- A sneaky revelation in Instacart's IPO filing sparks tech rivalry.
- Databricks seizes an opportunity, while Snowflake fires back.
- A tug of war in the billion-dollar cloud and data marketplace ensues.
Tucked away in the depths of Instacart’s recent IPO filing was an unsuspecting paragraph that ignited a fiery debate between two tech behemoths unrelated to grocery delivery.
Frank Slootman, the CEO of cloud-storage powerhouse, Snowflake, and a board member of Instacart since 2021, has unintentionally brewed a controversy. Due to this link, Instacart must reveal its commercial ties with Snowflake. A glance at the financials showed Instacart's spending on Snowflake’s services escalating from $13 million in 2020 to $51 million in 2022, with a surprising dip forecasted for 2023 at around $15 million.
This forecasted drop stirred a frenzy. Databricks, a Snowflake competitor, was quick to seize the moment, suggesting on social media that Instacart was shifting its business to them. Snowflake retaliated, clarifying that these figures were misunderstood, and accusing Databricks of twisting the narrative.
Adding to the drama, both Instacart and Databricks later removed some online content that had hinted at their collaboration, leaving audiences even more bewildered. Behind this tech soap opera lies a fierce competition in the tech arena, where cloud services, data, and AI clash. The dispute is magnified as both Snowflake and Databricks have significant stakes in the market, valued at billions of dollars.
As the dust settles, a footnote in Instacart’s filing suggests that the drastic decline in spending might not be as severe as initially portrayed. Still, the tech community waits with bated breath, watching for Instacart's next move.
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