Amazon Secures $6B Graviton Chip Deal as Launch Nears Amazon Leo Service
AMZN•Snowflake has agreed to pay Amazon $6 billion over five years for Graviton chips after reporting a 33% year-over-year revenue surge in Q1, validating AWS’s consumption-based pricing model. Amazon is developing Amazon Leo satellite broadband to expand enterprise services.
1. $6B Graviton Chip Deal Boosts AWS Revenue
Snowflake has committed to pay Amazon $6 billion over the next five years for its Graviton chips, following a first-quarter performance that saw 33% revenue growth. This multi-year agreement underscores strong demand for AWS’s consumption-based pricing model and cements the cloud unit’s strategic position in AI and data analytics.
2. Amazon Leo Satellite Broadband Initiative
Amazon is developing Amazon Leo, a satellite-based broadband service designed to serve enterprise customers globally. The project aims to diversify Amazon’s revenue streams beyond e-commerce and cloud computing by leveraging space-based infrastructure to provide low-latency connectivity.
