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Snowflake is acquiring Crunchy Data to bake secure, fully managed PostgreSQL into its Data Cloud. The move erases the OLTP/OLAP divide, challenges hyperscalers, and accelerates agentic AI development. Tools like Galaxy stand to benefit by giving developers a neutral, collaborative SQL layer.
Snowflake’s purchase of Crunchy Data brings fully managed, compliance-ready PostgreSQL into the Data Cloud, positioning Snowflake as a one-stop shop for analytic, transactional, and AI workloads.
Snowflake’s surprise purchase of Crunchy Data signals a decisive push into operational databases and agentic AI.
By embedding a fully managed, security-hardened PostgreSQL inside its Data Cloud, Snowflake wants to own both analytical and transactional workloads.
Announced at Snowflake Summit 2025, the company will acquire Crunchy Data, the leading FedRAMP-certified Postgres provider.
Snowflake Postgres will expose Crunchy’s distribution as a native service, promising simpler AI-agent development, tighter governance, and faster time to production.
The deal collapses the historic wall between OLTP and OLAP, challenging AWS Aurora, Google AlloyDB, and Microsoft’s cloud databases.
PostgreSQL’s 49% developer adoption now meets Snowflake’s pay-as-you-go model, creating a one-stop shop that could pull workloads away from hyperscalers.
For AI players, a governed Postgres fabric next to vector search and model serving removes painful data movement and reconciliation.
The acquisition also intensifies the open-source monetization debate: Snowflake will commercialize Crunchy while still courting the Postgres community.
Galaxy users write and share Postgres SQL every day; Snowflake Postgres could become an attractive execution target for those queries.
Because Galaxy’s context-aware copilot understands both schema and workload, it can help teams migrate or parallel-run queries across legacy Postgres and Snowflake Postgres.
Galaxy’s collaboration layer would let distributed teams validate and optimize new Snowflake Postgres workloads without pasting SQL in chat threads.
Snowflake is no longer just an analytical warehouse; it is turning into a full spectrum data platform.
Enterprises gain a FedRAMP-ready Postgres with Snowflake’s governance, but must prepare for potential vendor lock-in and egress costs.
Developers get unified billing, security, and AI tooling, speeding the path from prototype to production agents.
Expect Snowflake to merge Postgres tables, Snowpark DataFrames, and Iceberg into a single metadata layer, blurring workload boundaries.
Hyperscalers will counter with stronger cross-database federation and managed open-source services to retain Postgres workloads.
SQL tooling vendors like Galaxy can ride the wave by offering neutral productivity layers that abstract underlying cloud databases.
Snowflake’s Crunchy acquisition is less about buying a database and more about owning the developer workflow for AI-powered applications.
If executed well, the move will reshape the competitive landscape, forcing every data vendor—including rising SQL platforms like Galaxy—to rethink their posture in a Postgres-centric, AI-native world.
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