Be part of high executives in San Francisco on July 11-12, to listen to how leaders are integrating and optimizing AI investments for achievement. Learn More
The rumors of an acquisition turned out to be true. Snowflake introduced on Wednesday that it has agreed to accumulate Neeva, a search startup based by former Google executives, for an undisclosed quantity.
The deal, introduced throughout Snowflake’s quarterly earnings report, is anticipated to reinforce Snowflake’s means to supply clever and conversational search experiences to its prospects who use its platform to retailer, analyze and share information.
“Partaking with information via pure language is changing into widespread with developments in AI,” Snowflake chairman and CEO Frank Slootman mentioned throughout an organization earnings name.
“It will allow Snowflake customers and utility builders to construct wealthy search-enabled and conversational experiences,” he added, “and we imagine Neeva will enhance our alternative to permit non-technical customers to extract worth from their information, extra broadly.”
Neeva shuts down its shopper search
Based in 2019 by Sridhar Ramaswamy and Vivek Raghunathan, who each labored at Google’s promoting know-how division, Neeva raised $77.5 million in funding previous to being acquired by Snowflake. Traders included Greylock Companions, Sequoia Capital and Ram Shriram, a board member of Alphabet, Google’s dad or mum firm.
Neeva initially aimed to create a subscription-based search engine that might respect customers’ privateness and never present advertisements. In January, Ramaswamy wrote a visitor submit on VentureBeat that described how Neeva wished to problem Google’s monopoly on search and provide a greater various for shoppers. It’s an effort that finally didn’t work out.
Final week, Neeva announced it was shutting down its shopper search product and pivoting to deal with enterprise use instances of enormous language fashions (LLMs) and generative AI.
Neeva brings a conversational interface to Snowflake
Christian Kleinerman, Snowflake’s SVP of product, mentioned through the incomes name that the Neeva know-how will assist to carry a brand new kind of expertise to Snowflake customers.
Kleinerman mentioned that Snowflake is on a mission to increase its capabilities because it brings computation nearer to the info. Snowflake over time has advanced into an utility platform and a core use case for functions is for search enabled experiences. He famous that generative AI brings with it the notion of conversational experiences, which is the place Neeva know-how will slot in.
“The parents at Neeva are those which have the ability to assist us speed up efforts round Snowflake as a platform for search and conversational experiences,” mentioned Kleinerman. “However most significantly inside the safety perimeter of Snowflake, with the shoppers’ information in order that they’ll leverage all these new improvements and know-how, however with security, privateness and safety of the info.”
Snowflake’s view on AI
The acquisition of Neeva will match into Snowflake’s technique to assist organizations profit from LLMs and the ability of generative AI.
“Generative AI as a method of interplay has captured the creativeness of society at giant and it’ll carry disruption, productiveness in addition to obsolescence to duties and full industries alike,” Slootman mentioned.
Snowflake’s place is that generative AI requires information, which is what Snowflake has at all times been centered on. Slootman famous that many generative AI fashions have been educated with web or public information and his perception is that enterprises will profit from customizing AI with their very own information.
The acquisition of Neeva isn’t the primary AI vendor that Snowflake has acquired. In August 2022, Snowflake acquired Applica, a startup that was constructing know-how to assist organizations use AI to achieve insights from information.
“The Snowflake mission is to steadily demolish any and all limits to information customers’ workloads, functions,” mentioned Slootman. “New types of AI will subsequently proceed to see us evolve and develop our features and have units.”
Snowflake reported income for the quarter was $623.6 million, representing 48% year-over-year development. Nonetheless, the corporate gave product income steering for the second quarter that missed consensus estimates. Snowflake’s shares fell 12% in after-hours buying and selling following the earnings report.