The social media platform Pinterest announced Thursday it will spend $4 billion on cloud computing services from Amazon Web Services through 2031, marking the company’s most significant partnership agreement to date.
Wall Street responded positively to the news, with Pinterest stock climbing nearly 5% while Amazon shares gained 1.7%.
Under the expanded agreement, Amazon.com’s cloud division will supply Pinterest with specialized processors, including Graviton and Trainium chips, designed to support the platform’s artificial intelligence development efforts.
“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.
The social media company has been pouring resources into artificial intelligence technology, enhancing its Performance+ advertising platform as it faces growing competition from rivals like TikTok and Meta’s Instagram and Facebook platforms.
Pinterest revealed it has maintained a working relationship with AWS dating back to 2010, using the services to enhance reliability and performance across its main operations.
The company, which recently projected second-quarter earnings that exceeded analyst expectations, indicated it will use Amazon’s specialized processors to enhance cost efficiency for its AI operations.
The partnership will enable Pinterest to utilize AWS Trainium technology for advanced language and visual recognition models that drive features such as customized visual search and AI-powered content discovery across the platform.
