In February 2026, Snowflake announced a US$200 million multi-year collaboration with OpenAI, introducing new AI capabilities like Cortex Code and Semantic View Autopilot. This partnership aims to transform Snowflake into an AI-native data foundation, enabling enterprises to execute governed AI workflows directly on their data assets. As Snowflake seeks to evolve from a cloud data warehouse to a central AI data backbone, the key growth catalyst lies in broader AI adoption. However, competition from AI-native and hyperscaler offerings poses risks to its differentiation. The integration of OpenAI models enhances its platform, attracting users like United Rentals and Wolfspeed. Analysts project significant revenue growth, with estimates reaching $8.7 billion by 2028, indicating the potential for a $282.90 fair value per share. Despite promising prospects, investors must remain cautious about evolving business models and competitive pressures in the AI sector.
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