Microsoft raises $82.89 billion as OpenAI deal shifts

Key Takeaways

US Suspects Thailand Helped Smuggle Nvidia Chips to Alibaba

US officials suspect a key company in Thailand helped smuggle billions of dollars worth of servers to China. These servers contain advanced Nvidia chips and were sent to customers like Alibaba Group. The servers were made by Super Micro Computer Inc. People familiar with the matter say this activity is part of a larger effort to move technology to China.

Microsoft Reports Record AI Revenue and Raises Spending Plans

Microsoft reported strong financial results in late April 2026 with revenue of $82.89 billion. The company now has an AI business generating over $37 billion in annual revenue. Azure cloud growth reached 40% during this period. Microsoft also raised its capital spending guidance for 2026 to $190 billion. The company changed its deal with OpenAI to keep free access to their technology until 2032 instead of having an exclusive partnership.

Klaviyo Shares Drop Despite Profitable Quarter and AI Updates

Klaviyo reported a profitable first quarter and raised its revenue guidance for 2026 to 23% growth. The company also launched new AI products like a Conversational Agent and Helpdesk tools. Despite these positive results, the stock price fell by 21.5% in the last week. Analysts believe the stock is currently undervalued compared to its potential fair value of $32.90. Investors are watching to see if the new AI features will drive future revenue growth.

Bugbot Switches to Usage-Based Pricing for Code Reviews

Bugbot is changing its pricing model from a per-seat fee to a usage-based system. The new plan allows users to adjust how deeply the AI analyzes code through configurable effort levels. Existing customers will see the new pricing start at their next billing renewal after June 5th, 2026. This change lets developers control costs based on how much review work they need. The tool can now uncover 35% more bugs when set to a high effort mode.

Sprout Social Revenue Grows as AI and Enterprise Focus Pay Off

Sprout Social reported first quarter revenue of $121.5 million, an increase of 11.2% from the previous year. The company credits this growth to the rollout of its AI-powered social media management platform. Sprout Social is also shifting its focus toward larger enterprise customers who need customized solutions. This strategy has helped the company expand its profit margins. The firm believes these changes position it well for continued future growth.

Databricks Launches AI Tool to Help Wealth Advisors

Databricks introduced a new AI tool called Genie to help wealth advisors manage client data. The tool allows advisors to ask specific questions about a client's portfolio and get instant answers. This feature reduces the time advisors spend preparing for meetings and improves client interactions. The system unifies data from different sources and ensures compliance with security rules. Advisors can now access tax loss opportunities and other details in seconds.

Coinbase CEO Announces 700 Job Cuts to Focus on AI

Coinbase CEO Brian Armstrong announced the company will cut 700 jobs in an email sent early Wednesday morning. The layoffs are part of a plan to make the company leaner and faster. Armstrong stated that Coinbase must become AI-native to stay competitive in the cryptocurrency market. The company has faced increased competition and needs to adapt to the changing landscape. The email emphasized the need for efficiency without providing further details on the specific roles being cut.

Upwork Cuts 25% of Workforce Citing AI and Economic Pressure

Upwork CEO Hayden Brown announced plans to cut approximately 25% of the company's workforce on May 7, 2026. The decision is driven by the need for profitability and the belief that AI allows for smaller, more efficient teams. Brown stated that smaller teams can make a bigger impact than large groups. The company plans to notify employees the week after the announcement and hold meetings in mid-May. This move reflects a broader trend in the tech industry of restructuring around AI capabilities.

SEC Examiners Now Ask Investment Firms About AI Governance

SEC examiners are currently asking registered investment advisors for documentation on their AI tools and oversight procedures. The commission does not have new specific rules for AI yet, but existing regulations cover these areas. Firms must have written policies on AI use and vendor oversight documentation ready for review. Examiners are looking for proof that humans review AI recommendations before they reach clients. Advisors using personal AI tools for client data face significant compliance risks if their firms do not know about it.

HubSpot Revenue Jumps 23% as AI Products Boost Margins

HubSpot reported first quarter revenue of $881.0 million, a 23% increase from the previous year. The company also saw a sharp improvement in profitability with non-GAAP operating income reaching $156.8 million. New AI products like the Customer Agent and Prospecting Agent are helping drive this growth. HubSpot raised its full-year revenue outlook to between $3.700 billion and $3.708 billion. The company also repurchased $211.0 million of its own stock during the quarter.

Sources

• US Said to Suspect Nvidia Chips Smuggled to Alibaba Via Thailand
• How Record AI Revenue, 40% Azure Growth And Massive Capex At Microsoft (MSFT) Have Changed Its Investment Story
• Assessing Klaviyo (KVYO) Valuation After Profitable Quarter Guidance Raise And New AI Product Updates
• Bugbot Ditches Per-Seat Fees for Usage Billing
• SPT Q1 Deep Dive: AI Rollout and Enterprise Customer Shift Drive Margin Expansion
• Databricks AI for Wealth Advisors
• Coinbase boss fires 700 workers in 6:55 a.m. email saying company must become ‘lean, fast, and AI-native’
• Upwork Lays Off 25% Of Its Workforce, Says AI Will Lead To Smaller Teams
• SEC Examiners Are Asking RIAs About AI Governance Now
• HubSpot (HUBS) Grows Q1 Revenue 23% as AI Product Push Starts Showing Up in Margins