Snowflake AWS $6 Billion Deal Raises Forecast

Snowflake Inc. (NYSE: SNOW) said on May 27, 2026, that it signed a multi-year Strategic Collaboration Agreement with Amazon Web Services as part of a $6 billion infrastructure commitment and raised its annual product revenue forecast, citing accelerating enterprise AI workloads and cloud migrations.

Strategic Collaboration and AI Infrastructure Commitment

Snowflake described the agreement as an expanded collaboration with AWS rather than an initial partnership. The company called the infrastructure commitment its largest to date, reflecting accelerating usage of AWS services. The deal is linked to AWS Graviton processors—custom Arm-based CPUs—and broader AI chip infrastructure, including graphics processing units.

This commitment positions Snowflake among AWS’s largest CPU-based computing customers, alongside major technology companies. The collaboration focuses on accelerating enterprise adoption of agentic AI, which refers to AI systems that can autonomously plan and act. Snowflake said the agreement will help joint customers build and deploy AI faster and more securely by strengthening its AI Data Cloud on AWS.

Snowflake and AWS framed the deal as a way to simplify and speed AI workload deployment for enterprise customers worldwide, building on their prior work in data warehousing and analytics. The company described the commitment as multi-year, while some reports specify a five-year term. There is no indication that the agreement requires regulatory approvals such as antitrust clearance.

Revenue Forecast and Demand Drivers

Snowflake raised its annual product revenue forecast, attributing the increase to growing demand for AI-driven workloads and customer cloud migrations. The company’s expanded AWS commitment and updated guidance highlight its bet that rising enterprise demand for agentic AI will drive higher cloud consumption and further embed its AI Data Cloud on AWS.