Pinterest Shifts to Open Source AI, Boosting Performance and Cutting Costs

Pinterest CEO Bill Ready highlighted the company's shift towards open source AI models as a key strategy to reduce costs and drive growth during an earnings call on Tuesday. The image pinboarding site, which has seen a significant increase in the use of AI-powered features, is leveraging open source AI to power personalized recommendations, multimodal search, ad targeting, and product discovery. Pinterest's third-quarter earnings announcement revealed a weaker-than-expected holiday shopping season, citing the negative impact of President Donald Trump's tariffs on the home furnishings category. As a result, the company's fourth-quarter revenue is expected to come in between $1.31 billion and $1.34 billion, falling short of analyst estimates. The company's reliance on AI technology is evident in its growing list of AI-powered features, including the recently launched Pinterest Assistant. This AI-powered tool enables users to discover products and get personalized recommendations, further solidifying Pinterest's position as a key player in the visual discovery and planning space. Pinterest's decision to adopt open source AI models is a strategic move to reduce costs and improve performance. According to Ready, the open source AI models have shown "tremendous performance" with reduced costs, allowing the company to allocate resources more efficiently. This shift towards open source AI is also a nod to the rapidly changing AI landscape, where companies are increasingly looking for more cost-effective and efficient solutions. The company's focus on AI-powered features is also a response to the growing demand for agentic commerce AI systems that can act autonomously on behalf of users. As the AI landscape continues to evolve, companies like Pinterest are poised to benefit from the increased adoption of AI-powered features. In the context of the broader market, Pinterest's reliance on AI technology is a testament to the growing importance of AI in the e-commerce space. As consumers increasingly turn to visual discovery and planning platforms like Pinterest, companies are racing to develop AI-powered features that can provide personalized recommendations and enhance the user experience. With its focus on open source AI and AI-powered features, Pinterest is well-positioned to drive growth and reduce costs in the face of a weaker-than-expected holiday shopping season. As the company continues to evolve and adapt to the changing AI landscape, investors will be watching closely to see how its strategic decisions impact its bottom line and growth potential.