“This current moment with AI feels like a pivotal before-and-after juncture,” Ramaswamy shared with CNBC-TV18 during an exclusive interview. “The potential of AI for innovation is immense. Insights from the internet and mobile phases are invaluable — guiding organizations through transitions and assisting customers in adapting.”
He asserts that Snowflake is strategically positioned at the forefront of this transformation, not only due to AI but because of the company’s foundational strength in data. “AI reveals the untapped potential within data like never before. If you were faced with a stack of documents, good luck deciphering their content. AI simplifies that process, allowing any businessperson to pose inquiries in natural language.”
Recently, the company achieved its first billion-dollar quarter and anticipates reaching $4.3 billion in revenue this year. “A billion-dollar run rate is becoming the new standard,” he remarked. “We should leverage the current landscape to aspire for even greater heights.”
His vision for Snowflake is unmistakable — to establish a truly iconic enterprise in the AI era. “Data will be central to the AI revolution. I was involved in shaping what Google became — a global symbol. That’s the benchmark we’ve set for ourselves at Snowflake.”
Below is the verbatim transcript of the interview.
Q: Let’s start with your journey and how you came to be part of Snowflake. Initially, it was by chance — you founded your own company, Neeva, which Snowflake acquired in 2023. You hadn’t expected to become CEO, but now, after 16 months, how has your experience been?
Ramaswamy: I arrived at Snowflake through an acquisition. We aimed to develop a search engine and then pivoted to enterprise, becoming part of Snowflake. Initially, I intended to stay for just five or six months, but circumstances changed, leading to me becoming CEO. I’m thoroughly enjoying it. There’s no better place to be than in the realm of data and AI. I’m genuinely excited about supporting over 10,000 customers to derive value from their data investments. It’s been exhilarating. We recently hosted a fantastic summit with over 20,000 attendees. Things are going wonderfully.
Q: Let’s discuss where you find yourself today — at this crucial intersection of data and AI. You believe you’re positioned at the heart of the AI revolution. What provides you with the opportunity to initiate the next breakthrough for Snowflake?
Ramaswamy: Historically, data has often been an afterthought for many organizations. For public firms, data serves the purpose of fulfilling quarterly reporting requirements — often just relaying the news.
What we increasingly recognize is that companies that leverage data to enhance their operations — like Google Search or Google Ads — are the agile entities that can adapt effectively.
AI now enables businesses to make sense of previously opaque data. If you had a stack of documents, good luck deciphering their contents. AI extracts value from those documents. In a similar vein, any professional can pose questions in natural language — it’s become second nature.
That’s the enhancement AI brings on top of prior data investments. That’s why we find ourselves at the forefront. Our focus has always been on how to extract value from your data. How do you organize your data to facilitate powerful analytics, derive meaningful insights, and comprehend the trajectory of your business?
AI dramatically accelerates that process, which is why Snowflake is so well-positioned.
Q: Regarding AI being a significant accelerant — transitioning from the data and cloud battles to the AI era — what do you consider Snowflake’s key differentiating factor in this competitive environment?
Ramaswamy: Firstly, we don’t pretend to be one of the research institutions developing foundational models, as only a few exist. However, foundational models are insufficient without access to enterprise-specific data — think of your contracts and internal information.
We utilize partnerships — with Anthropic, OpenAI, Microsoft, AWS, and others — to deliver the finest models to our clients. The magic lies in combining these models with the high-quality data that resides within Snowflake and that we assist customers in integrating.
This is the primary reason we remain relevant. Much of our product philosophy hinges on simplicity and cohesion. With AI in Snowflake, you’re not investing in something new — it’s inherent to the platform.
We’ve always maintained a one-platform mindset, and AI serves as an enhancement to all our existing offerings. This is what positions us effectively in the AI domain. Everything we’ve done to create an efficient, user-friendly data platform now has AI accelerating its capabilities.
Q: What does all of this imply for the business outcomes of Snowflake? You’ve just revealed your financials — surpassing estimates, which is fantastic. Your market cap is between $69 and $70 billion. It’s been a remarkable journey from IPO to now. In terms of business outcomes, what might an AI-driven future entail for Snowflake?
Ramaswamy: We have just accomplished our first billion-dollar quarter — a tremendous milestone for any enterprise. Growth remains robust — 28% growth last quarter, on top of an anticipated $4 billion in revenue this year.
Our strengths lie in core analytics, which continues to perform exceptionally, while new advancements in data engineering and AI are providing further momentum.
