Snowflake has acquired Crunchy Data, a provider of enterprise PostgreSQL solutions, to integrate its capabilities into Snowflake's AI Data Cloud. This acquisition aims to enhance AI agent and application development and deployment. It positions Snowflake to compete more effectively in the AI infrastructure market against companies like Databricks. The deal reflects the growing importance of databases in the "agentic AI" market. Snowflake welcomed around 100 employees from Crunchy Data during its Snowflake Summit conference. The acquisition highlights a trend among major platforms to control the data layer for AI agents, as evidenced by recent investments and acquisitions in PostgreSQL-related companies. PostgreSQL is favored by developers, with nearly half using it, due to its suitability for rapid, automated provisioning required by AI agents. Crunchy Data's expertise addresses Snowflake's need for enterprise-grade operational database capabilities, particularly for real-time data storage and retrieval. The acquisition signals a shift towards AI agents managing databases autonomously, with predictions that they will handle 15% of work decisions by 2028. Snowflake's PostgreSQL offering will enter private preview soon, potentially simplifying data infrastructure if it delivers on its promises.