Snowflake gains on AI-focused partnership with Nvidia

Shares in Snowflake (NYSE:) are trading more than 3% higher in premarket Tuesday after the company announced a new partnership with chip giant Nvidia (NASDAQ:).

Two companies will work together to enable Snowflake’s customers to create customized generative AI applications using their own proprietary data.

“Snowflake’s partnership with NVIDIA will bring high performance machine learning and artificial intelligence to our vast volumes of proprietary and structured enterprise data, a new frontier to bringing unprecedented insights, predictions and prescriptions to the global world of business,” said Frank Slootman, chairman and CEO, Snowflake.

Businesses of all sizes using Snowflake’s platform will be able to make custom LLMs for advanced generative AI services, including chatbots, search, and summarization.

“Data is essential to creating generative AI applications that understand the complex operations and unique voice of every company,” said Jensen Huang, founder and CEO, Nvidia. “Together, NVIDIA and Snowflake will create an AI factory that helps enterprises turn their own valuable data into custom generative AI models to power groundbreaking new applications — right from the cloud platform that they use to run their businesses.”

The partnership is unveiled during the company’s Investor Day – Snowflake Summit 2023.

Shares of the company fell almost 5% yesterday. As a part of Investor Day, Snowflake’s Slootman also hosted Huang for a fireside chat on generative AI.

Yesterday, Snowflake said it expanded its partnership with Microsoft (NASDAQ:) to enable new product integrations across AI. Moreover, the company will increase its Azure spending commitment.

Snowflake shares are up 24% year-to-date.