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- [00:01]
IBM Executive
The thing about AI for business, it may not automatically fit the way your business works. At IBM, we've seen this firsthand. But by embedding AI across hr, IT and procurement processes, we've reduced costs by millions, slash repetitive tasks and freed thousands of hours for strategic work. Now we're helping companies get smarter by putting AI where it actually pays off, deep in the work that moves the business. Let's create smarter business. IBM,
- [00:33]
Sridhar Ramaswamy
Bloomberg Audio Studios, Podcasts, Radio news
- [00:39]
Caroline Hyde
Snowflake, another of the tech names that released earnings yesterday after the bell. And as investors look for signs of adoption or disruption, its forecast product revenue for the current quarter will be about $1.26 billion. That's up 27%. They reported more than 9,000 accounts using Snowflake Features shares you can see up 3.7%. Let's bring in Snowflake CEO Shiloh Ramaswamy Shrida reading notes Mizuho saying bookings were a standout. They're talking about the seven nine figure deals that have come. Where are those deals coming from? What are those customers demanding of you?
- [01:13]
Sridhar Ramaswamy
Great to see you, Caroline. Yes, we had seven nine figure deals, including a mammoth $400 million deal. It reflects the confidence that our customers have both in where Snowflake is right now, but importantly that we are going to. We all understand that software is being disrupted by AI in a very, very big way. But what our customers understand is that for enterprise AI to truly succeed, they need a single source of enterprise truth. They need built in security, auditability, trust and access. Of course you also need the best models. That's what Snowflakes provides for them. And we're creating great products, products like Snowflake Intelligence that put the power of data into the hands of every business user who the health care, I mean the health company loves using us and there are lots of partners that are using products like Cortex Code to speed up what can be done with Snowflake. They're really looking to the future and making sure that we can deliver value with Snowflake and we are creating the products that help them deliver that kind of value day in and day out. That's why you are seeing companies that I said make commitments of 400 plus million dollars.
- [02:26]
Caroline Hyde
It's nothing I'm really interested in. Codex code was something that was talked a lot about. Cool. And people are adopting swiftly. But that partnership model that you have, the fact that you have integrations with Anthropic OpenAI Cloud, also Google Cloud, but some of these have very good coding tools of their own. How do you see this ecosystem evolving because customers get it, but the investor base been questioning whether they'll take away your market share.
- [02:50]
Sridhar Ramaswamy
Well, so there are a lot of things that are specific to Snowflake and to data. Absolutely. There are coding agents that are often provided by the model companies themselves. But we know a lot about how data systems are supposed to work, about how Snowflake is supposed to work. And Cortex code is super tightly integrated with the customer's Snowflake account. Data does not go anywhere. And remember, we have earned the trust of all of these customers with certifications with the a guarantee around things like use. We never use customer data for things like training models. They get the superior models that we get through partnerships with these folks. But we also add the secret sauce of data of how Snowflake works into products like Cortex Code, and we are seeing amazing wins both internally and also externally. One of our partners told us that having Cortex Code was like Snowflake supplying them with bulldozers where previously they had shelves.
- [03:47]
Bloomberg Host
True to one of the core pillars for you to grow is to go out and find new customers. And I wondered if you just give some detail on what's happening in the world of technology in AI that would bring a customer to Snowflake for the first time. What is it that they need that they didn't before?
- [04:05]
Sridhar Ramaswamy
Typically, they come to us because they need better insight into data. It is sitting somewhere. It's hard for them to get these insights. But increasingly, what we are able to do is have our sales team build an honest to goodness customized demo of something like a Snowflake Intelligence on data that the, on the kind of data that a customer is going to have. It is that easy access that really, you know, is the big winner for our customers. And smart customers are also quickly realizing that having data in Snowflake means that they can think about how this data is going to be used in ways that they had not done before. Sanofi, which is an existing customer, is now, is now using Snowflake Intelligence, our products, to redefine a lot of workflows, replacing a lot of existing software. These are the use cases that drive these customers to come to Snowflake and adopt it.
- [04:59]
Bloomberg Host
Sridhar. Last night, Jensen Huang, who, you know very well talked about profitable tokens, the idea that the output of an AI model is worth paying for. Customers do pay, and they pay at a price that is greater than the compute used to generate it. Are you able to give me any evidence through Snowflake's lens that you actually see that in the real world.
- [05:22]
Sridhar Ramaswamy
Well, what I can assure you is getting projects done as being changed dramatically. Something like setting up a pipeline used to be a multi week task. We can get that done in a small number of hours. My teams come to me just last weekend with speed ups going from four weeks for a software engineering project that they did down to 40 minutes. That is 100x speed up. And we are happy to spend any number of tokens in those 40 minutes to save that kind of time. I think coding agents are really quite magical in the value that they deliver and I think it's only going to accelerate from here. And so these investments are going to be pretty foundational in every company, you know, succeeding and thriving. And that's why we are so bullish about Cortex code.
- [06:12]
Caroline Hyde
And how much are you having to invest in your own business? I mean, the bullion case for many is you need to keep up with a furious pace of innovation. Can you at this moment briefly.
- [06:22]
Sridhar Ramaswamy
We can because we are organized to drive rapid innovation. The team that is driving a product like Snowflake Intelligence is not that large, but we have structured it in such a way that that they can make rapid progress. And it is more the metal structure of how you set up environments where people can get work done quickly and effectively that matters a lot more than things like how much hardware you're investing in and and things like that. The current moment is magical because all of us have access to great tools. It really comes down to how effectively we set up teams and projects to get things done. And that's why we are very bullish on how we have set things up at Snowflake because we now have a demonstrated capability to be right at the cutting edge of where is having impact.
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Bloomberg Host
Snowflake CEO Sridhar Ramaswamy Great to have you back on Bloomberg Tech. Thank you very much.
- [07:13]
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