Snowflake CEO Sridhar Ramaswamy claims per-user pricing models are losing justification in the artificial intelligence era. He advocates for usage-based billing as AI agents increasingly perform tasks traditionally handled by employees.
Ramaswamy argues that seat-based billing becomes illogical when software replaces human workers. He maintains that usage-based models more accurately align revenue with customer value.
The comments follow strong adoption of Snowflake’s AI-powered tools. The company recently reported its fastest revenue growth in two years.