Snowflake commits $6B to AWS for Graviton CPUs as AI infrastructure spending accelerates
12 Sources
[1]
In more good news for Amazon, Snowflake signs $6B deal with AWS for AI CPU chips | TechCrunch
Cloud data storage giant Snowflake has signed a new $6 billion five-year agreement with the cloud provider, the companies announced on Wednesday. Snowflake has always run on Amazon Web Services -- though obviously, these days, it is also available on Microsoft Azure and Google Cloud. For
[2]
Snowflake to burn $6B on AWS Graviton CPUs and AI accelerators
Cloud data warehouse Snowflake plans to spend $6 billion on Amazon's custom Graviton CPUs and AI accelerators over the next five years. The collab aims to reduce friction in connecting Snowflake customer data with a growing number of AI services built atop AWS' cloud infrastructure. "We are
[3]
Snowflake soars 25% on earnings beat and plan to spend $6 billion on Amazon cloud
Amazon CEO Andy Jassy appears at a company event in New York on Feb. 26, 2025. Amazon said Wednesday that its cloud division has landed a $6 billion spending commitment from Snowflake, which includes the use of the company's custom silicon and chips for artificial intelligence. Snowflake's
[4]
Snowflake commits $6bn to AWS over five years, with Graviton chips at the centre
The five-year commitment is 2.4x larger than Snowflake's 2023 AWS deal and lands as shares jump 38% on a Q1 earnings beat. The Graviton component is the part that matters strategically. Snowflake has signed a five-year, $6bn commitment to Amazon Web Services in what both companies are framing as
[5]
Snowflake commits $6B to Amazon Web Services over 5 years in latest AI infrastructure deal
Snowflake on Wednesday committed to spend $6 billion on Amazon Web Services over five years, adding to the cloud giant's growing roster of AI infrastructure deals. Snowflake, which sells cloud-based data warehousing and AI tools to big businesses, said the commitment includes the use of Amazon's
[6]
Snowflake's stock surges after-hours on solid earnings beat and multibillion-dollar AWS cloud deal - SiliconANGLE
Snowflake's stock surges after-hours on solid earnings beat and multibillion-dollar AWS cloud deal Snowflake Inc.'s shares shot up in late trading today after it announced a $6 billion spending commitment on Amazon Web Services Inc.'s cloud infrastructure, including a deal to use the company's
[7]
Snowflake boosts forecast, signs $6 billion AWS deal as enterprise AI adoption grows
Snowflake has boosted its annual product revenue forecast. This rise is driven by increased enterprise spending on AI applications. Companies are moving more data tasks to Snowflake's cloud platform. This positive development sent Snowflake's shares soaring. A significant five-year deal with Amazon
[8]
Snowflake Strikes Expanded SCA Deal, $6B Infrastructure Commitment With AWS
Snowflake also announced an acquisition that will extend the company's data governance perimeter beyond the Snowflake platform to AI operations and interactions across an enterprise. AI and data cloud company Snowflake said today that it has signed a multi-year strategic collaboration agreement
[9]
Snowflake Expands AWS Partnership with $6 Billion Commitment to Accelerate Enterprise Agentic AI Adoption
Snowflake announced that it has signed a multi-year strategic collaboration agreement (SCA) with Amazon Web Services (AWS) to accelerate enterprise agentic AI adoption to help joint customers worldwide build and deploy AI faster and more securely. Snowflake announced that it has signed a
[10]
Snowflake Commits $6 Billion to AWS For Global AI Expansion | PYMNTS.com
With this agreement, the companies aim to accelerate enterprise agentic AI adoption by helping their joint customers around the world build and deploy AI, Snowflake said in a Wednesday (May 27) press release. The agreement expands an existing collaboration between Snowflake and AWS. Snowflake was
[11]
Snowflake and AWS Strike $6B Deal to Power Enterprise Agentic AI
The collaboration brings generative and agentic AI capabilities directly to enterprise data to help joint customers build and deploy AI-powered applications faster and more securely Snowflake today announced that it has signed a multi-year strategic collaboration agreement (SCA) with Amazon Web
[12]
Snowflake raises annual product revenue forecast as enterprises ramp up AI workloads
May 27 (Reuters) - Cloud-based data analytics platform Snowflake raised its annual product revenue forecast on Wednesday, signaling growing demand for AI-driven workloads and cloud migrations. The company's growth was fueled by surging enterprise demand for its core data warehousing products and
Share
Copy Link
Cloud data storage company Snowflake has signed a $6 billion five-year commitment with Amazon Web Services, focusing on Graviton CPUs and AI accelerators. The deal represents a 2.4x increase from Snowflake's 2023 AWS agreement and signals the growing importance of CPU capacity for AI agents. Snowflake's stock surged 25-38% following the announcement and strong Q1 earnings.
Snowflake AWS Deal Marks Largest Expansion in 11-Year Partnership
Cloud data storage company Snowflake has committed to spend $6 billion on Amazon Web Services over the next five years, the companies announced Wednesday
1
. The Snowflake $6 billion commitment to AWS represents the largest expansion of their relationship since Snowflake was founded in 2012 and built its platform atop AWS infrastructure2
. For context, Snowflake has sold $7 billion worth of its services via AWS Marketplace total since its inception, making this new agreement nearly equivalent to all the revenue it has ever generated through that channel1
.
