Snowflake ties its future to AWS with record $6 Billion AI pact

Snowflake posted stronger quarterly results than analysts expected and followed up with a five-year, $6 billion infrastructure commitment to Amazon Web Services, its largest such agreement to date. The market responded sharply, with shares climbing 36% in extended trading after the company also raised its full-year revenue forecast.

First-quarter product revenue reached $1.33 billion, reflecting 33.9% year-over-year growth and coming in well above analyst expectations. On the back of that performance, Snowflake lifted its fiscal 2027 product revenue outlook to $5.84 billion, up from a prior estimate of $5.66 billion. For the second quarter, the company projects product revenue of between $1.415 billion and $1.420 billion, against an analyst consensus of $1.37 billion.

The AWS agreement covers more than infrastructure spend. It includes deeper product integrations between the two platforms, access to AWS Graviton processors and GPU-accelerated compute for AI model training and inference, and broader activity through AWS Marketplace. Snowflake noted that its cumulative Marketplace sales have crossed $7 billion, with more than $2 billion transacted in calendar 2025 alone, more than doubling the prior year’s figure.

The central logic behind the deal is keeping AI models working directly against enterprise data rather than requiring organizations to move sensitive information between systems. Snowflake’s Cortex AI tools handle text-to-SQL queries, summarization, sentiment analysis, and entity extraction inside the Snowflake environment itself. For enterprises that have been cautious about AI adoption because of data governance concerns, that architecture removes one of the more common objections.

Snowflake CEO Sridhar Ramaswamy attributed the revised forecast to strength in the company’s core data platform business alongside growing contribution from its AI capabilities. He also pointed to adoption of tools like Cortex Code and Snowpark, which support development and machine learning workflows on the platform.

As part of the expanded partnership, Snowflake is also extending its AWS presence into ten new regions, including Auckland, Cape Town, Bangkok, and the AWS European Sovereign Cloud, to address data residency requirements in those markets.

Gil Luria, managing director at D.A. Davidson, noted that the agreement ties Snowflake more closely to its largest infrastructure partner and positions it more directly in customers’ shift toward practical AI deployment, rather than experimental use.