Snapchat to invest $1bn on Amazon

Snapchat to invest $1bn on Amazon

Social media giants Snapchat is expected to spend $1 billion on Amazon’s cloud services in the next five years.

This is in addition to the $2 billion Snapchat committed to spending on Google cloud infrastructure over the next five years. However, the company clarified that it may choose to build its own infrastructure in the future.

Snapchat’s agreement with Amazon has it spending $50 million this year, then increase its spending in subsequent years until it reaches $350 million in 2021.

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The amended filing was spotted this morning by Recode and Reuters, which both noted the sizable deal with Google, and how Snap is committed to using Google’s infrastructure for the vast majority of its business, including computing, storage, bandwidth, and other services. But the deal with Amazon indicates that Snap is not restricted to using only Google’s cloud as it moves forward.

As Snapchat explains, “our agreement with Google requires that we use their cloud services for substantially all of our hosting requirements,” adding that a Google Cloud disruption of service could harm its business, as could having to transition to a new provider – a move that would be costly, too.

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