Snowflake has signed a $6 billion multiyear agreement with Amazon Web Services to secure chips for AI usage. The five-year deal is tied to AWS's AI chip infrastructure and the use of its Arm-based Graviton processors.
Following the announcement and a stronger-than-expected annual outlook, Snowflake shares jumped nearly 30% in late trading.
The cloud-storage company now joins Apple and Meta as one of the largest customers for AWS's CPU-based computing. This strategic move also puts Nvidia on notice.