Data analytics software provider Snowflake announced that it had reached an agreement to buy startup Crunchy Data, which specializes in cloud-hosted database software.
According to reports, the deal was valued at approximately $250 million.
This is the most recent in a line of tech behemoths purchasing data startups to strengthen their core database products that enable AI agents.
Salesforce strengthened its data management tools for AI agents last week by acquiring the decades-old Informatica.
To provide its customers with AI agents that could operate on top of structured data, Alation purchased Numbers Station a few weeks ago.
Additionally, ServiceNow purchased Data.World earlier this month with AI agents in mind.
Crunchy Data provides businesses with the resources they need to create Postgres, an object-relational database management system that is open source, well-liked by developers, and compatible with the SQL database language.
In addition to public sector entities like the US Department of Homeland Security, the 13-year-old company has clients like UPS, SAS, and Moneytree.
The acquisition will provide Snowflake with the foundational technology required to introduce Snowflake Postgres, an enterprise-class PostgreSQL database for its clients and partners, such as LandingAI and Blue Yonder.
In the era of AI agents, this agreement greatly strengthens Snowflake's database offerings.
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Snowflake's stock has increased by almost 36 percent this year. Stifel analysts compared the business to elite golfer Scottie Scheffler in May, stating that Snowflake had produced a "Scheffler Like Quarter & Guide," exceeding forecasts with a 25 percent increase in revenue from the previous year. Snowflake stock is rated as a buy by Stifel.