In more good news for Amazon, Snowflake signs $6B deal with AWS for AI CPU chips

Snowflake has signed a five-year, $6B agreement with Amazon Web Services to secure chips for AI-related computing needs. The deal gives AWS another major customer for its AI infrastructure as companies seek alternatives to Nvidia-dependent capacity.

The agreement underscores growing demand for AI infrastructure and the strategic value of cloud providers’ in-house chips. If more enterprise software companies commit to AWS silicon, Nvidia may face stronger competition from hyperscalers building vertically integrated AI stacks.

Snowflake has signed a new, enormous five-year deal with Amazon to secure chips for AI usage. Nvidia is once again being put on notice.