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PayPal says it’s ‘becoming a technology company again.’ That means AI.

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PayPal is looking towards the future, despite its falling stock and looming layoffs. In its first-quarter earnings call, CEO Enrique Lores told investors that PayPal needs to “recommit to the fundamentals,” which included “becoming a technology company again.”

There was no need to read between the lines — PayPal was pitching an AI-powered turnaround.

Lores explicitly said so, telling analysts on this week’s call that leading companies find ways to differentiate themselves by innovating, and that now is the time for PayPal to take action. This includes modernizing its tech platform, moving faster to become “cloud-native,” and “aggressively adopting AI in our development processes,” Lores said. The latter would increase developer productivity and shorten time to market, he added.

It’s a startling admission from PayPal that it has yet to fully embrace AI in-house, when AI-assisted coding is one of the breakout areas where the technology has truly excelled.

Other consumer tech companies have rapidly adopted AI in recent months to assist with coding, with Spotify even declaring in February that its top developers haven’t written a line of code since December. Meanwhile, top dev teams are trying to outcompete one another by tokenmaxxing — a proxy for understanding who at the company is experimenting with AI more often, based on the number of AI tokens they use.

PayPal is only now catching up, it seems.

Lores said the company has formed a new “AI transformation and simplification” team to help with its enterprise AI agenda. Combined with the planned layoffs, which Lores characterized as PayPal removing layers from its organizational structure, the addition of AI-enabled processes is expected to bring the company at least $1.5 billion in cost savings over the next two to three years, he said.

The company announced last week it was reorganizing its business, which streamlines the operation into three segments: checkout solutions and PayPal, consumer financial services (and Venmo) as well as payment services and crypto. In addition, Bloomberg reported on Tuesday that PayPal plans to cut around 20% of its workforce over the next two to three years as part of its cost-savings plan, equating to north of 4,500 jobs.

More cost savings will come from PayPal’s plans for AI adoption, company execs said on the call. That includes bringing AI into areas beyond coding, like customer service, support operations, and risk management, to name a few.

“I think the changes that AI will enable us to do are going to drive — are going to be very significant,” said Lores. “This is why we created a group last week, reporting to me, that is going to be in charge of driving — function by function, process by process — this AI transformation. And this is not about adopting AI as a technology, where we have done many pilots in the company, and we have seen what is possible. It’s really about understanding how can we redesign the key processes … this is what we have seen that really will drive significant savings.”

Announcing an AI-driven push to cut costs while eliminating thousands of jobs underscores a core criticism of the technology — it comes with a human cost

It’s worth noting that, in this case, PayPal was already in need of restructuring. The company may have beat on its first-quarter earnings with revenue of $8.4 billion, up 7% year-over-year, but it forecast weak guidance for the second quarter, sending the stock tumbling after earnings. That follows a long post-pandemic decline that has sent the stock down over 80% from its 2021 high and has stunted PayPal’s growth.

Asked if separating Venmo into its own business meant the company would be open to selling it, Lores said that, for now, this is what made the most sense in terms of the turnaround plan. Still, he signaled openness to future deals by saying “my number one priority is to maximize shareholder value,” in answer to an analyst’s question about a sale.

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Anthropic’s CEO is about to have dinner with President Trump

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Anthropic CEO Dario Amodei seems to be everywhere this weekend: He was lampooned on the season premiere of Saturday Night Live, and tonight, he’s set to have dinner with President Donald Trump at the White House.

Axios first broke the news of Amodei’s dinner plans, which were subsequently confirmed by other publications.

This will be the first one-on-one meeting between the two men, who recently found themselves on opposite sides of the AI safety debate. Amodei released a plan to slow AI development (or at least proceed with more caution), while Trump has insisted, without evidence, that the AI backlash is a Democratic hoax; he also wants to rebrand the technology as “super intelligence.”

Even before the current back-and-forth, Amodei and Anthropic have to had a fraught relationship with Trump’s administration. Earlier this year, the Pentagon designated Anthropic a supply-chain risk in response to the company’s attempt to put guardrails around the use of its technology (Anthropic has been fighting the designation in court), although other administration officials have been friendlier.

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Can Muse overcome Meta’s trust issues?

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Meta’s new AI agent Muse took the spotlight at the company’s annual Connect event, where CEO Mark Zuckerberg made it clear that Facebook’s parent company plans to push AI features everywhere.

On the latest episode of TechCrunch’s Equity podcast, Kirsten Korosec, Sean O’Kane, and I discussed Meta’s AI announcements seemed to steal the spotlight during a week of new model launches from OpenAI and Anthropic.

With other big AI companies focused on coding and enterprise tools, it was a little surprising to see Meta move in the opposite direction, with a consumer focus and a cute, Tamagotchi-style AI device that Meta insists is for adults only. But as Kirsten noted, this could be playing to Meta’s strengths.

Sean tried Muse for himself, and while he was pleased that the agent actually found him some unclaimed money, he described the feature as more “a party-trick type thing,” rather than something that will drive ongoing usage. Plus, there’s the question of whether users can trust Meta’s AI with sensitive information.

“Meta’s business is to sell you ads,” Sean said. “And yes, they’ll make the argument that the more they know about you, the more accurate and interesting the ads will be — wake me up when we get to that fever dream.”

Keep reading for a preview of our full conversation, edited for length and clarity.

Kirsten Korosec: So how do you put Muse, which is this new personal AI agent that’s just been released by Meta and [is] clearly a bet on consumer — how does that fit into what you just described, at least with other frontier AI model companies seeing opportunity and business within enterprise? Because Meta Connect, which is their big annual event, just happened, and they are all-in on Muse, that is very clear.

