Cloud data all-star Snowflake is reportedly in talks to acquire data analytics startup Redpanda, a company that Forbes predicts will become a $1 billion startup.
Snowflake is reportedly in talks to acquire data analytics startup Redpanda in a move that would boost the cloud company’s AI and data software capabilities.
Redpanda is a San Francisco-based startup that has raised over $150 million in funding over the past four years, backed by investment firms Lightspeed, GV and Haystack VC.
Founded in 2019, Redpanda was named to Forbes “Next Billion Dollar Startup” list, which predicted the startup will eventually reach a $1 billion valuation.
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Redpanda is seeking around $1.5 billion to be acquired by Snowflake, according to a report by The Information. This would be significantly higher than the startup’s annual revenue, which Forbes pegged at around $20 million in 2023.
If the deal gets completed, the merger could enhance Snowflake’s market competition against companies including Databricks, while at the same time helping Redpanda battle against its streaming data analytics rival Confluent.
San Mateo, Calif.-based Snowflake generated $942 million during its recent third fiscal quarter 2025, representing an increase of 28 percent year over year.
Both Snowflake and Redpanda did not respond for comment on the matter by press time.
Who Is Redpanda?
Redpanda provides data analytics software, including to large customers like Cisco Systems, Lacework, Activision Blizzard and Vodafone.
The startup offers a unified streaming data platform for developers that is API-compatible with Apache Kafka. Redpanda said it provides a breakthrough architecture and disruptive capabilities that make it an easy, fast, scalable and cost-effective engine of record for real-time and historical enterprise data.
In late 2024, Redpanda unveiled new AI integrations available within Redpanda Connect to now offer more than 100 cloud-based managed connectors and stream processors, including connectors for AI services like OpenAI, Vertex AI and AWS Bedrock, as well as connectors for vector databases like Pinecone and Qdrant. The new AI connectors are available on all major cloud providers, including AWS, Google Cloud Platform and Microsoft Azure.
Looking at Redpanada’s capabilities, the startup could boost Snowflake’s AI portfolio with the addition of its streaming data analytics software and AI connectors to cloud leaders.
Redpanada And Snowflake’s Recent Acquisitions
In terms of recent acquisitions, both companies have made moves to buy companies over the past several years.
In May 2024, Redpanda acquired open-source steam processing platform provider Benthos.
In 2022, Redpanda also acquired CloudHut, which built a web-based user interface for streaming data platforms.
Looking at Snowflake’s M&A moves in 2024, the company acquired Datavolo, a developer of advanced data integration technology for developing multimodal data pipelines.
Snowflake also acquired AI observability platform provider TruEra last year and data software startup Samooha in late 2023.
Snowflake’s stock is trading down 3 percent today at around $182 per share. However, Snowflake’s stock is up 16 percent from the start of 2025.
