synopsis

PepsiCo stated that it is migrating its applications and workloads to AWS, which will allow it to quickly build, test, and iterate on new technologies.

PepsiCo Inc. (PEP) has partnered with Amazon.com Inc.’s (AMZN) AWS to power its supply chain and other parts of its business with artificial intelligence (AI).

PepsiCo’s stock was trading up by 0.20% at the time of writing, while Amazon’s shares rose 1.70%.

The beverage maker has signed a multi-year agreement with AWS to undertake a company-wide digital transformation. This includes using AWS’s technology to improve its logistics and supply chain, go-to-market strategies, and infusing AI in its operations.

Athina Kanioura, Executive Vice President, Chief Strategy and Transformation Officer at PepsiCo, said this is a part of the company’s ongoing digital transformation program.

"This strategic collaboration will strengthen our mature cloud strategy and unlock new levels of agility, intelligence, and scalability across the company,” Kanioura added.

Diving into the arrangement details, PepsiCo stated that it is migrating the company’s applications and workloads to AWS, allowing it to quickly build, test, and iterate on new technologies.

The company also said the AWS partnership has enhanced its generative AI platform, PepGenX. However, it did not detail how AWS is enhancing PepsiCo’s generative AI service.

At the core of this partnership is the transformation of PepsiCo’s logistics – the company said it is scoping opportunities for optimizing its supply chain, including predictive maintenance of its manufacturing and logistics operations to improve its overall operational efficiencies.

"Consumer packaged goods companies need to continuously innovate to meet the evolving expectations of consumers," said Matt Garman, CEO at AWS.

Earlier in the day, AWS’ South Latin America head told Reuters that the company will invest $4 billion towards setting up cloud computing infrastructure in Chile.

PepsiCo’s stock has lost 13.82% year-to-date, while Amazon’s shares are down 14.13%.

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