Snowflake shares surge 30% as company raises annual sales outlook and signs $6B AWS deal

Snowflake shares surged almost 30% in late trading after the company raised its annual sales outlook and announced a $6 billion multiyear agreement tied to Amazon Web Services, according to Bloomberg. The deal underscores how demand for AI infrastructure is reshaping spending by major software and cloud companies, and it sent a strong signal to investors that Snowflake expects the trend to continue.

According to Bloomberg and TechCrunch, the agreement will give Snowflake access to Amazon’s cloud services and chips over five years, adding a major new layer to its AI strategy. Snowflake said stronger AI demand was helping drive its business, and the company’s improved outlook was the other key reason its shares jumped so sharply after the earnings update.

The arrangement matters because it links one of the biggest enterprise data platforms with one of the largest cloud providers at a time when companies are racing to secure computing power for AI products and services. TechCrunch described the contract as a “new, enormous five-year deal” for AI CPU chips, highlighting the scale of Snowflake’s commitment to AWS.

The news also adds to a broader wave of large cloud and chip deals across the AI sector. Recent reporting has shown Amazon striking major infrastructure agreements as it expands its role in supplying computing capacity, while chip makers and cloud providers compete to meet rising demand from companies building AI systems.

For Snowflake, the immediate focus will be on whether the stronger sales outlook translates into sustained revenue growth and whether the AWS partnership helps it capture more AI-related workloads. For Amazon, the deal reinforces the company’s position as a central supplier of the computing tools behind the AI boom.