Snowflake, a prominent player in the AI Data Cloud sector, has unveiled its plans to acquire Crunchy Data, a recognized leader in trusted open-source PostgreSQL technology. This announcement, made during the Snowflake Summit 2025, signifies a strategic initiative to incorporate a fully enterprise-ready and developer-friendly Postgres experience into the Snowflake AI Data Cloud.
The acquisition is timely, responding to the increasing demand from enterprises for production-grade PostgreSQL environments that combine the strengths of open-source Postgres with essential features such as security, compliance, and scalability—elements that are particularly vital for AI-driven applications. The forthcoming Snowflake Postgres, leveraging Crunchy Data’s technology, aims to fulfill this need.
Postgres for AI-Era Workloads
PostgreSQL has emerged as the database of choice for nearly half of developers, who utilize it across a variety of workloads. However, deploying Postgres at an enterprise scale, especially for AI-powered applications, has traditionally involved navigating trade-offs between flexibility, governance, and performance.
Crunchy Data has established a reputation for overcoming these challenges by providing enterprise-class enhancements for Postgres, particularly in highly regulated sectors such as federal agencies and Fortune 500 financial institutions. By integrating this expertise into the Snowflake platform, Snowflake Postgres will enable teams to develop AI agents, transactional applications, and analytics solutions within a cohesive and 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,” remarked Vivek Raghunathan, SVP of Engineering at Snowflake. “Our customers want the best of both worlds: Postgres flexibility combined with enterprise trust—and we’re delivering exactly that.”
A Strategic Fit
This acquisition extends beyond merely enhancing technical capabilities; it also opens new market opportunities. Snowflake identifies a 0 billion addressable market at the intersection of transactional data and AI. By merging Crunchy Data’s established stack with Snowflake’s scalable infrastructure and AI ecosystem, the company aspires to transform how developers deploy and scale modern applications.
Paul Laurence, Co-Founder of Crunchy Data, expressed enthusiasm about the partnership: “We founded Crunchy Data to bring secure, enterprise-grade Postgres to mission-critical environments. Partnering with Snowflake allows us to scale that mission globally, instilling confidence in customers to run sensitive workloads on a modern AI data platform.”
Organizations like Blue Yonder and LandingAI, which currently leverage PostgreSQL for their operational applications, are poised to reap immediate benefits. With Snowflake Postgres, they can expedite deployment cycles, streamline AI integration, and maintain compliance—all without the need to overhaul their core data infrastructure.
Future Outlook
Snowflake has committed to providing ongoing support for existing Crunchy Data customers and has reiterated its long-term dedication to the open-source Postgres community. The newly introduced Snowflake Postgres is set to enter private preview soon, with plans for deeper integration into Snowflake’s Unistore offering, which seamlessly combines transactional and analytical workloads.
This acquisition represents a significant milestone in Snowflake’s mission to deliver a unified, AI-first data platform, one that empowers enterprises to innovate without sacrificing trust.
