Snowflake signs a $6B, five-year deal with AWS for AI CPU chips

In short: Snowflake signed a $6 billion, five-year agreement with Amazon Web Services to secure more of Amazon’s Graviton CPU chips for AI work.

What happened

Snowflake, a company many businesses use to store and analyze large amounts of data, announced a new five-year deal worth $6 billion with Amazon Web Services, also called AWS. Snowflake has long run on AWS, although it also sells its service on Microsoft Azure and Google Cloud.

Snowflake and AWS framed the deal as a way to support rising customer demand. Snowflake said its customers’ spending on AWS has been growing quickly, and it said that spending doubled in 2025 to $2 billion for the year.

A key part of the agreement is access to AWS’s Graviton chips. A chip is the main “brain” in a server, like the engine in a car. Graviton is a CPU (a general-purpose chip used for many tasks), and Snowflake wants more of it as AI features become a bigger part of what its customers do.

Why it matters

This deal is another sign that AI is driving a big buildout inside data centers, which are the buildings full of computers that power online services. Many people hear about AI chips and think only of Nvidia’s GPUs, which are often used to train AI models. But everyday AI use can also require lots of CPUs to run the surrounding work, especially as companies build more automated AI “agents” (software that can take steps on your behalf, like a helper following a checklist).

For AWS, deals like this also show it is trying to sell more of its own chips, not just chips from outside suppliers.

Source: TechCrunch AI