Snowflake in Talks to Acquire Analytics Startup Redpanda for ~$1 Bn

Snowflake is reportedly in talks to acquire Redpanda, a streaming data analytics startup to bolster its AI and data software capabilities by acquiring Redpanda. This move would enhance Snowflake's market competition against companies like Databricks and Confluent.

Headquartered in San Francisco, Redpanda is seeking around $1.5 billion for the acquisition, which is significantly higher than its annual revenue of around $20 million. The startup recently unveiled new AI integrations within its platform, including connectors for AI services like OpenAI, Vertex AI, and AWS Bedrock.

Founded in 2019, Redpanda has raised over $150 million in funding and was named to Forbes' "Next Billion Dollar Startup" list. The company offers a unified streaming data platform that is API-compatible with Apache Kafka.

The startup has attracted significant investment from several prominent venture capital firms that include Lightspeed Venture Partners, Google Ventures, and Haystack.

Redpanda's platform is designed to simplify the process of building real-time applications, making it a valuable tool for developers and enterprises alike.

If the deal goes through, it could significantly enhance Snowflake's capabilities in streaming data analytics and AI integration.

Snowflake has been quite active in acquisitions recently. Last year, the company announced three acquisitions. In November 2024, Snowflake acquired Datavolo, an open data integration platform that specializes in multimodal data pipelines for AI.

In May 2024, Snowflake acquired TruEra, data observability focused company that helps businesses monitor and manage their data pipelines effectively. In April 2024, Snowflake acquired Samooha, a data analytics company that provides advanced analytics solutions to help businesses derive insights from their data.

Snowflake has been expanding its AI and data capabilities, recently unveiling new AI integrations and connectors for services like OpenAI, Vertex AI, and AWS Bedrock.

Snowflake's stock has seen significant growth, with shares up 16% since the start of 2025. The company reported strong financial performance in its recent quarters, with a net revenue retention rate that didn't fall from the previous quarter.