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If you’ve never visited Las Vegas, this week might be the time. Adobe and Google Cloud are both having big shows there this week, with Adobe kicking off its customer summit tomorrow and running through Wednesday. Google Cloud Next, conveniently, starts Wednesday and runs through Friday. Come for one, stay for both!
The two companies might be in pretty different moods, however. Adobe is in the camp of enterprise software firms pummeled by worries about AI. Its stock has fallen 30% so far this year, and sentiment likely hasn’t been helped by longtime CEO Shantanu Narayen’s decision to leave, raising questions about who will succeed him. But the real issue weighing on Adobe is competition from new AI tools.
That competition is particularly apparent on the design software front. On Friday, Anthropic confirmed a report in The Information earlier in the week about a new design tool it is introducing. Earlier in the week, design software firm Canva announced a new AI-powered design service that, according to a research report from BNP Paribas, “is beginning to rival Adobe’s comprehensiveness.” (Canva is a 2027 IPO candidate to watch). The two new products raise the stakes for whatever Adobe plans to unveil this week.
Meanwhile, at Google Cloud, the mood likely has never been more upbeat. Its growth rate surged by 14 points to 48% in the fourth quarter, while its operating profit margin also jumped several points to 30%. The company is one of Anthropic’s main cloud providers, which has likely proved a major boon in recent months as business use of Anthropic’s Claude has taken off.
And improvements to Google’s own Gemini models have also likely helped boost Google Cloud’s server rentals. That sets the scene for a busy convention where we’re sure to hear about product updates, among other news. You won’t want to miss the Google Cloud Next parties this year!
Meta and Broadcom
Meta Platforms paid Broadcom $2.3 billion in 2025, Meta disclosed in a securities filing late last week, a rare look at how much tech firms pay Broadcom for help designing their AI chips. The payment was more than double the $987 million payment Meta made to Broadcom in 2024.
Meta, like Google, uses Broadcom to help design special AI chips, although Google is likely a much bigger customer given the size of its tensor processing unit business. Broadcom has said its AI chip revenue was about $20 billion in the year that ended last November, implying Meta made up around 10% of that amount.
Meta is becoming a much bigger customer: Last week, the two companies announced an expansion of their relationship, under which Broadcom will co-develop Meta’s next generations of AI chips. As a result of that announcement, Broadcom CEO Hock Tan is leaving Meta’s board.
His presence on the board is why Meta disclosed its payments to Broadcom for 2025 and 2024, which means we won’t get an update on those payments in the future. Suffice it to say that Meta is surely one reason Broadcom has forecast a big increase in AI chip revenue this year.
In Other News
• Meta plans to lay off about 10% of its workforce, or about 8,000 people, next month, Reuters reported.
• Several members of OpenAI’s management team left the firm on Friday, including Kevin Weil, according to a post the executive made on X. Weil, who has been at OpenAI since mid-2024, was at one time chief product officer but more recently led the company’s work to build AI tools for scientists. More here.
• China’s regulator said Friday it had imposed fines totaling 3.52 billion yuan ($516 million) on seven e-commerce businesses, including those operated by PDD Holdings, Meituan, JD.com, Alibaba Group and ByteDance, citing their lack of oversight over problematic food-delivery merchants.
• Andreessen Horowitz and Thrive Capital are in talks to co-lead a $2 billion investment in coding assistant startup Cursor at a $50 billion valuation before the investment, according to people familiar with the matter.
• Lawyers for Elon Musk said Friday that they may drop their fraud claims against OpenAI in his case charging the ChatGPT maker with violating its charitable mission and breaking promises to Musk. More here.
• Anthropic CEO Dario Amodei met with White House Chief of Staff Susie Wiles and Treasury Secretary Scott Bessent on Friday, in what both sides described as a “productive and constructive” discussion, according reports in Axios and The New York Times.
• Jeff Bezos’ rocket company Blue Origin completed the third mission for its New Glenn rocket, which mostly went as planned. More here.
Today on The Information’s TITV
Check out Friday’s episode of TITV in which we discuss Netflix’s growth prospects and stock valuation.
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