Microsoft has been making its GitHub subsidiary more dependent on the company’s own Azure public cloud.
That lines up with Microsoft’s desire to increase the use of Azure, whose revenue was growing 40% in the second quarter, faster than any other major product category the company discloses every three months.
At the same time, it must be careful not to break commitments it made at the time of the $7.5 billion GitHub acquisition in 2018. Otherwise, some developers wary of Microsoft’s past behavior might not want to use GitHub to store their software code.
In the late 1990s, the U.S. Department of Justice argued that Microsoft had illegally required device makers to commit to including the Internet Explorer browser on every PC they shipped with the Windows 95 operating system. In the settlement of the landmark antitrust case, Microsoft agreed to a ban on pacts mandating exclusive support of its software, among other changes.
When GitHub was a standalone company, software developers saw it as a neutral ground where they could house their software projects and then run the code on the market-leading Amazon Web Services cloud or any other computing environment. Then Microsoft announced its plan to buy GitHub. Some developers objected, and over 1,900 people signed a petition to block the deal.
“Microsoft likely acquired GitHub so it could more closely integrate it with Microsoft Visual Studio Team Services (VSTS) and ultimately help drive compute usage for Azure,” Sid Sijbrandij, co-founder and CEO of GitHub competitor GitLab, was quoted as saying in a company blog post.
On the day Microsoft announced the GitHub deal, Microsoft published a blog post from its CEO, Satya Nadella, that communicated Microsoft’s intent.
“Going forward, GitHub will remain an open platform, which any developer can plug into and extend,” Nadella wrote. “Developers will continue to be able to use the programming languages, tools and operating systems of their choice for their projects — and will still be able to deploy their code on any cloud and any device.”
The company would also speed up the ability for developers at large companies to use Microsoft’s cloud infrastructure, Nadella wrote.
Some developers worried that Microsoft would adjust GitHub so that running code on Azure would be the easiest approach.
But Microsoft has employed more subtle tactics.
Instead of pushing developers to run their code on Azure, GitHub has simply introduced new products and features, many of which are built on Azure. So when developers use GitHub, Azure is increasingly the backbone.
For instance, GitHub Copilot, a tool that helps developers complete their coding projects line by line, uses Azure, said Scott Guthrie, Microsoft’s executive vice president for cloud and enterprise, in an interview with CNBC. The GitHub Actions service for building and deploying code and the Codespaces cloud-based development environment operate in Azure, too, Guthrie said.
“GitHub, historically, I could say, has run in their own data centers, not actually on a public cloud, and a lot of the new features of GitHub are using our public cloud,” Guthrie said.
That means the GitHub acquisition can increase Azure usage — even if customers don’t realize it — and Microsoft can say that GitHub continues to allow people to run their code on any server.
Under Nadella, Microsoft has transformed other companies it has bought into Azure users. In 2019 LinkedIn announced plans to move the business social network to Azure, and in 2020 Microsoft said Mojang Studios, publisher of the popular Minecraft video game, would stop using Amazon’s AWS.
“There is a lot of great stuff we’re doing, but at the same time, we’re being super careful, obviously, because you know, GitHub has a gestalt of its own, and so we’re making sure — and I think we’ve done a really good job of that — sort of being able to integrate all of those features in a very native way inside of GitHub,” Guthrie said.
In September Microsoft informed investors that its closely watched Azure and Other Cloud Services revenue growth number each quarter would expand to include “additional GitHub cloud revenue now delivered via our datacenter infrastructure.” Until now that revenue has fallen under the company’s Server Products category.
Chinese start-up Pony.ai said Friday it will develop autonomous driving technology in partnership with Tencent Cloud and deploy robotaxi services on tech giant Tencent’s WeChat and other applications.
The Nasdaq-listed company which specializes in autonomous vehicle technology, particularly robotaxis androbotrucks, said in a press release that the deal will include cooperation in areas such as cloud services, map data, information security and intelligent cockpit ecosystems.
The arrangement will also see the two companies integrate Pony.ai’s robotaxi ride-hailing services within Tencent’s popular WeChat app as well as other applications like Tencent Maps.
