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

Founder Summit 2026 in Boston: Don’t miss ticket savings of up to $300. Register Now.Save up to $680 on your Disrupt 2026 pass. Ends 11:59 p.m. PT tonight. REGISTER NOW. Latest AI Amazon Apps Biotech & Health Climate Cloud Computing Commerce Crypto Enterprise EVs Fintech Fundraising Gadgets Gaming Google Government & Policy Hardware Instagram Layoffs Media & Entertainment Meta Microsoft Privacy Robotics Security Social Space Startups TikTok Transportation Venture Staff Events Startup Battlefield StrictlyVC Newsletters Podcasts Videos Partner Content TechCrunch Brand Studio Crunchboard Contact Us 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 and to improve content moderation, and advertisers can use it as a creative tool.However, on another note, Elliott’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.TopicsLauren covers media, streaming, apps and platforms at TechCrunch.You can contact or verify outreach from Lauren by emailing laurenf.techcrunch@gmail.com or via encrypted message at laurenforris22.25 on Signal.Actively scaling? Fundraising? Planning your next launch?TechCrunch Founder Summit 2026 delivers tactical playbooks and direct access to 1,000+ founders and investors who are building, backing, and closing.Register by March 13 to save up to $300. ChatGPT uninstalls surged by 295% after DoD deal MyFitnessPal has acquired Cal AI, the viral calorie app built by teens The trap Anthropic built for itself Why did Netflix back down from its deal to acquire Warner Bros.? India disrupts access to popular developer platform Supabase with blocking order Jack Dorsey just halved the size of Block’s employee base — and he says your company is next An accountant won a big jackpot on Kalshi by betting against DOGE © 2026 TechCrunch Media LLC.