tech
Snowflake rockets 36% on earnings beat and plan to spend $6 billion on Amazon cloud
Snowflake is going deeper with Amazon's Web Services, and plans to use its Arm-based Graviton chips.
TL;DR
- Snowflake will spend $6 billion on Amazon Web Services (AWS) over five years.
- The commitment includes using Amazon's custom silicon, such as Graviton chips and cloud-based GPUs for AI.
- This deal signifies AWS's increasing strength in the AI market.
- Snowflake also announced strong first-quarter earnings and its acquisition of AI startup Natoma.
- The agreement reflects a growing industry shift towards Arm-based processors over x86 architecture for AI workloads.
- CPUs like Graviton are seeing increased demand for agentic AI applications, which require substantial general compute power.