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Wednesday 28 October 2026

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Oracle to sell Snowflake as a first-party service on OCI

Oracle will handle contracts, pricing and billing, while customers will be able to apply existing Oracle Universal Credits to Snowflake usage.

Sridhar Ramaswamy seated onstage before a TechCrunch Disrupt backdrop
Photo: TechCrunch, CC BY 2.0, via Flickr (cropped)

Oracle and Snowflake announced on 27 October 2026 that Snowflake AI Data Cloud will become a first-party service on Oracle Cloud Infrastructure (OCI), with customers buying it directly from Oracle. The companies made the announcement at Oracle AI World, Oracle’s customer and partner conference in Las Vegas. The arrangement would put Snowflake’s data and AI platform on OCI and bring its purchase and billing into Oracle’s commercial system.

Key points

  • Oracle says it will manage pricing, discounts and billing for Snowflake on OCI.
  • Customers will be able to apply Oracle Universal Credits towards Snowflake usage, according to Oracle.
  • Oracle says the service will be available. Snowflake describes it as planned and refers to when it becomes available.

Oracle takes the Snowflake commercial relationship

Oracle says customers will be able to purchase, provision and consume Snowflake on OCI through Oracle. It will set pricing and discounts and issue the bill, giving customers a single commercial relationship for the service. Customers will also be able to put Oracle Universal Credits — credits for Oracle cloud consumption — towards Snowflake usage on OCI. Oracle says this will let customers use their existing cloud commitments.

In a 27 October post, Snowflake describes a proposed arrangement under which customers would contract directly with Oracle and receive their bills through OCI. They would provision a Snowflake account through OCI’s control plane, then use Snowflake’s tools to manage warehouses, databases, data pipelines and access controls. Snowflake says the service would run on OCI and be reached through an integrated OCI experience.

That division gives Oracle the sale and billing relationship while leaving customers’ day-to-day Snowflake administration in Snowflake’s tools, under the arrangement Snowflake describes. Clay Magouyrk, Oracle’s chief executive, said the company intends to make deployment, management and payment simpler for customers. Sridhar Ramaswamy, Snowflake’s chief executive, described the offering as a way for joint customers to use their Oracle data with Snowflake’s platform.

Snowflake plans connections to Oracle applications

Oracle says the service is designed to work with data from Oracle Fusion Cloud Applications, Oracle NetSuite, Oracle Autonomous AI Database, MySQL HeatWave and Oracle NoSQL database. Its proposed integrations would move data from supported sources into Snowflake for reporting, data engineering, machine learning and other AI work. Oracle says moving data within OCI could reduce transfers between cloud platforms and the charges associated with moving data out of one.

Snowflake lists planned integrations for Fusion Applications covering enterprise resource planning, human capital management and supply chain management, as well as NetSuite. It also lists cloud-hosted Oracle Database, Oracle Autonomous Database, MySQL HeatWave and Oracle NoSQL Database among the planned database connections. Snowflake says the offering is intended to connect those systems with other enterprise data for analytics and AI workloads.

Snowflake also plans data ingestion and engineering capabilities, with role-based access controls and policies governing data access. Its examples of possible uses include examining disputed invoices alongside delivery and customer information, and linking factory equipment data to orders and inventory. Snowflake says those examples may not reflect what the service can do at launch.

The announcement comes alongside Oracle’s other work on enterprise applications. AI Affairs previously reported that Oracle added its Fusion Claw runtime to 25 new agentic applications.

Snowflake calls the OCI service planned

Oracle says Snowflake AI Data Cloud “will be available” as a native OCI service. Snowflake’s post instead calls the offering planned and describes what customers would receive “when available”. Those are different descriptions of the service’s status in the companies’ accounts of the 27 October announcement.

Oracle says the design aims to keep customer control over data access, use and governance while the two platforms work together. Snowflake’s proposed commercial model would put the contract with Oracle and the administration of Snowflake workloads in Snowflake’s tools. Oracle also says the development, release, timing and pricing of the described features can change at its discretion, StreetInsider reported.

Sources

Topics: Enterprise adoption, Inference