TikTok Signs to Google Cloud Services for over USD 800 Million
... yet TikTok's development in the US still seems to have a long way to go.
TikTok and Google signed a three-year agreement in May 2019, with the former promising to purchase more than USD 800 million in cloud services from Google during this period. This transaction was a considerable profit for Google Cloud, and TikTok's contract accounts for more than 2% of its annual revenue.
A Google Cloud spokesperson confirmed that TikTok is a customer of Google Cloud and uses Google Cloud services in the United States, but did not comment on the terms of the agreement and transaction data. A ByteDance spokesperson declined to comment.
In a report from The Information site, people familiar with the matter are quoted as saying that the transaction with Google Cloud may eventually be a stopgap measure for ByteDance, and the latter will use its own server to run TikTok in the future. Previously, ByteDance launched an enterprise cloud service platform intending to develop cloud services formally. But ByteDance spokesperson later said, "We don't have public cloud products, and we have no plans to do public cloud."