Platformer revealed that Twitter refused to pay its Google Cloud bill when the contract was due for renewal this month, leading to a serious conflict between the two companies and potentially impacting the credibility and security of the "blue bird" network.
Although Twitter hosts some services on its own servers, the company has long contracted with Google and Amazon to build its infrastructure. Before Musk bought Twitter late last year, the social network had a multi-year contract with Google to host services related to combating spam, removing child sexual abuse content, and protecting accounts.
According to The Information , Twitter has been trying to negotiate a contract with Google since around March. The company has also delayed payments to Amazon Web Services (AWS), prompting Amazon to threaten retaliation and withhold advertising payments. The Information reports that Twitter recently paid AWS $10 million but still owes approximately $70 million. AWS is unwilling to renegotiate the 5.5-year contract signed with Twitter in 2020.
After Twitter came under new ownership, the company significantly cut costs and laid off thousands of employees. Musk ordered an additional $1 billion in savings on infrastructure costs, such as cloud expenses, according to Reuters .
Beyond the controversies with AWS and Google Cloud, Twitter has been embroiled in numerous other payment-related troubles. At least six companies have sued Twitter in the US for breach of contract, alleging non-payment since Musk took over. These include a San Francisco landlord, the private jet transportation service Private Jet Services, the event organizer Blueprint Studio Trends, the M&A consulting firm Innisfree, Twitter's legal counsel and lawyer Analysis Group, and the AI content creation company Writer.
(According to Platformer, CNBC)
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