Snowflake Signs $200M Deal with OpenAI for Enterprise AI

Snowflake, a major data cloud company based in Bozeman, Montana, announced a $200 million multi-year partnership with OpenAI on Monday. The agreement lets Snowflake's more than 12,600 customers use OpenAI's advanced AI models right inside Snowflake's platform. This move aims to help big companies build and run AI agents that work with their private data while keeping everything secure and under control.

Background

Snowflake provides a cloud platform where businesses store and analyze large amounts of data. Companies from all over the world use it to manage information across services like Amazon Web Services, Microsoft Azure, and Google Cloud. OpenAI builds powerful AI models, such as those behind ChatGPT, that can understand language, generate text, and now handle more complex tasks like reasoning over data.

Before this deal, Snowflake customers could access OpenAI models mainly through Azure. That setup worked but had limits because it went through a third party. Now, with a direct partnership, OpenAI's tools integrate straight into Snowflake's Cortex AI and Snowflake Intelligence features. These let users ask questions in plain English about their data and get answers or actions from AI agents.

Snowflake already uses OpenAI's ChatGPT Enterprise inside the company to help employees work faster. OpenAI, in turn, uses Snowflake to track experiments and run tests on its AI development. This new agreement builds on those ties and takes them further with joint work on products and sales efforts.

The partnership comes as more businesses look to use AI on their own data without sending it outside their trusted systems. Snowflake says its platform offers strong security, a 99.99% uptime promise, and tools to govern AI use, which addresses worries about data privacy and reliability.

Key Details

The $200 million commitment covers Snowflake buying access to OpenAI's top models, including the new GPT-5.2, over several years. This is not just a promise—it's tied to real use by Snowflake's customers. OpenAI models will be available natively in Cortex AI across all three big cloud providers, making it easier for companies to pick their preferred setup.

Early Users and Features

Companies like Canva, the design software firm, and WHOOP, which makes fitness wearables, plan to use this right away. They will build AI apps and agents that pull insights from their data using OpenAI's smarts. For example, these agents can reason over business data, connect to other tools, and automate tasks like analysis or decision-making.

Snowflake and OpenAI teams will work together on new tools. This includes using OpenAI's Apps SDK, AgentKit, and APIs to create features that fit enterprise needs. Users can analyze all kinds of data—numbers, text, images, even audio—using simple SQL commands they already know.

Snowflake's Horizon Catalog adds controls for responsible AI, ensuring outputs stay safe and compliant with rules. The setup keeps data in place, so companies avoid risks of moving sensitive info around.

“By bringing OpenAI models to enterprise data, Snowflake enables organizations to build and deploy AI on top of their most valuable asset using the secure, governed platform they already trust,” said Sridhar Ramaswamy, CEO of Snowflake.

“Snowflake is a trusted platform that sits at the center of how enterprises manage and activate their most critical data,” said Fidji Simo, CEO of Applications at OpenAI.

Baris Gultekin, Snowflake's vice president of AI, explained the shift from past access: this direct link means better performance, shared roadmaps, and closer teamwork on sales and development.

What This Means

This deal shows big data companies racing to offer AI right where customers keep their information. Instead of AI sitting far away, it runs close to the data, cutting delays and risks. For Snowflake's customers, it means quicker ways to turn data into useful AI actions, like agents that handle customer service, predict trends, or optimize operations.

Businesses gain from multimodal AI, which processes different data types together for deeper insights. Security stays top priority with built-in recovery plans and governance, helping firms meet strict rules in finance, health care, and other fields.

The partnership could speed up AI use in large companies. Agentic AI—systems that act on their own based on data—might become standard faster. Snowflake's move across all clouds gives flexibility, avoiding lock-in to one provider.

Other data platforms may follow with similar direct AI ties. This could lead to more custom AI builds tailored to business needs. Employees at these firms might see productivity boosts as AI handles routine tasks, freeing time for higher-level work.

For the wider market, it points to AI moving from experiments to everyday tools in enterprises. Companies like Canva and WHOOP testing it early suggest real-world gains in apps that understand context from full datasets. As teams co-build features, expect ongoing updates that make AI more reliable and powerful for business use.

Snowflake's stock rose after the news, reflecting investor views on its AI push. The agreement locks in supply of advanced models, helping Snowflake stay ahead in a crowded field of data and AI players.