Snowflake snow Shares Soar on News of Partnership with Nvidia Corporation nvda

Snowflake (SNOW) Shares Soar on News of Partnership with NVIDIA Corporation (NVDA)

Shares of Snowflake Inc. (NYSE: SNOW) are trading higher by 3.35% in the pre-market trading session Tuesday. The surge comes as NVIDIA Corporation (NASDAQ: NVDA) joins forces with Snowflake. The partnership aims to empower various industries, including finance, healthcare, and retail, by enabling them to build their own AI models using their respective data.

This collaboration was officially announced at the Snowflake Summit 2023, which took place on Monday.

“In the old days, in small data computing, you moved data to the computer,” Nvidia Chief Executive Jensen Huang told Reuters. “But when you have giant amounts of data like Snowflake does, and the pile of proprietary data … data that’s so valuable to a company, then you move the compute to the data.”

In this case, Nvidia is taking a “fairly engineering intensive” move of embedding its NeMo platform for training and running generative AI models into the Snowflake Data Cloud, said Huang.

The partnership between Snowflake and Nvidia comes at a time when companies are actively seeking AI strategies to stay competitive. The rise of AI-driven technologies, including chatbot ChatGPT, has played a significant role in this trend. Nvidia, as a leading provider of AI hardware, has experienced tremendous growth and recently achieved the remarkable milestone of becoming a trillion-dollar company.

“This is significant. This is the last mile that we’ve been waiting for 40 years,” said Frank Slootman, Chairman and CEO of Snowflake. “Every industry is on this. They used to say software is eating the world. Well, now data is eating software,” he said about the importance of data today.

Slootman said companies that use Snowflake to manage their data will be able to now use their own data to train new AI models to gain an advantage in business without risking losing control of it.

No financial details of the partnership were disclosed, but Huang said Nvidia would benefit as more customers use computing for AI work.

On Monday, SNOW opened at $180.59, with a day’s range of $169.51 to $183.39, and a volume of 6,889,167 (6.88 million).

Snowflake Inc. (SNOW) closed at $169.84 on Monday, with a market cap of $53.74 billion. The next reporting date for the company is August 24th, 2023, with an EPS forecast of $0.10.