Home / Business and Economy / Amazon Cloud Scores $6B AI Deal with Snowflake
Amazon Cloud Scores $6B AI Deal with Snowflake
27 May
Summary
- Snowflake commits $6 billion to Amazon Web Services over five years.
- The deal focuses on AI and includes use of custom silicon and GPUs.
- This agreement highlights AWS's growing momentum in the AI sector.
Snowflake has announced a five-year spending commitment of $6 billion with Amazon Web Services (AWS). This significant agreement highlights Snowflake's intent to expand its utilization of AWS technologies, particularly for artificial intelligence workloads.
The commitment includes leveraging Amazon's custom Graviton chips and cloud-based graphics processing units (GPUs) crucial for AI advancements. This move by Snowflake is a notable indicator of AWS's growing influence and capabilities in the competitive AI cloud market.
This development follows other major cloud deals for AWS, including a substantial commitment from AI company Anthropic. Snowflake's decision also revisits a past agreement with Amazon from its 2020 IPO disclosures, which was initially for $1.2 billion over five years, and grew to $2.5 billion in 2023, indicating a significant escalation in their partnership.
Snowflake also recently reported strong financial results, exceeding analyst expectations for earnings per share and revenue. The company's stock saw a notable increase following these positive financial announcements.
