Snowflake signs $6B AWS deal for Graviton AI chips
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- Snowflake signed a five‑year, $6 billion contract with Amazon Web Services to run its AI workloads on AWS’s Graviton ARM‑based CPU chips.
- Snowflake expects its AWS spend to double to $2 billion in 2025, driven by adoption of its Cortex AI platform that enables natural‑language queries and automated reporting.
- AWS markets its Graviton chips as a lower‑cost, high‑performance alternative to Nvidia GPUs for AI inference and agent workloads, promising price‑performance advantages to customers.
- Meta recently secured a multi‑billion‑dollar agreement for millions of AWS Graviton chips, highlighting the rapid uptake of CPU‑centric AI compute across cloud providers.
- Nvidia CEO Jensen Huang announced the launch of the Vera AI‑specific CPU, targeting a $200 billion market, as a direct challenge to the emerging AWS Graviton AI chip ecosystem.
Why it matters: Snowflake gains a massive revenue stream and tighter integration with AWS, while AWS secures a high‑value AI compute customer and promotes its Graviton chips as cost‑effective rivals to Nvidia’s GPUs, pressuring Nvidia’s market share.