Thus, excelling in your core operations while layering additional innovation — reinforces our confidence to engage with the business and foster acceleration.
Q: So, is a billion-dollar run rate the new normal for Snowflake?
Ramaswamy: Absolutely. If you’re on a healthy growth trajectory and achieve a billion dollars in a quarter — translating to around $4.3 billion in annual guidance — then yes, it can be seen as the new standard. In fact, we should capitalize on the current climate and aim for further progress.
Q: I’d like to revisit your discussion with Sam Altman. His message was clear: if you’re not fully committed to AI, you’re missing a critical opportunity. However, when you converse with clients, what’s the general sentiment? What are the obstacles? Why are some still hesitant?
Ramaswamy: I don’t believe many are sidelining themselves. Every logical CEO desires outcomes — not just to jump onto a trend. I feel similarly. I want us to utilize AI tools — we employ coding copilots — yet I also desire greater productivity from our engineers.
AI itself isn’t a goal. That’s how we advise customers: focus on value. Every initiative should yield positive RoI. I’m not in favor of long-term investments lacking accountability.
We currently have over 5,000 customers utilizing our AI products. While some legacy data can be challenging to unlock, and some organizations remain cautious. We endeavor to communicate clearly: if you transition, here’s what it could enable.
Indeed, there is apprehension, but as Sam Altman mentioned, the best approach is to embrace it. Engage in minor experiments in your personal life. I often ask individuals: what are the trivial things you do with AI? I create memes — and I take pride in it! The more you interact with the technology, the simpler it becomes to recognize its value.
Q: So, is creating a meme daily the goal?
Ramaswamy: It’s memes on demand!
Q: Rewind to your beginnings — from IIT Madras to Silicon Valley, Google, and Bell Labs. With all the rapid changes, how has your journey been witnessing this evolution?
Ramaswamy: I arrived as a student from IIT Madras. I pursued a PhD — a gradual start — engaged in research at Bell Labs. Transitioned to Silicon Valley, as I sensed the internet was a pivotal development. That marked the first significant wave of transformation — reshaping publishing, media, and more.
I was fortunate to be a part of Google — a truly iconic entity of the internet era — and contributed to one of the most exceptional businesses ever. Then mobile emerged, connecting 5 billion people online.
This present moment with AI feels similar — a definitive before-and-after phase. AI holds vast potential for innovation. Insights from previous internet and mobile eras are invaluable — managing organizations through transitions and aiding customer adaptation.
It’s exhilarating, yet exhausting. There’s an abundance of change. However, the breakthroughs are remarkable.
Q: Reflecting on your experience at Google, do you think we’ll witness something akin to that — amplified — in the AI era?
Ramaswamy: We’re already observing it. I doubt Google’s market cap reached $350 billion as swiftly as OpenAI’s. Change is accelerating faster than ever. It’s an exhilarating period, yet one must learn to navigate that change — for oneself, one’s team, and one’s clients. It presents challenges.
Q: Sridhar, as CEO for 16 months at Snowflake, what’s your strategy moving forward, especially in such a rapidly evolving landscape?
Ramaswamy: Exceptional products — above all. This defines great technology enterprises. I dedicate substantial time to developing outstanding products across all layers. Our message to clients is: we aim to support you from data ingestion to insight — from the moment data is created to when it yields insights.
We boast an excellent go-to-market team. I’m highly analytical. I’ve implemented a framework for excellence, and we have a new CRO who’s championing that initiative. That’s the one-two punch of Snowflake: exceptional products coupled with stellar sales, leading to remarkable customer outcomes. That drives our success.
Q: How significant is India to Snowflake, and what are your ambitions for the next few years?
Ramaswamy: We have a substantial team based in India. Our team in Pune handles numerous vital functions. Our presence extends to various cities, and we have fantastic clients — including Swiggy, Tata Motors, and Bajaj — with whom we’re proud to collaborate. Thus, India is a key market for us.
India is on track to become the fourth-largest economy shortly. There’s immense value to be harnessed there. We’re expanding our team and fostering educational initiatives. Our Million Minds program aims to enhance skills in data and AI.
We’re deeply committed to India and excited about its development.
Q: And what are Snowflake’s ambitions?
Ramaswamy: We have the potential to establish a landmark company. Data will be integral to the AI revolution. I was involved in creating what Google became — a global icon. That’s the standard we’ve established for Snowflake. It’s a substantial aspiration, but it’s a step-by-step journey.
