Snowflake will acquire $250 million in crunchy data with AI push for $250 million.

Snowflake has obtained Crunchy Data, a cloud database launch specializing in PostgreSQL. This is a transaction worth around $250 million, confirmed in a statement Monday.

With this acquisition, Snowflake has recently acquired neon with a similar strategic move as it seeks to expand its database capabilities, deepen its data stack and maintain its pace with rivals like the Databricks.

The acquisition comes just four months after reports that Snowflake is being debated to win data analytics startup Redpanda, part of a broader push to expand its AI-focused product lineup.

Crispy data is more than just another PostgreSQL shop. The startup also offers a cloud-hosted version of the popular open source database, enhanced with improved security and performance. PostgreSQL has overtaken MySQL as the most popular database among developers in Stack Overflow’s 2023 survey.

Databricks reportedly spends around $1 billion on Neon, but Snowflake’s deals are getting rather small. However, the numbers for crunchy data are not insignificant. One person familiar with the company told CNBC that its annual revenues are attracting over $30 million. Another said Snowflake considered winning the neon event last year but ended up passing, CNBC reported.

Under this agreement, Snowflake plans to deploy early access to the PostgreSQL database service. the goal? It makes it easier for customers to bring data to the Snowflake platform and execute more complex queries. “We help our customers build a strong foundation that leads in the age of agent AI,” CEO Sridhar Ramaswamy said in a recent revenue call.

Snowflake has had a good year so far. Its stock is up 36%, with Stifel analysts bullishing, comparing it to professional golfer Scotty Scheffler after earning 25% year-on-year in May. Stifel has a stock purchase valuation.

Founded in 2012, Krikari Data is headquartered in Charleston, South Carolina and employs around 100 people. Its supporters include Allsop Louie Partners, Gray Ventures, Harbert Growth Partners, and Heavybit. Notable customers include UPS, Thales, Kyndryl, and the US Department of Homeland Security.

With both Snowflake and Databricks making big PostgreSQL bets, it’s clear they’re racing to become the go-to platform for companies building AI tools that run on large, flexible datasets. This deal gives Snowflake another part of that puzzle.