Pinterest is betting big on artificial intelligence and cloud firepower, signing a USD4 billion ($5.6 billion) agreement with Amazon Web Services that immediately lifted both companies’ share prices.
Pinterest stock jumped around 5% after the announcement while Amazon shares rose roughly 1.7%.
Investors read the deal as a signal that Pinterest plans to lean harder into data-heavy AI-driven features.
AWS, already a dominant cloud provider, has locked in a marquee social media customer for years to come.
The two companies are not strangers, Pinterest has relied on AWS infrastructure since 2010, but this new arrangement is the largest agreement between them so far.
The expanded cloud partnership comes as Pinterest revamps its Performance+ ad suite, a product central to how brands reach users on the platform.
That upgrade aims to make its ad offering more competitive against TikTok, Meta, Instagram and Facebook.
AWS becomes the backbone for running more complex models and handling growing traffic as Pinterest pushes deeper into personalised content and commerce.
More of Pinterest’s roadmap now orbits around advanced AI workloads, which is where AWS Trainium enters the picture.
Pinterest plans to use Trainium chips to train large language models and vision-language models that can interpret both text and images together.
Those models will power personalised visual search, helping users find products, ideas and inspiration from photos and Pins with greater accuracy.
The models will also support AI-assisted discovery tools that surface more relevant content and ads without users needing to refine queries manually.
Social and commerce platforms are pouring money into cloud-based AI infrastructure to keep feeds engaging and ad performance strong.
