: Amazon Stopped Paying For Ads Because Twitter Failed To Pay Its AWS Bill

Mar 06, 2023 | Posted by Abdul-Rahman Oladimeji

After Elon Musk acquired Twitter, the company ceased paying landlords, cleaning, and software providers for services done. But, according to The Information, the corporation has failed to pay its Amazon Web Services payments for months, despite using the cloud provider for crucial components of the social networking platform. This failure to pay prompted Amazon to warn reprisal, stating it was not going to pay for the ads it runs on Twitter - estimated to be over $1 million in the 1st quarter for retail and more when Amazon Studios is included. A few weeks ago, Twitter paid $10 million in AWS fees, which may have had some effect. The Information says that Twitter still owes at least $70 million, and Amazon is unwilling to renegotiate the deal it signed with Twitter in 2020 for five and a half years. 

This deal obliged Twitter to pay $510 million throughout this time period. It was signed when Twitter expected to migrate its main timeline to AWS, but that never transpired; instead, Amazon hosts Twitter Spaces as well as other features; therefore, Twitter is not utilizing the deal to its total capacity. 

Twitter utilizes Google Cloud to a greater extent, as seen by its own $1 billion, five-year deal. While Twitter is likewise attempting to decrease its Google Cloud expenses, the company is current on payments, maybe because it is a larger advertiser that pays to lease Twitter's data so that it appears in Google Search. Google hasn't yet agreed to renegotiate any contracts. Meanwhile, Musk has shut down one of Twitter's three US data centers, reduced server capacity, and terminated IT and software employees responsible for keeping the site running. After he assumed leadership, a number of significant disruptions have occurred.

{{ commentCount }} Comments