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In more good news for Amazon, Snowflake signs $6B deal with AWS for AI CPU chips
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.
TL;DR
- Snowflake has signed a new five-year, $6 billion agreement with Amazon Web Services (AWS).
- Snowflake has historically run on AWS and is now expanding its use of AWS's Graviton ARM-based CPU chips.
- The deal is driven by accelerating customer spending on AI, particularly for tools like Snowflake's Cortex AI.
- AWS is increasingly deploying its own chips, like Graviton, to offer better price-performance for AI workloads, competing with Nvidia.
- This agreement follows a similar large deal between AWS and Meta for Graviton chips.
- The development of in-house AI chips by cloud providers like Amazon, Google, and Microsoft signifies a challenge to Nvidia's dominance in the AI hardware market.