Snapchat’s firm will spend US$1 billion on Amazon Web Services
Snap Inc. will be spending US$1 billion over the next five years for some sweet cloud-computing technology.
Image credit: www.garyvaynerchuk.com
Snap Inc., the parent company who owns Snapchat and their Spectacles gadget, will be spending a cool US$1 billion over the next five years on Amazon’s cloud computing service – called Amazon Web Services. The deal was confirmed on Wedesday, and Snap Inc. had its S-1 IPO paperwork updated on Thursday.
According to the paperwork linked above, Snap Inc.’s spending is meant to support their current operations, but the company intends to “invest in building our own infrastructure to better serve our customers” in the future.
Before the update to include Amazon Web Services, Snap Inc. was (and is still) using Google Cloud – they’ve already committed US$2 billion for using Google’s cloud services, too. Simply put, Snap Inc. isn’t solely relying on a single service provider to keep things running smoothly.
Snap Inc. also filed an IPO registration statement a week before this, and was looking to raise US$3 billion. According to Reuters, the company who owns Snapchat could be valued between US$20 to US$25 billion, putting its valuation’s worth right next to Facebook’s.
Our articles may contain affiliate links. If you buy through these links, we may earn a small commission.