Snowflake soars 33% on earnings beat and plan to spend $6 billion on Amazon cloud

Snowflake soars 33% on earnings beat and plan to spend  billion on Amazon cloud

Sridhar Ramaswamy, CEO of Snowflake, poses in front of the company signage outside of the New York Stock Exchange on Sept. 30, 2025.

NYSE

Amazon said Wednesday that its cloud division has landed a $6 billion spending commitment from Snowflake, which includes the use of the company’s custom silicon and chips for artificial intelligence.

Snowflake’s purchase of services and technology from Amazon Web Services will occur over five years, according to a press release about the agreement. Snowflake intends to expand its use of Amazon’s Graviton general-purpose chips, as well as cloud-based graphics processing units for AI.

It’s the latest sign that AWS is gaining momentum in AI as clients turn to the market-leading cloud for more advanced technologies. In April, Claude creator Anthropic said it aims to spend over $100 billion on AWS over a decade. Amazon also has a deal with OpenAI.

Both of its agreements with the AI model companies include an equity investment, while the Snowflake deal…

https://www.cnbc.com/2026/05/27/snowflake-amazon-graviton-cloud-chips.html