Snowflake Extends Cortex Code CLI And Tests New Path To AI Growth

• Snowflake (NYSE:SNOW) has expanded its AI-powered Cortex Code CLI beyond Snowflake-native workflows.
• The company introduced a new standalone subscription model that does not require a Snowflake deployment.
• Cortex Code CLI now supports tools such as dbt and Apache Airflow, reaching a wider set of data and AI teams.

For you as an investor, this move speaks to what Snowflake actually sells, which is data and AI tooling rather than just a single platform. Extending Cortex Code CLI into dbt and Apache Airflow fits with how many enterprises already run their data engineering work, so it plugs into existing workflows instead of asking teams to rebuild everything around Snowflake.

This is also the first time Snowflake is offering Cortex Code CLI as a standalone subscription, which opens the door to teams that may not be Snowflake customers today. It presents Snowflake as a broader enabler of enterprise AI development, giving the company more ways to engage with the developer community and potentially expand its commercial relationships over time.

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For Snowflake, taking Cortex Code CLI beyond its own data cloud and into tools like dbt and Apache Airflow matters because it targets where data engineers already spend their time. Instead of tying AI-powered coding support to Snowflake consumption, the new standalone subscription separates the product from the core platform and puts Snowflake in more direct competition with code assistants from players such as Microsoft, Google, Amazon and GitHub. That broadens the addressable market for Snowflake’s AI tooling, but it also introduces questions about how quickly usage of a standalone tool can translate into larger, higher value data platform relationships.

How This Fits Into The Snowflake Narrative

• The expansion of Cortex Code CLI supports the narrative that AI workloads can deepen Snowflake’s role in enterprise data modernization by inserting its tools earlier in the development lifecycle.
• A standalone subscription partially challenges the idea that growth is tied mainly to data cloud migrations, as it could create a separate revenue stream that does not automatically pull customers into core Snowflake workloads.
• The narrative focuses on platform adoption and AI-driven consumption, while this move toward tool-centric distribution and multi-system support may not yet be fully reflected in long-term assumptions about how Snowflake attracts and monetizes developers.

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The Risks and Rewards Investors Should Consider

• ⚠️ Snowflake faces intense competition from hyperscale cloud providers and data platforms that also offer AI-powered developer tools, which could limit the pricing power of Cortex Code CLI.
• ⚠️ The company is currently unprofitable and analysts do not forecast profitability over the next 3 years, so new products like Cortex Code CLI still sit within a broader earnings risk profile.
• 🎁 Analysts view Snowflake as having growing AI-related demand, with Cortex AI already a material revenue driver for the broader business.
• 🎁 Some analysis suggests Snowflake shares trade below certain fair value estimates, which, when combined with new AI products, may appeal to investors looking for long-term growth stories.

What To Watch Going Forward

From here, you may want to watch how quickly Cortex Code CLI adoption grows outside Snowflake’s existing customer base, and whether that usage later shows up in data cloud workloads and larger contracts. It is also worth paying attention to how enterprises compare Cortex-based tools with rival AI assistants from Microsoft Azure, Google Cloud and Amazon Web Services, especially on cost, security and integration. Finally, as Snowflake reports future results, the level of detail it provides on AI-related revenue contribution and any commentary on the standalone subscription model will help you judge how meaningful this product launch is for the broader business.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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