May 18, 2025: Markets Move Up On US-China Talks

Last week, Dow Jones rose 3.4%, S&P 500 was up 5.3%, Nasdaq composite gained 7.15%. eToro’s stock surged 34% following its Nasdaq IPO, marking renewed investor enthusiasm after recent market volatility. Banking app Chime revealed accelerated revenue growth of 32% in Q1, bolstering prospects for its imminent IPO. Perplexity is discussing raising US$500 million at a US$14 billion valuation, reflecting growing investor confidence in its AI-driven search capabilities. Nvidia and AMD announced significant AI chip deals with Saudi Arabia, capitalizing on relaxed U.S. export restrictions. Coinbase will join the S&P 500 index even as the company reported a customer data breach potentially costing up to US$400 million. CoreWeave’s stock dropped 7% after cautious revenue guidance, despite explosive growth, underscoring investor sensitivity to volatility in AI infrastructure spending. Google ‘super intensely’ debated buying Netflix, according to Google’s CEO. CrowdStrike’s CEO gave away 92% of his voting power. OpenAI said Friday it released an artificial intelligence coding “agent” that can automate software engineering tasks such as fixing bugs and answering questions about a codebase. Google is also working on AI agents, and other features. In Canada, Robinhood agreed to buy WonderFi for $250 million. Shopify shares jumped 18% after announcing its inclusion in the Nasdaq 100 Index. Cohere missed its revenue targets by 85%, highlighting slower-than-expected enterprise AI adoption. Canadian VC activity slowed sharply, with Q1 seed-stage deals hitting a pandemic-era low and exits virtually halted amid trade uncertainty. In news pertaining to Sophic Capital clients, Intermap reported robust Q1 results, growing revenue to $4.3 million from $1.7 million last year, driven by acquisitions and large government mapping contracts. The company reaffirmed 2025 guidance, targeting revenues of $30-35 million with a 28% EBITDA margin. Boardwalktech formed new strategic partnerships and strengthened its advisory board. Cybeats enhanced its SBOM Studio cybersecurity platform with AI-driven features, earning recognition from Canadian government-backed initiatives. American Aires expanded its NASCAR sponsorship.

Robinhood to buy WonderFi (WNDR-TSX) for $250 million as US trading platform targets Canadian expansion.

Nasdaq-listed Robinhood struck a deal to buy all issued and outstanding common shares of WonderFi for $0.36 apiece in cash, a 41 percent premium relative to the closing price of WonderFi’s common shares on the Toronto Stock Exchange (TSX) yesterday. This represents a total equity value of approximately $250 million on a fully diluted, in-the-money basis. As part of the deal, WonderFi’s leadership and entire 115-person team will join Robinhood Crypto’s Canadian workforce. Robinhood, which established a Canadian headquarters in Toronto in 2024 as an infrastructure engineering hub, now employs 140 people in Canada. The acquisition, which is expected to close during the second half of 2025, remains subject to approval by regulators, courts, and WonderFi shareholders. Today, Bitbuy and Coinsquare are two of Canada’s most popular regulated crypto exchanges, and WonderFi has over 1.7 million registered users and US$2.1 billion in client assets under custody. The company also owns crypto payments firm SmartPay and a stake in crypto custodian Tetra Trust. WonderFi is set to become Robinhood’s second major crypto acquisition since 2024, after its purchase of Luxembourg crypto exchange Bitstamp last year for US$200 million in cash. https://tinyurl.com/mpvnuuhw

Shopify (SHOP-NASDAQ, SHOP-TSX) stocks surge after company says it will join Nasdaq 100 index.

Shares in Shopify jumped 18 percent on the Toronto Stock Exchange (TSX), and nearly 14 percent on Nasdaq, after the Canadian tech heavyweight said it would join the Nasdaq 100 Index on May 19. The e-commerce company replaces database provider MongoDB. Shopify transferred its US stock listing from the New York Stock Exchange (NYSE) to Nasdaq in late March in a move it said was meant to align with other software firms. The company also recently listed its New York City office in a US Security and Exchange Commission (SEC) filing, hinting that it was preparing for a possible index position. https://tinyurl.com/3ca743d7

Cohere revenue falls 85% short of target.

Artificial intelligence model developer Cohere fell well short of revenue projections the company prepared in early 2023, missing its target for last year by 85%. In a pitch to investors two years ago, the company forecast making around US$450 million in annualized revenue by the end of last year. But as of February, it was on pace to generate just US$70 million in annualized revenue, The Information reported Thursday. The company said it was overly optimistic about how quickly enterprises would adopt AI, and that the market for business AI tools grew more slowly than the consumer market. Cohere’s figures highlight how AI developers that didn’t focus on selling revenue-generating applications fast enough have been left in the dust. Cohere could be a bellwether for other startups, including Mistral and Reka, that raised large amounts of money in recent years to capitalize on the hype around new AI models. https://tinyurl.com/334huv5r

Seed deals in Q1 2025 hit pandemic-era low as Canadian VC decline continues: report.

