Cloud data storage giant Snowflake has entered into a new five-year agreement worth $6 billion with Amazon Web Services, the companies revealed on Wednesday. Snowflake originally operated exclusively on AWS, though it is now also available on Microsoft Azure and Google Cloud. To put this deal into perspective, AWS notes that Snowflake has sold a total of $7 billion worth of its services through the AWS Marketplace since its founding in 2012. This new contract, therefore, represents nearly all the revenue Snowflake has ever generated from that cloud platform. The company attributes this acceleration to its customers ramping up spending on AWS, which doubled in 2025 to $2 billion for that calendar year alone.

The driving force behind this growth is, naturally, artificial intelligence. Snowflake has been offering its AI building tool, Cortex AI, for a couple of years now. It’s a practical tool because Snowflake serves as the repository for much of an enterprise’s data. The AI tool enables features like a text interface for database queries—allowing users to ask questions in plain language—along with summary reports and other capabilities. Notably, Snowflake is signing this contract to gain more access to AWS’s homegrown ARM-based CPU chip, Graviton. As AI shifts from training to daily usage and automation via agents, CPU usage is skyrocketing. While GPUs handle training and reasoning, CPUs manage most other tasks associated with AI, particularly agents.

Amazon CEO Andy Jassy boasted last month that Amazon’s own homegrown AI chips offer “better price-performance” than Nvidia’s offerings, though AWS still uses Nvidia’s chips in its cloud. Demand for AI processing is so high that cloud providers like AWS are deploying chips as quickly as they can. Additionally, all major AI model makers—and many other AI offerings—have architected their apps specifically for Nvidia’s chips. Still, Amazon’s own chips provide a more affordable option for the cloud giant to deploy. Amazon, known for being price-conscious, says it passes those savings along to its customers. Consequently, these chips are attracting new multi-billion-dollar deals. For instance, last month AWS signed a deal to provide millions of Graviton chips to Meta for its growing AI compute needs. That was a significant win for AWS, as Meta had signed a $10 billion deal with Google Cloud a few months earlier.

More broadly, these deals serve as a warning to Nvidia that competitive CPUs from cloud giants are trying to encroach on its territory. Google has been developing its own AI chips for years, and Microsoft just launched its Maia AI chip in January. Unsurprisingly, Nvidia CEO Jensen Huang stated last week that he is more than ready to defend—and even expand—his turf. He proclaimed that the new AI-specific CPU his company launched, called Vera, represents a “brand new” $200 billion market for Nvidia, following another record-breaking quarter last week. He also noted that he has already sold $20 billion worth of these chips. While Nvidia may not easily cede market share to Amazon or any cloud provider, AWS’s multi-billion-dollar cloud deals demonstrate how AI is lifting its fortunes. Regardless of which companies benefit most from the rise of AI in our work and home lives, the cloud providers are securing their share.