How are energy investors positioned?
Investing.com -- Snowflake Inc (NYSE:SNOW) is in advanced talks with Alphabet Inc.’s Google (NASDAQ:GOOGL) to secure access to its Gemini AI models, according to an article by The Information, citing a Snowflake employee familiar with the matter. The negotiations reflect intensifying competition with rival Databricks Inc., which is reportedly pursuing similar discussions with AI startup Anthropic.
The data cloud company is addressing demands by financial and healthcare clients who have threatened to take their business to rival companies, such as Amazon.com Inc (NASDAQ:AMZN) and Microsoft Corporation (NASDAQ:MSFT), over concerns about business data privacy.
In response, Databricks has moved to counter Snowflake by initiating discussions with Anthropic, the makers of Claude, according to a manager involved in the discussions.
Not long ago, Snowflake made agreements with Microsoft Corp . and Anthropic to allow customers to utilize OpenAI and Anthropic models without exposing proprietary data. These prior agreements could drive tens of millions of dollars in annual revenue, according to the previously cited employee.
Before the Microsoft and Anthropic partnerships were fully realized, Snowflake partnered with less-recognized companies Reka and Mistral AI, as well as Meta Platforms Inc (NASDAQ:META). However, customer adoption of these companies’ models has significantly trailed that of OpenAI and Anthropic.
The new and potential partnerships arrive at a crucial time for Snowflake, whose annual revenue growth has fallen from 70% to 30% in the past two years.