Snowflake Inc.’s shares jumped in late trading today after it announced a $6 billion spending commitment on Amazon Web Services Inc.’s cloud infrastructure, including a deal to use the company’s custom artificial intelligence chips.
The cloud data platform giant also reported stellar first-quarter earnings results, powering past Wall Street’s targets in a sign that the AI boom is providing it with a real tailwind, contrary to many investor’s fears.
The company’s purchase of AWS’ cloud technology and services will span the next five years. It includes a commitment by Snowflake to use more of Amazon’s general-purpose Graviton chips, as well as its custom AI accelerators.
For AWS, the deal underlines the increasing momentum it’s gaining in the AI industry, as an increasing number of businesses turn to its trusted cloud platform to run more sophisticated “agentic” AI workloads. It follows an announcement by Claude chatbot creator Anthropic PBC last month,…