Canadian venture capital (VC) investment levels in Q1 2025 remained consistent year to year but saw a steep drop in deal count as investors navigated trade uncertainty, according to a new report. The Canadian Venture Capital and Private Equity Association (CVCA) tracked $1.26 billion invested across 116 deals in the first quarter of the year. Deal count hit 116, compared to 146 in Q1 2024, a five-year low according to CVCA data. Though total VC dollars saw a 26-percent decline compared to Q4 2024, they were roughly on par with the first quarters of 2023 and 2024. This quarter marked a sharp decrease in exits and no IPOs for Canadian tech, continuing a drought that began around 2023. CVCA tracked seven exits totalling $149 million, which the report noted was reflective of “risk aversion for buyers” and longer timelines for acquisitions. Alberta took over BC’s usual third-place slot after Ontario and Québec, with $140 million invested this quarter. https://tinyurl.com/mv7rccnw

Sophic Client Intermap (IMP-TSX, ITMSF-OTC) announces first quarter 2025 results.

Intermap announced first quarter 2025 results and affirmed 2025 guidance. For the first quarter ending March 31, 2025: Total revenue of $4.3 million, compared with $1.7 million in the first quarter of 2024, Acquisition Services revenue of $2.4 million versus $478 thousand in the year-ago quarter, Value-added Data revenue of $514 thousand versus $266 thousand in the year-ago quarter, Software and Solutions revenue of $1.3 million, compared with $942 thousand in the first quarter of 2024, 28% pro-forma adjusted EBITDA margin versus 25% in the first quarter of 2024 (Intermap invested to support permitting and pursuit costs on behalf of its partners for follow-on awards(, Pro-forma net income of $833 thousand, compared with a net loss of $839 thousand in the first quarter of 2024, Total assets of $19.2 million versus $11.9 million on December 31, 2024, Cash, unbilled and A/R totaled $13.9 million versus $6.5 million on December 31, 2024. In the government sector, Intermap’s team, led by CACI, was selected as a vendor for the National Geospatial-Intelligence Agency’s $200 million Luno B IDIQ contract. When combined with the previously announced Luno A award, the addressable opportunity totals $500 million. Intermap continued to execute Phase 1 of Indonesia’s national mapping initiative, delivering high-resolution 3D elevation and feature data exceeding specifications in a shorter timeframe than planned. The Company is pursuing follow-on awards under Phase 2 of the $653 million World Bank–funded ILASP project, which supports land administration and spatial planning. With the Indonesian government prioritizing large-scale base maps for national development, Intermap’s Phase 1 performance positions it strongly for continued participation. During the quarter, Intermap was down-selected after a competitive process for a new U.S. Defense Advanced Research Project (DARPA) program to support priority DARPA investments targeted to leverage Intermap’s unique commercial capabilities, commercialization expertise, proprietary internal research and development and growth capital support. Intermap confirms projected 2025 revenue of $30–35 million and 28% EBITDA margin. Intermap does not provide quarterly guidance. The Company has tremendous installed capacity, providing a competitive advantage for speed of execution. Intermap’s customers are large global institutions and governments with long procurement and decision-making cycles. https://t.co/RaCZd31U8k

Sophic Client Boardwalktech, Inc. (BWLK-TSXV, BWLKF-OTCQB) announces strategic partnership with Zideas Consulting and appointment of Jay Chakraborty to Advisory Board.

Boardwalktech announces a new strategic partnership with Zideas Consulting, a respected technology advisory firm focused on digital transformation, AI implementation, risk management and compliance, and enterprise IT and data strategy. Together, Boardwalktech and Zideas will work with both existing and new clients to help those engaged enterprises transform and refine processes by deploying best in class strategies and technologies, including licensing of Boardwalk’s software solutions, which will improve outcomes and deliver transformational value for their organization. Concurrent with the partnership, Boardwalktech has also appointed Jay Chakraborty, Principal of Zideas Consulting, to its Advisory Board. Mr. Chakraborty brings decades of enterprise consulting experience, having held senior leadership roles at global firms where he led large-scale digital and technology transformation projects across the financial services, manufacturing, and healthcare industries. “We’re excited to welcome Zideas Consulting as a partner and Jay to our Advisory Board,” said Andrew Duncan, CEO of Boardwalktech. “Jay’s deep domain expertise and strategic insight will be invaluable as we expand our partner ecosystem and execute on key growth initiatives. We are already engaged with Zideas on several engagements, and this collaboration represents a significant step forward in strengthening our enterprise go-to-market capabilities.” This partnership aligns with Boardwalktech’s continued focus on enabling digital transformation through its patented Digital Ledger and Intelligent Information Platform, allowing organizations to unify and manage structured and unstructured data, improve risk and compliance, and improve decision-making. Boardwalktech’s Digital Ledger platform enables multiple users to collaborate on the same data models in real time, seamlessly managing critical information flows across internal and external stakeholders. By automating these workflows and timestamping every change, the platform creates a single, trusted source of truth—enhancing data accountability, traceability, and auditability. https://t.co/s26DSqNduY

Sophic Client Boardwalktech, Inc. (BWLK-TSXV, BWLKF-OTCQB) appoints Miles Ravitz of IBM to Advisory Board.

