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 custom Graviton processors and other chips to power AI and agentic applications.
The deal expands a relationship that dates back to the data company’s founding 11 years ago. Snowflake’s five-year AWS spending commitment has grown from $1.2 billion at the time of its IPO in 2020 to $2.5 billion in 2023 to the current $6 billion, CNBC reported.
It’s the latest in a series of large-scale commitments for AI-related infrastructure on AWS, including deals of more than $100 billion with Anthropic, $138 billion with OpenAI, accompanying Amazon’s investments in the AI labs. Meta also plans to deploy tens of millions of Graviton chip cores for agentic AI.
Amazon’s custom chips business has become a major revenue driver. Amazon CEO Andy Jassy said in his annual shareholder letter in April that the business generates more than $20 billion a year and is growing at triple-digit rates.
Two large customers asked to buy all of Amazon’s available Graviton capacity for 2026, Jassy wrote in the letter at the time, and the company was compelled to turn them down.
Snowflake is headquartered in Bozeman, Mont., with a large presence in the Bay Area and a significant office in Bellevue, Wash. The company reported strong fiscal first-quarter results Wednesday, with revenue of $1.39 billion, beating analyst expectations.
Its stock rose as much as 33% in extended trading.
Read the full article here
