Snowflake CEO Frank Slootman says acquiring Neeva will help overcome A.I. 'hallucination bias'

I SPOKE WITH FRANK SLOOTMAN AND NVIDIA PARTNERSHIP ON LARGE LEARNING MODELS INSIDE SNOWFLAKE'S ENVIRONMENT, HELPING TO SEND THE STOCK ABOUT 5% HIGHER OVER TWO DAYS WE ALSO TALKED M&A STRATEGY AFTER THEIR ACQUISITION AND A PARTNERSHIP WITH MICROSOFT, WHICH SLOOTMAN SAID WAS A WIN-WIN. >> YOU'RE GOING TO BENEFIT FROM THAT PEOPLE ARE NOT GETTING PAID. THEY'LL FIGHT YOU TOOTH AND NABLE, DOUBLE DOWN, TRIPLE DOWN, AND SO

ON. WE'VE BEEN ABLE TO BUILT RELATIONSHIPS WITH THE PUBLIC PROVIDER SAYING WE WILL COMPETE HEAD ON, BUT ONCE SOMETHING IS WON OR LOST, WE PARTNER UP THAT IS HOW IT'S SUPPOSED TO WORK THAT WORKS WHEN THERE IS ALIGNMENT ON INCENTIVES WHERE BOTH SIDES GET PAID WHATEVER BUSINESS IS GOING TO COME TO FRUITION FROM IT >> LET'S TALK ABOUT M&A. I WAS A LITTLE SURPRISED THAT YOU

BOUGHT NEEVA ANOTHER FORT KNOX DISCUSSION I'VE HAD DEEP EXPERIENCE IN SEARCH AND DATA HOW DOES THAT FIT IN WITH SN SNOWFLAKE'S BROADER VISION OF WHAT YOU WANT TO PROVIDE ON THE PLATFORM IT'S NOT THE CONTINUE SOMER-FACING THING THAT NEEVA WAS DOING. NOW IT'S WHAT AS PART OF SNOWFLAKE? >> WELL, WE'VE REALLY -- OBVIOUSLY, THEY'VE TURNED FROM CONSUMER SEARCH TO ENTERPRISE SEARCH, AND ENTERPRISE SEARCH HASN'T HAPPENED

TO THE EXTENT IT CAN, ONCE AI CAN ENABLE IT FOR THE CONVERSATIONS TO BE CONTEXTUAL SEARCH FOR SNOWFLAKE, YOU'LL GET THE WEATHER, THE COMPANY, THE SOCIAL PROBLEM FROM ONE SEARCH TO THE NEXT IT HAS NO CLUE WHAT HAPPENED BEFORE THE OTHER THING THAT THEY'RE GOOD AT IS UNDERSTANDING PROBLEMS WITH BIAS AND ALL THESE THINGS THAT MAKE PEOPLE DISTRUST THE RESULTS. IT'S GOING TO BE VERY, VERY

IMPORTANT. SEARCH HASH SUCH A PHENOMENAL THING IN COMPUTING OVER THE NEXT 25 LAST 25 YEARS BUT WE'RE TAKE IG IT TO THE NEXT LEVEL. IT WILL BE PART OF YOUR RELATIONSHIP WITH DATA SO WE'RE THRILLED TO BITS TO NOT JUST, YOU KNOW, GET THE INJECTION IN TALENT THAT NEEVA BRINGS BUT ALSO THE TECHNOLOGY THEY BUILD A COMPLETE SEARCH INFRASTRUCTURE, YOU KNOW, WITH ALL OF 50 PEOPLE

IT'S QUITE EXTRAORDINARY WHAT THEY HAVE ACCOMPLISHED ON THEIR OWN. >> SO, HOW FAR UP THE STACK DO YOU PLAN TO MOVE AS SNOWFLAKE? I VIEW SEARCH AS BEING A BIT OF A LAYER ABOVE THE CORE TECHNOLOGY THAT SNOWFLAKE IS INITIALLY OFFERING DO YOU HAVE A STATED PHILOSOPHY OR FRAMEWORK FOR WHAT GOES -- WHAT ELSE PERHAPS EVEN ADJACENT TO SEARCH SNOWFLAKE IS INTERESTED IN INNOVATING IN AND

BUILDING OUT >> WE HAVE THIS MASSIVE ECOSYSTEM. IF YOU WOULD SEE THE PARTNERS WE HAVE, THERE'S MULTIPLE FOOTBALL FIELDS OF EXHIBITIONINGS, OF PARTNER SHOWCASING PRODUCTS. THAT'S REALLY WHAT WE WANT WE WANT TO BE A PLACE FOR INNOVATION AND CHOICE RATHER THAN YOU HAVE TO BUY EVERYTHING FROM SNOWFLAKE AT THE APPLICATION LEVEL, I'D MUCH RATHER HAVE PARTNERS BUILD THE APPS THAN US DOING IT. >> DATA BRICKS

GATHERING PEOPLE TOGETHER THIS WEEK THEY JUST DID A $1.3 BILLION ACQUISITION OR ANNOUNCED IT. AND BOT SPOT ALSO DID A $200 MILLION ONE, IBM ANNOUNCING ONE. WHAT'S GOING ON WITH M&A IN THIS GENERATIVE AI ERA? WHAT'S DRIVING IT, EVEN THOUGH FOR A LOT OF THESE ASSETS AND COMPANIES, THE VALUATIONS ARE PRETTY RICH? >> YEAH, THEY ARE. AND THE REASON IS THE TALENT IS SO EXTRAORDINARILY SCARCE.

YOU KNOW, WHEN YOU'RE BUYING COMPANIES, YOU'RE ALWAYS BUYING A MIX OF TALENT AND TECHNOLOGY BUT WE'RE MUCH MORE HEAVILY WEIGHTED TOWARDS TALENT BECAUSE TECHNOLOGY COMES FROM TALENT IT'S VERY, VERY DIFFICULT TO ACQUIRE. AND YOU ARE WILLING TO PAY UP FOR TALENT BECAUSE IT'S SO -- IT IS SO VALUABLE AND SO SCARCE AND SO EXPENSIVE SO I THINK THAT'S CERTAINLY A BIG PART OF OUR ACQUISITION STRATEGY

THAT, YOU KNOW, WE TRY TO BUY STEM CELLS, OKAY, THINGS WE DON'T HAVE BUT WE CAN GROW NEW BODY PARTS FROM OR NEW BUSINESSES OR MAJOR EXTENSIONS