Boardwalktech announces the appointment of Miles Ravitz to the Company’s corporate advisory board. Mr. Ravitz is an executive with Promontory Financial Group, a business unit of IBM Consulting, and is expected to act as both an advisor and liaison between Boardwalktech and its customer prospects. This move is part of Boardwalk’s broader strategy to secure partnerships with leading technology and professional services organizations, and to continue strengthening the risk and compliance benefits of Boardwalk offerings in order to close new license deals with financial institutions. Mr. Ravitz brings over 20 years of experience in the financial services sector, with a focus on risk management, regulatory compliance, quantitative finance, and digital transformation. In addition to his current role with IBM Promontory, Mr. Ravitz has held several other senior roles throughout his career, including Managing Consultant at Capgemini, Regional Director at Falcon Technology Systems, and Portfolio Manager at MBF Clearing Corporation. As Boardwalktech continues to expand its presence in the financial services sector, Mr. Ravitz’s experience and industry connections will be instrumental in supporting the Company’s growth and innovation. “Miles brings invaluable expertise in risk management, governance, and strategy to Boardwalktech,” said Andrew Duncan, CEO of Boardwalktech. “His deep understanding of regulatory and compliance frameworks combined with his program management acumen and extensive financial services relationships will play a key role in advancing both our market position and product evolution. On behalf of Boardwalktech’s management and Board of Directors, I welcome Miles to our Advisory Board.” “Coming from a background of advising financial services institutions, I know firsthand about the significant risks these organizations face and the complexity of evolving regulatory expectations,” said Mr. Ravitz. “Without the proper controls provided by solutions like those from Boardwalktech, organizations are exposed to potential compliance failures and operational breakdowns. And to be clear, these are problems that extend well beyond the financial services sector, positioning Boardwalktech and its partners to address these risks across industries. I look forward to leveraging my expertise and relationships with Boardwalktech to contribute to its continued success.” https://t.co/YTIry8EXrl

Sophic Client Cybeats Technologies Corp. (CYBT-CSE,CYBCF-OTCQB) enhances SBOM Studio with AI powered feature to strengthen software supply chain security.

Cybeats announces the launch of a new AI-enhanced feature, branded as “Magic Link,” within its SBOM Studio platform. This innovation significantly reduces the time and complexity associated with Software Bills of Materials (SBOMs), enabling organizations to better understand software risks for mitigation and compliance efforts. In addition to the feature launch, Cybeats has also been invited to join a Canadian government-backed cybersecurity market development mission to the United Kingdom. This recognition reflects how closely Cybeats’ solutions align with the U.K.’s recently released Software Security Code of Practice, which is co-endorsed by the Canadian Centre for Cyber Security. https://t.co/6jeiTLYb9B

Sophic Client American Aires (WIFI-CSE, AAIRF-OTCQB) activates second sponsorship integration with NASCAR driver Chad Finchum.

American Aires has activated its second Chad Finchum sponsorship integration in a multi-race partnership, which will run throughout the remainder of May and include the NASCAR Cup Series All-Star Open at North Wilkesboro Speedway, North Carolina, on Sunday, May 18, and the NASCAR Cup Series Cracker Barrel 400 at Nashville Superspeedway on Sunday, June 1. Building on knowledge gained from the Company’s initial sponsorship success in October 2024, Aires will strategically install its products to optimize the electromagnetic field environment surrounding Finchum and the Garage 66 team to support their health while they use advanced in-race communication systems before and during the multiple race weekends. The widespread popularity and global reach of NASCAR includes Cup Series broadcasts being available in 195 countries and 29 languages, and TV viewership in 2025 to date totaling 42.3 million for an average of 3.3 million per race. Finchum, crew and the Garage 66 Ford Mustang car will also prominently showcase the Aires brand and its products throughout multiple race weekends, including Aires brand marks being featured in the car’s paint scheme, specifically on the highly visible hood, in addition to branding on the door, roof and bumper.”It’s great to be partnering again with Chad Finchum and the Garage 66 team,” said Josh Bruni, CEO of Aires. “Chad isn’t just a competitor – he’s a new father, an elite performer, and someone who understands the connection between environment and performance. That makes this partnership deeply aligned. He discovered Aires through his personal pursuit of a cleaner, healthier life – at home and on the track. And like many athletes we work with, he knows that high performance starts with low interference.” “As the lead sponsor in Nashville, we’re not just showing up with an Aires paint job – we’re making a point. Vehicles are one of the most EMF-saturated spaces in daily life, yet often overlooked. Whether it’s a racecar or a family SUV, Aires helps reformat that invisible layer between technology and biology. This moment is a symbol of something bigger: from arenas to cars to homes, people are rethinking their environments. And we’re proud to help drive that shift forward.” https://t.co/DuQPVXaIxI

Trading app EToro soars 34% after IPO.

