Mentioned:
SNOW +2.75% AMZN +0.80% ARM -7.55%

Snowflake is making a multi billion dollar bet on the future of artificial intelligence. And they’re partnering up with Amazon to do it.

What’s happening:

  • Snowflake (NYSE: SNOW) has entered into a new $6B USD deal with Amazon Web Services for high performance computing

By the numbers:‍

  • Snowflake has committed to spend $6B USD over the next 5 years with Amazon Web Services

Why it matters:‍

  • This is the single largest deal that Snowflake has ever done with Amazon Web Services

Going deeper:‍

  • Snowflake has publicly stated that they expect a significant increase in artificial intelligence workloads running on their platform which has been partially fuelled by early adoption of their Cortext AI and Snowflake ML software
  • Amazon Web Services will provide Snowflake with access to GPUs as well as their custom Graviton CPUs which are designed by Amazon Web Services using Arm Holdings' (NASDAQ: ARM) Neoverse architecture

Market reaction:‍

  • Shares of Snowflake surged more than +50% following the announcement of their new deal with Amazon Web Services