Snowflake, a cloud data storage company, has signed a $6 billion five-year agreement with Amazon Web Services, the companies announced on Wednesday. The deal comes as Snowflake’s customers are increasing their spending on AWS, with the amount doubling to $2 billion in 2025 alone. The growth is driven by AI, with Snowflake’s Cortex AI tool enabling features like natural language queries and summary reports.
The agreement grants Snowflake access to AWS’s Graviton ARM-based CPU chips, which are becoming more critical as AI moves toward daily usage and automation. AWS highlighted that its homegrown chips offer better price-performance than Nvidia’s, though the company still uses Nvidia chips in its cloud infrastructure. The demand for AI processing has led AWS to deploy chips rapidly, with recent deals including a $10 billion agreement with Google Cloud for Meta’s AI needs.
Source: techcrunch
