AI data cloud company Snowflake has signed a major cloud capacity agreement with Amazon Web Services (AWS).
Snowflake entered into a multi-year deal with AWS valued at $6 billion for access to compute needed to meet growing enterprise demand for AI and data workloads.
According to the company, this is its largest commitment to AWS to date. Under the agreement, Snowflake will expand its use of AWS’ custom Graviton processors, as well as GPU-accelerated EC2 instances for model training and inference.
“AI has generated enormous excitement, but for enterprises, the real challenge and opportunity is turning intelligence into action,” said Sridhar Ramaswamy, CEO of Snowflake.
“We are moving into the era of the agentic enterprise, where AI systems don’t just answer questions, but help organizations reason over trusted data, coordinate workflows, and drive real business outcomes. With AWS, we are making it easier for enterprises to bring AI directly to governed data, so they can move faster, operate with greater clarity, and create measurable impact at scale.”
Matt Garman, CEO of AWS, added: “Enterprises are rapidly moving from experimenting with AI to putting intelligent agents to work that drive real business outcomes.
“Snowflake has built on AWS since day one, and their deepened commitment to run on Graviton delivers the world-class performance, flexibility, and cost savings customers need to run data warehousing and AI workloads at scale.”
Snowflake was founded on AWS in 2015, and to this day, the majority of its customers run on the platform. The company has continued expanding its use of AWS, including launching its offerings in new AWS regions such as New Zealand (Auckland), South Africa (Cape Town), Thailand (Bangkok), AWS European Sovereign Cloud, and others.
During AWS’ recent earnings call, CEO Andy Jassy noted that the company had seen the “fastest growth rate in 15 quarters,” with Jassy revealing that the company has seen its cloud business grow by $2 billion from the previous quarter, its largest ever Q4-Q1 revenue increase “ever.”
Revenue for the quarter was $37.6bn, up 28 percent Year-on-Year (YoY), and the cloud business now has an Annualized Revenue Run Rate of $150bn and a backlog of $364bn for Q1.