Snowflake signs $6 billion cloud deal with AWS to power AI expansion
- Marijan Hassan - Tech Journalist
- 9 hours ago
- 2 min read
Snowflake Inc. has signed a multi-year cloud infrastructure agreement worth approximately $6 billion with Amazon Web Services, in a deal aimed at scaling its artificial intelligence and data platform capabilities.
The agreement is one of the largest infrastructure commitments in Snowflake’s history and underscores the growing demand for cloud capacity driven by AI workloads.
AI workloads drive massive infrastructure demand
The deal will see Snowflake expand its reliance on AWS infrastructure to support data processing, analytics, and AI model operations across its platform.
As enterprises increasingly adopt generative AI and machine learning systems, demand for high-performance cloud storage and compute resources has surged, pushing data platforms to secure long-term capacity agreements with hyperscale providers.
Strengthening a longstanding cloud partnership
Snowflake already operates heavily on AWS infrastructure, and this expanded agreement deepens an existing relationship between the two companies.
The move ensures Snowflake can scale its services more reliably while meeting enterprise demand for real-time data processing and AI-ready infrastructure. It also reinforces AWS’s position as a core infrastructure provider for major AI and data platforms competing in the global cloud market.
Blockbuster Q1 earnings beat dispels market skepticism
The landmark AWS announcement coincided with a strong first-quarter fiscal 2027 financial performance that smashed consensus expectations.
Total revenue: Reached $1.39 billion, a 33% increase year-over-year.
Product revenue: Surged to $1.33 billion, representing a 34% annualized climb and marking the strongest sequential dollar growth in the platform's history.
Enterprise momentum: The company expanded its high-value customer base to 779 clients generating over $1 million in trailing 12-month product revenue, reflecting a 29% expansion.
Forward outlook: Bolstered by the accelerating consumption of enterprise data workloads, Snowflake confidently raised its full-year product revenue guidance to $5.84 billion.
To further consolidate its footprint in autonomous technology, Snowflake concurrently announced a definitive agreement to acquire Natoma, a specialized enterprise platform for AI agents, for an undisclosed sum.
By integrating targeted agentic acquisitions with multi-billion-dollar hyperscale custom chip commitments, Snowflake is mounting an aggressive defense against fierce primary rivals Databricks and Google BigQuery in the race to manage the enterprise AI layer.
