Snowflake rockets 35% on earnings beat and plan to spend $6 billion on Amazon cloud

Sridhar Ramaswamy, CEO of Snowflake, poses in front of the company signage outside of the New York Stock Exchange on Sept. 30, 2025. NYSE Amazon said Wednesday that its cloud division has landed a $6 billion spending commitment from Snowflake , which includes the use of the company's custom silicon and chips for artificial intelligence . Snowflake's purchase of services and technology from Amazon Web Services will occur over five years, according to a press release about the agreement. Snowflake intends to expand its use of Amazon's Graviton general-purpose chips, as well as cloud-based graphics processing units for AI. It's the latest sign that AWS is gaining momentum in AI as clients turn to the market-leading cloud for more advanced technologies. In April, Claude creator Anthropic said it aims to spend over $100 billion on AWS over a decade. Amazon also has a deal with OpenAI . Both of its agreements with the AI model companies include an equity investment, while the Snowflake deal does not. Snowflake, which went public in 2020, has a market cap of just over $60 billion, and has long relied on AWS. Snowflake shares jumped as much as 35% in extended trading after it announced strong results for its fiscal first quarter, which ended on April 30. The company reported 39 cents in adjusted earnings per share on $1.39 billion in revenue, up 33% year over year. Analysts polled by LSEG had expected 32 cents per share and $1.32 billion in revenue. …