Snowflake signs $6 billion five-year agreement with Amazon Web Services for AI and CPU chips

Snowflake and AWS announced a new $6 billion five-year agreement on Wednesday. For context, Snowflake has sold $7 billion worth of services via AWS Marketplace total since its founding in 2012.

The deal centers on Snowflake's accelerating use of AWS's Graviton, an ARM-based CPU chip (a processor designed to handle most tasks in AI systems, particularly agents that perform tasks autonomously). Snowflake's customers doubled their AWS spending to $2 billion in 2025.

The agreement reflects AWS's strategy to deploy its own chips as a more affordable alternative to Nvidia's offerings. AWS CEO Andy Jassy previously stated that Amazon's homegrown AI chips offer 'better price-performance' than Nvidia's, though AWS still uses Nvidia's chips in its cloud.