Snowflake commits $6B to AWS over 5 years, leans on Graviton CPUs
Snowflake $SNOW committed $6 billion to AWS $AMZN over five years, including Amazon's custom Graviton CPU chips for AI agent workloads. Snowflake shares jumped 36 percent on the deal and a Q1 earnings beat. Source: CNBC, GeekWire.
Snowflake $SNOW committed $6 billion to Amazon Web Services $AMZN over the next five years, including expanded use of Amazon's custom Graviton CPU chips. CNBC reports the agreement is designed to handle the constant background workloads required by AI agents, which rely on CPUs rather than the GPUs used for model training. As AI shifts toward agentic systems, CPU usage is accelerating alongside GPU demand, making Amazon's lower-cost custom silicon more attractive. Snowflake shares jumped 36 percent on the deal and a Q1 earnings beat. The new commitment is up from $2.5 billion in 2023 and $1.2 billion at the time of Snowflake's 2020 IPO. The deal joins a growing list of large AWS infrastructure commitments from Anthropic, OpenAI and Meta $META. Sources: CNBC, GeekWire, TechCrunch