Snowflake CEO Sridhar Ramaswamy Talks Stock Surge, $6 Billion Amazon Deal | Bloomberg Talks

Added: 2026-05-31

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[00:00:07]>> Frank, extraordinary. You've just added $20 billion to your market capitalization.

[00:00:12]How does that feel? Reflect for a minute.

[00:00:15]>> Well, we had a landmark quarter, Caroline.

[00:00:18]Strongest sequential dollar growth in company's history. Product revenue up to $1.334 billion, up 34%. Net revenue retention rate, a key metric we watch, up to 126%.

[00:00:30]But, I think the bigger news really was that this is the quarter where we clearly showed that AI is compounding Snowflake's advantage in data.

[00:00:39]We did this old-fashioned way, by creating amazing products like Snowflake Intelligence, which is our work agent, which doubled its adoption with respect to accounts, and a coding agent, which predicts score or Cocoa, which is used by more than 7,000 accounts.

[00:00:56]Yeah. And this is what gives us confidence in the business. That's why we raised the yearly guidance from 27% to 31%. Solid performance, but I think it's much more of what does this mean for our future that we're very happy with.

[00:01:09]>> With product revenues up 34% on the quarter just reported, and your stock is up 34, 35% right now. What exactly are your clients using you for? How is this actually building productivity?

[00:01:21]>> I mean, first of all, it's a whole lot easier to get things done with Snowflake. This is what Cocoa facilitates. People are literally getting job 5 to 10 times faster.

[00:01:36]Part of many companies, and getting them to be more productive, is hugely impactful. Our data team, for example, has been able to get through their multi-year backlog in a matter mini matter of a small number of quarters. Uh with products like Snowflake Intelligence, the end stuff of your work is at your fingertip.

[00:01:53]But, to give you a very concrete example, I was at a conference, didn't know who I who I was going to be meeting 30 odd CEOs in 2 minutes. I knew which of them were customers, how much should prioritize.

[00:02:05]of instant access that's really driving business results and we have great customers like Net- using these products to great effect.

[00:02:14]>> All right, I'm going to say we're having a slight audio issue. Sridhar, you're breaking up a little bit and hopefully we can work on that and fix it. But you know, I was thinking about this story all night long because you know, for so long the narrative has been AI may disrupt software and that has now changed with your results, with your Amazon deal to AI may accelerate software certainly in the case of Snowflake. What what changed this quarter that proves AI is now a revenue tailwind rather than just a product narrative?

[00:02:51]>> Well, first of all, we've been very very consistent.

[00:02:55]data platform, especially one that's based on a consumption Okay, for the value that they are getting is aided by I think what we also showed decisively this quarter is that ability to harness AI to get more value from Snowflake.

[00:03:15]People would build dashboards on top of Snowflake. Now with products like Snowflake all of the power of the data and so much more. The applications that you need is there right within that work agent. It is that combination of both the secular drive that AI is providing for data platforms plus our ability to harness AI ourselves and drive meaningful token consumption for example on >> We are still having that audio issue. So I'm going to ask this question and maybe your team can just tweet some things around a little bit quickly.

[00:03:50]Sridhar, but I'm really interested in the Amazon deal. 6 billion is a lot that you're committing in terms of infrastructure spend. What are you getting in return? How much more efficient is Graviton, is the Amazon chip, to your cost base?

[00:04:03]>> First of all, they're a long-time partner.

[00:04:06]They are the biggest cloud service provider that we run on top of. We run on top of Azure as well at GCP.

[00:04:16]The important thing with Amazon is how we go to our customers together.

[00:04:20]Both are extraordinary.

[00:04:23]value that we deliver for for our customers. And with deals like this, we get massive economies of scale that let us pass on some of these savings back to our customers. We are on stage huge change in how we price AI that makes AI a lot less expensive for our customers. It's aided by deals like this because of this ability to bulk purchase confidently, which as I said in turn we we get to our customers create amazing products on top that are very cost-efficient and so on.

[00:04:55]>> So, um what does Amazon get out of this deal with you? I mean, of course there's the >> [laughter] >> a massive headline of a $6 billion number, but how do they work with you and and collaborate?

[00:05:13]>> This deal makes us much more effective together. Amazon is interested in solving customer problems and having data platform is a key part of solving customer problems. Us being able to go to market together, we work at every level of the hierarchy. Matt and I are Garman the CEO and I are in constant touch, but so are our teams. It's that ability to collaborate at a deep level to solve complex problems, for example like better data migration, that makes pretty unique. It is truly a better together story.

[00:05:44]>> Better together is kind of the very thesis of why you're at Snowflake. Neeva was a company that you built, a generative AI company that Snowflake bought and you became head of AI and now CEO. And you've been making other purchases and I noticed Natoma is one of them. This is about managing data actions of AI agents. Any more M&A that we should expect, Sridhar?

[00:06:03]>> We will continue to be very open-minded about M&A. Natoma is a key acquisition because it widens the aperture of what is visible in Snowflake intelligence to all of the data that matters to you, Caroline. Everything that you have in your email or perhaps your documents, other applications that you use are now visible to the work agent, which means that you can get much better insight.

[00:06:26]You can also take actions directly from Snowflake intelligence.

[00:06:30]We will continue to be very active on this front.

[00:06:33]Key pieces of technology as well as amazing teams that are going to make us so much better like Neeva did.