Amazon Web Services Lands $6B Five-Year Snowflake Deal for Graviton AI Chips
AMZN•Snowflake signed a new $6B five-year agreement with Amazon Web Services for Graviton AI CPU chips, nearly matching its entire $7B AWS revenue since 2012. AWS usage by Snowflake doubled to $2B in 2025 as Cortex AI adoption and agent-driven compute demand surged.
1. Deal Overview
Snowflake has inked a $6 billion, five-year contract with AWS to expand access to its ARM-based Graviton AI CPU chips, a commitment that nearly equals Snowflake’s entire $7 billion AWS revenue since its 2012 inception.
2. Driving Factors
Snowflake’s AWS spending surged to $2 billion in 2025, propelled by enterprise adoption of its Cortex AI suite, which leverages natural language database queries and agent-based automation that rely heavily on CPU processing.
3. Strategic Implications
The agreement underscores AWS’s push to scale its Graviton chips as a cost-effective alternative to GPU-centric AI compute, sharpening AWS’s competitive position against Nvidia and driving deeper cloud adoption among AI-focused enterprises.