Both companies had been in talks “for quite some time,” Pony.ai CEO James Peng told CNBC on the sidelines of the Shanghai Auto Show on Friday. He cited Tencent’s huge user base and its cloud offerings as factors supporting the “win-win” collaboration as the start-up continues to scale up.
Following the partnership, Peng said that “hopefully in the near future,” users would be able to call Pony.ai robotaxi rides straight through the WeChat app.
“Pony.ai possesses industry-leading autonomous driving technology accumulations, while Tencent excels in cloud services, mapping, and cockpit ecosystem technologies,” Vice President of Tencent Group and President of Tencent Smart Mobility Zhong Xiangping was quoted as saying in the Friday release.
“This strategic partnership between the two parties is not only about complementing each other’s technologies and resources but also marks a new starting point for collaborative innovation,” he added.
The release said that the partnership would also see both companies collaborate on the development, testing, and operation of Robotaxis, particularly in L4-level autonomous driving.
According to SAE International, L4 is a type of autonomous driving that allows drivers to take their eyes off the road in designated areas. For comparison, L3 is considered a hands-off system, but drivers must actively monitor the vehicle and be ready to take over the wheel.
The Tencent Cloud agreement comes a day after it was reported that Pony.ai unveiled its L4, seventh-generation robotaxi solution at the Shanghai Auto Show on Wednesday. The company’s shares surged about 40% in the U.S. on Thursday.
The start-up continues to establish itself as a prominent player in China’s autonomous driving industry. The company obtained China’s first permit to charge fares for fully driverless taxis in core parts of a business district of Shenzhen, where Tencent is headquartered.
However, the firm may be implicated in increasing trade tensions between China and the U.S. as the latter is a market Pony.ai considers “hugely important” to its expansion plans.
James Peng, co-founder and chief executive of Pony.ai this week reportedly told the Financial Times that the company is considering a secondary listing outside the U.S. amid mounting concerns that Washington will push for the delisting of Chinese companies off the New York Stock Exchange.
If this were to happen, it would come less than six months after the company’s initial public offering in the U.S. Notwithstanding, Peng told FT that a lot of factors need to be considered.
President Donald Trump’s trade policies will have a negative impact on Google parent Alphabet‘s core advertising business, an executive from the company said Thursday.
Alphabet, which reported stronger-than-expected revenue in its first quarter of the year, faces an online ads market that’s on edge due to concerns about how Trump’s tariffs will affect the economy and business spending. While the word “tariff” was never mentioned on Alphabet’s investor call Thursday, “macro” was mentioned several times as investors peppered company executives with questions about forward looking economic impacts amid new trade policies.
Several strategists increased their odds of a recession after Trump on April 2 announced tariffs for imports of goods into the U.S. from dozens of countries. On April 9, Trump lowered tariffs on many countries to 10% for three months.
Alphabet will likely be impacted by materials needed for technical infrastructure like data centers that it uses to power efforts in artificial intelligence. It could also see second-hand effects on advertising pull-back from budget constraints.
In Thursday’s investor call, Alphabet executives said it’s too early to tell just how much it will be impacted, but they said that there would likely be headwinds to its advertising business, particularly from the Asia–Pacific region of the world, or APAC.
“Any other factors you’re seeing in advertising verticals or regions or categories that could be showing any signs of weakness?” asked Brian Nowak of Morgan Stanley.
“We wouldn’t want to speculate about potential impacts beyond noting that the changes to the de minimis exemption will obviously cause a slight headwind to our ads business in 2025, primarily from APAC-based retailers,” said Philipp Schindler, Google’s chief business officer.
Earlier this month, Trump signed an executive order that will impose a duty representing 30% of the value or $25 per item on shipments worth less than $800 that enter the U.S., starting May 2. The duty jumps to $50 per item on June 1. In February, Trump undid a loophole that since the 1930s had allowed such packages to be imported duty-free. The change brought logistical challenges that resulted in a delay of the implementation of the policy.
Retail, which Schindler said was among the top contributors to its advertising growth in the first quarter, represents at least 21% of Google ad revenue, according to estimates by Oppenheimer & Co. Chinese discount e-commerce apps Temu and Shein, which have been big advertisers in the U.S. in recent years, are of notable concern, and Temu has already pulled way back on spending.
