• Source: Cursor reached $3B in annualized revenue in late April and now has 3,000+ customers paying at least $100K each for its software on an annualized basis (Rachel Metz/Bloomberg)
• Spotify closes up 13% after announcing new features and 2030 guidance, forecasting a compound annual growth rate in the mid-teens and gross margins of 35%-40% (Samantha Subin/CNBC)
• Zoom reports Q1 revenue up 5.5% YoY to $1.24B, vs. $1.22B est., AI Companion paid users up 184%, forecasts FY 2027 revenue above est.; ZM jumps 8%+ after hours (Brody Ford/Bloomberg)
• Take-Two reports Q4 bookings flat YoY at $1.58B, forecasts FY 2027 bookings below est., reiterates GTA VI's November 19 launch date; TTWO jumps 6%+ after hours (Zaheer Kachwala/Reuters)
• Workday reports Q1 revenue up 13% YoY to $2.54B vs. $2.52B est., and lifts its full-year forecast, saying its AI strategy is working; WDAY jumps 9%+ after hours (Jordan Novet/CNBC)
• Texas AG Ken Paxton sues Meta, accusing WhatsApp of marketing its services as secure but failing to "deliver on those promises" by accessing encrypted messages (Ryan Autullo/Bloomberg Law)
• Meta joins TikTok, Snap, and YouTube in settling with a Kentucky school district to avoid a trial over claims the platforms were designed to addict kids (Erin Mulvaney/Wall Street Journal)
• Sources: Starbucks shut down an AI program for automating inventory counts, nine months after deploying it, after it frequently miscounted and mislabeled items (Waylon Cunningham/Reuters)
• Modal Labs, which offers a serverless cloud platform to build AI apps and run AI inference, raised a $355M Series C at a $4.65B valuation, up from $1.1B in 2025 (Deepa Seetharaman/Reuters)
• Gavin Newsom signs an EO mandating state agencies work with the AI industry and others to study subsidies for companies that don't replace workers with AI (Cecilia Kang/New York Times)
• Sources: OpenAI generated ~$5.7B in revenue in Q1, ~$1B more than Anthropic; its adjusted operating income margin was -122%, and ChatGPT user growth stalled (Sri Muppidi/The Information)
• Sources: the EU will propose temporarily lifting sanctions, imposed in April, on a major Chinese semiconductor supplier after automakers warned of shortages (Alberto Nardelli/Bloomberg)
• August Robotics, which makes autonomous robots for construction and industrial applications, raised $30M led by Big Pi Ventures (Kyt Dotson/SiliconANGLE)
• Apple plans to broadcast an MLS game on Saturday shot entirely on 15 iPhone 17 Pros, the first major live sports event to be captured using only smartphones (Todd Spangler/Variety)
• Source: smart ring maker Oura filed confidentially for a US IPO, set for later in 2026; SF- and Finland-based Oura had an $11B valuation in September 2025 (Mark Gurman/Bloomberg)
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| • Starbucks abandons its AI inventory tool after only nine months
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• Airbnb expands into hotel bookings and even grocery deliveries
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