Analysts Bullish on Snowflake's $200M OpenAI Partnership and AI Strategy

Wall Street analysts are doubling down on their bullish outlook for Snowflake Inc. (NYSE: SNOW) following the company's strategic $200 million partnership with OpenAI announced February 2. The deal positions Snowflake as a central data layer for enterprise AI adoption and builds on the company's growing AI revenue momentum.

Strategic Partnership Details

Under the collaboration agreement, OpenAI's models will be integrated into Snowflake's Cortex AI offerings, complemented by a joint go-to-market strategy. The partnership enables joint enterprise customers to deploy context-aware AI applications directly on Snowflake's data platform, leveraging existing enterprise knowledge alongside OpenAI's advanced language models.

RBC Capital maintained their Outperform rating with a $300 price target, calling the partnership "positive" for Snowflake's competitive positioning. The firm noted this builds on Snowflake's reported $100 million in AI-related annual recurring revenue and follows a similar collaboration with Anthropic.

Analyst Confidence Grows

Raymond James also reaffirmed an Outperform rating, emphasizing that large language model providers will need strategic enterprise partnerships to expand their footprint beyond consumer applications. The firm believes such partnerships are essential for AI companies targeting enterprise markets.

According to Snowflake CEO Sridhar Ramaswamy:

"Customers can now harness all their enterprise knowledge in Snowflake together with the world-class intelligence of OpenAI models, enabling them to build AI agents that are powerful, responsible, and trustworthy."

Market Position and Growth

Snowflake's cloud-based data platform supports diverse workloads including data engineering, analytics, machine learning, and secure collaboration across multiple public clouds. The company has established itself among the best machine learning stocks to buy according to analysts, with both RBC Capital and Raymond James maintaining bullish outlooks.

Key Takeaways:

• Strategic Positioning: The OpenAI partnership strengthens Snowflake's role as the central data infrastructure for enterprise AI applications
• Revenue Growth: Building on existing $100M AI-related ARR with additional partnership momentum
• Market Validation: Multiple analyst firms see enterprise AI partnerships as crucial for sustained growth in the sector

The partnership represents Snowflake's continued evolution from pure data warehousing to comprehensive AI platform provider, positioning the company to capture value from the enterprise AI transformation.

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