Snowflake Signs $6B Five-Year AWS Deal for AI CPU Chips
Original: In more good news for Amazon, Snowflake signs $6B deal with AWS for AI CPU chips
Why This Matters
Demonstrates growing competition between cloud providers and Nvidia in AI chip market
Cloud data storage company Snowflake signed a $6 billion five-year agreement with Amazon Web Services for AI CPU chips, specifically AWS's ARM-based Graviton processors. The deal reflects doubled AWS spending to $2 billion in 2025 driven by AI demand.
Snowflake announced a $6 billion five-year contract with AWS, nearly matching the $7 billion total it has generated through AWS Marketplace since 2012. Customer spending on AWS doubled to $2 billion in 2025, driven by AI applications using Snowflake's Cortex AI tool for database queries and automation. The deal focuses on AWS's homegrown ARM-based Graviton CPU chips, which Amazon claims offer better price-performance than Nvidia alternatives. As AI shifts from training to daily usage and agents, CPU demand has skyrocketed alongside GPU requirements. Amazon CEO Andy Jassy highlighted cost savings passed to customers. This follows AWS winning Meta's multi-billion chip deal last month, competing against Google Cloud's $10 billion Meta contract.