Stock and crypto trading app eToro jumped 34% when it debuted on Nasdaq on Wednesday, a bullish sign for future initial public offerings following the tariff-induced market selloff last month. The Israel-based company and its shareholders raised US$620 million at the IPO price of US$52 per share, higher than it earlier planned. BlackRock indicated interest in buying up to US$100 million shares during the IPO, according to an earlier filing. The trading gives eToro a market value of US$5.5 billion. It was the first major IPO since President Donald Trump backed off on harsh tariffs on China. Another fintech firm Chime, which offers digital banking, filed publicly for an IPO yesterday. https://tinyurl.com/fdt6rpyp

Chime shows faster revenue growth in IPO filing.

Banking app Chime accelerated revenue growth in the first quarter, it revealed in a securities filing Tuesday, a positive sign for its long-awaited initial public offering as the stock market rebounds. The company’s revenue, which it largely makes from interchange fees on Chime-branded debit and credit cards, grew by 32% to US$519 million in the first quarter, compared to 26% a year earlier. It recorded a 5% profit margin, before interest, taxes, depreciation, amortization and stock-based compensation. The additional growth was in part due to Chime’s launch of a pay-day advance product it launched last year called MyPay. The launch of the product also increased the company’s expenses related to transaction and risk losses. The company, founded in 2012, counts DST Global, Crosslink Capital, Access Industries Management and General Atlantic as its outside backers. The company is expected to go public in the next few weeks. https://tinyurl.com/3nearuvs

Pony AI is said to confidentially file for Hong Kong listing.

Autonomous-driving company Pony AI Inc. has confidentially filed for a Hong Kong listing to help raise capital to grow its business, according to people familiar with the situation. A Hong Kong offering may take place this year, but the size isn’t yet known, the people said, asking not to be identified discussing a private process. https://tinyurl.com/22fnyaa3

Perplexity discusses fundraising at US$14 billion valuation.

Perplexity, an artificial intelligence-powered search engine, has had discussions with Accel for its latest financing, a US$500 million capital raise at a $14 billion valuation, including the investment, according to a person familiar with the matter. The deal talks are early and the terms and participants could change. The valuation is 56% higher than the company’s last round in November but less than the US$15 billion price tag that investors had offered the company earlier this year. The new round, which is still under discussions, underscores investor interest in the growing company. It recently generated revenue at a US$100 million pace from subscriptions for its Perplexity Pro product. Last year, Accel raised a US$1.35 billion growth fund, backing companies like Cyera, a cybersecurity company, and Vercel, which offers AI tools to developers. The firm participated in the latest round of coding assistant startup, Cursor, which recently raised capital at a US$9 billion valuation. https://tinyurl.com/y3e6kkwj

Salesforce to acquire AI agents startup Convergence.

Salesforce has agreed to acquire Convergence, a London-based startup developing AI software to automate complex tasks, otherwise known as AI agents, according to a Convergence post on X on Thursday. Convergence’s product, Proxy, went viral when it first launched on ProductHunt in February. Proxy aims to provide a free alternative to computer-using agents like OpenAI’s Operator that can automate tasks for users like running a business’ social media account or looking for job applications. As part of the acquisition, Convergence will integrate its tech into Salesforce’s Agentforce, a product the software company launched last fall to help customers automate customer service and other business functions, which has received mixed reviews since then. Convergence has raised $12 million in funding from investors including Balderton Capital, Salesforce Ventures and Shopify Ventures. https://tinyurl.com/2kpery8x

Databricks confirms US$1 billion acquisition of database startup Neon.

Databricks confirmed its acquisition of database startup Neon for around US$1 billion, pitching it as a way for customers to build AI agents that need speedy and cost-effective access to cloud databases. With the deal, Databricks is betting that agents will become a major part of corporate AI spending budgets in the coming years. It could also give Databricks a leg up on Snowflake, one of its chief rivals, which doesn’t directly offer a product like Neon. Snowflake is expected to expand access to its AI agent-building product, which is currently in private preview, at its customer conference next month. Neon is Databricks’ third billion-dollar acquisition, following its US$1.3 billion purchase of AI model developer MosaicML in 2023 and last year’s acquisition of data management startup Tabular, for which Databricks reportedly shelled out nearly US$2 billion. https://tinyurl.com/y2jzwwxd

Google ‘super intensely’ debated buying Netflix, Google CEO says.

Google at some point considered acquiring Netflix, Google CEO Sundar Pichai said in a podcast interview that aired Friday. “We debated Netflix at some point super intensely inside,” Pichai said, adding: “I wouldn’t call it regrets, but you always look back.” Pichai didn’t specify when discussions around the potential acquisition took place. Any such purchase would likely face severe antitrust scrutiny now; in the past year, Google lost cases ruling that it had an illegal monopoly in search engines and adtech, decisions it has said it will appeal. https://tinyurl.com/45bapncr

Nvidia, AMD announce AI chip deals with Saudi Arabia.

