Snowflake signed a new $6 billion five-year agreement with AWS. Snowflake has long run on AWS and is also available on Microsoft Azure and Google Cloud. The deal size is compared to Snowflake’s total $7 billion in services sold via the AWS Marketplace since 2012. Snowflake said customers are increasing AWS spending, doubling in 2025 to $2 billion. Growth is attributed to AI, including Cortex AI, which enables natural-language database queries and summary reports. The agreement also provides more access to AWS’s Graviton ARM-based CPUs. As AI shifts toward daily usage and agent automation, CPU demand rises for tasks beyond GPU training and reasoning.
"Snowflake has always run on Amazon Web Services - though obviously, these days, it is also available on Microsoft Azure and Google Cloud. For comparison on just how big this deal is for these companies, Snowflake has sold $7 billion worth of its services via AWS Marketplace total since it was founded in 2012, AWS says. So it's contracting to spend on AWS equal to almost all the money it has ever brought in from that cloud."
"What's driving the growth is, naturally, AI. Snowflake has been offering its AI building tool, Cortex AI, for a couple of years now. It's a tool that makes sense: Snowflake is where much of an enterprise's data lives. The AI tool can provide features like a text interface for database queries (just ask, in regular language), summary reports, and so on."
"Of particular note is that Snowflake is signing this contract for more access to AWS's home-grown ARM-based CPU chip, Graviton. As AI moves from training to daily usage to automation via agents, CPU usage skyrockets. While GPUs handle training and reasoning, CPUs handle most of the rest of the tasks associated with AI, particularly agents."
"Demand is so high for AI processing that hyperscalers like AWS are deploying them as fast as they can. On top of that, all of the major AI model makers (and many other AI offerings) have architected their apps specifically for Nvidia's chips. Still, Amazon's own chips are a more affordable option for the cloud giant to deploy."
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