Snap to spend $1 billion on Amazon cloud services

February 11, 2017

Snap Inc, owner of the popular Snapchat app, said it expected to spend $1 billion over the next five years to use Amazon.com Inc’s cloud services, in addition to the $2 billion cloud contract it already has with Google.

Snap may eventually invest in building its own infrastructure, it said on Thursday, in an amendment to a filing related to its planned stock market debut in March.

The company, which filed its IPO registration statement a week earlier, is looking to raise $3 billion.

Snap could be valued at between $20 billion and $25 billion, giving the company the biggest valuation in a U.S. technology IPO since Facebook Inc.

Venice, California-based Snap has said it relies on Google Cloud to host the vast majority of its computing, storage and bandwidth.

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