Data Analytics

Snowflake to buy database startup Crunchy Data for $250M

Ken Metral

02 Jun 2025 — 2 min read

Credit: Snowflake, Inc./Crunchy Data Solutions, Inc.

The consolidation wave in the data infrastructure space rolled on this week as Snowflake announced its acquisition of Crunchy Data, a long-standing PostgreSQL specialist. While terms of the deal were not disclosed, a source familiar with the matter estimated the acquisition to be worth around $250 million.

This marks Snowflake’s latest move to strengthen its position as a core infrastructure provider for the AI era, following a broader trend in which major tech players are scooping up data-focused companies to enable the next generation of intelligent software.

Betting Big on Postgres for AI

Founded in 2011, Crunchy Data has built a reputation as a key enabler of PostgreSQL, the open-source, object-relational database system favored by developers and enterprises alike. The company’s clients include both Fortune 500 firms like UPS and SAS, and key government institutions such as the U.S. Department of Homeland Security.

The acquisition will allow Snowflake to roll out “Snowflake Postgres,” an enterprise-grade PostgreSQL service built on Crunchy’s technology. According to Snowflake, the new offering will be available soon in private preview, expanding its appeal to organizations seeking to power AI agents and applications on structured relational data.

AI Agents Drive Deal Momentum

The Crunchy Data acquisition is part of a broader strategy by Snowflake to position itself as the go-to cloud platform for data-intensive AI workloads. “Our vision is to deliver the world’s most trusted and comprehensive data and AI platform to our customers,” said Vivek Raghunathan, SVP of Engineering at Snowflake. “This acquisition brings Postgres into the heart of the Snowflake AI Data Cloud, meeting a critical need for enterprise customers.”

Snowflake is far from alone. In recent weeks:

Salesforce acquired Informatica to enhance its data tooling for AI agents.
Alation purchased Numbers Station to integrate AI over structured data.
ServiceNow bought Data.World to bring knowledge graph capabilities to AI models.

These moves point to a broader industry understanding: the future of AI depends on high-quality, queryable, real-time data—and companies are racing to own the infrastructure that makes that possible.

Expanding a Growing Portfolio

This is not Snowflake’s first step into database expansion. In 2024, the company launched connectors for PostgreSQL and MySQL, enabling easier interoperability across popular relational databases. It also acquired Datavolo last year, a data management startup aimed at streamlining enterprise data pipelines.

Now, with Crunchy Data under its umbrella, Snowflake is not just offering compatibility with Postgres — it’s building its own native enterprise-grade Postgres experience, optimized for AI workloads and integrated deeply into its broader data cloud ecosystem.

As competition heats up in the $350 billion data and AI infrastructure market, Snowflake’s strategy is clear: own the database layer that fuels the AI age.

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