Snowflake is experiencing strong demand for AI-driven solutions, with AI influencing 50% of Q3 FY26 bookings and achieving a $100 million AI revenue run rate a quarter early. The company expanded its partnership with Anthropic in a multi-year, $200 million deal. Additionally, Snowflake is in talks to acquire observability startup Observe for roughly $1 billion. This acquisition is seen as strategically logical, boosting capabilities in full-stack observability and enabling Snowflake to compete better in the AI-Data Cloud space.