As generative AI reshapes how businesses use information, data platforms are under pressure to evolve beyond storage. Snowflake has now taken a decisive step in that direction by announcing a $200 million, multi-year partnership with OpenAI, aimed at embedding advanced AI models directly into enterprise data systems.
The partnership, announced on February 2, 2026, integrates OpenAI’s latest models, including GPT-5.2, into Snowflake’s Cortex AI layer. The move signals a shift in enterprise AI strategy, where intelligence is brought closer to data rather than moving data out to external AI tools.
Snowflake built its business by separating cloud storage from compute, allowing companies to store massive volumes of structured corporate data in the cloud. That model powered its record-breaking software IPO in 2020. However, with competitors like Databricks excelling in AI-driven data science and hyperscalers such as Amazon, Microsoft, and Google controlling core infrastructure, Snowflake faces rising pressure. A major concern has been “data egress,” where customers move data out of Snowflake to run AI workloads elsewhere.
By embedding OpenAI models directly into its platform, Snowflake aims to reverse that flow. Instead of exporting data to AI systems, enterprises can now run AI where their data already lives. This allows Snowflake to position itself as an enterprise operating system rather than just a data warehouse.
The company plans to enable AI Agents that can perform multi-step tasks, such as analysing sales trends or drafting business communications. These AI-driven workloads increase compute usage on Snowflake’s platform, directly boosting its usage-based revenue model.
For OpenAI, the partnership offers direct access to enterprise-grade data. Snowflake serves around 12,600 customers, including large global companies, with well-governed and structured datasets. This removes a major barrier for enterprise AI adoption, the lack of clean and accessible corporate data.
For businesses, the appeal lies in reduced “data gravity” friction. Sensitive data remains within Snowflake’s governed environment, addressing concerns around security, compliance, and latency. The partnership also promises “Snowflake Intelligence,” an agentic layer that allows employees to query organisational data in natural language.
However, the deal also raises concerns. Snowflake is already known for premium pricing, and adding AI-driven compute could increase costs sharply. There is also the risk of deeper vendor lock-in, making it harder for enterprises to switch platforms or models later.
Despite these challenges, the partnership reflects a broader industry shift. Snowflake and OpenAI are betting that the future of enterprise software lies in tightly integrated data and intelligence systems, even if that comes at the cost of flexibility.
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