Snowflake buys Natoma, inks $6B AWS

Snowflake said on May 27 that it had agreed to acquire Natoma and had expanded its Amazon Web Services partnership with a $6 billion infrastructure commitment, pairing an M&A move with a larger cloud-spending pledge as it pushes deeper into enterprise AI. The two announcements came alongside Snowflake’s first-quarter fiscal 2027 results, which showed revenue of $1.39 billion, up 33% from a year earlier, and remaining performance obligations of $9.21 billion. Snowflake said the AWS agreement is designed to accelerate “enterprise agentic AI adoption,” while Natoma’s founders described their product as a governance and connectivity layer for AI agents. The company did not disclose financial terms for the Natoma deal. ### Why did Snowflake buy Natoma? Snowflake said Natoma would add “secure connectivity” for what it called the “agentic enterprise,” a term the company has used for AI systems that can access data, use tools and take actions across business software. In a May 27 announcement, Snowflake said it had signed a definitive agreement to acquire Natoma, an enterprise Model Context Protocol platform. Natoma said on its own blog that it was founded in 2024 to help enterprises control how AI agents access data, use tools and take action. The startup said its platform lets customers connect AI agents to enterprise applications and data sources with visibility, identity controls and governance. ### What exactly is in the AWS deal? Amazon Web Services said on May 27 that Snowflake had signed a multi-year strategic collaboration agreement and committed $6 billion in Graviton compute and AI spend on AWS over five years. (tmcnet.com) AWS said the agreement expands product integrations across generative AI and agentic AI, AWS Marketplace go-to-market work, workload migrations and customer success programs. (natoma.ai) Matt Garman, AWS’s chief executive, said enterprises are moving from AI experimentation to deploying “intelligent agents” that drive business outcomes. Snowflake CEO Sridhar Ramaswamy said the aim is to bring AI “directly to governed data.” (press.aboutamazon.com) ### How does Natoma fit with Snowflake’s existing AI products? Sridhar Ramaswamy said in Snowflake’s earnings release that Cortex Code and Snowflake Intelligence are extending the company “from the trusted foundation for enterprise data and context to become the control plane for the Agentic Enterprise.” Snowflake said more than 13,600 accounts now use Snowflake AI capabilities, while Cortex Code is in use across more than 7,100 accounts. (press.aboutamazon.com) Natoma said Snowflake’s vision matched its own view that enterprises need a platform where data, intelligence and action are connected “in a governed way.” The startup said Snowflake Intelligence serves business users and Cortex Code serves developers, while Natoma adds the layer that governs how AI systems connect into enterprise applications. ### Did Snowflake’s latest quarter support that push? (investors.snowflake.com) Snowflake reported first-quarter fiscal 2027 product revenue of $1.33 billion, up 34% year over year, total revenue of $1.39 billion, up 33%, and remaining performance obligations of $9.21 billion, up 38%. The company also said it had 779 customers with more than $1 million in trailing 12-month product revenue and 813 Forbes Global 2000 customers. (natoma.ai) Brian Robins, Snowflake’s chief financial officer, said the company was raising its full-year product revenue guidance because of momentum in both its core platform and AI business. Snowflake also cited the AWS collaboration as an expanded partnership in the quarter’s business highlights. ### What happens next? (investors.snowflake.com) Snowflake’s May 27 disclosures leave two near-term milestones: closing the Natoma acquisition, which remains subject to customary conditions, and executing the five-year AWS spending commitment. Snowflake has also been promoting Snowflake Summit 2026 as the venue for further product updates around Snowflake Intelligence, Cortex Code and its broader agentic enterprise strategy. (tmcnet.com) (investors.snowflake.com)