This Month's Latest Tech News in Bellevue, WA - Saturday May 31st 2025 Edition

Bellevue's tech landscape in May 2025 captures a dynamic interplay of opportunity and challenge as OpenAI, backed by Microsoft, establishes a new AI hub in the City Center Plaza, leasing up to 69,000 square feet previously occupied by Microsoft - an expansion that underscores the city's growing appeal for top tech talent and innovation (OpenAI plans Bellevue move).

This influx arrives amidst a broader reckoning in the tech sector, where local and national layoffs - over 500,000 tech roles shed between 2022 and 2024 - have prompted critical reflection on stability and worker well-being, with University of Washington researchers describing the "cruel optimism" that persists despite job uncertainty (UW study: Tech layoffs and worker sentiment).

Meanwhile, grassroots stories from Bellevue College students showcase resilience and aspiration, illustrating how new educational pathways and support systems are shaping the next wave of local tech leaders (Bellevue College: Using AI for positive change).

Altogether, the month highlights Bellevue's unique position at the crossroads of tech growth, workforce adaptation, and community-driven innovation.

OpenAI is significantly expanding its presence in the Pacific Northwest with a lease of approximately 69,000 square feet at Bellevue's City Center Plaza, occupying space formerly held by Microsoft.

The move signals the AI leader's intent to tap into Bellevue's rich tech talent pool and deepen collaboration within a region renowned for innovation. According to Puget Sound Business Journal's report on the lease, the new office will accommodate up to 370 employees, positioning OpenAI alongside major tenants such as Wells Fargo and engineering firms in a tower with declining vacancy rates since Microsoft's 2023 departure.

Bellevue's office market has experienced transformation in recent years, with notable tech tenants like TikTok, Zoom, and Walmart also moving into former Microsoft-owned facilities.

As detailed in The Seattle Times' coverage of OpenAI's relocation, this strategic expansion underlines the growing demand for tech hubs outside Silicon Valley, especially amid competition for local talent and a shifting real estate landscape.

OpenAI's arrival is also expected to be a catalyst for further market activity, with the Broderick Group noting the potential of AI firms to energize Bellevue's office sector.

This strategic expansion aims to: tap into the local talent pool and foster closer collaborations within the tech community.

Learn more about the broader impact of this move and how it fits into Bellevue's evolving technology ecosystem from OpenTools' analysis of OpenAI's new Bellevue hub.

Microsoft has announced layoffs affecting approximately 6,000 employees - roughly 3% of its global workforce - as part of a major restructuring to accelerate its artificial intelligence (AI) priorities.

The cuts, which hit software engineers and technical program managers hardest (with over 40% of affected roles in software engineering and about 30% in project management), reflect a broader industry trend of AI-driven job realignment.

Microsoft is investing up to $80 billion this fiscal year in AI infrastructure and platforms like Copilot, while AI now writes up to 30% of code in some projects - a figure expected to rise dramatically.

As CEO Satya Nadella explained,

“This was about reorganisation rather than performance,”

reaffirming the company's intent to reduce management layers and build agile teams focused on AI innovation.

Recent financial results have been robust, with the latest quarterly net income reaching $25.8 billion on revenues of $70.1 billion, yet resource reallocation and margin discipline are now directly tied to AI ambitions.

The tech industry at large continues to see workforce reductions, with over 22,000 tech layoffs reported so far in 2025. For deeper analysis, explore Microsoft's official layoff announcement on CNBC's detailed report on Microsoft layoffs, insight on AI's impact on these cuts at the Marketing AI Institute's analysis of AI and Microsoft layoffs, and a month-by-month sector overview at TechCrunch's 2025 Tech Layoff Tracker.

Metric	Value
Employees Laid Off	6,000 (3% of workforce)
AI Investment (2025 Fiscal Year)	$80 billion
Recent Quarterly Net Income	$25.8 billion

“If the CTO of the company is saying that within five years we expect 95% of all code to be written by AI, then what do you need a bunch of engineers for?” - Paul Roetzer, Marketing AI Institute

Bellevue-based Medbridge has launched advanced AI-powered motion-capture capabilities for musculoskeletal (MSK) care, expanding its digital Pathways platform to address conditions ranging from lower back pain to hip and knee osteoarthritis.

Leveraging mobile phone or computer cameras, patients receive real-time, private feedback on exercise performance, while clinicians remotely monitor progress and adapt care plans - helping bridge access gaps for an estimated 126 million Americans with MSK issues.

Medbridge reports that 70% of Pathways patients reduce pain (average reduction: 40%) and 69% increase function by 56% on average, with the AI-driven system further contributing to a 48% reduction in medically treated falls and a 23.9% overall fall reduction.

The following table highlights key outcome data:

Metric	Value
Pain Reduction (Patients)	70% (avg. 40% reduction)
Function Improvement	69% (avg. 56% increase)
Reduction in Medically Treated Falls	48%
Overall Fall Reduction	23.9%

"MSK issues are debilitating to millions... AI-powered motion technology is a multiplier for effectiveness and outcomes." - Sarah Jacob Singh, Chief Product Officer, Medbridge

By combining motion-capture insight with predictive AI, Medbridge not only enhances care quality and clinician efficiency but also supports a hybrid model of delivery that meets the needs of modern healthcare, including regions with limited provider access.

Learn more about how Medbridge's AI motion-capture technology is transforming MSK care in the official Medbridge company announcement on AI motion-capture technology, explore detailed feature breakdowns in this HIT Consultant report on Medbridge's AI advancements, or read about Medbridge's approach to digital motion capture and predictive AI in MSK assessment in their comprehensive technology overview on predictive AI and motion capture in MSK care.

