Snowflake inks $6B AWS deal for AI chips

Snowflake has signed a significant five-year, $6 billion agreement with Amazon Web Services (AWS) to expand its use of AWS's AI-focused Graviton CPU chips. This deal nearly matches Snowflake's total revenue from the AWS Marketplace since its inception, highlighting the accelerating demand for AI-driven services. Snowflake's Cortex AI tool, which leverages enterprise data stored on its platform, is a key driver of this growth. The increased reliance on CPUs for AI tasks, particularly for agents, positions AWS's custom chips as a competitive alternative to Nvidia's offerings, signaling a shift in the AI hardware landscape.