billion Database Market With Crunchy Data Acquisition

Snowflake Inc. SNOW announced its intent to acquire Crunchy Data at Snowflake Summit 2025, bringing enterprise-grade PostgreSQL capabilities to its AI Data Cloud platform.

The acquisition addresses growing demand for secure, compliant database solutions in artificial intelligence applications.

What Happened: The deal will integrate Crunchy Data’s PostgreSQL technology into Snowflake Postgres, targeting the $350 billion database market opportunity. PostgreSQL remains the preferred choice among 49% of developers globally, making this acquisition strategically significant for Snowflake’s enterprise customers.

“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,” said Vivek Raghunathan, SVP of Engineering at Snowflake. The company positions this as part of its comprehensive data and AI platform strategy.

Crunchy Data brings specialized expertise in regulated environments, including FedRAMP compliance, essential for federal agencies and Fortune 500 financial institutions. “Our deep-rooted commitment to stringent security and comprehensive compliance has made us the trusted Postgres partner for organizations across regulated industries,” said Paul Laurence, Co-Founder at Crunchy Data.

Why It Matters: Snowflake recently reported strong first-quarter performance with revenue of $1.04 billion, up 26% year-over-year, beating analyst estimates of $1.01 billion. The company expects second-quarter product revenue of approximately $1.03-$1.04 billion, representing 25% growth.

The acquisition requires regulatory approval and customary closing conditions. Snowflake Postgres will be available in private preview following deal completion, with the company committing to support existing Crunchy Data customers and the broader PostgreSQL community.

Price Action: Snowflake stock closed at $210.17 on June 2, up 2.19%. After hours, it rose slightly to $210.20. Year to date, the stock is up 33.43%, according to data from Benzinga Pro.

SNOW shows weak growth and valuation metrics based on the Benzinga Edge Stock Ranking. However, the stock is experiencing positive momentum and a favorable short- to long-term price trend. Click here for the full stock breakdown.