Itdaily - Snowflake invests 6 billion dollars in AWS for AI adoption

Snowflake invests 6 billion dollars in AWS for AI adoption

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Snowflake and AWS enter into a multi-year strategic agreement to accelerate the adoption of AI agents among enterprises. The company is investing 6 billion dollars in Graviton computing power and AI on AWS over the next five years.

Snowflake and Amazon Web Services (AWS) have announced a multi-year strategic collaboration agreement. This is intended to accelerate the adoption of generative AI and AI agents among enterprises. To this end, Snowflake is investing 6 billion dollars in infrastructure on AWS over the next five years.

The collaboration builds on the existing relationship between the two companies. Snowflake has been running on AWS for eleven years, and the majority of its customers use Amazon’s public cloud.

AI directly on managed data

The technical architecture of the collaboration brings foundation models directly to managed corporate data. This should reduce the complexity and risks that arise when sensitive information must be moved between systems.

Snowflake Cortex AI enables customers to build AI applications for text-to-SQL, summaries, and sentiment analysis directly within their Snowflake environment. The company utilizes AWS Graviton processors and GPU-accelerated Amazon EC2 instances for model training.

Acceleration via AWS Marketplace

Since Snowflake became available in AWS Marketplace, revenue has grown rapidly. The company passed the 7 billion dollar mark in total sales via the marketplace. The new agreement scales up joint initiatives to help customers discover and implement AI solutions.

Snowflake has expanded its global presence on AWS to ten new regions, including New Zealand, South Africa, and Thailand. This helps customers meet data residency requirements.