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Business & Markets · Enterprise

Snowflake Signs $6B AWS Deal Driven by AI Workloads and Graviton Chip Demand

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Snowflake has committed to a new five-year, $6 billion agreement with Amazon Web Services, a deal that dwarfs the $7 billion the data cloud company generated through AWS Marketplace across its entire history since 2012.

The scale of the contract reflects surging AI-driven demand. Snowflake’s customer spending on AWS doubled in 2025 to $2 billion, fuelled largely by adoption of Cortex AI, the company’s tool that allows enterprises to query their data using natural language and generate automated summary reports.

A notable element of the agreement is Snowflake’s expanded access to AWS’s Graviton ARM-based CPU chips. As AI shifts toward agentic workloads, CPU usage is accelerating rapidly alongside GPU demand, making Amazon’s more affordable custom silicon increasingly attractive — a dynamic also drawing Meta and others into multi-billion-dollar Graviton agreements.

James Dargan
About the author
James Dargan

James Dargan is a writer and researcher at The AI Insider. His focus is on the AI startup ecosystem and he writes articles on the space that have a tone accessible to the average reader.

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