Prosus signs major AI cloud service deal with Amazon(AMZN.US), potentially achieving "double-digit" cost savings

Prosus NV has reached a multi-year cloud computing and artificial intelligence agreement with Amazon (AMZN.US) and its cloud services division. The deal will consolidate contracts in these areas to achieve double-digit percentage cost savings. Igor Cardoso, head of the Prosus ecosystem, said in an interview that the three-year agreement with Amazon Web Services (AWS) is valued at “hundreds of millions of dollars,” but he declined to disclose the exact amount of the deal.

Under the leadership of CEO Fabricio Bloisi, Prosus is undergoing a restructuring, focusing on Europe, India, and Latin America, developing AI capabilities to accelerate and expand its operations in these regions, aiming to double its value by 2028.

“Our strategy is to promote our large-scale business model across Latin America. Then we plan to do the same in Europe, and gradually expand into India,” Cardoso said. The company already owns Brazil-based food delivery and logistics operator iFood, travel company Despegar, and online classifieds company OLX in Latin America.

Cardoso pointed out that while companies cannot share data across regions, model standardization makes it easier and faster to build models in new jurisdictions. He said that Prosus has a team of about 1,000 AI experts who will collaborate with their counterparts at Amazon to develop applications. He also added that the group invests about $100 million annually in AI talent and infrastructure.

“Over the past 18 to 24 months, we have built and deployed agent assistants across various business units,” Cardoso said.

Headquartered in Cape Town, Naspers spun off Prosus in 2019 as part of its plan to focus on internet businesses. Naspers accumulated wealth through early investments in Chinese tech giant Tencent. In 2001, Naspers bought a 46% stake in Tencent for $32 million; today, it owns 23% of Tencent, valued at nearly $156 billion.

Bloisi is working to improve the profitability and scale of other Prosus businesses through a series of deals, including the acquisition of European food delivery company JustEat Takeaway.com for about $4.6 billion and the purchase of Argentine company Despegar for $1.7 billion.

Cardoso said that as part of the partnership agreement with Amazon, Prosus will also utilize its partner’s infrastructure and data centers across various regions.