In more good news for Amazon, Snowflake signs $6B deal with AWS for AI CPU chips
TechCrunch • • business
Key Points:
- Snowflake has signed a $6 billion five-year agreement with Amazon Web Services (AWS), nearly matching the total revenue it has generated from AWS since its founding in 2012.
- The growth in Snowflake's AWS-related spending is driven by increased AI usage, with customers expected to spend $2 billion on AWS in 2025 alone, supported by Snowflake's AI tool, Cortex AI.
- The new contract includes expanded access to AWS’s ARM-based Graviton CPUs, which are more cost-effective for AI-related tasks beyond training, complementing Nvidia GPUs.
- AWS is aggressively deploying its homegrown AI chips like Graviton to compete with Nvidia, with recent multi-billion-dollar deals including one with Meta, signaling growing competition in AI hardware.
- Nvidia remains confident in defending its market share with new AI-specific chips like Vera, emphasizing a $200 billion market opportunity despite rising competition from cloud providers’ custom CPUs.