Cloud data storage giant Snowflake has announced a new $6 billion, five-year agreement with Amazon Web Services (AWS). This deal highlights the growing collaboration, as Snowflake has historically operated on AWS but has also expanded its services to Microsoft Azure and Google Cloud.
Snowflake’s business with AWS has soared, with projected spending expected to double to $2 billion by 2025, largely driven by advancements in AI. The company’s AI tool, Cortex AI, enhances database interactions and reporting capabilities.
A key aspect of this agreement involves Snowflake’s access to AWS’s Graviton ARM-based CPUs, which are becoming vital for AI processing. While AWS continues to utilize Nvidia’s chips, Amazon emphasizes the cost-effectiveness of its own chips, potentially attracting major clients.
This trend is further evidenced by AWS’s recent partnerships, including a substantial deal to supply Graviton chips to Meta, indicating stiff competition against Nvidia and other cloud providers like Google and Microsoft, each developing their own AI chips.
Overall, the rising demand for AI technologies is significantly benefiting cloud services, as they secure large contracts and enhance their computing capabilities.
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