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May 28, 2026
Analyzed by Llama- 4 Scout 17B 16E Instruct

Snowflake Signs $6B Deal with AWS for AI CPU Chips

AI Summary
Snowflake has signed a $6 billion, five-year agreement with Amazon Web Services (AWS) to use AWS's AI CPU chips, Graviton, to power its cloud data storage services. The deal is a significant win for AWS and highlights the growing demand for AI processing power.

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 has sold $7 billion worth of its services via AWS Marketplace since its founding in 2012.

Driving Growth with AI

The growth is driven by AI, with Snowflake offering its AI building tool, Cortex AI, which provides features like text interfaces for database queries and summary reports. The increasing demand for AI processing power has led to a surge in CPU usage, with CPUs handling most tasks associated with AI.

The Role of Graviton Chips

Snowflake is signing this contract for more access to AWS's home-grown ARM-based CPU chip, Graviton. Amazon CEO Andy Jassy boasted that Amazon's own homegrown AI chips offer "better price-performance" than Nvidia's offerings.

The Data Analysis

  • Snowflake has sold $7 billion worth of its services via AWS Marketplace since 2012.
  • The new deal is worth $6 billion over five years.
  • Snowflake's customers are accelerating their spending on AWS, doubling to $2 billion in 2025.

The Impact Analysis

The deal highlights the growing demand for AI processing power and the increasing competition in the cloud computing market. Cloud providers like AWS are deploying chips as fast as they can to meet the demand.

The Prediction

The multibillion-dollar deals signed by AWS, including the one with Snowflake, show how AI is lifting the boat for cloud providers. As AI continues to grow, cloud providers will need to invest in more AI processing power to meet the demand.