Nvidia and Advanced Micro Devices each announced strategic partnerships with Saudi Arabia on Tuesday, in which they plan to sell a large amount of their artificial intelligence chips to the country. The announcements come as President Doanld Trump and U.S. tech leaders, including OpenAI CEO Sam Altman and Nvidia CEO Jensen Huang, visit the country this week seeking to strike deals with Saudi investors. Nvidia shares were up 6% and AMD’s were up 4% on the news. Nvidia and AMD said they are partnering with Humain, a newly launched Saudi AI company run by its de facto ruler Mohammed bin Salman that is a subsidiary of the country’s Public Investment Fund. Each U.S. chip company plans to power 500 megawatts worth of capacity in the Kingdom over the next five years, according to the company’s statements, which will involve hundreds of thousands of chips. AMD and Humain plan to invest up to US$10 billion to build out the data centers. Nvidia did not indicate how much the data centers with its chips would cost but said the first phase will include 18,000 GB300s—its most advanced chip that is due out later this year—which could cost around US$1 billion. Bloomberg first reported that Trump was arranging deals to grant Saudi Arabia access to advanced AI chips after rescinding Biden-era rules that could have restricted chips in that region over concerns they would end up being used by Chinese firms. https://tinyurl.com/yv7zz6fy

Coinbase to join S&P 500.

Coinbase is set to join the S&P 500 index, replacing Discover Financial Services, which is soon to be acquired by Capital One, according to index provider S&P Dow Jones Indices. Shares of the crypto exchange surged 8% post-market. Inclusion in the widely tracked index will force more funds to buy the stock, opening it up to a broader investor pool. The change will take effect prior to the opening of trading on May 19. Coinbase’s shares closed at US$207 per share Monday, giving it a market cap of US$52.8 billion. https://tinyurl.com/5bz4ucz9

Coinbase says customers’ data breached, warns up to US$400 million cost.

Coinbase said on Thursday some customer data were stolen by some of its overseas customer support agents in a breach that may cost between UD$180 million and $400 million to fix, sending its shares down 6%. The company said the incident affected less than 1% of its monthly users. The agents allegedly stole customers’ names, the last four digits of their social security numbers, government ID images, and partial bank-account numbers. Coinbase said it received an email from an unknown person on May 11, which demanded $20 million. The company refused to pay and is working with law enforcement. Coinbase said it will reimburse customers who were “tricked into sending funds” to the attacker. The attacker didn’t get access to customer funds or crypto wallets directly, the company said. Coinbase is set to join the S&P 500 index next week. Brian Armstrong, its chief executive officer, was in D.C. this week advocating for stablecoin legislation, which is currently stalled in the Senate. https://tinyurl.com/28wdcyyt

CoreWeave shares fall 7% on ‘lumpy’ AI cloud revenue projection.

CoreWeave, which rents out Nvidia AI chips to large firms such as Microsoft, said in its first earnings report as a public company that it generated US$980 million in revenue in the three months ending in March, up more than five times from the same period a year earlier. But investors soured on the stock as its executives said revenue and capital expenditures might be “lumpy” this year because the company doesn’t buy Nvidia AI chips and other equipment for its data centers before customers sign contracts to use them. CoreWeave projected full-year revenue growth of 190%—less than half the rate of growth in the first quarter. Shares of CoreWeave initially rose 9% in after-hours trading before swinging wildly in the other direction, eventually ending down 7%. Despite the drop, CoreWeave would still be 59% above its IPO price if the after-hours price holds through Thursday. The company has been one of the barometers of the unprecedented boom in AI-related spending, led by sales of Nvidia chips. https://tinyurl.com/573p2hch

CoreWeave rival Nebius’ stock rallies on ClickHouse deal talks.

Shares of Nebius, which runs data centers for artificial intelligence, have risen 30% since Friday, when The Information reported that database startup ClickHouse was in talks to raise money at a price that would triple its valuation. Nebius owns a 28% stake in ClickHouse. Nebius was formerly known as Yandex N.V., which was the Dutch holding company for Russian search giant Yandex. When sanctions hit Russia following its invasion of Ukraine, the holding company divested itself of Russian assets and renamed itself Nebius. It relisted on the Nasdaq Stock Market in October. ClickHouse, which spun out of Yandex N.V., is in talks with investors including Khosla Ventures to raise at a US$6 billion valuation, The Information reported. D.A. Davidson increased the price target for Nebius shares from US$30.00 to US$35.00 on Monday. https://tinyurl.com/28cj6ydj

CrowdStrike CEO gives away 92% of voting power.

