Pinterest and Amazon strike landmark $4 billion cloud deal
Pinterest shares rose nearly 5% after the company announced its landmark $4 billion cloud deal with AWS
Pinterest has announced what is being described as the largest infrastructure deal in cloud technology, committing $4 billion to Amazon Web Services for cloud services through 2031 in a move that significantly deepens a long-standing partnership between the two companies.
The world's leading design inspiration and creative platform made the announcement on Thursday, with shares of Pinterest climbing nearly 5 per cent and those of Amazon rising 1.7 per cent in response to the news.
Custom chips to power AI ambitions
Under the terms of the agreement, Amazon's cloud computing division will supply Pinterest with its custom chip processors — including Graviton and Trainium — to help the platform scale its artificial intelligence initiatives.
This includes utilising AWS Trainium for large language models and vision-language models that underpin features such as personalised visual search and AI-assisted discovery across the platform.
Pinterest's Chief Technology Officer, Matt Madrigal, outlined the strategic significance of the arrangement.
"This expanded commitment with AWS gives us the compute flexibility, hardware optionality, and infrastructure efficiency to accelerate our AI vision," he said in a statement.
A partnership stretching back to 2010
The two companies have maintained a working relationship since 2010, during which time AWS has supported the reliability and performance of Pinterest's core services. The newly announced deal represents the most substantial commitment to emerge from that collaboration to date.
Pinterest, which earlier this month issued a second-quarter revenue forecast that exceeded Wall Street estimates, said it plans to diversify its accelerated computing usage through Amazon's custom silicon in order to improve price performance across its AI requirements.
Competing in an increasingly crowded market
The investment comes as Pinterest ramps up its AI capabilities amid intensifying competition from major platforms including TikTok and Meta's Instagram and Facebook. The company has been rolling out upgrades to its Performance+ advertising suite as part of broader efforts to drive growth in a challenging landscape.
Pinterest is a visual search engine and digital scrapbook that enables users to discover, save and organise images, videos and product links.