Published • loading... • Updated
Snowflake soars 25% on earnings beat and plan to spend $6 billion on Amazon cloud
The five-year agreement expands Snowflake’s use of AWS chips and cloud GPUs as the company reported better-than-expected quarterly results.
- On February 26, 2025, Snowflake announced a five-year $6 billion spending commitment with Amazon Web Services for Graviton CPUs and cloud-based GPUs, lifting shares 25% in extended trading after reporting adjusted earnings of 39 cents per share on $1.39 billion in revenue.
- Snowflake's AWS spending has escalated from $1.2 billion at its 2020 IPO to $2.5 billion by 2023, reflecting the company's 2022 decision to adopt Graviton chips as central processing units see renewed demand for task-oriented agentic AI applications in 2026.
- AWS launched its first Arm-based Graviton chip in 2018, establishing it as the company's most successful custom processor; Google and Microsoft followed with their own custom Arm chips. Amazon CEO Andy Jassy called Graviton the 'industry-leading CPU chip' enabling Meta to run CPU-intensive agentic AI workloads efficiently.
- The commitment demonstrates AWS is gaining momentum in AI as enterprises adopt its custom silicon. Unlike AWS partnerships with OpenAI and Anthropic that include equity investments, Snowflake's agreement does not, marking another tech company choosing Arm-based processors over traditional x86 architecture.
- Snowflake, with a market cap of just over $60 billion, balances AWS and Nvidia partnerships, having updated GPU workload capabilities in November. Arm's power-efficient architecture went mainstream with Apple's 2007 iPhone adoption and has now become the cloud industry standard as Google and Microsoft followed Amazon's lead.
Insights by Ground AI
8 Articles
8 Articles
Las Vegas SunReposted by 
Financial Post
Financial PostSnowflake Reports Financial Results for the First Quarter of Fiscal 2027
None
·Las Vegas, United States
Read Full Article
Coverage Details
Total News Sources8
Leaning Left3Leaning Right1Center3Last UpdatedBias Distribution43% Left, 43% Center
Bias Distribution
- 43% of the sources lean Left, 43% of the sources are Center
43% Center
L 43%
C 43%
14%
Factuality
To view factuality data please Upgrade to Premium