CrowdStrike CEO George Kurtz gifted more than US$1 billion worth of his voting power in the cybersecurity company, reducing it from 31% to 2.5% and eliminating all of CrowdStrike’s supervoting stock, the company disclosed in a proxy filing last month. Kurtz’ gifts triggered a clause that transferred all of CrowdStrike’s supervoting stock, which grants founders and other executives 10 votes per share instead of one vote per share, into regular stock that don’t carry such power. A CrowdStrike spokesperson said the gifts were for “estate planning and philanthropic activities.” Filings show that some of the stocks went to family trusts associated with Kurtz, which subsequently sold them. Kurtz has also sold more than US$200 million worth of shares since 2022, separately from the stock gifts, according to filings. The unusual giveaways come as CrowdStrike continues to deal with the fallout from an outage last summer that disrupted several large airline customers, resulting in thousands of cancelled flights across multiple days and prompting a lawsuit against the firm by Delta Airlines that claimed CrowdStrike violated its contract and caused more than US$500 million in damages, which CrowdStrike has disputed. CrowdStrike’s stock fell in the wake of the outage but has since recovered and is trading higher than it was before the incident. CrowdStrike said last week that it would eliminate roughly 500 roles in an attempt to cut costs. Separately, federal regulators are investigating a US$32 million deal between CrowdStrike and another software firm to provide software for the IRS that the agency allegedly never ordered or received, Bloomberg reported last week. The CrowdStrike spokesperson said the company stands by its accounting of the transaction. https://tinyurl.com/bdzdhv94

Klarna backtracks on AI as a way to save money.

Klarna, the Swedish buy-now pay-later fintech firm, is pulling back on AI as a replace for customer service staff. In an interview with Bloomberg, CEO Sebastian Siemiatkowski said Klarna’s emphasis on cost control had led to “lower quality.” Siemiatkowski said that Klarna’s customers had to know they could always reach a human if they had to. As a result, Klarna is testing the hiring of a new group of employees hired remotely, Bloomberg reported. Siemiatkowski had been one of the most vocal executives touting the cost saving benefits of AI, proclaiming last year that its AI chatbot had done the work of 700 people. In an IPO filing earlier this year, Klarna detailed all the ways it saved money on AI. (Klarna suspended IPO plans amid the market volatility). Siemiatkowski’s retreat highlights longstanding questions among businesses about the effectiveness of AI technologies. https://tinyurl.com/y8etew78

SoftBank notches first profitable year since 2020.

SoftBank said it earned 517 billion yen (US$71.8 billion) before taxes in the quarter ending March 31, up from only US$32 billion during the same period last year. For the fiscal year, the Japanese telecom conglomerate run by Masayoshi Son earned US$1.2 billion, its first profit in four years. The quarterly profits were driven by investment gains on its shares of companies such as T-Mobile. SoftBank’s Vision Funds gained US$1.2 billion in the fourth quarter, thanks to gains in the valuation of TikTok-parent ByteDance offset by lower share prices for the public companies in that portfolio. SoftBank’s recent AI investments included acquiring semiconductor companies Ampere and Graphcore. SoftBank is also investing in Stargate, a U.S. project to provide computing resources to OpenAI, and leading a US$40 billion investment in OpenAI, of which US$10 billion will be provided by other investors. Some US$20 billion of SoftBank’s funding relies on OpenAI’s planned conversion to a public benefit corporation. OpenAI recently announced that its charitable nonprofit would remain in control of the for-profit side of the business. SoftBank Chief Financial Officer Yoshimitsu Goto supported that plan on a call with investors, but he noted that some stakeholders might intervene in the conversion, causing it to “not go as smooth as we hoped, but it’s out of our control.” https://tinyurl.com/bthy4vev

OpenAI releases coding agent that automates work for software engineers.

OpenAI said Friday it released an artificial intelligence coding “agent” that can automate software engineering tasks such as fixing bugs and answering questions about a codebase. It’s following startups including Anthropic and Cognition that have released similar coding assistants. The coding agent, Codex, is powered by a version of OpenAI’s o3 reasoning model that can spend more computational resources on harder questions. Codex can be accessed through ChatGPT, and when users provide it with tasks, it works in the background with users’ codebases to complete those tasks. Codex is currently available for ChatGPT Pro users, who pay $200 per month, as well as Enterprise and Team users, whose companies pay at least $25 per user per month to access more advanced features. The release deepens OpenAI tools aimed at helping engineers code. Already, millions of users leverage ChatGPT to help them write code and fix bugs. https://tinyurl.com/bdn7ctjh

Google’s Gemma AI models surpass 150 million downloads.

Google’s openly available Gemma collection of AI models has reached a milestone: over 150 million downloads. Omar Sanseviero, a developer relations engineer at Google DeepMind, announced the figure on X over the weekend, also revealing that developers have created more than 70,000 variants of Gemma on the AI dev platform Hugging Face. Google launched Gemma in February 2024, aiming to compete with other “open” model families like Meta’s Llama. The latest Gemma releases are multimodal, meaning that they can work with images as well as text, and support over 100 languages. Google has also created versions of Gemma fine-tuned for particular applications, like drug discovery. While 140 million downloads in roughly a year is a head-turning metric, Gemma trails far behind Llama, perhaps its chief rival, which surpassed 1.2 billion downloads in late April. Worth noting is that Gemma, as well as Llama, has been criticized for custom, non-standard licensing terms, which some devs say have made using the models commercially a risky proposition. https://tinyurl.com/y5x9fehf

Google developing software AI agent, Pinterest-like feature.

