Snowflake has agreed to pay Amazon Web Services $6B over the next five years for access to AWS's Graviton chips, the central processing units AWS first launched in 2018. The deal makes the cloud storage company one of AWS's largest customers for CPU-based computing, joining Apple and Meta. Snowflake shares jumped as much as 35% in after-hours trading on the news. Snowflake, founded on AWS's platform in 2015, now serves nearly 14,000 customers and has been expanding its relationship with Amazon ever since. The deal lands as demand for CPUs has surged on the back of agentic AI, since autonomous AI agents require large numbers of processors to orchestrate computing tasks. CPU makers including Intel, AMD, and Arm Holdings have all seen share prices climb and sales pick up in recent months as agentic AI has spread.
