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SNOW
New deal, bigger flex
Snowflake didn’t just post a strong quarter — it came out swinging with a $6 billion, five-year commitment to Amazon Web Services. That works out to roughly $1.2 billion a year in AWS spend, which is a pretty loud way of saying, “Yes, we’re all-in on this cloud relationship.”
The market clearly heard the message. SNOW stock jumped more than 35% after the announcement, because this isn’t just a procurement line item. It’s a strategic handoff to AWS Graviton compute and AI services, plus deeper integrations and joint go-to-market muscle.
Why this matters for investors
This is Snowflake planting a flag in the AI infrastructure race. The company is betting that enterprise AI gets built on top of secure, governed data — and that AWS is the place to build that stack. Meanwhile, Databricks, Snowflake’s biggest rival in data and AI, is pushing hard into agentic AI and database products, so this looks like Snowflake sharpening its moat where it thinks the battlefield is most winnable.
On top of that, Snowflake also bought Natoma, an enterprise Model Context Protocol platform for AI agents. Translation: Snowflake wants to own not just the data, but the permissions, identity, and governance layer that decides what AI agents can actually do.
The big picture
Put it together and Snowflake is making a very grown-up bet: in the AI era, the company that controls the trusted data layer may have the best shot at controlling the workflow layer too. Big picture: this is less “cloud partnership” and more “we’re choosing our tank for the AI war.”