Tech
May 28, 2026
Snowflake Signs $6B Deal with AWS for AI CPU Chips
Snowflake has signed a $6 billion, five-year agreement with Amazon Web Services (AWS) to use AWS's …
The Massive Deal
Cloud data storage giant Snowflake has signed a new $6 billion five-year agreement with Amazon Web Services, the companies announced on Wednesday. This deal is significant as Snowflake's customers are accelerating their spending on AWS, doubling to $2 billion in 2025.
Driving Growth with AI
The growth is driven by AI, with Snowflake offering its AI building tool, Cortex AI, which provides features like text interface for database queries and summary reports. Snowflake's customers are leveraging AI to automate tasks, leading to increased CPU usage.
The Role of Graviton Chips
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, CPU usage skyrockets, and Graviton chips are a more affordable option for AWS to deploy.
Competitive Landscape
AWS signed a deal to provide millions of Graviton chips to Meta for its growing AI compute needs.
Google and Microsoft are also making their own AI chips, with Microsoft launching its Maia AI chip in January.
Nvidia CEO Jensen Huang said he's ready to defend his turf with the new AI-specific CPU, Vera.
The Future Outlook
The multibillion-dollar cloud deals show how AI is lifting AWS's boat. Whichever companies benefit most from the rise of AI, the cloud providers are getting their share. The demand for AI processing power is driving innovation and competition in the industry.
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