Snowflake in talks to acquire data analytics startup Redpanda in latest AI push

Snowflake is in talks to buy data analytics startup Redpanda as it looks to expand its AI-driven offerings, according to an exclusive report from The Information. Redpanda was valued at around $500 million in 2023, according to a source involved in the discussions.

The startup has reportedly set a sale price of approximately $1.5 billion, The Information said, citing two people familiar with the negotiations.

“Database provider Snowflake this week discussed an acquisition of Redpanda, a data analysis software startup valued at around $500 million in 2023, according to a person who has been part of the talks,” The Information reported.

The news comes less than a month after another potential acquisition by Snowflake. Earlier this month, we reported that Databricks and Snowflake were in talks about acquiring Voyage AI, a rising player in AI search technology.

Redpanda was founded in 2019 by Alexander Gallego to enable companies to process real-time data with a modern approach while preserving compatibility with Kafka, the widely used open-source streaming platform.

The San Francisco-based startup provides software that helps financial institutions and retailers process real-time data, from stock market activity to e-commerce transactions. Redpanda has raised $167 million in funding.

The startup focuses on data streaming and analytics, giving businesses the tools to process continuous data flows. Snowflake’s interest in acquiring Redpanda aligns with its push to strengthen its data analytics capabilities and expand into real-time data processing.

So far, no details have surfaced on the final terms or timeline of the deal. Neither company has made a public statement about the ongoing discussions.

This potential acquisition reflects a broader industry trend—larger tech firms snapping up innovative startups to sharpen their competitive edge in real-time analytics and AI-powered data processing.