Anthony Ha: That was definitely very head spinning for me, because it certainly feels like what we’ve been talking about has been this shift towards enterprise — not exclusively, but certainly that’s where the money, the attention is going.

Maybe some of that is because of the relative position of these different companies — OpenAI and Anthropic are in the lead in a lot of ways, but also, they’re planning to go public either this year, or next year in the case of OpenAI. And so there’s this feeling of, “I think we’ve got to actually make money now.” Not to say that they’re not making money [already], but because the costs are so high and the valuations are so high, they have to make money on this scale that’s essentially unprecedented. And I think they’re seeing enterprise as the way to do that.

And I wonder if Meta, for a variety of reasons, sees a different opportunity. There’s a part of me that’s like, “Wait, did they not get the memo?” But I think more charitably, you could say, “Well, if that’s where OpenAI and Anthropic are going, then maybe there is more of an opportunity for Meta to make the more consumer-friendly [version and] continue advancing AI on the consumer side.”

Kirsten: I mean, we can complain about or criticize or critique Meta all day long, but they’re very good and have [an] established track record of embedding themselves in everyday people’s lives. I mean, there’s a reason why Facebook has so many users — Instagram, WhatsApp. And I’ve never really thought of them as an enterprise product anyway. So I think it’s smart for them to continue to push on the consumer piece. 

Sean, you’ve already tried Muse, which has already been out for a couple weeks. And I’m wondering if you see what your impression is, and if you see it being successful in the bid to become part of every part of your life.

Sean O’Kane: I mean, not really. I understand why some people think that is going to be the case. I’m sure a lot of people understand this, but this is roughly Meta’s kind ground-up version of an on-your iPhone, or on your Android, app of OpenClaw, which we talked about a couple months ago, which Meta went out and basically bought and integrated those folks’ work. It was the first big explosion of like, “Holy smokes, these agents can do all this stuff for me while I’m out and about, and I can just text with it and let it control my whole computer.” There’s a lot of the same elements of that at play. And having it in your hand, on an app that works like a relatively good chatbot as the interface, it does seem pretty powerful.

One of the first things that I did with it was — because it makes a bunch of suggestions for you, as to things that it can do, and one of them was, “I’ll scan to see if you have any unclaimed funds,” this thing that I think no one ever really thinks about and often is going to completely miss, because there’s just not a lot of unclaimed property funds out there in your name. Surprise, surprise, there were some for me.

It helped me make some money on my first day, and that was pretty cool. I wouldn’t have done that if I hadn’t been prompted by this thing to do it. And there’s a check on its way to me in the mail. Fantastic. [But] that ends pretty quickly, right? That was a one-time shot, but it’s not a thing that’s repeatable. That’s more like a party trick-type thing.

Kirsten: I mean, you just killed your own argument. I don’t see how that wouldn’t become wildly popular.

Sean: The more sustainable version of that, and the thing that Meta’s talked up a lot over the last couple of days, is taking that idea and applying it to your real, true everyday financials, like giving it your information for your credit card, your Gmail account, all this other stuff, do things that we’ve seen other companies do, like Rocket Money or whatever, where it’ll go cancel subscriptions that you’re not using or identify double charges, things that frankly the credit card company should be doing already. 

And at that point you just run into that trust wall with Meta. I think one of the reasons that I was willing to explore this and was curious to stick with it a little bit — even through to today — is that somewhat shockingly, when I downloaded it, I just assumed that it would like really instantly prompt me and like plug me right into Threads, Instagram, Facebook, which I don’t really use ever, and pull up that context immediately.

But it didn’t. And it was working with me like I was a stranger at first, which made me more willing to use it, because I didn’t feel like Meta had everything on me already. But you can see, as you start to use it, it really tries to grab you and pull those things into the system, so that it can learn all this stuff about you. 

I don’t know that I will ever trust Meta the same way. I think it’s an interesting timing for me, having just upgraded my iPhone and getting onto the new iOS with the new Siri that actually works and can do some controls on your phone in a way that is surprising and helpful, that it’s never been able to do. [I’ve been] thinking about how much I’ve been using that over the last week and how much more how much more willing I would be to have the Siri version of Muse take that information, because I just trust Apple more with that really sensitive information and not only trust it with the information from a cybersecurity perspective, but from the fact that its business is not to sell me a bunch of crappy ads.

Meta’s business is to sell you ads. And yes, they’ll make the argument that the more they know about you, the more accurate and interesting the ads will be — wake me up when we get to that fever dream. 

And beyond the one-time money lever that I got, which was great, I don’t feel like I’ve found anything else that’s really all that useful — other than the fact that it is, to Anthony’s point, really tailored at keeping it sort of consumer-y in your interactions with it, with which I do think helps it and is why people are talking about it so much.

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Anthropic’s Dario Amodei gets the SNL treatment

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Saturday Night Live took on the AI industry’s recent warnings of doom last night, as cast member Jane Wickline offered her impression of Anthropic CEO Dario Amodei.

Weekend Update host Michael Che — who sounded a little uncertain about how to pronounce Amodei’s last name — kicked the segment off by describing the CEO as having “stumbled through a press tour” where he seemingly agreed with a former employee’s claim that artificial intelligence might destroy humanity.

Wickline’s version of Amodei sported an impressive wig and delivered halting answers that occasionally devolved into full-on Gollum-style exchanges with their dark side, at one point confessing, “AI is the devil and I its maker.”

Wickline-as-Amodei assured the audiences that AI executives “are all on the same page here: We do not condone what we are doing.”

“AI is not a weapon, it’s a tool: A tool for building weapons,” she declared. “And I urge you to urge me to stop.”

As for the technology’s supposed benefits, like potentially curing cancer, the fictional Amodei said, “Put it this way: In 10 years, there’s about a 10% chance that cancer won’t be a problem for anyone.”

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