Snowflake Secures $200M OpenAI Pact and Wolfspeed Integration as Shares Drop 9%
Snowflake secured a $200 million multiyear partnership with OpenAI to integrate GPT-5.2 and Cortex AI for custom applications, while Wolfspeed unified factory, supply-chain and enterprise data on Snowflake’s AI Data Cloud to boost manufacturing efficiency. Shares tumbled over 9% Monday as analysts cut price targets to $220–$270 ahead of Q4.
1. Multiyear OpenAI Partnership
Snowflake inked a $200 million agreement with OpenAI, granting customers access to GPT-5.2 and Snowflake Cortex AI for building custom applications and agents on its platform. The deal underscores an effort to deepen AI capabilities and drive upselling opportunities across its enterprise base.
2. Wolfspeed AI Data Cloud Adoption
Wolfspeed unified its factory operations, supply-chain and enterprise data on Snowflake’s AI Data Cloud, integrating Cortex AI into daily manufacturing processes. This deployment aims to enhance real-time visibility, improve quality control and boost workforce training efficiency on the factory floor.
3. Analyst Price Target Cuts and Share Drop
Ahead of its fiscal Q4 earnings release, Snowflake shares fell over 9% as multiple analysts trimmed their 12-month price forecasts to a range of $220–$270. The revisions reflect caution over enterprise IT spending and investor uncertainty about near-term revenue growth.
4. Cortex Code CLI Expansion
Snowflake expanded its Cortex Code CLI, an AI coding agent, beyond native workflows to support external systems like dbt and Apache Airflow. Offered as a standalone subscription, the tool provides secure, context-aware AI assistance to developers regardless of whether workloads run on Snowflake.