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Snowflake and Databricks Take Their Rivalry to PostgreSQL
- The rivalry between Snowflake and Databricks has expanded beyond data lakes and warehouses, moving into the world of PostgreSQL.
- Snowflake acquired Crunchy Data for $250 million, while Databricks acquired Neon for $1 billion, intensifying their competition.
- Snowflake sees PostgreSQL as a top choice for developers due to its flexibility, cost efficiency, and AI features like pg vector.
- PostgreSQL's popularity has surged, surpassing MySQL, with features supporting geospatial, time series, JSON data, and vector embeddings.
- Snowflake Postgres extends compatibility for transactional applications, combining analytical and transactional workloads.
- Databricks' acquisition of Neon enhances its data intelligence platform, targeting databases that operate at agentic speed.
- Both Snowflake and Databricks aim to challenge hyperscalers by integrating managed PostgreSQL services with their AI stacks.
- Crunchy Data provides a PostgreSQL solution for Snowflake, allowing native app deployment without rewriting code.
- Neon, built on Postgres, aligns with Databricks' goal to disrupt the OLTP market and create a developer-friendly database platform.
- The acquisitions reflect a broader trend of consolidation in the data and AI infrastructure market as companies strive to build comprehensive AI-ready platforms.
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