Google is working on an AI agent for software development intended to help software engineers navigate every stage of the software process, The Information reported. Google employees demonstrating the product have pitched it as an always-on coworker that can help identify bugs or fix vulnerabilities without needing to be given a specific task, although it’s unclear how close they are to realizing that vision. Google is also working on a visual inspiration product that could compete with Pinterest. The feature in development shows users images, such as ideas for fashion or interior design, and lets them save the images in different folders. Pinterest’s stock dropped 3% in after-hours trading. https://tinyurl.com/2wm7sr5t

Waymo recalls software in more than 1,200 cars.

Waymo recalled software last December in more than of its 1,200 self-driving cars produced between spring of 2022 and last November after a bug caused collisions with chains, gates and other roadway barriers, according to a report made public Monday by the National Highway Traffic Safety Administration. The Google-backed self-driving car company had previously identified barriers like these as “areas for improvement” and updated the software in all affected vehicles by last December. This is Waymo’s third recall filed with the NHTSA in the past two years and the largest batch of vehicles affected. In a statement, a Waymo spokesperson note that the service provides more than 250,000 paid trips every week “in some of the most challenging driving environments in the U.S.” https://tinyurl.com/3acb8v46

House Armed Services Committee earmarks US$3.1 billion for Unmanned Vessel production in historic reconciliation Bill.

A massive US$150 billion reconciliation bill pitched by the House Armed Services Committee (HASC) has moved to the House Budget Committee after a 35-21 vote, paving the way for the US$1.012 trillion topline defense budget. This is the first time the HASC’s reconciliation process has been used to directly add funding to the U.S. Department of Defense; part of President Donald Trump’s FY2026 Discretionary Budget Request released this week. A major part of the US$150 billion bill includes US$1.8 billion for the production of medium unmanned surface vessels, a major U.S. Navy interest in the past year as it seeks information on unmanned vessels of commercial origin. The Department of Defense has pushed forward on a number of unmanned programs for the U.S. Navy and Marine Corps, adding autonomous launchers, one-way attack drones, and logistics vessels to both branches in recent years. https://tinyurl.com/3mn3ydvs

TikTok parent ByteDance eyes 20% revenue growth in 2025.

ByteDance is targeting revenue growth of about 20% this year, which could help it catch up to rival Meta Platforms, according to Bloomberg. The TikTok parent company expects revenue to rise to about US$186 billion in 2025, up from US$155 billion last year, Bloomberg reported. Analysts expect Meta to generate about US$187 billion in revenue, according to S&P Global Market Intelligence. TikTok continues to face the threat of a ban in the U.S., but the short-form video app operates globally and ByteDance owns other businesses, including TikTok’s sister app Douyin in China. https://tinyurl.com/rmym4t6m

Netflix says its ad tier now has 94 million monthly active users.

Netflix said Wednesday its cheaper, ad-supported tier now has 94 million monthly active users — an increase of more than 20 million since its last public tally in November. The company and its peers have been increasingly leaning on advertising to boost the profitability of their streaming products. Netflix first introduced the ad-supported plan in November 2022. Netflix’s ad-supported plan costs US$7.99 per month, a steep discount from its least-expensive ad-free plan, at US$17.99 per month. “When you compare us to our competitors, attention starts higher and ends much higher,” Netflix president of advertising Amy Reinhard said in a statement. “Even more impressive, members pay as much attention to mid-roll ads as they do to the shows and movies themselves.” Netflix also said its cheapest tier reaches more 18- to 34-year-olds than any U.S. broadcast or cable network. https://tinyurl.com/c3edeuf6

New ESPN streaming service will cost US$30 per month.

ESPN’s new streaming service, which will also be called ESPN and launch in the fall, will cost US$29.99 per month. The service will bring all of ESPN, including all of its cable TV channels, coverage of more than 47,000 live sporting events per year and original studio shows and documentaries, to streaming without requiring a traditional pay cable TV subscription. Disney will also offer a bundle of the new ESPN service, Disney+ and Hulu, which will also be priced at US$29.99 (with ads) for the first month. The non-promotional price for this bundle will be US$35.99 per month for the ad-supported versions of each service and US$44.99 for the ad-free (excluding live events) versions of the services. ESPN’s existing subscription streaming service, ESPN+, will also be bundled into the new, all-encompassing service into a “select” tier, which will be available for US$11.99 per month. (ESPN+ does not stream most of the big games ESPN aries on its cable TV channels.) The new ESPN streaming service is a big bet for Disney, which has long relied on profits from ESPN to drive investments in its other entertainment businesses. However, as cord-cutting continues to erode the traditional cable TV ecosystem and the cost of live sports rights continue to skyrocket, Disney has sought to find a business model for ESPN that might work in streaming—hence the US$30 price tag. https://tinyurl.com/y99tx76m

YouTube to stream NFL game in Brazil for free.

