Snowflake acquires Google-challenger Neeva to improve its generative AI credentials
What's the story
Rumors have been circulating for some time now about the potential acquisition of Neeva by Snowflake, a cloud-based data platform.
Now, Snowflake has announced it is buying the search-focused start-up. The announcement comes against the backdrop of Neeva's decision to walk away from consumer search and concentrate on enterprise solutions.
Let's take a look at why Snowflake is acquiring Neeva.
Context
Why does this story matter?
Neeva was started by two former Google employees, Sridhar Ramaswamy and Vivek Raghunathan. The company aimed to challenge the search hegemon by offering a new experience.
The start-up's chief attraction was a generative AI engine that made search simple. However, the company struggled to significantly impact the consumer search space.
That resulted in the winding up of the consumer side of its business.
Enterprise
Neeva decided to switch focus to enterprise search
Consumer search was the main part of Neeva's business. But shutting it down did not mean the company was exiting the search space.
Instead, it simply meant Neeva decided to focus on the enterprise side of things. The firm aimed to leverage its generative AI and LLMs expertise to help businesses seeking alternatives beyond big tech.
Acquisition
Snowflake is interested in Neeva's generative AI expertise
Neeva's switch to enterprise search meant it will either remain a standalone company or merge with another firm. As it turns out, the company chose the latter.
The reason why Snowflake is interested in Neeva is generative AI. The fervor surrounding the technology has everyone looking for their own AI solutions.
With generative AI searches, users can interact with the search tool.
Reason
Snowflake plans to use Neeva's technology across its data cloud
"The ability for teams to discover precisely the right data point, data asset, or data insight is critical to maximizing the value of data," said Benoit Dageville, Snowflake's VP of products.
According to him, Neeva allows users to look for data in new ways using generative AI. Snowflake plans to use these innovations across its data cloud.
Information
'Neeva will take Snowflake's search to another level'
"That's why Snowflake is acquiring Neeva, a search company founded to make search even more intelligent at scale," Dageville said. "Neeva allows us to tap into some of the most cutting-edge search technologies available to bring search and conversation in Snowflake to a new level"