Jun 4 (Reuters) – Pinterest said on Thursday it would pay Amazon Web Services $4 billion for cloud services through 2031, as the social media company strengthens a long-term partnership with its biggest deal ever.
Pinterest shares rose nearly 5%, while Amazon shares rose 1.7%.
Amazon.com’s cloud computing unit will provide Pinterest with its custom chip processors, including Graviton and Trainium, to help scale its artificial intelligence initiatives.
Study abroad
Upgrade your career!
“This expanded commitment to AWS gives us compute flexibility, hardware optionality, and infrastructure efficiency to accelerate our AI vision,” Pinterest chief technology officer Matt Madrigal said in a statement.
Pinterest has been investing in AI tools by implementing updates to its Performance+ advertising suite, aiming to drive growth amid increasingly fierce competition from big players like TikTok and Meta’s Instagram and Facebook.
Pinterest said it has worked with AWS since 2010 to improve the reliability and performance of the company’s core services.
Continues after advertising
The company, which earlier this month predicted second-quarter revenue above Wall Street estimates, said it plans to diversify its use of accelerated computing with Amazon’s custom silicon to improve price performance for its AI needs.
This includes using AWS Trainium for large language models and language-vision models that enable features like personalized visual search and AI-assisted discovery on your platform.
(Reporting by Jaspreet Singh in Bengaluru)
