Snowflake commits $6bn to AWS over five years, with Graviton chips at the centre
By
Alina Maria Stan
Fresh out the oven, still warm. Top of the tray.
Summary
Snowflake has signed a $6 billion, five-year commitment with Amazon Web Services (AWS), marking the largest expansion of their 11-year partnership. The deal is 2.4x larger than Snowflake's 2023 AWS agreement and includes commitments to run on AWS Graviton, Amazon's custom Arm-based CPU chips. The announcement comes as Snowflake's shares jumped 38% following a strong Q1 earnings report. The Graviton component is strategically significant, representing a shift toward custom silicon and deeper product integrations between the two companies.
Key quotes
· 3 pulledThe five-year commitment is 2.4x larger than Snowflake's 2023 AWS deal and lands as shares jump 38% on a Q1 earnings beat.
Snowflake has signed a five-year, $6bn commitment to Amazon Web Services in what both companies are framing as the largest expansion of their 11-year relationship to date.
The Graviton component is the part that matters strategically.
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