Synopsis
Pinterest is investing heavily in its future with Amazon Web Services. The social media company will spend four billion dollars on cloud services until 2031. This deal will help Pinterest boost its artificial intelligence capabilities. They will use Amazon's custom chips to improve features like visual search. This partnership aims to enhance performance and efficiency for Pinterest's growing AI initiatives.Listen to this article in summarized format
Shares of Pinterest were up nearly 5%, while those of Amazon rose 1.7%.
Amazon.com's cloud computing unit will provide Pinterest its custom chip processors, including Graviton and Trainium, to help scale its AI initiatives.
"This expanded commitment with AWS gives us the compute flexibility, hardware optionality, and infrastructure efficiency to accelerate our AI vision," Pinterest's Chief Technology Officer Matt Madrigal said in a statement.
Pinterest has been investing in AI tools by rolling out upgrades to its Performance+ ad suite, to boost growth amid intensifying competition from major players such as TikTok and Meta's Instagram and Facebook.
Pinterest said it had worked with AWS since 2010 to improve the reliability and performance of the company's core services.
The company, which last month forecast second-quarter revenue above Wall Street estimates, said it plans to diversify its accelerated compute usage with Amazon's custom silicon to improve price performance for its AI needs.
This includes leveraging AWS Trainium for large language models and vision-language models that power features like personalized visual search and AI-assisted discovery on its platform.
