Key Points

  • Snowflake signed a $6 billion, five-year deal with AWS for access to its Graviton CPUs.
  • This deal is nearly as much as Snowflake's entire $7 billion in sales through AWS Marketplace since 2012.
  • Snowflake's AI tool, Cortex AI, is driving a surge in customer spending, which doubled to $2 billion in 2025.
  • AWS's Graviton chips are ARM-based CPUs that offer a cheaper alternative to Nvidia's offerings for AI tasks.
  • The deal follows AWS's recent agreement to provide millions of Graviton chips to Meta for AI compute.
  • Nvidia CEO Jensen Huang recently claimed a new $200 billion market for its Vera CPU, but Amazon is aggressively competing.

Why It Matters

This isn't just a boring cloud contract—it's a declaration of war in the chip world. Snowflake is betting $6 billion that Amazon's Graviton CPUs can handle the rising tide of AI workloads, which is a direct challenge to Nvidia's dominance. While Nvidia is busy selling $20 billion worth of its new Vera chips, Amazon is proving that cheaper, homegrown alternatives can lure in massive deals. The AI chip turf war is heating up, and this deal shows that the cloud giants are no longer just renting Nvidia's hardware—they're building their own arsenals.

Sources