Amazon is apparently furious with Elon Musk’s Twitter for refusing to pay its $70 million payment for cloud services, despite the fact that Twitter relies heavily on Amazon Web Services for many of its operations. According to reports, Amazon has threatened to stop paying Musk’s platform for advertising.
According to a report from the Information, despite relying on the cloud service for essential components of the social media platform, Elon Musk’s Twitter has been refusing to pay its payments to Amazon Web Services (AWS) for a few months now. The tech publication claims that AWS won’t renegotiate the five-and-a-half-year deal it inked with Twitter in 2020, leaving at least $70 million in unpaid balances.
In exchange for agreeing to pay $510 million over the course of the contract, Twitter promised to move its main hosting to AWS. However, this never occurred because Twitter now makes greater use of Google Cloud. Despite Twitter’s efforts to reduce costs linked with its Google Cloud usage, the company’s $1 billion, five-year deal with Google is still in effect.
According to reports, AWS threatened punishment by saying that the failure to pay bills would prevent it from paying for the advertising it runs on Twitter. In the first quarter alone, this is expected to cost Twitter about $1 million in advertising income, and more when Amazon Studios is taken into account. Twitter has paid $10 million toward its AWS expenses, yet it still owes a sizable sum.
There have been numerous severe disruptions since Elon Musk purchased Twitter. Musk reduced the number of servers available, shut down one of Twitter’s three American data centers, and let go of the IT and software team that kept the service running. The platform has reportedly been severely disrupted, and many users are unhappy with the ongoing issues.
Twitter’s refusal to pay its payments will probably have a big negative impact on the company’s relationship with AWS. AWS is showing that the corporation is taking the problem seriously by refusing to renegotiate its contract. Legal action might follow, which would cost Twitter money.
For its prior handling of data security and privacy issues, Twitter has drawn criticism. The platform has already been the target of a number of high-profile cyberattacks, including a serious breach in 2020 that led to the compromising of the accounts of several well-known individuals.