Snowflake signed a five-year $6bn commitment with Amazon Web Services, framed as the largest expansion of their 11-year relationship. The agreement includes running Snowflake workloads on AWS Graviton, Amazon’s custom Arm-based server CPUs, and developing deeper product integrations for “agentic enterprise” workloads. The deal’s scale is reflected in Snowflake’s prior AWS commitments, which grew from $1.2bn at its 2020 IPO to $2.5bn in a 2023 renewal. The new commitment is about five times the 2020 level and 2.4 times the 2023 level. Snowflake reported a Q1 fiscal-2027 earnings beat, and shares rose about 38%. The Graviton commitment signals support for Arm-server economics and aligns with broader hyperscaler momentum in data-center CPUs.
"The agreement, announced on Tuesday, includes commitments to run on AWS Graviton, the cloud provider's custom Arm-based CPU line, and to develop deeper product integrations for what Snowflake is now describing as "agentic enterprise" workloads."
"The trajectory of Snowflake's AWS spending is the part that frames the size of the announcement. The company committed $1.2bn at its 2020 IPO. That figure rose to $2.5bn in a 2023 renewal. The new $6bn agreement is roughly five times the 2020 commitment and 2.4 times the 2023 one."
"AWS Graviton, now in its fourth generation, is Amazon's in-house Arm-server processor line, designed to replace x86 chips from Intel and AMD inside AWS data centres at substantially better price-performance. Snowflake committing to run its data-cloud workloads on Graviton at scale is a meaningful endorsement of the Arm-server thesis that has been quietly reshaping cloud-infrastructure economics for five years."
"The migration to custom Arm-server silicon, hyperscaler-led, is now visibly the structural story in data-centre CPUs. For AWS specifically, the Snowflake deal lands inside a stretch of large AI-infrastructure commitments."
Read at TNW | Business
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