Snowflake Deal Another Example of Anthropic Impact

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Snowflake Deal Another Example of Anthropic Impact

Anthropic is quickly proving to be the enterprise AI model provider that other vendors want to work with.

snowflake Develops a data platform that serves as both data warehouse and an analytics service provider.

Anthropic and Snowflake unveiled a partnership in November 2024.

extended participation

On December 3, the vendor revealed that it had expanded its partnership with Snowflake.

The multi-year partnership is valued at $200 million. Under the deal, Anthropic Cloud models will be available on the Snowflake platform to more than 12,600 global customers on Amazon Bedrock, Google Cloud Vertex AI, and Microsoft Azure.

Anthropic said the partnership also creates a go-to-market initiative focused on deploying AI agents in enterprises.

The partnership combines the reasoning capabilities of the cloud with Snowflake’s governed data environment. Business users can ask questions in natural language, helping the cloud determine the data they need and retrieve it across the business’s Snowflake environment, providing answers.

The partnership is another way Anthropic continues to establish key strategic relationships and integrate the cloud into every environment in which enterprises operate. For example, last month Anthropic unveils partnership with Microsoft In which the cloud provider will invest up to $5 billion in Anthropic, and Anthropic will buy $30 billion in Azure computing capacity over the next few years.

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Bradley Shimmin, an analyst at Futurum Group, said Anthropic is experiencing rapid and continued growth, especially in terms of partnerships with larger vendors, and the fact that many other vendors are using Anthropic’s Model Context Protocol standard shows how well-respected the vendor is. Anthropic models are known for their coding capabilities, and the company’s “Constitutional AI“The philosophy serves as the foundation of Anthropic’s stated focus on safe and explainable AI.

“They are considered not only the gold standard agentic code development But at the same time… they’ve done much more than competitors like OpenAI in spending time and money trying to make generic AI a responsible platform for building.” Shimin said. “Everyone who’s invested in it looks at it and says, ‘It stands to me that we should partner with this.’

Since Anthropic is a vendor that many want to work with, this expanded partnership with Snowflake will help the cloud-based data vendor.

“Snowflake should have an easier time selling their platform when the LLM (large language model (LLM)) part is supported by a top frontier AI vendor, who will work with them on integration and ensure they get early access to new models,” said Torsten Volk, an analyst at Omdia, a division of Informa TechTarget. “In return, Anthropic receives access to Snowflake’s large customer base as well as guaranteed revenue.”

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some risk

However, both vendors are taking some risks with the partnership.

“Any integration in terms of UI and tooling will make it difficult for Snowflake to move to another platform,” Volk said.

For Anthropic, there is risk associated with relying too heavily on large channel partners that are also competitors, Volk continued, referring to hyperscalers like Google, AWS and Microsoft. “At the same time, having a white label on its product deprives them of the positive marketing impact that, hopefully, comes from happy users.”

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