Snowflake has committed $6 billion over five years to Amazon Web Services in a new cloud infrastructure agreement, the companies revealed Wednesday. The deal represents a substantial portion of Snowflake's historical business with AWS, which has generated $7 billion in total sales through the AWS Marketplace since the cloud data storage company launched in 2012. The agreement signals deepening ties between the two Amazon subsidiaries, though Snowflake also offers its services through Microsoft Azure and Google Cloud platforms.
The partnership is being fueled by rapid customer adoption of AI services. Snowflake reported that customer spending through AWS doubled to $2 billion in 2025 alone, driven largely by demand for its Cortex AI platform. The tool allows enterprises to query databases using natural language, generate summary reports, and perform other AI-powered tasks—all leveraging the massive datasets already stored on Snowflake's platform.
A key component of the deal involves Snowflake securing greater access to AWS's homegrown Graviton processors, which are based on ARM chip architecture. While GPUs dominate AI model training and reasoning tasks, CPUs handle the bulk of AI-related operations, particularly agent-based automation. Amazon CEO Andy Jassy highlighted last month that Amazon's proprietary chips deliver superior price-performance compared to Nvidia's offerings, though AWS continues utilizing Nvidia chips alongside its own. Cloud providers are racing to deploy chips as quickly as possible to meet insatiable AI processing demand, with Amazon emphasizing that it passes cost savings from its custom silicon to customers.