Snowflake Secures $6 Billion Five-Year AI Infrastructure Deal with AWS

Snowflake Inc. signed a five-year, $6 billion agreement with Amazon Web Services (AWS). The contract commits Snowflake to purchase AWS services, focusing on Graviton ARM-based processors and cloud GPUs for AI workloads, averaging $1.2 billion per year.

Snowflake signs $6B AWS deal for AI CPU chips as cloud giants challenge NvidiaSnowflake Stock Rises on $6 Billion AWS DealTechCrunchAWS and Snowflake sign 5-year giant AI deal

In Q1 FY2027 Snowflake posted $1.39 billion total revenue (33 % YoY) and $1.33 billion product revenue (34 % YoY), with adjusted EPS of $0.39. The FY2027 product-revenue outlook rose to $5.84 billion, net-revenue retention reached ~125 %, and remaining performance obligations grew to $9.21 billion. The company serves 779 customers spending over $1 million annually.

CNBC

Snowflake cites accelerating enterprise AI adoption as the driver for the deeper AWS tie-up. Its Cortex AI and Snowflake Intelligence tools increase demand for CPU-intensive inference and agentic tasks, which Graviton chips aim to serve cost-effectively. The deal also expands integration via AWS Marketplace and joint go-to-market programs to shift customers from pilots to production AI.

AWS and Snowflake sign 5-year giant AI deal

CEO Sridhar Ramaswamy described the pact as a step toward an “agentic enterprise,” where AI acts on trusted data to deliver measurable outcomes. AWS chief Matt Garman said the expanded Graviton usage will give customers the cost, performance and flexibility needed for large-scale data-warehousing and AI workloads. Gil Luria of D.A. Davidson called the deal a new growth element that aligns Snowflake more closely with its biggest cloud partner.

Snowflake shares rise on $6 billion AWS deal, driven by AI cloud demand

Analysts warn that Snowflake’s dependence on a single cloud provider may limit bargaining power and increase exposure to AWS pricing shifts. Competitors such as Databricks and open-source platforms pose market-share threats. Some investors doubt that the $6 billion spend will translate into lasting product-revenue growth, given revenue is recognized only when customers consume compute, storage or data-transfer services.

Snow stock surges 25% after earnings beat, commits $6B to AWS cloud

Sources differ on Snowflake’s Q1 revenue, reporting $1.28 billion versus $1.39 billion, and product revenue ranging from $1.09 billion to $1.33 billion. One outlet described the contract as $5 billion rather than $6 billion. The split between new and pre-planned spending within the $6 billion commitment is not disclosed.

CNBC

• “The new deal with Amazon adds another element to the growth path for Snowflake,” — Gil Luria, Managing Director, D.A. Davidson

Reuters

• “AWS chief Matt Garman pointed to Snowflake’s deeper adoption of Graviton chips, saying it should bring the cost, performance and flexibility customers need to run data warehousing and AI workloads at scale.” — Matt Garman, Chief, AWS

Snowflake shares rise on $6 billion AWS deal, driven by AI cloud demand

• “better price-performance” — Andy Jassy, CEO, Amazon

TechCrunch

• “Snowflake CEO Sridhar Ramaswamy stated: "AI has sparked an unprecedented industry craze, but for enterprises, the real challenge and opportunity lie in turning intelligence into action.” — Sridhar Ramaswamy, Snowflake CEO (post-earnings call)

Snowflake Shares Surge 35% After Hours. $6 Billion Expansion of Partnership With Amazon AWS, First-Quarter Revenue Jumps 33%

Snowflake projects Q2 product revenue of $1.415-$1.420 billion, above analyst estimates, and will continue expanding AI features such as Cortex Code and Snowflake Intelligence. The partnership will be tested as competitors like Nvidia, Google and Microsoft roll out their own AI chips, while AWS seeks to lock in long-term AI spend.

AWS and Snowflake sign 5-year giant AI deal