In a strategic move aimed at expanding its data lifecycle management capabilities, Snowflake announced the acquisition of Datavolo, a data pipeline management company, after the market closed on Wednesday. This announcement coincided with Snowflake’s Q3 2025 earnings report, reflecting the company’s ongoing efforts to strengthen its product offerings in a competitive market. Although the financial terms of the deal remain undisclosed, the acquisition is expected to close after meeting customary closing conditions.
Founded in 2023 by Joseph Witt and Luke Roquet, Datavolo has quickly gained recognition for its innovative use of Apache NiFi. Apache NiFi, an open-source data processing project initially developed by the NSA, serves as the backbone for Datavolo’s platform, which automates data processes across various enterprise data sources. The platform handles diverse data engineering tasks, including extraction, cleaning, transformation, and enrichment, and is particularly suited for generative AI applications. Prior to being acquired by Snowflake, Datavolo successfully raised $21 million from prominent investors such as Citi Ventures and General Catalyst.
Snowflake CEO Sridhar Ramaswamy has expressed plans to integrate Datavolo’s technology into Snowflake’s existing infrastructure. The goal is to offer more versatile data processing pipelines that enable seamless data movement from both cloud and on-premise sources to Snowflake’s data cloud. Ramaswamy emphasized that this acquisition aims to simplify data lifecycle management, deliver cost efficiency, and maintain data flexibility for customers.
Joseph Witt, co-founder of Datavolo, noted that Snowflake would continue to support the Apache NiFi project post-acquisition. This commitment ensures that the open source community will continue to benefit from the innovations brought forth by this partnership. Witt further stated that merging with Snowflake would accelerate Datavolo’s mission of simplifying data engineering at scale, making sophisticated data tools accessible to a wider range of users.
The acquisition takes place at a time when there is a growing demand for advanced data management technologies, significantly driven by AI advancements. According to Fortune Business Insights, the global enterprise data management market could reach $224.87 billion by 2032. Numerous enterprises have faced persistent data management challenges, as evidenced by a 2022 survey from Great Expectations revealing that 91% of organizations encountered significant issues with data quality that affected their performance.
As a result, companies like Datavolo have gained prominence by addressing these complex data management problems. Snowflake’s announcement of the acquisition also coincided with its strong earnings report, leading to a 19% increase in its stock. Additionally, Snowflake disclosed a multi-year partnership with Anthropic to integrate the AI startup’s models into its products, including Snowflake Cortex AI, Snowflake Intelligence, and Cortex Analyst.
In conclusion, Snowflake’s acquisition of Datavolo underscored a strategic decision to bolster its data processing capabilities amid the rising demands in the data management landscape driven by AI advancements. This acquisition promised to provide operational simplicity, cost efficiency, and greater accessibility to sophisticated data engineering tools for a broader customer base, supported by a strong commitment to open source initiatives.
