This Company’s 2017 Cloud Costs Will Be More Than Their 2016 Revenues

Snapchat just announced in an updated IPO filing on Thursday that it will be spending $1 billion over the next five years with Amazon Web Services.

This year the company plans to spend $50 million on AWS and the costs will rise over time.

For 2017, Snapchat will spend $450 million total on cloud hosting costs. This is about $45 million more than what the company generated in 2016 for revenues.

Snap said in regards to their deal with AWS, that it is “for redundant infrastructure support of our business operations.”

“In the future, we may invest in building our own infrastructure to better serve our customers.”