Snap Committed to Spend $1 Billion on Web Services With Amazon
- Amount is in addition to $2 billion with Alphabet’s Google
- Snap may eventually invest to build its own infrastructure
Is the Timing Right for Snapchat Maker Snap's IPO
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Snap Inc. has a deal to pay Amazon.com Inc. at least $1 billion for internet services over the next five years, adding to a $2 billion agreement it already has with Alphabet Inc.’s Google.
Details of the deal were released Thursday in an update to Snap’s initial public offering documents. Snap will pay Amazon $50 million in 2017 and then spend progressively more on the e-commerce giant’s cloud and infrastructure services through 2021.