Pinterest deepens Amazon partnership with $4 billion cloud deal

June 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 largest-ever deal.

Shares of Pinterest rose nearly 6%, while ‌those of Amazon were up ‌1.5%.

Amazon.com's cloud computing unit will provide Pinterest its custom chip processors, including Graviton and Trainium, to ​help scale its AI initiatives.

"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.

Pinterest has been investing in AI tools by ​rolling out upgrades to its ‌Performance+ ad suite, to boost growth amid intensifying competition from major players such ⁠as TikTok and Meta's Instagram and Facebook.

Pinterest said it had worked with AWS since 2010 to improve the ⁠reliability and performance of the company's core services.

The company, which ​last month forecast second-quarter revenue above Wall Street estimates, said it plans to diversify its accelerated compute usage with Amazon's ‌custom silicon to improve price performance for its AI needs.

This includes leveraging AWS ‌Trainium for large language models and vision-language models ⁠that power features like ‌personalized visual search ​and AI-assisted discovery on its platform.

(Reporting by Jaspreet Singh in Bengaluru; Editing by Sriraj ‌Kalluvila)

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