Source: PYMNTS
The trajectory of Snowflake's AWS spending illustrates the accelerating demand for AI infrastructure. At its 2020 IPO, Snowflake disclosed a $1.2 billion five-year commitment to AWS
3
. That figure climbed to $2.5 billion in 20234
. The new $6 billion agreement is roughly five times the 2020 commitment and 2.4 times the 2023 one, implying an average annual spend of $1.2 billion3
. Snowflake can justify this spending because its customers are accelerating their own AWS expenditures, doubling their spending in 2025 to $2 billion for that calendar year1
.Graviton CPUs Take Center Stage in AI Infrastructure Strategy
The agreement focuses specifically on Amazon's custom silicon and GPUs for AI, with particular emphasis on Graviton CPUs
3
. Snowflake plans to expand its use of Amazon's Graviton general-purpose chips, which are Arm-based CPU processors designed to replace x86 chips from Intel and AMD at substantially better price-performance4
. Over the past few years, Snowflake has shifted an increasing amount of compute from Intel and AMD CPUs to Amazon's own Graviton instances2
.
Source: ET
Now in their fifth generation, Amazon's latest Graviton processors pack 192 Arm Neoverse V3 cores fed by 12 channels of memory up to 8800 MT/s
2
. Snowflake committing to run its data-cloud workloads on Graviton CPUs at scale represents a meaningful endorsement of the Arm-server thesis that has been quietly reshaping cloud-infrastructure economics for five years4
. Amazon CEO Andy Jassy boasted last month that Amazon's homegrown AI chips offer "better price-performance" than Nvidia's offerings, and Amazon says it passes those savings along to its customers1
.CPU Demand Surges as AI Agents Drive Computing Requirements
The renewed focus on CPUs stems from the operational reality of AI agents. As AI moves from training to daily usage to automation via agents, CPU usage skyrockets
1
. While GPUs handle training and reasoning, CPUs handle most of the rest of the tasks associated with AI, particularly agents. The models themselves still run on GPUs, but the tools and functions those models call—a SQL query or Python script, for example—do not2
. This has driven renewed demand for CPU cores as each agent's performance is inherently limited by how quickly the processor can service the request2
.
Source: CXOToday
Under the agreement, Snowflake will run and train its generative AI models and cloud services using a combination of GPUs running in AWS and Graviton CPU cores
2
. Snowflake has been offering its AI building tool, Cortex AI, for a couple of years now, and the platform can convert natural language to SQL queries, summarize data, and conduct sentiment analysis1
2
. The tool makes sense because Snowflake is where much of an enterprise's data lives, enabling cloud-based data warehousing customers to bring AI directly to governed data1
.Related Stories
AWS Secures Multiple Billion-Dollar AI Infrastructure Commitments
The Snowflake deal adds to AWS's growing roster of large-scale AI infrastructure agreements. In April, Anthropic said it aims to spend over $100 billion on AWS over a decade
3
5
. Amazon also has a deal with OpenAI worth $138 billion5
. Both agreements with the AI model companies include an equity investment, while the Snowflake AWS deal does not3
. Last month, Meta revealed plans to deploy tens of millions of Amazon's Graviton 5 CPU cores, making the social network one of the biggest consumers of AWS's homegrown silicon2
5
.Amazon's custom chips business has become a major revenue driver, generating more than $20 billion a year and growing at triple-digit rates, according to Jassy's April shareholder letter
5
. Demand is so high that two large customers asked to buy all of Amazon's available Graviton capacity for 2026, and the company was compelled to turn them down5
. These multi-billion-dollar cloud deals show how AI is lifting AWS's prospects, and the company's capacity to absorb $6 billion of additional five-year demand against an already-stretched data-centre pipeline indicates how rapidly Amazon is bringing new capacity online4
.Market Response and Competitive Implications for AI Chip Development
Snowflake's stock surged 25% to 38% in extended trading Wednesday following the announcement and strong Q1 fiscal-2027 earnings
3
4
5
. The company reported 39 cents in adjusted earnings per share on $1.39 billion in revenue, beating analyst expectations of 32 cents per share and $1.32 billion in revenue3
. AWS Marketplace sales for Snowflake doubled year-on-year to $2 billion in 2025, suggesting the integration logic is already working commercially4
.These deals serve as notice to Nvidia that competitive CPUs from cloud giants are attempting to challenge its position. Google has also been making its own AI chips for years, and Microsoft launched its Maia AI chip in January
1
. Nvidia CEO Jensen Huang said last week he's ready to defend and grow his turf, proclaiming that the new AI-specific CPU his company developed, called Vera, represents a "brand new" $200 billion market for Nvidia, with $20 billion already sold1
. Snowflake's deeper AWS commitment, including the explicit Graviton anchor, signals a strategic bet: pick the larger hyperscaler partner and accept the implicit single-cloud tilt, rather than pursuing the multi-cloud agnosticism strategy favored by competitors like Databricks. Whether that approach pays off against diversification strategies is the multi-year question facing agentic enterprise platforms.References
Summarized by
Navi
[1]
[2]
Related Stories
Snowflake commits $200 million to OpenAI in multi-year enterprise AI partnership
02 Feb 2026•Technology
Snowflake product revenue forecast tops estimates as AI demand drives enterprise adoption
26 Feb 2026•Business and Economy
Snowflake positions itself as control plane for agentic AI at Summit 2026
28 May 2026•Technology
Recent Highlights
1
OpenAI's AI Math Breakthrough on Navier-Stokes Equations Ignites Fierce Controversy Over Credit
Science and Research
2
Nvidia CEO Jensen Huang Declares AGI Has Arrived With OpenAI's GPT-6 Astra Release
Technology
3
Apple debuts $1,999 iPhone Duo foldable and A20 Pro chip as new CEO John Ternus takes the stage
Technology
Recent Highlights
Today's Top Stories
Don’t drown in AI news. We cut through the noise - filtering, ranking and summarizing the most important AI news, breakthroughs and research daily. Follow topics that matter to you and stay ahead.
