Snowflake Might Buy AI Startup for $1 Billion

The cloud computing company reportedly is in discussions with Reka AI.

Christopher Hutton, Technology Reporter

May 17, 2024

1 Min Read
AI startup acquisition

The cloud computing company Snowflake is reportedly in conversation with Reka AI to acquire the company.

Snowflake is considering purchasing the startup for $1 billion, according to Bloomberg. This purchase would help the expand the company's effort to add generative AI to its products. The company is best known for making tools that can help organize and analyze data in the cloud and appears to believe generative AI would help it to accelerate its business efforts.

The potential deal remains in the state of a discussion, according to those familiar with the private transactions.

Reka, in contrast, is best known for making large language models (LLMs) and was founded in 2022 by former researchers from Google and Meta.

Snowflake and Reka did not respond to Channel Futures' request for comment.

Snowflake Slowly Growing as a Technology Company

Snowflake appointed Google veteran Sridhar Ramaswamy to take over the company in February. He joined the company in May 2023 in connection with Snowflake's acquisition of Neeva. The company's stocks dropped in 2024 by 17%, and its revenue growth has slowed down steadily since then.

Generative AI startups have continued to garner increased attention from larger companies like Microsoft and Google. Apple, for example, has acquired more than 20 AI-focused startups since 2017 in hopes of building its own.

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About the Author(s)

Christopher Hutton

Technology Reporter, Channel Futures

Christopher Hutton is a technology reporter at Channel Futures. He previously worked at the Washington Examiner, where he covered tech policy on the Hill. He currently covers MSPs and developing technologies. He has a Master's degree in sociology from Ball State University.

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