🤖Snowflake Signs $6B AWS Deal for AI Chips
Snowflake's massive AWS deal is all about AI chips
TL;DR
Snowflake has signed a five-year, $6 billion agreement with AWS to access its Graviton CPU chips. This deal accelerates spending on AWS and leverages Snowflake's Cortex AI tool for AI tasks.
Snowflake just inked a $6 billion pact with Amazon Web Services over the next five years, primarily to gain more access to AWS’s Graviton CPUs. These chips are crucial for handling AI workloads, especially as demand surges. For Snowflake's customers, this means faster and cheaper AI processing through Cortex AI, which offers text-based database queries and summary reports. The deal is close to the total amount Snowflake has ever brought in from AWS Marketplace since 2012 ($7 billion), indicating a significant shift towards AI-centric cloud services.
Key Points
Snowflake's AWS agreement is worth $6 billion over five years, nearly matching its total AWS Marketplace revenue since 2012 ($7 billion).
Snowflake customers are expected to double their spending on AWS to $2 billion in 2025 alone, driven by AI.
AWS Graviton CPUs handle most AI tasks efficiently and cost-effectively compared to traditional chips.
Amazon passes savings from using its own Graviton chips along to customers, making AI processing more affordable.
Snowflake's Cortex AI tool provides text-based database queries and summary reports for enhanced AI workflows.
Why It Matters
If you're running Snowflake on AWS and leveraging Cortex AI for your AI projects, this deal means faster, cheaper AI processing. However, the $6 billion commitment signals a major shift in cloud spending towards AI-specific hardware.
Frequently Asked Questions
Why does this matter?
If you're running Snowflake on AWS and leveraging Cortex AI for your AI projects, this deal means faster, cheaper AI processing. However, the $6 billion commitment signals a major shift in cloud spending towards AI-specific hardware.
What happened?
Snowflake has signed a five-year, $6 billion agreement with AWS to access its Graviton CPU chips. This deal accelerates spending on AWS and leverages Snowflake's Cortex AI tool for AI tasks.
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