Pinterest secures $1 billion investment from Elliott, doubling down on AI turnaround strategy

Activist investor Elliot takes a $1B stake in Pinterest, betting on AI-driven growth | TechCrunch

Elliott Investment Management, an activist investor known for its assertive involvement in company decisions, has taken a $1 billion stake in Pinterest. The firm first invested in the social platform in 2022. Pinterest announced the financial boost on Tuesday, and CEO Bill Ready said he considers this a major vote of confidence that underscores the company's ambitious AI efforts. "We delivered record revenue in 2025, with users reaching all-time highs for ten consecutive quarters and more than 80 billion monthly searches on our platform, as we continue to deliver strong innovation in visual search using AI. We are excited to continue our partnership with Elliott for the next phase of Pinterest's growth. Elliott's investment is a strong vote of confidence in the work we have done to build our business and the significant opportunities ahead for Pinterest," Ready said in a statement. As part of this investment, Pinterest will buy back shares of its Class A common stock through a $1 billion accelerated repurchase agreement. The new capital will also help fund a broader, newly authorized $3.5 billion share buyback program. Pinterest stock jumped 6% in premarket trading following the $1 billion investment announcement. The news comes as Pinterest has faced serious headwinds. Shares tumbled over the past year, with disappointing earnings, layoffs affecting 15% of its workforce, a declining ad business, and increased rivalry from AI chatbots. Yet, Elliott's increased investment signals a belief in Pinterest's turnaround strategy. Specifically, its aggressive bet on AI. Recent initiatives include AI-powered visual search that allows users to snap a photo or select an image and instantly receive recommendations for similar items, home decor ideas, and fashion inspiration. The company also leverages AI for personalized recommendations, to improve content moderation, as well as creative tools for advertisers. However, on another note, Elliot's track record suggests that its continued involvement in Pinterest will likely mean heightened scrutiny. The firm has a long history of urging cost-cutting and frequently pushes for strategic overhauls and leadership changes at companies where it holds a major stake. For instance, at eBay, Elliott pushed the company to reduce expenses and refocus on its core marketplace, which led to eBay selling its StubHub and Classifieds businesses.

Pinterest Lands $1 Billion Investment Amid AI Push | PYMNTS.com

By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions. With this investment, Pinterest will repurchase shares of its Class A common stock through a $1 billion accelerated share repurchase agreement, the social media platform said in a Tuesday (March 3) news release. "We delivered record revenue in 2025, with users reaching all-time highs for ten consecutive quarters and more than 80 billion monthly searches on our platform, as we continue to deliver strong innovation in visual search using AI," Pinterest CEO Bill Ready said in the release. "We are excited to continue our partnership with Elliott for the next phase of Pinterest's growth. Elliott's investment is a strong vote of confidence in the work we have done to build our business and the significant opportunities ahead for Pinterest." Marc Steinberg, partner at Elliott and a member of Pinterest's board, said his firm first invested in the platform in 2022 and has a "strong conviction" in the company's trajectory. The announcement comes weeks after a report that Pinterest was racing to add artificial intelligence (AI) tools to its app as it deals with a slowing ad business and increased competition from AI chatbots. The company is also working to improve user and revenue growth and advertisers' return on spending on the scrapbooking app, according to a report by The Information. Pinterest has had trouble gauging the effectiveness of its ads and encouraging users to check in with the app as often as they visit other social media apps, the report added. The company is also worried that AI chatbots could draw away users who would otherwise turn to Pinterest for things such as planning a wedding. Among the measures the company has taken is updating its recommendation algorithms to suggest both ads and regular posts that are similar to items users are searching for. The report said this has helped lead to a 10% return on advertisers' spending. Pinterest said in late January that it was laying off around 700 employees, the equivalent of about 15% of its staff, as the company moves more resources to AI. The company said in a securities filing that the move was part of a restructuring effort that involves shifting resources to AI-focused roles and teams and "prioritizing AI-powered products and capabilities."