Snowflake soars 25% on earnings beat and plan to spend $6 billion on Amazon cloud
Snowflake will expand its use of Amazon’s Graviton chips and cloud GPUs as it deepens AI infrastructure spending, after revenue and earnings beat estimates.
- On February 26, 2025, Snowflake announced a five-year $6 billion spending commitment with Amazon Web Services for Graviton CPUs and cloud-based GPUs, lifting shares 25% in extended trading after reporting adjusted earnings of 39 cents per share on $1.39 billion in revenue.
- Snowflake's AWS spending has escalated from $1.2 billion at its 2020 IPO to $2.5 billion by 2023, reflecting the company's 2022 decision to adopt Graviton chips as central processing units see renewed demand for task-oriented agentic AI applications in 2026.
- AWS launched its first Arm-based Graviton chip in 2018, establishing it as the company's most successful custom processor; Google and Microsoft followed with their own custom Arm chips. Amazon CEO Andy Jassy called Graviton the 'industry-leading CPU chip' enabling Meta to run CPU-intensive agentic AI workloads efficiently.
- The commitment demonstrates AWS is gaining momentum in AI as enterprises adopt its custom silicon. Unlike AWS partnerships with OpenAI and Anthropic that include equity investments, Snowflake's agreement does not, marking another tech company choosing Arm-based processors over traditional x86 architecture.
- Snowflake, with a market cap of just over $60 billion, balances AWS and Nvidia partnerships, having updated GPU workload capabilities in November. Arm's power-efficient architecture went mainstream with Apple's 2007 iPhone adoption and has now become the cloud industry standard as Google and Microsoft followed Amazon's lead.
23 Articles
23 Articles
Snowflake jumps as enterprise demand for data offerings drives forecast raise
By Kanishka Ajmera May 28 – Snowflake shares jumped 36% in premarket trading on Thursday after the data analytics firm raised its annual product revenue forecast and announced a five-year AI infrastructure deal worth $6 billion with Amazon Web Services. The gains, if they hold, would add more than $20 billion to its market cap. Snowflake’s shares are down 20% so far this year, and the massive jump “tells you just how much scepticism had built …
Snowflake Surges 35% Premarket After AI-Fueled Blowout Quarter - Snowflake (NYSE:SNOW)
Snowflake Inc. (NYSE:SNOW) shares skyrocketed over 35% in premarket trading on Thursday after the AI data cloud provider crushed first-quarter fiscal 2027 expectations, upgraded its full-year growth outlook, and announced a massive $6 billion multi-year infrastructure agreement with Amazon.com Inc.‘s (NASDAQ:AMZN) AWS. A ‘Clear Inflection’ In AI Growth The blowout quarter represents a pivotal shift that Patrick Moorhead, Chief Analyst at Moor In…
Snowflake commits $6bn to AWS over five years, with Graviton chips at the centre
The five-year commitment is 2.4x larger than Snowflake’s 2023 AWS deal and lands as shares jump 38% on a Q1 earnings beat. The Graviton component is the part that matters strategically. Snowflake has signed a five-year, $6bn commitment to Amazon Web Services in what both companies are framing as the largest expansion of their 11-year […] This story continues at The Next Web
Snowflake commits $6B to Amazon Web Services over 5 years in latest AI infrastructure deal
Snowflake committed to spend $6 billion on AWS over five years, including the use of Amazon's custom Graviton processors. The deal adds to a growing list of large-scale AI infrastructure commitments on AWS from Anthropic, OpenAI, and Meta.
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