Pinterest & Amazon Deepen Their Ties With $4 Billion Cloud Deal

Pinterest is expected to pay AWS $4 billion for cloud services through 2031, as this is the social media company’s biggest deal ever that was announced earlier today as it solidifies a long-term partnership with Amazon.

This is in order to advance its artificial intelligence initiatives. The said agreement from Pinterest is the multi-year agreement builds on the two businesses’ foundational cloud partnership, which began in 2010. The revelation was well received by the market, which caused shares of Amazon.com Inc. to rise 1.5% during intraday trading and shares of Pinterest Inc. to rise nearly 6%.

In order to develop its machine learning framework, Pinterest will significantly use Amazon’s specially created AI silicon, particularly Graviton and Trainium processors, according to the main parameters of the agreement. Pinterest’s machine vision and large language models (LLMs) will be scaled by the improved infrastructure to maximize visual search, discovery algorithms, and user-specific content. 

In terms of ad tech, Pinterest will be able to compete with the likes of Meta and TikTok for digital advertising revenue thanks to the increased compute flexibility that will enable improvements to its Performance+ ad suite. According to Matt Madrigal, Chief Technology Officer of Pinterest, the company will be able to get better pricing performance and long-term hardware optionality for AI workloads by diversifying with AWS custom silicon.

Pinterest’s Chief Technology Officer, Matt Madrigal, went on to state in a formal statement that this expanded commitment with AWS gives us the compute flexibility, hardware optionality, and infrastructure efficiency to accelerate our AI vision. Amazon.com’s new tab cloud computing unit will supply Pinterest with its custom chip processors, such as Graviton and Trainium, to help scale its AI initiatives.

In an effort to enhance growth in the face of growing competition from major competitors like TikTok and Meta, Pinterest has been investing in AI technologies by releasing updates to its Performance+ ad suite and opening new tabs on Facebook and Instagram.

Since 2010, Pinterest has claimed to have collaborated with AWS to enhance the dependability and efficiency of its primary services.

The business said it intends to diversify its accelerated compute consumption using Amazon’s proprietary silicon to optimize pricing performance for its AI needs. Last month, it predicted second-quarter revenue above Wall Street projections.

In order to support features like AI-assisted discovery and personalized visual search on its platform, AWS Trainium is utilized for large language models and vision-language models.