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Upgrade CEO Renaud Laplanche speaks at a conference in Brooklyn, New York, in 2018.
Alex Flynn | Bloomberg via Getty Images

U.S. fintech start-up Upgrade is set to enter the increasingly crowded buy now, pay later market.

Upgrade, which was founded by former LendingClub boss Renaud Laplanche in 2016, is a digital banking start-up that offers people payment cards along with personal lines of credit.

Unlike a credit card, which lets consumers revolve their balance, Upgrade takes all the purchases someone makes in a month and creates an installment plan for paying down the debt. The payment plans are typically long-term, ranging anywhere from six to 36 months, and charge a fixed interest rate.

Now, Upgrade plans to launch a buy now, pay later-style product that lets users pay off their debt in four months, without accruing any interest. The company expects to debut the new service in the coming months, Laplanche told CNBC.

“We are working on a version of the Upgrade Card that’s better suited for smaller expenses,” Upgrade’s CEO said in an interview. “In that case, we don’t need to charge interest because it’s a smaller amount.”

Buy now, pay later, or BNPL, has boomed to become a $100 billion industry thanks in large part to the coronavirus pandemic which accelerated the growth of online shopping.

BNPL services let shoppers spread the cost of their purchases over three or four months. Rather than charging consumers, BNPL companies make their money by taking a small fee from merchants on each transaction.

Upgrade’s product will be different to those offered by firms like Klarna, Affirm and Afterpay. Instead of adding a checkout option on merchants’ websites, Upgrade will lump a user’s card purchases together and invoice them what they owe over a four-month period.

“What we like about embedding the product into a card is the broader acceptance,” Laplanche told CNBC. “BNPL often relies on partnerships with merchants.”

“It’s starting to get mainstream online,” he added. “But not so much in-store.”

Prior to starting Upgrade, Laplanche helped grow LendingClub into the world’s largest peer-to-peer lending platform, connecting investors with borrowers through its marketplace. However, he was ousted in 2016 amid irregularities with loan practices and Laplanche’s alleged lack of disclosure over a personal investment.

Last year, LendingClub shut down its peer-to-peer loans platform and signaled a push into banking with its acquisition of U.S. lender Radius.

Laplanche has come a long way since his exit from LendingClub, with Upgrade reaching a $3.3 billion valuation in August. The French-born entrepreneur said it would be a while yet before Upgrade goes public, but he wants to make sure the company is IPO-ready in the next 18 months.

“We clearly have the size,” he said. “We’re growing very, very fast. We’ve been profitable now for more than a year, which is rare for a company that is growing that fast.”

“We can hopefully be ready sometime in the next 18 months. Then we’ll make a decision at that time on what’s best for our shareholders and our team members.”

Fintechs jump into BNPL

Upgrade isn’t the only fintech jumping on the BNPL bandwagon. Fast, a start-up backed by payments giant Stripe, plans to offer BNPL as a payment method through its platform. The firm, which lets users purchase items in one click across a range of websites, is aiming to roll out the feature in the first quarter of 2022, CEO and co-founder Domm Holland told CNBC.

“It’s a payment method that we need to support because a certain amount of consumers want to use it a certain percentage of the time,” Holland said. “For me, it’s just a way of addressing a larger share of wallet for our merchants.”

In the U.K., digital bank Monzo has begun offering a BNPL-like product called Flex, which lets customers split payments into monthly installments, either interest-free for three months or at a 19% rate for six to 12 months. Rival firm Revolut is also planning to introduce a BNPL feature.

It highlights growing interest from companies big and small in the booming BNPL market. PayPal debuted its own version of the service, called Pay in 4, last year. Meanwhile, Twitter CEO Jack Dorsey’s payments processor Square reached a deal to acquire Australia’s Afterpay for $29 billion, and Mastercard jumped into the space this week with an installments program for banks and fintechs.

Still, the BNPL sector has become the subject of much scrutiny lately. The British government is planning to impose tougher regulatory checks on the fast-growing industry amid concerns that services like Klarna are encouraging shoppers to spend more than they can afford. The U.K. Treasury department is expected to release a consultation on the reforms next month.

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Microsoft hit with Azure, 365 outage ahead of quarterly earnings report

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Microsoft hit with Azure, 365 outage ahead of quarterly earnings report

Microsoft CEO Satya Nadella departs following a meeting of the White House Task Force on AI Education in the East Room of the White House in Washington on Sept. 4, 2025.

Eric Lee | Bloomberg | Getty Images

Microsoft was hit with outages in its Azure cloud and 365 services on Wednesday, hours before the company’s scheduled earnings release.