YouTube has won the rights to live stream an NFL game from Brazil on September 5. This will be the first time that an NFL game will be exclusively streamed live and for free in its entirety on YouTube, the NFL said in announcing the deal on Tuesday. It will also be available globally on YouTube with the exception of Canada and certain other countries, the league said. The deal expands the relationship between the NFL and YouTube, which also offers the league’s Sunday Ticket subscription package for out-of-market games. However, Sunday Ticket offers live feeds of local NFL broadcasts produced by TV networks such as CBS and Fox. The Brazil game will be exclusive to YouTube, which will likely involve producing the broadcast. The production of live sports is a newer area for tech companies such as YouTube, Netflix and Amazon. Last year, Netflix hired CBS to produce its two Christmas Day games. The NFL, meanwhile, has been focused on growing its popularity overseas and with younger viewers. Making a game available for free on one of the largest video services in the world will certainly help. https://tinyurl.com/4w4ffvx8

Epic Games says Apple is blocking Fortnite from the US and EU app stores.

Epic Games claims that Apple is blocking its Fortnite app from the U.S. and EU App Stores. After winning a decisive victory for app developers in a legal battle with Apple, forcing the tech giant to allow external payments in its U.S. App Store without charging commission, Epic Games attempted to resubmit Fortnite to the U.S. App Store on May 9, 2025. However, Apple failed to accept its submission for a week, leading Epic Games to pull its request and try again. According to Epic Games CEO Tim Sweeney, the update was pulled because Epic Games needs to release a weekly Fortnite update with new content, and all platforms must be updated simultaneously. Apple disputed Epic Games’ characterization of the issue. A spokesperson for Apple said the following: “We asked that Epic Sweden resubmit the app update without including the U.S. storefront of the App Store so as not to impact Fortnite in other geographies. We did not take any action to remove the live version of Fortnite from alternative distribution marketplaces in the EC.” https://tinyurl.com/2wmby8zn

Trump slashes tariffs on low-value parcels from China.

President Donald Trump slashed tariffs on low-value parcels imported from mainland China and Hong Kong by more than half, in a step that could revive e-commerce marketplaces like Shein, Temu and Amazon Haul. From May 14, parcels valued at US$800 or less will only face 54% duties, instead of the current 120%, according to an executive order signed by Trump on Monday. For parcels imported via postal service, the current flat fee of US$100 apiece will remain in place, but it will no longer be hiked to $200 in June as originally planned. The tariff reduction in low-value parcels was announced hours after Beijing and Washington called a timeout in the trade war, after senior officials from both countries met in Switzerland over the weekend. Low-value parcels used to enjoy zero import duty under a trade provision known as de minimis. The provision was key to fueling the growth of Shein and Temu, which ship parcels directly from warehouses in China to U.S. households. The model worked so well that it prompted Amazon to launch its own copycat Haul last year. President Trump in April moved to close the loophole and levies on these small parcels were raised to 120% on May 2. https://tinyurl.com/yxm2mhsx

Perplexity adds PayPal checkouts.

Perplexity is adding PayPal and Venmo checkout buttons in its subscription AI chatbot, the companies said on Wednesday, adding a new way for Perplexity users to pay for goods and services they find using AI tools. Perplexity has already struck a deal with Shopify to add checkouts in Perplexity’s chats for merchants that use Shopify’s e-commerce software. It also works with the startup Firmly to help other merchants’ products show up in results and allow users to make purchases. The PayPal and Venmo checkouts will be available in Perplexity’s Pro subscription service, which offers automated tools that can find products and book travel and live event tickets, for U.S. users starting this summer. In recent weeks, payments giants including PayPal, Mastercard and Visa have been touting fraud prevention and other features for payments initiated by AI tools. https://tinyurl.com/bdf5ay2e

Airbnb expands into services and experiences, plans more social and AI features.

As part of a broader app update, Airbnb on Tuesday introduced a new feature that allows travelers to book services and experiences, like getting a massage, haircut, or chef-prepared meal, or taking part in some activity. These new offerings can be added to your stay, but they can also be booked independently, Airbnb says. This is not the first time Airbnb has tried such a feature — it paused an earlier version of experiences in 2023 to improve its core offering of stays. Now the company once again wants customers to go beyond planning a trip. The move is meant to capitalize on the traffic Airbnb’s site already receives. During Airbnb’s Q1 2025 call, CEO Brian Chesky said that its service was accessed by over 1.5 billion devices in the last year, but he pointed out that many people come to the site and don’t book a home. It also brings Airbnb more directly in competition with other travel companies such as Tripadvisor, Booking.com, Viator, and GetYourGuide, and service providers like Yelp. Initially, Airbnb will allow users to book services across 10 categories, including chefs, catering, prepared meals, photography, massages, spa treatment, personal training, hair, nails, and makeup. The services will be offered in 100 cities worldwide across eight countries. https://tinyurl.com/8n899k24