Cloud data storage giant Snowflake has signed a new five-year partnership agreement with Amazon Web Services (AWS). This $6 billion deal is focused on developing artificial intelligence (AI) infrastructure. For context, while Snowflake has generated $7 billion in total services through AWS Marketplace since its founding in 2012, this new contract alone is nearly equivalent to that amount. This is reported by Techcrunch.com reports .
Company representatives noted that customer spending on the AWS platform is growing rapidly, with projections reaching $2 billion in 2025 alone. The primary driver of this growth is artificial intelligence technology. Through its Cortex AI tool, Snowflake offers enterprises the ability to interact with databases in natural language, summarize reports, and utilize other intelligent features.
A key aspect of this agreement is that Snowflake will expand its use of Amazon's ARM-based Graviton processors. As AI models transition from the training phase to daily usage and autonomous agents, the demand for CPU power increases significantly. While NVIDIA chips handle primary computations, processors like Graviton provide a cost-effective and efficient solution for AI agent operations.
Amazon CEO Andy Jassy stated last month that the company's proprietary chips offer a better price-performance ratio than NVIDIA products. More affordable and efficient chips are attracting major clients. For instance, Meta recently signed a deal with AWS to purchase millions of Graviton chips for its AI needs.
Currently, all major cloud providers, including Google and Microsoft, are developing their own custom AI chips. Microsoft introduced its Maia AI chip in January, while Google has been using its own chips for years. This trend indicates that cloud giants are launching serious competition against NVIDIA's absolute market dominance.
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