• Earlier this month, Snowflake announced a multi-year, US$200 million collaboration with OpenAI that will make OpenAI’s models, including GPT-5.2, natively accessible to Snowflake’s 12,600 customers through the Cortex AI platform and Snowflake Intelligence.
• The deal effectively embeds OpenAI’s technology into Snowflake’s AI data cloud as a first-party offering, aiming to let enterprises build governed AI agents that work directly on their proprietary data without moving it to external AI platforms.
• With this partnership deepening Snowflake’s AI agent capabilities, we’ll explore how it reshapes the company’s investment narrative and competitive positioning.

Find 52 companies with promising cash flow potential yet trading below their fair value.

What Is Snowflake's Investment Narrative?

To own Snowflake, you really have to believe that an AI-first data cloud can sit at the center of how large enterprises run analytics, applications, and now AI agents on their governed data. The new US$200 million OpenAI deal, and early proof points like United Rentals rolling out a Snowflake Intelligence agent across 1,600+ branches, speak directly to the near-term catalyst: convincing customers that Snowflake is where AI agents should live, not just where data is stored. That matters against a backdrop of a sliding share price, rich price-to-sales multiples, ongoing losses, and growing concern that increasingly powerful foundation models could compress margins for software built on top of them. If Snowflake’s own agents gain traction, that “AI replacement” risk does not disappear, but the company is at least competing on the front line instead of watching from the sidelines.

However, one emerging risk is how far AI agents and powerful models might erode traditional software economics, something investors should be watching closely. Despite retreating, Snowflake's shares might still be trading 18% above their fair value. Discover the potential downside here.

Exploring Other Perspectives

Fourteen fair value estimates from the Simply Wall St Community span roughly US$114 to just under US$283 per share, reflecting very different assumptions about Snowflake’s AI upside and execution. Against that backdrop, the OpenAI partnership and early Snowflake Intelligence deployments sharpen the key question for you: can the company turn its expanding AI tooling into durable, profitable usage before model-centric offerings compress what customers will pay for higher-level software?

Explore 14 other fair value estimates on Snowflake - why the stock might be worth as much as 68% more than the current price!

Build Your Own Snowflake Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Snowflake research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision.
• Our free Snowflake research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Snowflake's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.