Snapchat signs $1 billion Deal With Amazon For Its Cloud

Snapchat signs $1 billion Deal With Amazon For Its Cloud

Snap Inc, owner Snapchat, has revealed that they have signed a five years deal to use Inc's (AMZN.O) cloud services.

Sanpchat $1 billion agreement with Amazon will the company spend $50 million this year, then increase its spending in subsequent years until it reaches $350 million in 2021.

Originally signed last year, then amended on Wednesday, the new deal is for “redundant infrastructure support of our business operations". However, the company says that it may choose to build its own infrastructure in the future.

In addition, Snapchat as a  $2 billion deal with Google cloud infrastructure over the next five years, which allows Snapchat to us Google’s infrastructure for the vast majority of its business, including computing, storage, bandwidth, and other services.

The amended filing was published after the company’s IPO registration, where Snapchat is looking to raise $3 billion.

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