SNOW/AI/ML & Cortex

AI/ML & Cortex

$52/share(28% of SNOW)anchored
5xAI Consumption GrowthH2 vs H1 FY2025 AI compute credits. Fastest-growing workload.

Cortex AI leverages Snowflake's data gravity: enterprises don't need to move data out of Snowflake for AI processing. This addresses a genuine enterprise concern (data governance) but competes with deeply integrated cloud-native AI services.

The key question

Can Cortex AI genuinely compete with cloud-native AI services?

Scenario Model$52/share

Cortex AI Deep Dive

6 evidence
SQL-native AIKey FeatureLLM inference callable directly in SQL queries

Cortex AI's differentiator is SQL-native AI on governed data. The simplicity of calling LLMs in SQL queries lowers the barrier for data analysts to use AI. The limitation is narrower model selection and less flexibility vs cloud-native services.

Open questions

?Will AI workloads drive enough incremental consumption to offset NDR compression?
?Is the 'AI on your data' positioning defensible long-term?