Snowflake (SNOW) is rallying 8% after the company provided stronger-than-expected full-year guidance and disclosed that it would utilize OpenAI models in one of its products.

SNOW develops and markets data-analysis systems.

Full-Year Outlook Beats the Average Estimate

SNOW expects its product revenue to surge roughly 24% in the year that ends next January to $4.28 billion. Analysts on average had expected the total to come in at $4.23 billion, according to Bloomberg. Product sales account for most of the firm's revenue.

SNOW's Expanded Alliance With MSFT

SNOW disclosed yesterday that it would "deliver OpenAI’s state-of-the-art models directly to customers in Snowflake Cortex AI." Cortex allows companies "to quickly analyze data and build AI applications."

Moreover, SNOW's customers will now be able "to seamlessly leverage Snowflake Cortex Agents within their Microsoft 365 Copilot and Microsoft 365 apps," SNOW reported.

“We’re expanding our long-standing partnership with Microsoft to deliver the best of OpenAI’s innovations directly to our customers, further advancing our promise to bring easy, efficient, and trusted AI to enterprises around the world,” said Christian Kleinerman, Snowflake's EVP of Product, in a statement.

The Recent Price Action of SNOW Stock

In the last month, SNOW is little changed, while it has risen 3.5% in the last three months.

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Disclosure: None. This article is originally published at Insider Monkey.