“We’re obviously not immune to the macro environment,” Schindler added.
“Are they starting to react to some of these macro jitters that were we’re all experiencing?” asked Ross Sandler from Barclays about brands that advertise on YouTube.
Schindler said “it’s still too early in the second quarter to have a more specific view of things.” He added that Google has “a lot of experience in managing through uncertain times.”
“If macro weakens and we see more of a slowdown, would you expect to find additional opportunities to cut back more on costs?” asked Doug Anmuth from JPMorgan.
Alphabet CFO Anat Ashkenazi said the company is still looking at spending $75 billion in capital expenditures in 2025 but stipulated “the investment level may fluctuate from quarter to quarter due to the impact of changes in the timing of deliveries and construction schedules.”
Expenditures will go toward technical infrastructure, primarily for servers, followed by data centers and networking, executives said in February.
The company is still focused on “driving efficiency and productivity throughout the organization,” Ashkenazi said on Thursday’s call, pointing to her 2024 comments, where she said the organization can “always push a little further” when it comes to cost cutting, which has included cuts to headcount and real estate.
Alphabet CEO Sundar Pichai also mentioned “efficiency” as a means of trying to keep a lean-enough company to weather potential macro storms.
“If the macro environment were to change and become more downwardly volatile, how should investors think about the investments that are must-make this year, almost fixed in nature, versus where there might be more flexibility?” asked Eric Sheridan from Goldman Sachs.
Pichai responded that the company plans to continue consolidating teams and cutting back on costs elsewhere, which he said “should help us have a more resilient organization, irrespective of macroeconomic conditions.”
The Intel headquarters in Santa Clara, California, US, on Wednesday, April 23, 2025. Intel Corp. is scheduled to release earnings figures on April 24.
David Paul Morris | Bloomberg | Getty Images
Intel CFO David Zinsner said President Donald Trump’s tariffs and retaliation from other countries has increased the likelihood of a recession.
“The very fluid trade policies in the U.S. and beyond, as well as regulatory risks, have increased the chance of an economic slowdown, with the probability of a recession growing,” Zinsner said on the company’s quarterly earnings call on Thursday.
Intel reported better-than-expected first-quarter results, partially because some customers stockpiled chips ahead of tariffs, the company said. However, guidance for revenue and profit was below expectations, pushing the chipmaker’s stock down more than 5% in extended trading.
Intel’s forecast for the current quarter is $11.2 billion to $12.4 billion. Zinsner said the range is “wider than normal” due to uncertainty caused by tariffs.
The company’s outlook underscores how sensitive manufacturers are to trade restrictions, even for companies that are committed to building products in the U.S. While Intel manufactures some of its advanced processors domestically, it also partners with Taiwan Semiconductor Manufacturing Company and Samsung in Korea to manufacture chips, and imports chipmaking machinery from ASML in Europe. The company also needs parts and materials that come from China.
Zinsner said the tariff environment makes it harder for Intel to predict its performance for the quarter and the year, and added that it’s now anticipating that the total market for its chips could shrink, especially if consumers stop buying new computers.
“The biggest risk we see is the impact of a potential pullback in investment and spending, as businesses and consumers react to higher costs and the uncertain economic backdrop,” Zinsner said.
Although Intel has enough production in disparate places around the world to mitigate some of the tariffs, the company “will certainly see costs increase,” he added.
One possibility is that consumers may opt for laptops and other computers based around older-generation chips, which are less expensive, said Michelle Johnston Holthaus, CEO of Intel Products.
“The macroeconomic concerns and tariffs have everybody kind of hedging their bets in what they need to have from an inventory perspective,” Holthaus said on the earnings call.
Beyond tariffs, Intel faces efforts by the U.S. government to require licenses to ship advanced chips for artificial intelligence to countries like China.
Intel’s earnings report on Thursday was its first under CEO Lip-Bu Tan, who was appointed to the job last month. Tan said he planned to cut Intel’s operational and capital expenses in order to make the company more efficient.