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Snowflake unveils open large language model Arctic

Published 04/24/2024, 10:52 PM

BOZEMAN, Mont. - Snowflake Inc . (NYSE: NYSE:SNOW), a cloud-based data warehousing company, has introduced Snowflake Arctic, a large language model (LLM) that claims to offer top-tier intelligence and efficiency for enterprise applications. The model is distinguished by its Mixture-of-Experts (MoE) architecture and is being released under an Apache 2.0 license to promote transparency and broad usage.

The announcement of Arctic represents Snowflake's commitment to advancing open source AI technology. Arctic is designed to handle complex enterprise workloads and has surpassed several industry benchmarks, including SQL code generation and instruction following. Snowflake emphasizes the model's efficiency, noting that it requires significantly fewer parameters to operate compared to other leading models like DBRX and Llama 3 70B.

Arctic is now available for serverless inference in Snowflake Cortex, the company's managed service for machine learning and AI solutions. It will also be accessible on Amazon (NASDAQ:AMZN) Web Services (AWS) and other platforms such as Hugging Face and Microsoft (NASDAQ:MSFT) Azure. Snowflake has reportedly trained Arctic on Amazon EC2 P5 instances, achieving a new standard for the speed and cost-efficiency of training enterprise-grade open models.

In addition to the Arctic LLM, Snowflake has released a family of text embedding models named Arctic embed, optimized for retrieval use cases and also available under an Apache 2.0 license. The company continues to collaborate with industry leaders like NVIDIA (NASDAQ:NVDA) to enhance AI capabilities in the Data Cloud and has invested in AI-focused ventures to bolster its offerings.

The release of Arctic has garnered attention from AI experts and industry partners, who anticipate that the model's openness and performance will drive innovation and democratization in AI. Snowflake's initiative is seen as a significant contribution to the open AI ecosystem, providing enterprises with the tools to develop custom AI applications and improve their data-driven strategies.

Snowflake's efforts to facilitate AI innovation are expected to be a focal point at the upcoming Snowflake Data Cloud Summit 2024, where further developments in the company's AI initiatives will be discussed.

This report is based on a press release statement from Snowflake Inc.

InvestingPro Insights

As Snowflake Inc. (NYSE: SNOW) continues to shape the future of cloud-based data warehousing with its new Snowflake Arctic large language model, investors and industry observers are closely monitoring the company's financial health and market performance. Snowflake's commitment to innovation is evident, but what does the financial data say about its current standing?

According to InvestingPro data, Snowflake's market capitalization stands at a robust $50.48 billion, reflecting significant investor confidence despite the company not being profitable over the last twelve months. The revenue growth figures are particularly impressive, with a 35.86% increase in the last twelve months as of Q4 2024, and a quarterly growth of 31.53% for the same period. This suggests a strong and growing demand for Snowflake's offerings, including its latest AI-driven products.

Investors should note that Snowflake's Price to Earnings (P/E) ratio is currently negative at -59.46, which is common for fast-growing tech companies that are investing heavily in expansion. However, the company's Price to Book (P/B) ratio is 9.75, indicating a premium valuation compared to its book value. This could be a reflection of the high expectations for Snowflake's future growth and profitability, as analysts predict the company will turn profitable this year.

While these metrics provide a snapshot of Snowflake's financials, InvestingPro offers additional insights that could be valuable for those considering an investment in the company. Two noteworthy InvestingPro Tips highlight that Snowflake holds more cash than debt on its balance sheet and that its liquid assets exceed short-term obligations, which can be reassuring for investors concerned about the company's financial resilience.

For readers looking to delve deeper into Snowflake's financials and future prospects, InvestingPro has additional tips available. In fact, there are 9 total InvestingPro Tips for Snowflake Inc., which can be accessed by visiting the dedicated page at: https://www.investing.com/pro/SNOW. And for those ready to take the next step, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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