Snowflake rises as it expands Microsoft partnership to focus on generative AI
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Snowflake (NYSE:SNOW) shares rose more than 2% in pre-market trading on Monday after the data warehousing company announced that it had expanded its partnership with Microsoft (NASDAQ:MSFT) to focus on "large scale" generative AI models.
In a statement, Snowflake (SNOW) said the expanded deal would focus on new product integrations in Azure OpenAI, Azure ML and more, with the partnership "significantly" expanding collaboration and combined go-to-market initiatives.
"Snowflakeâs partnership with Microsoft is evolving and focused on improving our field collaboration to help our customers enter the next wave of generative AI," said Chris Degnan, Chief Revenue Officer, Snowflake, in a statement. "Our integrations with Microsoftâs generative AI and LLM services will enable joint customers to leverage the latest AI models and frameworks, enhancing the productivity of developers."
The companies are slated to show off the latest integrations at Snowflake's (SNOW) annual conference, Snowflake Summit, which kicks off on Monday and runs until June 29.
In a research note, Monness, Crespi, Hardt analyst Brian White said that Snowflake (SNOW) is "well positioned" for key trends, including AI, but its "inadequate" margins, rich valuation and competition keep the firm with a neutral rating. 
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