Snowflake Signs $200M Deal with OpenAI for Enterprise AI Tools

Snowflake, a major data cloud company based in Bozeman, Montana, announced a $200 million multi-year partnership with OpenAI on Monday. The deal lets Snowflake's 12,600 customers use OpenAI's advanced AI models directly on their own data across Amazon Web Services, Google Cloud, and Microsoft Azure. This move aims to help businesses build AI agents that work securely with company information.

Background

Snowflake stores and analyzes data for thousands of companies around the world. It runs on public clouds and keeps data safe with strong rules on access and use. OpenAI builds powerful AI models like those behind ChatGPT, which many businesses now use for tasks from writing reports to analyzing sales.

Before this deal, Snowflake customers could connect to OpenAI through Microsoft Azure. That setup worked but went through a middle step. Now, the two companies have a direct link. Snowflake will buy access to OpenAI's top models and ChatGPT Enterprise over several years. This costs up to $200 million and ties to how much customers actually use the tools.

The partnership builds on smaller ties the companies already had. OpenAI uses Snowflake to track experiments, run analytics, and test ideas. Snowflake lets its own workers use ChatGPT Enterprise to speed up daily jobs like making decisions and team work.

Baris Gultekin, Snowflake's vice president of AI, explained the shift to a direct deal. He said past access was indirect, but now OpenAI models sit right inside Snowflake's system. This setup promises better speed, planning, and sales work together.

Key Details

Under the agreement, OpenAI models become a main part of Snowflake's Cortex AI tool. Customers can pull in models like GPT-5.2 to study their data. Snowflake Intelligence, an AI helper, lets any worker ask questions in plain English about company knowledge.

Companies such as Canva, which makes design software, and WHOOP, a fitness tracker firm, plan to use this. They will build AI apps and agents that understand their specific data for research and quick answers.

How the Tech Works

Snowflake and OpenAI teams will team up on new features. They plan to use OpenAI's Apps SDK, AgentKit, and APIs to link workflows. This lets businesses create AI agents that think over secure data and act in other apps.

Snowflake stresses safety. Its platform offers 99.99% uptime, backup plans, and recovery from failures. Tools like Horizon Catalog check AI use and keep it responsible. Users handle all data types—numbers, text, images, audio—with simple SQL commands.

“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.

Snowflake commits the $200 million based on expected use by customers. It covers access to frontier models and shows faith in demand from big firms.

What This Means

This deal points to bigger shifts in how companies adopt AI. Businesses want AI that works on their private data without risks. Snowflake's platform sits in the middle, holding data from sales records to customer files. Adding OpenAI models means firms can turn that data into smart agents without moving it elsewhere.

Agentic AI, where systems act on their own, grows fast in offices. This partnership speeds that up. Companies can now build agents that reason, plan, and connect tools—all on governed data. Early users like Canva and WHOOP show real-world tests ahead.

Snowflake joins others in big AI bets. It follows moves by firms linking with model makers for direct access. The multi-year term locks in supply and pushes joint sales. Expect more teams from both sides to work on custom fixes for shared clients.

For workers, tools like Snowflake Intelligence open AI to everyone. No need for data experts—plain talk gets results. This could boost speed in research, planning, and operations across industries from health to design.

Security stays key. With rules built in, companies avoid leaks or bad AI outputs. The deal sets a path for reliable AI at scale, matching what leaders in data and models offer.

OpenAI gains a steady spot in enterprise stacks. Its models reach more data pools, growing use cases. Snowflake locks in a top AI provider, giving customers choice without cloud lock-in.

As AI tools mature, partnerships like this bridge lab tech to daily business. Firms watch to see returns, like faster insights or better products. The focus on joint work suggests more tailored AI ahead for big players.