Snowflake’s stock surges after-hours on solid earnings beat and multibillion-dollar AWS cloud deal
Snowflake Inc.’s shares shot up in late trading today after it announced a $6 billion spending commitment on Amazon Web Services Inc.’s cloud infrastructure, including a deal to use the company’s custom artificial intelligence chips. The cloud database giant also reported stellar first-quarter earnings results, powering past Wall Street’s targets in a sign that the AI boom is providing it with a real tailwind, contrary to many investor’s fears.
The company’s purchase of AWS’s cloud technology and services will span the next five years. It includes a commitment by Snowflake to use more of Amazon’s general-purpose Graviton chips, as well as its custom AI accelerators.
For AWS, the deal underlines the increasing momentum it’s gaining in the AI industry, as an increasing number of businesses turn to its trusted cloud platform to run more sophisticated “agentic” AI workloads. It follows an announcement by Claude chatbot creator Anthropic PBC last month, which revealed it will spend $100 billion on AWS infrastructure over the next decade. AWS has also struck a multibillion-dollar deal with the rival AI firm OpenAI Group PBC.
