VERIFIEDBy Xavier Rivera· ·1.5 min read

Snowflake Commits $6B to AWS Over 5 Years for AI Tools

Snowflake committed to spend $6 billion on AWS over five years, including Amazon Graviton processors for AI and agentic applications. The deal continues the rapid growth in Snowflake's AWS commitments and adds to a wave of major AI infrastructure agreements on the platform.

Source:GeekWire

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Snowflake Commits $6B to AWS Over 5 Years for AI Tools

TL;DRAI · 60 sec read

Snowflake committed to spend $6 billion on Amazon Web Services over five years, adding to the cloud giant’s growing roster of AI infrastructure deals.

The company, 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 Snowflake’s founding 11 years ago.

Amazon’s custom chips business has become a major revenue driver.

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 is the latest in a series of large-scale commitments for AI-related infrastructure on AWS.

Those commitments include deals of more than $100 billion with Anthropic and $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.

Meta also plans to deploy tens of millions of Graviton chip cores for agentic AI.

Snowflake 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.

Snowflake is headquartered in Bozeman, Mont., with a large presence in the Bay Area and a significant office in Bellevue, Wash.

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