Investor Elliott is taking a $1B stake in Pinterest, betting on AI-driven growth

Elliott Investment Management, an investor known for its involvement in corporate decisions, has taken $1 billion from Pinterest. The company invested in social media in 2022.

Pinterest he announced Tuesday’s earnings call, and CEO Bill Ready said he sees it as a big vote of confidence in the company’s AI efforts.

“We funded the acquisition in 2025, when users reached a peak for ten consecutive quarters with more than 80 billion searches per month on our platform, while we continue to produce new innovations in visual search using AI. We are happy to continue our partnership with Elliott in the next phase of Pinterest’s growth. Elliott has the opportunity to acquire a strong business opportunity to build on the strong business and trust that we have done. Pinterest,” Ready said in a statement.

As part of the investment, Pinterest will also buy back its Class A shares through an accelerated repurchase agreement for $1 billion. The new capital will also help fund a $3.5 billion share buyback.

Pinterest stock jumped 6% in premarket trading following the $1 billion announcement.

The news comes as Pinterest faces a storm. Shares fell last year, and frustrating to find, layoffs affect 15% of the workforcea shrinking industry, and increased competition from AI chatbots.

However, Elliott’s earnings growth reflects confidence in Pinterest’s turnaround strategy. Especially, his aggressively betting on AI. Recent developments include Visual search powered by AI which allows users to take a photo or select a photo and instantly receive similar product ideas, home decor ideas, and fashion inspiration. The company also uses AI for your preferences and content management, and advertisers can use it as a a creative tool.

However, on another note, Elliott’s profile suggests that his continued presence at Pinterest may mean more scrutiny.

The company has a long history of advocating cost reduction and often pushes for strategic restructuring and leadership changes at companies in which it plays a major role. For example, on eBay, Elliott pushed the company to cut costs and refocus on its core market, which prompted eBay to sell its own StubHub and classifieds sales.