Snowflake Signs $6B AWS AI Infrastructure Deal

Snowflake has signed a $6 billion, five‑year strategic collaboration agreement with Amazon Web Services focused on AI infrastructure and advanced cloud compute, the companies announced Wednesday, a deal that reflects the surging demand for enterprise AI workloads and deepens one of the cloud industry’s most significant partnerships.

Under the expanded agreement, Snowflake will commit to running its data platform and AI services on AWS’s custom Graviton processors and related AI infrastructure, with deeper integrations around generative and agentic AI. That commitment comes as Snowflake’s lifetime sales via the AWS Marketplace have surpassed $7 billion, and calendar‑year AWS transactions doubled to $2 billion in 2025, underscoring how critical AWS remains to Snowflake’s cloud footprint.

A Historic Scale for Cloud Infrastructure

The $6 billion spend commitment, nearly matching Snowflake’s lifetime AWS Marketplace revenue, is one of the largest cloud infrastructure deals announced in the AI era. Snowflake first launched on AWS over a decade ago and has gradually increased its multi‑year commitments: from roughly $1.2 billion at its 2020 IPO to $2.5 billion in 2023, and now $6 billion in 2026, according to reporting on the expanded agreement.

This infrastructure investment will fuel Snowflake’s transition from data warehousing toward AI data platforms, including Cortex AI and Snowflake Intelligence, enabling customers to run generative AI, inference workloads, and agent‑driven applications directly on governed enterprise data. By leveraging AWS’s ARM‑based Graviton processors and GPU‑accelerated EC2 instances, Snowflake and AWS aim to deliver optimized performance and cost efficiencies for enterprise AI applications.

Revenue Momentum and Share Reaction

The announcement coincided with Snowflake’s first‑quarter financial beat, where the company reported $1.39 billion in revenue, a 33 % year‑over‑year increase, and raised its full‑year product revenue forecast from $5.66 billion to $5.84 billion for fiscal 2027. Wall Street responded enthusiastically: Snowflake’s shares surged as much as 36 % in after‑hours trading following the deal and earnings beat.

This strong performance reflects broad enterprise adoption of Snowflake’s AI tools, including Cortex Code and Snowpark, as companies increasingly shift data workloads to cloud platforms that support advanced analytics, machine learning, and agentic AI functions. Snowflake’s CFO noted that the firm now counts 779 customers spending more than $1 million annually, indicating deepening enterprise consumption of its platform.

Why the AI Compute Deal Matters

The AWS‑Snowflake pact highlights a broader transformation in enterprise IT: AI workloads are reshaping cloud infrastructure economics. Historically, GPU‑centric training dominated AI headlines, but many real‑world AI applications from inference to agent coordination require vast amounts of CPU compute, storage, and network throughput. Snowflake’s commitment to AWS’s custom Graviton CPUs signals that CPU‑oriented AI infrastructure is now central to real‑world deployments.

For AWS, the deal reinforces its strategy of selling not just cloud storage and networking but also purpose‑built AI infrastructure, including its Graviton and Trainium chip lines. Analysts have pointed out that Amazon’s custom chip business now generates significant revenue with Graviton demand highlighted by other large customers like Meta and Uber in recent months as cloud giants compete to capture the growth in AI compute consumption.

Competitive Implications for Cloud and AI

This collaboration further solidifies AWS as Snowflake’s primary cloud partner even as Snowflake runs across Azure and Google Cloud as well. The deal positions AWS and Snowflake to jointly accelerate enterprise adoption of agentic AI, where systems don’t just surface answers but coordinate workflows, automate processes, and act on behalf of users, a key frontier in AI transformation.

For Snowflake, tightly binding its future to AWS’s AI infrastructure helps ensure performance at scale and reduces latency between data and AI processing. For AWS, it intensifies competition with Microsoft Azure and Google Cloud by locking in a marquee AI data platform as a top customer and championing its Graviton chips in the broader AI compute ecosystem.

Infrastructure and Innovation

The extended AWS partnership, combined with Snowflake’s revenue forecasts and product momentum, underscores a pivotal shift: AI is no longer an experimental overlay on cloud computing; it’s becoming the central workload driving long‑term enterprise IT investment. As joint customers deploy AI applications on governed data at scale, the Snowflake‑AWS alliance may define how businesses operationalize AI across analytics, automation, and customer‑facing systems.

The announcement also sets the stage for deeper competition in cloud‑based AI infrastructure, not only among AWS, Azure, and Google Cloud but also across specialized AI chip makers and platform builders, as enterprises seek performant, secure, and cost‑effective foundations for the next generation of intelligent applications.