Snowflake Commits $6bn to AWS Over Five Years, with Graviton Chips at the Centre
May 28, 2026 – 7:46 am
The five-year commitment is 2.4x larger than Snowflake’s 2023 AWS deal and comes as shares jump 38% on a Q1 earnings beat. The strategic focus lies in the Graviton component.
Snowflake has signed a five-year, $6bn agreement with Amazon Web Services (AWS), marking the largest expansion of their 11-year partnership to date.
The Agreement
Announced on Tuesday, the deal includes:
- Running Snowflake’s data-cloud workloads on AWS Graviton chips.
- Developing deeper product integrations for "agentic enterprise" workloads.
This latest spending commitment is a significant increase from Snowflake’s initial $1.2bn at its 2020 IPO, rising to $2.5bn in 2023.
The new $6bn agreement is approximately five times the 2020 commitment and 2.4 times the 2023 figure.
Strategic Implications
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Endorsement of Arm Servers: Snowflake’s decision to commit to Graviton chips at scale signifies a significant endorsement of custom Arm server processors, which have been reshaping cloud infrastructure economics for years.
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Competition and Trend: This follows ByteDance’s recent announcement of building its own Arm and RISC-V CPUs to counter Intel and AMD pricing pressure. It reinforces the trend towards hyperscale adoption of custom server silicon.
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AWS’ AI Commitments: The Snowflake deal is part of a larger wave of AI infrastructure commitments from AWS, including agreements with Anthropic, OpenAI, and Meta.
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Agentic AI Thesis: Snowflake’s focus on agentic AI, where AI agents operate primarily over trusted enterprise data within customers’ cloud warehouses, requires close integration with the underlying cloud provider. This agreement deepens their partnership with AWS in this area.