Earlier this month, Snowflake announced a $200 million partnership with OpenAI, integrating OpenAI’s models, including GPT-5.2, into its Cortex AI platform and Snowflake Intelligence. This collaboration aims to offer Snowflake’s 12,600 clients the ability to build AI agents that utilize proprietary data without transferring it to external platforms. The partnership enhances Snowflake’s competitive position in the AI data cloud market, signaling a shift in the investment narrative. While promising, the investment carries risks, especially given Snowflake’s share price, which remains 18% above its fair value. Analysts provide a wide range of fair value estimates for Snowflake’s stock, highlighting the potential for significant upside if AI tools are monetized effectively. However, concerns linger over how advanced AI will impact traditional software economics. Investors are encouraged to consider alternative opportunities and actively engage in building their own investment narratives, as these insights can lead to extraordinary returns.
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