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Just days after Gartner’s stock plummeted 50% on warnings of slowing enterprise technology purchases, Snowflake delivered a resounding counter-narrative. Enterprises aren’t pulling back on data infrastructure. They’re doubling down.
The cloud data platform company reported 32% year-over-year growth in product revenue for its fiscal second quarter, accelerating from the previous quarter and adding 533 new customers. More tellingly for enterprise technology leaders, AI workloads now influence nearly 50% of new customer wins and power 25% of all deployed use cases across Snowflake’s platform.
“Our core business analytics continues to be strong. It’s the foundation of the company,” Snowflake CEO Sridhar Ramaswamy said during the earnings call. But he emphasized something more significant: “This data modernization journey is even more important than before because they realize that AI transformation of workflows of how they interact with their customers is critically dependent on getting their data in a place that’s AI-ready.”
The AI data infrastructure imperative
This dynamic reveals why enterprise data spending appears insulated from broader technology budget constraints. Unlike discretionary software purchases that can be deferred, data infrastructure has become mission-critical for AI initiatives.
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“Snowflake’s booming growth shows that companies continue to invest in data, analytics, and AI, improving efficiency as a way to meet profit goals in the face of economic headwinds,” Kevin Petrie, VP Research at BARC US, told VentureBeat. “We find that most companies prefer to work with existing vendors as they experiment with and deploy AI.”
Snowflake’s technical metrics underscore this urgency. The company launched 250 new capabilities to general availability in just six months. New features span four key areas: analytics, data engineering, AI and applications and collaboration. Over 6,100 accounts now use Snowflake’s AI capabilities weekly, representing rapid enterprise adoption of production AI workloads.
The company’s new Snowflake Intelligence …