Snowflake said it will acquire Crunchy Data, which provides open source Postgres technology, and launch Snowflake Postgres for its AI Data Cloud.
Terms of the deal weren't disclosed, but the Wall Street Journal put the price tag at about $250 million. Databricks acquired Neon, a startup offering similar Postgres services for $1 billion.
Snowflake's acquisition of Crunchy Data kicks off the company's Snowflake Summit 2025. Databricks' conference is next week as the fierce rivals battle for data workloads used for AI applications.
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Crunchy Data will bring FedRAMP compliant products directly into Snowflake Postgres and Snowflake AI Data Cloud. PostgreSQL is a popular database for developers and that popularity has extended to agentic AI. Vivek Raghunathan, SVP of Engineering at Snowflake, said in a statement that Crunchy Data addresses "a real need for our customers to bring Postgres to the Snowflake AI Data Cloud."
In a blog post, Snowflake noted that Crunchy Data has built a strong following making Postgres enterprise friendly and mission critical with offerings that "span managed cloud services, Kubernetes deployments and on-premise solutions." Crunchy Data also recently launched a Postgres-native data warehouse with Iceberg support.
According to Snowflake, the company will make a strong commitment to Postgres as well as existing Crunchy Data customers. Snowflake said Snowflake Postgres, which will be available in private preview, is part of a strategy to support transactional data along with efforts like Unistore.
Constellation Research's take
Michael Ni, an analyst at Constellation Research, said:
"Databricks bought Neon. Snowflake countered with Crunchy. This isn’t about big data analytics anymore—it’s about becoming the AI-native data foundation unifying analytics, operational storage, and machine learning. Crunchy gives Snowflake an enterprise-grade PostgreSQL engine to support AI agents, co-pilot apps, and context-aware workflows that demand structured, compliant, and low-latency operational data storage. This is about turning insights into action without leaving the Snowflake platform."
Constellation Research analyst Holger Mueller said:
"If one had any doubt that PostgteSQL is the common denominator for accessing data outside of the large commercial databases, then this move by Snowflake removes those doubts. The acquisition further cements the position of PostgreSQL as the lingua franca for accessing data. It is good to see Snowflake and other vendors supporting the query language."
