Amazon Web Services (AWS) has entered into a $6 billion agreement with cloud data platform Snowflake to supply its Graviton chips over the next five years, reflecting the growing demand for computing power driven by artificial intelligence (AI) agents. The deal, announced Wednesday, positions Snowflake as one of the largest customers utilizing AWS’s CPU-based infrastructure.

Snowflake, established on the AWS platform in 2015, manages data solutions for nearly 14,000 clients, including startups such as Fetch and the AI analytics company Hex. Its expanding use of AWS technology aligns with the rising need for CPU resources to support AI applications.

AWS introduced the Graviton chip line in 2018. These central processing units (CPUs) serve as the core processing technology behind a range of devices, from smartphones and laptops to servers and specialized AI systems. Snowflake’s commitment to Graviton chips highlights the chip’s increasing role in powering AI-driven workloads.

The proliferation of AI agents—autonomous software bots designed to automate complex tasks—has propelled demand for CPUs, as these agents require substantial computational resources to manage and coordinate operations effectively. This surge has benefited not only AWS, but also other chip manufacturers including Intel, Advanced Micro Devices (AMD), and Arm Holdings, whose stock valuations have risen amid the expanding AI landscape.

Other significant Graviton customers include Meta Platforms and Apple, which similarly rely on customized hardware solutions within AWS for AI development and deployment. AWS also offers specialized chips tailored to AI model training and inference, supplementing its CPU offerings.

Following the announcement of the Snowflake deal, the company’s stock rose sharply, gaining 35% in after-hours trading. The agreement underscores the strategic collaboration between cloud infrastructure providers and AI-focused companies as artificial intelligence continues to integrate into diverse technological ecosystems.