Snowflake Shares Slide as AI Ambitions Face Market Scrutiny

Cloud data specialist Snowflake is making a substantial strategic bet on artificial intelligence, underscored by a major new alliance with OpenAI. Despite this forward-looking move, the company's stock faced significant selling pressure, highlighting investor concerns that extend beyond technological announcements.

Investors delivered a stark verdict following Snowflake's recent announcements. The equity dropped 10.91% in a single session, with its price settling at 144.26 euros. This decline extends a broader negative trend, erasing nearly a quarter of the stock's value over the preceding 30 days. The share price now sits considerably lower than its 52-week high, which exceeded 240 euros.

Market participants appear focused on valuation and the timeline for monetizing new AI services, even as the company unveils advanced technological partnerships. The upcoming quarterly earnings report is viewed as a critical juncture for management to demonstrate that its heavy investments are translating into increased customer spending and measurable growth.

A Strategic $200 Million AI Partnership

Central to Snowflake's AI push is a newly revealed, multi-year collaboration with OpenAI, involving an investment of approximately $200 million. The core objective is to integrate cutting-edge models, including the anticipated GPT-5.2, directly into the Snowflake data cloud environment.

Should investors sell immediately? Or is it worth buying Snowflake?

This deep integration, primarily through the "Cortex AI" and "Snowflake Intelligence" services, is designed to allow Snowflake's 12,600+ enterprise clients to build and deploy custom AI agents. A key selling point is that these agents can be developed using a company's proprietary data without ever needing to move that sensitive information outside of Snowflake's secure platform. In a symbolic move, Snowflake itself plans to adopt ChatGPT Enterprise for its internal operations.

Platform Enhancements Aimed at Developer Efficiency

During its "Build 2026" event in London, the company introduced further innovations. "Cortex Code," a native AI assistant, was unveiled with the goal of automating software development and data analysis workflows within the Snowflake ecosystem. Unlike generic coding tools, this agent is specifically trained to understand and adhere to the unique data structures and security protocols of individual customer accounts.

On the infrastructure front, Snowflake is promoting further consolidation. The launch of "Snowflake Postgres" enables businesses to manage both transactional and analytical data on a single, unified platform. The company states this will reduce operational complexity and significantly accelerate the deployment of AI projects. These efforts are complemented by tighter integration with Microsoft's OneLake and new backup solutions intended to bolster data resilience.