Snowflake CEO Says Software program Might Change into a ‘Dumb Information Pipe’ to AI

The largest software program firms may be decreased to mere knowledge sources, says Snowflake’s CEO.

“The large mannequin makers need to create a world wherein the entire knowledge for the entire enterprises is definitely accessible to them,” Sridhar Ramaswamy stated on an episode of Alex Kantrowitz’s “Huge Expertise Podcast” revealed final week. “Every part else, the world, is only a dumb knowledge pipe that feeds into that huge mind.”

Previous to turning into Snowflake’s CEO in 2024, Ramaswamy was a companion at Greylock Ventures and cofounded AI search startup Neeva, which was acquired by Snowflake.

Ramaswamy added that Snowflake must function with a “concern” that folks would cease utilizing AI brokers developed by software program firms and as a substitute need an all-inclusive agent that has knowledge from Snowflake, for instance, and all over the place else

He stated his resolution was to let clients take the lead and resolve how they need to entry their knowledge — straight by way of their very own brokers, or by way of a product like ChatGPT.

In the previous couple of months, AI labs have developed from being sources of AI infrastructure to turning into software program suppliers themselves. OpenAI has entered the gross sales, help, and doc evaluation market, threatening incumbents comparable to Salesforce and Oracle.

On a podcast launched final week, Andreessen Horowitz normal companion Anish Acharya stated software program corporations have been being unnecessarily punished by Wall Road over fears that AI may take over their business. The VC stated that legacy software program couldn’t get replaced so simply, as a result of it might not be value it to make use of AI for each enterprise operate.

He stated that software program accounts for 8% to 12% of an organization’s bills, so vibe coding to construct the corporate’s useful resource planning or payroll instruments would solely save about 10%. As a substitute, firms ought to give attention to big-ticket objects, like growing their core companies or optimizing different prices.

Ramaswamy and Acharya’s feedback comply with a brutal begin of the month for software program shares, which dragged down tech and broader markets. The sell-off began when already-wary buyers panicked about Anthropic’s new AI software, which might carry out a spread of clerical duties for folks working within the authorized business.