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Explore the dynamics of Twitter’s tense standoff with Google Cloud and how it may impact the social platform’s future operations and user experience.
Key Takaways:
- Twitter initially refused to pay Google for the use of its cloud services, a move that could have threatened its moderation capabilities.
- The refusal to pay was followed by a hasty attempt to move services to its own servers, leading to potential instability on the platform.
- Eventually, Twitter resumed payment to Google, opening up potential talks for a broader partnership between the two companies.
Twitter’s Google Cloud Contract Conundrum: A Tale of Unpaid Bills and Potential Impacts
The popular social media giant Twitter has found itself in a precarious position with the world-renowned search giant, Google.
In 2018, Twitter had penned a billion-dollar contract with Google. This allowed Twitter to host a portion of its services on Google Cloud servers. However, as the contract’s renewal date on June 30th looms closer, there is a surprising twist to the tale – Twitter has reportedly refused to pay Google and is frantically trying to shift as many services as possible from Google’s infrastructure to its own.
A Race Against Time: The Potential Impact on Twitter’s Automated Moderation System
One casualty of this tussle could be the automated moderation tool, Smyte. Twitter acquired Smyte in 2018 to enhance its moderation capabilities. If Twitter fails to transfer Smyte to its servers by the end of the month, it could severely affect Twitter’s fight against spam and child sexual abuse material (CSAM). Smyte has already displayed signs of instability following workforce reductions initiated by Elon Musk, who now owns Twitter.
This is not the first time Twitter has faced stability issues. Many of its core features have experienced outages. Recently, Florida Governor Ron DeSantis had difficulty announcing his Republican presidential nomination due to a failure of Twitter Spaces, the platform’s live audio feature.
Twitter has been scrutinized for breaching contracts before. Last year, California Property Trust, the owner of Twitter’s HQ building, sued Twitter for unpaid rent.
The Unexpected Reconciliation: Twitter Resumes Payments to Google Cloud
In an unexpected turn of events, Twitter has resumed paying Google Cloud. The patch-up seems to have been orchestrated by Twitter’s new CEO, Linda Yaccarino, who also played a vital role in starting a broader conversation that could lead to a partnership encompassing advertising and Google’s use of Twitter’s API. The mended relationship reportedly has Musk’s support, and as it stands, there are no issues between the companies.
Twitter, under Musk’s helm, has aimed to slash costs, with a focus on cloud computing expenses. Twitter has traditionally paid Google Cloud between $200 million to $300 million annually, primarily for data analysis and machine learning services.
Google initially had difficulty reaching Musk regarding the outstanding payments. The search giant even reached out to his SpaceX team, which also has a business relationship with Google Cloud. Fortunately, the situation seems to be under control, and Twitter is back on track with its Google Cloud payments.
To sum it up, Twitter’s refusal to pay and subsequent resumption of its Google Cloud services depict a story of business negotiations, financial decisions, and the potential impact on user experience.
