Pinterest enters billion-dollar deal with Amazon after years of stock pressure

Like many other companies, Pinterest is also betting on artificial intelligence and has therefore entered into a new billion-dollar agreement with Amazon.

The deal gives Pinterest access to the computing power needed to develop and operate the company’s growing AI capabilities.

Pinterest shares rose nearly 6% following the announcement, while Amazon shares gained around 1.5%, Reuters reports.

In addition to Pinterest, technology companies in particular are investing heavily in data centres and specialized chips to keep pace with advances in artificial intelligence.

Expanding the Partnership

Pinterest will gain access to Amazon’s proprietary processors, including Graviton and Trainium, which are designed to handle advanced AI workloads more efficiently.

The collaboration between Pinterest and Amazon is not new, however, as the two companies have been working together since 2010.

Pinterest plans to use artificial intelligence for, among other things, large language models and image-based AI systems that power features such as personalized visual search and AI-driven recommendations.

The investment comes as Pinterest seeks to strengthen its position in competition with social media platforms such as TikTok, Instagram, and Facebook, Reuters reported.

Stock Under Pressure

Pinterest was founded in March 2010 by Ben Silbermann, Paul Sciarra, and Evan Sharp.

According to Business Legacy Magazine, Ben Silbermann, a co-founder of the company, was the driving force behind the original idea for Pinterest.

In 2025, Pinterest saw its share price fall by 20% following a quarterly earnings report in which both earnings and guidance for the upcoming period fell short of analysts’ expectations.

This occurred despite continued growth in the number of users, according to Investopedia.

Meta Pulls Ahead

While Pinterest has struggled to convince investors, Meta has enjoyed significant momentum in the stock market.

According to The Motley Fool, as cited by Nasdaq, shares of the company behind Facebook and Instagram rose approximately 68% in 2024, while Pinterest stock fell 18%.

The contrast illustrates the pressure Pinterest is under to generate new growth, including through artificial intelligence.

Sources: Reuters, Business Legacy Magazine, Investopedia, Nasdaq

This article is made and published by Christine Drews Sieger, who may have used AI in the preparation