Users on social media reported problems accessing their sites and services running on Microsoft’s products, and the company’s websites, including its investor relations page, were down. The problems began around 11:40 a.m. ET, according to Downdetector, which relies on user reports.

“We are working to address an issue affecting Azure Front Door that is impacting the availability of some services,” a Microsoft spokesperson said in an emailed statement. “Customers should continue to check their Service Health Alerts and the latest update on this issue can be found on the Azure status page.”

The Azure support account on X said, “We’re investigating an issue impacting several Azure services,” and that “customers may experience issues when accessing services.”

The latest update on Azure’s status page says that issues began with AFD at about noon ET, “resulting in a loss of availability of some services.” The company said it suspects an “inadvertent configuration change” was the trigger and that it’s “rolling back to our last known good state” for AFD services.

“We do not have an ETA for when the rollback will be completed, but we will update this communication within 30 minutes or when we have an update,” the company wrote.

Microsoft’s 365 status account wrote that its services are “experiencing downstream impact related to the ongoing Azure outage.”

The service disruptions come a little over a week after larger rival Amazon Web Services reported a major outage that took down numerous websites. Throughout the day on Oct. 20, AWS said it observed “increased error rates” for customers when trying to launch new instances in EC2, its popular cloud service that provides virtual server capacity.

AWS leads in cloud infrastructure with 32% of the market as of the first quarter, according to Canalys. Azure is second at 23%, followed by Google’s cloud unit at 10%. Azure and Google Cloud have been growing faster of late, driven by a boom in artificial intelligence workloads.

All three companies are set to report quarterly results this week, starting with Microsoft and Google parent Alphabet on Wednesday after the bell. Amazon reports on Thursday.

Alaska Airlines said on Wednesday afternoon that it’s currently “experiencing a disruption to key systems,” including websites, due to the outage on Azure, “where several Alaska and Hawaiian Airlines services are hosted.” Alaska closed its $1.9 billion acquisition of Hawaiian last year.

In March, Microsoft suffered an outage over a weekend that left tens of thousands of users unable to access their Outlook email accounts and other programs.

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Nvidia hits $5T market cap without big China sales. Jim Cramer says that could change

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Nvidia hits T market cap without big China sales. Jim Cramer says that could change

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OpenAI introduces safety models that other sites can use to classify harms

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OpenAI introduces safety models that other sites can use to classify harms

Sam Altman, CEO of OpenAI, attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on July 8, 2025.

David A. Grogan | CNBC

OpenAI on Wednesday announced two reasoning models that developers can use to classify a range of online safety harms on their platforms. 

The artificial intelligence models are called gpt-oss-safeguard-120b and gpt-oss-safeguard-20b, and their names reflect their sizes. They are fine-tuned, or adapted, versions of OpenAI’s gpt-oss models, which the company announced in August. 

OpenAI is introducing them as so-called open-weight models, which means their parameters, or the elements that improve the outputs and predictions during training, are publicly available. Open-weight models can offer transparency and control, but they are different from open-source models, whose full source code becomes available for users to customize and modify.

Organizations can configure the new models to their specific policy needs, OpenAI said. And since they are reasoning models that show their work, developers will have more direct insight into how they arrive at a particular output. 

For instance, a product reviews site could develop a policy and use gpt-oss-safeguard models to screen reviews that might be fake, OpenAI said. Similarly, a video game discussion forum could classify posts that discuss cheating.

OpenAI developed the models in partnership with Robust Open Online Safety Tools, or ROOST, an organization dedicated to building safety infrastructure for AI. Discord and SafetyKit also helped test the models. They are initially available in a research preview, and OpenAI said it will seek feedback from researchers and members of the safety community.

As part of the launch, ROOST is establishing a model community for researchers and practitioners that are using AI models in an effort to protect online spaces.

The announcement could help OpenAI placate some critics who have accused the startup of commercializing and scaling too quickly at the expense of AI ethics and safety. The startup is valued at $500 billion, and its consumer chatbot, ChatGPT, has surpassed 800 million weekly active users. 

On Tuesday, OpenAI said it’s completed its recapitalization, cementing its structure as a nonprofit with a controlling stake in its for-profit business. OpenAI was founded in 2015 as a nonprofit lab, but has emerged as the most valuable U.S. tech startup in the years since releasing ChatGPT in late 2022.

“As AI becomes more powerful, safety tools and fundamental safety research must evolve just as fast — and they must be accessible to everyone,” ROOST President Camille François, said in a statement.

Eligible users can download the model weights on Hugging Face, OpenAI said.

WATCH: OpenAI finalizes recapitalization plan

OpenAI finalizes recapitalization plan

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