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Snowflake, the AI Data Cloud company, has announced its intent to acquire Crunchy Data, a leader in trusted open-source PostgreSQL technology. The acquisition, revealed at Snowflake Summit 2025, represents a pivotal move to integrate a fully enterprise-ready, developer-friendly Postgres experience into the Snowflake AI Data Cloud.
The move comes amid rising enterprise demand for production-grade PostgreSQL environments that offer the power and familiarity of open-source Postgres alongside robust security, compliance, and scalability—especially critical for AI-driven applications. Snowflake Postgres, built on Crunchy Data’s technology, will deliver exactly that.
Postgres for AI-Era Workloads
PostgreSQL is the most popular database among developers, with nearly half of developers using it for various workloads. However, deploying Postgres at enterprise scale, particularly for AI-powered applications, has often required trade-offs between flexibility, governance, and performance.
Crunchy Data has long been recognized for addressing these challenges with enterprise-class enhancements for Postgres, especially in highly regulated environments like federal agencies and Fortune 500 financial institutions. By bringing this expertise to the Snowflake platform, Snowflake Postgres will empower teams to build AI agents, transactional apps, and analytics solutions within a unified, governed data ecosystem.
"With this acquisition, Snowflake is doubling down on its commitment to help enterprises build AI-native applications without compromising on security or operational control,” said Vivek Raghunathan, SVP of Engineering at Snowflake. “Our customers want the best of both worlds, Postgres flexibility with enterprise trust—and we’re delivering exactly that.”
A Strategic Fit
The acquisition is not only about extending technical capabilities, it’s also about market opportunity. Snowflake sees a $350 billion addressable market at the intersection of transactional data and AI. By integrating Crunchy Data’s proven stack with Snowflake’s scalable infrastructure and AI ecosystem, the company aims to redefine how developers ship and scale modern applications.
Paul Laurence, Co-Founder of Crunchy Data, shared his excitement: “We founded Crunchy Data to bring secure, enterprise-grade Postgres to mission-critical environments. Partnering with Snowflake lets us scale that mission globally, giving customers confidence to run sensitive workloads on a modern AI data platform.”
Customers like Blue Yonder and LandingAI, already using PostgreSQL to power their operational apps, stand to benefit immediately. With Snowflake Postgres, they can accelerate deployment cycles, simplify AI integration, and ensure compliance, all without rewriting core data infrastructure.
Future Outlook
Snowflake has promised continued support for existing Crunchy Data customers and affirmed its long-term commitment to the open-source Postgres community. The newly announced Snowflake Postgres will enter private preview soon, with plans to expand integration into Snowflake's Unistore offering, which already blends transactional and analytical workloads.
This acquisition marks another milestone in Snowflake’s journey to provide a unified, AI-first data platform, one that doesn’t force enterprises to choose between innovation and trust.