As part of Snap’s $3 billion IPO, the company will purchase $1 billion USD in Amazon cloud services.
The company filed for an IPO last week, which proved to be the largest tech IPO since Facebook’s in 2012. As part of an amended filing, Snap will be purchasing $1 billion in cloud services from Amazon, and $2 billion of the like from Google.
The company clarified, however, that it intends to build its own infrastructure in the future. Meanwhile, its recent agreement with Amazon has the company spending up to $50 million on cloud services this year. The company then intends to increase its spending in the years following years until it reaches $350 million in 2021.
Snap announced recently that it would pay Google $2 billion for its cloud infrastructure, also over the course of five years. Snap’s deal with Amazon however demonstrates that the social company has left the door open to work with other cloud providers as well.
Amazon’s cloud services brought in $12 billion last year.
Source: Recode
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