This is just a normal business-to-business pricing agreement contract for a long-term commitment. In this case, it's ~$400 million per year for 8 years. Also,

This is just a normal business-to-business pricing agreement contract for a long-term commitment. In this case, it's ~$400 million per year for 8 years. Also, I guess lawyers copy&paste each other because the Snapchat text about its GCP contract looks very similar with the word "required": >excerpt from Snapchat S-1: On January 30, 2017, we entered into the Google Cloud Platform License Agreement. Under the agreement, we were granted access and use certain cloud services. The agreement has an initial term of five years and we are required to purchase at least $400.0 million of cloud services in each year of the agreement, though for each of the first four years, up to 15% of this amount may be moved to a subsequent year. If we fail to meet the minimum purchase commitment during any year, we are required to pay the difference. Our agreement with Google permits us to use other third-party service providers for a portion of our cloud services. [1] https://www.vox.com/2017/2/2/14492026/snap-ipo-2-billion-contract-with-google-cloud https://www.vox.com/2017/2/2/14492026/snap-ipo-2-billion-con...