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May 08, 2026
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Supported by
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Cloudflare said it is cutting about a fifth of its workforce, joining a growing list of tech companies that have cited AI as a reason to slash jobs. The company, whose content delivery network is used by many of the world’s websites, announced the plans on Thursday as it reported quarterly financial results and projections that sent its stock down more than 15% in after-hours trading. The shares had gained more than 30% this year through Thursday’s close. Cloudflare, whose workforce totalled 5,156 at the end of 2025, said it will cut more than 1,100 employees globally. In a memo to employees posted on Cloudflare’s website, CEO Matthew Prince and President Michelle Zatlyn said the decision was driven by growing AI usage, which they said has increased by more than 600% in the last three months. “That means we have to be intentional in how we architect our company for the agentic AI era in order to supercharge the value we deliver to our customers and to honor our mission to help build a better Internet for everyone, everywhere,” they wrote.
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Airbnb’s revenue growth accelerated to 18% in the first quarter, from 10% in the previous two quarters, although the accommodation hosting service projected slightly slower growth for the second quarter. Airbnb projected revenue would grow between 14% to 16% in the second quarter. The company said it expected the volume of nights booked to also decelerate, partly related to the conflict in the Middle East which has increased cancellations in Europe and Asia. For the full year, however, Airbnb said it was raising its guidance to revenue growth in the “low to mid teens.” In 2025, Airbnb’s revenue grew 10%.
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Broadcom’s stock dropped 2% following a report in The Information about an $18 billion financing snag in the chipmaker’s custom AI processor deal with OpenAI. Shares have partly recovered since then. Broadcom has stipulated it will only finance the initial phase of production if Microsoft agrees to purchase roughly 40% of the newly designed processors. But while Microsoft has earmarked data center space, it has yet to commit to buying the hardware, prompting OpenAI to consider contingency plans for alternative buyers. The uncertainty about Microsoft’s commitment to buying the chip threatens the ChatGPT maker’s broader ambitions to lessen its expensive reliance on Nvidia hardware and improve its gross profit margins over the coming years. Broadcom shares have doubled over the past year as OpenAI, Meta, Microsoft
and other firms have sought its support to develop custom AI chips.
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CoreWeave shares were down 9% in after-hours trading, after the firm said its capital expenditures would be slightly higher this year because of rising supply costs. CoreWeave’s revenue roughly doubled in the first quarter to $2 billion, while its operating loss jumped to $144 million. But the cloud provider said its revenue backlog has reached nearly $100 billion, up from $67 billion at the end of last year. The metric, which represents demand that has not yet been delivered, is a closely watched figure among cloud providers, who are all racing to secure contracts to rent out Nvidia GPUs to artificial intelligence developers. In the past few weeks, CoreWeave has signed multi-year contracts totalling tens of billions of dollars, including with Meta Platforms and
Anthropic. The firm also said it has more than 1 gigawatt of “active power” and expects that number to reach 8 gigawatts from 2030.
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Coinbase, the biggest U.S. crypto exchange, reported first-quarter revenue of $1.4 billion, down 31% from a year ago amid a crypto market downturn. Shares fell 5% in after-hour trading. The company’s net loss in the quarter was $394 million, down from a net profit of $65.6 million a year ago but smaller than a loss of $667 million in the prior quarter. Monthly transacting users fell 15% to 8.2 million. It has $10.2 billion in cash and cash equivalents. The company’s prediction market reached $100 million in annualized revenue as of March. Earlier this week, Coinbase announced it’s cutting 14% of jobs, affecting about 700 people. The company said today it continues to commit to generate positive adjusted earnings before interest, taxes, depreciation, and amortization across market cycles and plans to
“dynamically adjust” its expense base in response to market conditions and revenue opportunities.
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Datadog reported revenue grew 32% to more than $1 billion in its March quarter—up 7% from last year—and raised its full-year projection to 26% growth, from the 20% it issued a few months ago. Shares of Datadog rose around 30% after its earnings report, suggesting investors’ fears about AI’s impact on business software providers could be subsiding. AI is becoming a business driver for Datadog, which sells software for tracking the performance of cloud applications and spotting security threats, CEO Olivier Pomel said on an earnings call. Pomel said that while only 20% of his customers are using Datadog in conjunction with other AI providers’ products—for tasks like monitoring utilization of GPUs—those customers account for about 80% of Datadog’s annual recurring revenue, the value of its contracts over
the next 12 months. Last week, shares of team collaboration software provider Atlassian jumped 25% after its earnings, when the company said its AI search tool was boosting sales of its other products.
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