Snap has a $2 billion contract with Google for cloud services

Here’s a nugget from Snap’s IPO filing: The social media company has a $2 billion contract with Google for cloud services.

It’s not news that the $25 billion startup relies on Google Cloud, but now we know how much Google is getting out of the deal — and what Amazon Web Services is missing out on.

From the S-1:

On January 30, 2017, we entered into the Google Cloud Platform License Agreement. Under the agreement, we were granted access and use certain cloud services. The agreement has an initial term of five years and we are required to purchase at least $400.0 million of cloud services in each year of the agreement, though for each of the first four years, up to 15% of this amount may be moved to a subsequent year. If we fail to meet the minimum purchase commitment during any year, we are required to pay the difference. Our agreement with Google permits us to use other third-party service providers for a portion of our cloud services.

This article originally appeared on Recode.net.

Will you join us?

Our biggest supporters are our readers — and we’re so grateful to everyone who has made a contribution during our September campaign. We’re less than 1,000 contributions away from reaching our goal for the month, which in turn will allow us to say yes more often when our incredible journalists come to us with questions they want to answer and projects they want to pursue. Will you make a contribution before the month ends and support our policy coverage through 2024 and beyond?

One-Time Monthly Annual

$5/month

$10/month

$25/month

$50/month

Other

$

Yes, I'll give $5/month

Yes, I'll give $5/month

We accept credit card, Apple Pay, and Google Pay. You can also contribute via