On 2 June 2025, Snowflake announced at the Annual User ‘ s Congress Snowflake Summit 2025 that it planned to purchase Crunchy Data at approximately $250 million, an original company that provided enterprise-level PostgreSQL solutions.
Crunchy Data, a start-up company with approximately 100 employees and an annualized income of over $30 million, is known as the Crunchy Bridge Service for its safety, scalability and compliance. Following the announcement of the acquisition, the Snowflake stock price rose by about 2 per cent on Monday.
Snowflake hopes to enhance its capacity of the AI Data Cloud platform by integrating the Crunchy Data PostgreSQL technology, in particular by supporting the enterprise in the construction and deployment of AI agents and applications. PostgreSQL is one of the most popular databases at present, surpassing MySQL in the 2023 Stock Overflow Developer Survey as the preferred one, with a market share of 49 per cent.
Last month, Snowflake’s competitor, Databricks, announced plans to purchase Neon at about $1 billion, which is also based on PostgreSQL. According to another source, Snowflake also considered the acquisition of Neon last year, but eventually abandoned it. The source added that Crunchy Data earned over $30 million a year.
According to a statement issued by Snowflake, with the help of Crunchy Data, Snowflake was able to provide rapid early access to PostgreSQL database services. Christian Kleinerman, Executive Vice President of Snowflake Products, stated that the plan was aimed at simplifying the migration of data to Snowflake through new services so that clients could search for a large amount of data more easily.
Chief Executive Officer Snowflake, Sridhar Ramaswamy, told analysts at a telephone conference in May: “We are helping our clients to build a solid foundation to lead the era of agent intelligence. We will continue this momentum, and in a few weeks you will see results.”
The acquisition of Crunchy Data by Snowflake, which not only consolidates Snowflake ‘ s position in the database market, but may also lead to more efficient AI data solutions in a number of areas, including the game industry, is an important step in its strategy to deepen the AI data cloud.