Bellevue-based startup Pay-i has raised $4.9 million in seed funding to tackle one of enterprise AI's thorniest challenges: measuring and forecasting the real business value of generative AI investments.

Led by former Microsoft executive David Tepper, Pay-i's ROI-intelligence platform enables organizations to tie every GenAI model call and prompt to outcomes like revenue growth, customer satisfaction, and operational efficiency, moving beyond basic metrics such as token counts and latency.

Features include dashboards for A/B testing, explicit dollar values for KPIs, and a built-in forecasting engine that helps teams identify which AI use cases truly drive returns, empowering strategic investment and scaling decisions.

The seed round was co-led by Fuse Partners and Tola Capital, with participation from Firestreak, Pear VC, Gaia Ventures, and Fortune 100 angel investors. This funding comes as IDC projects enterprise spending on GenAI to surpass $632 billion by 2028, with 72% of CIOs citing ROI measurement as a primary adoption barrier.

Highlighting the platform's mission, CEO David Tepper stated:

“The C-suite doesn't need another usage chart – they need proof and a forecast. Pay-i quantifies today's value and predicts tomorrow's gains, allowing teams to invest with confidence.”

For a deeper look at Pay-i's technology and leadership, see this detailed report on their seed round measuring ROI for GenAI agents, learn how their platform enables real-time GenAI returns and business case benchmarking for enterprise users, and review broader funding trends shaping AI ROI measurement across the venture capital landscape.

Feature	Pay-i Capability
ROI Tied to Business Outcomes	Revenue, CSAT, Operational Efficiency
Forecasting	Built-in returns forecasting engine
Use Case Analysis	A/B testing, model/prompt comparison
Platform Integration	Supports all major clouds and models

Supio, a Bellevue-based legal tech startup, has raised $60 million in Series B funding to accelerate growth of its AI-powered platform that assists personal injury and mass tort law firms with document review, workflow automation, and precision-driven insights.

The funding round, led by Sapphire Ventures with participation from Mayfield and Thomson Reuters Ventures, increases Supio's total capital raised to $91 million and will support expansion of engineering, AI research, and national go-to-market efforts.

Supio's platform uniquely combines specialized artificial intelligence with human expert verification to minimize errors - a key factor for legal professionals, especially as AI adoption in the legal sector has jumped from 11% in 2023 to 30% in 2024.

Recent leadership hires, including executives from Avalara, Highspot, and Salesforce, are positioned to meet growing demand. Supio has quadrupled both revenue and customer base in the past year, now counting firms like Hughes & Coleman and Whitley Law among its users.

Quote from CEO Jerry Zhou:

“Our combination of specialized legal AI and human verification provides attorneys with accurate insights and drafting they can confidently use... We're building technology that doesn't just save time, but fundamentally improves case outcomes.”

Key client results include a 20–30% increase in settlements and a 62% annual boost in case volume for major firms.

For a breakdown of Supio's recent impact, see the table below:

Metric	Growth/Impact
Annual Revenue	4x increase (2024–2025)
Client Base	4x expansion
AI Adoption in Legal Sector	11% (2023) → 30% (2024)
Total Funding	$91 million

For more, read the official Supio funding press release, analysis from TechCrunch on Supio's legal tech growth, and an in-depth summary from Legal Funding Journal.

Smartsheet, a Bellevue-based leader in AI-powered work management, has announced a multi-year strategic reseller partnership with CDW Corporation, set to significantly boost enterprise AI adoption across North America.

Under the agreement, CDW will not only sell Smartsheet's technology to new and existing clients, but also offer professional services aimed at accelerating implementation of the platform's collaborative, AI-driven workflow capabilities.

This initiative is designed to help organizations better integrate disparate systems, automate complex processes, and ensure real-time visibility into project progress - expanding CDW's digital transformation portfolio and driving Smartsheet's ambitious growth targets.

As Eva Schoenleitner, Smartsheet's Vice President of Worldwide Partnerships, stated,

“We are excited about the partnership between Smartsheet and CDW, and its potential to reshape the way organizations evolve their work practices. Smartsheet is positioned to expand CDW's presence across North America to a new set of customers, helping them to redefine the possibilities of work management and create deeper value across their initiatives using our solutions.”

Both companies are established industry powerhouses: CDW delivers IT solutions to over 250,000 clients worldwide, and Smartsheet is trusted by more than 85% of the Fortune 500.

The core elements of the partnership are summarized below:

Key Partner	Role/Offering	Coverage
CDW Corporation	Resells Smartsheet tech; offers adoption services	North America, 250,000+ clients
Smartsheet	AI-powered work management platform	Global, >85% Fortune 500

Read the full details in the official Smartsheet announcement, the BusinessWire press release, and coverage in MarketWatch.

Washington's tech industry is sounding the alarm over sweeping new state tax proposals that could generate between $13 and $17 billion for the state but potentially threaten innovation and business competitiveness.

A centerpiece is Senate Bill 5814, now signed into law, which broadens the sales and use tax to encompass digital advertising, custom software development, IT support, and more, with a one-time sales tax prepayment obligation for large businesses and a focus on closing a projected $16 billion budget gap.

However, the bill's targeting of digital formats while exempting traditional media poses legal risks under the federal Internet Tax Freedom Act and related litigation, echoing ongoing litigation in Maryland.

The package also includes increases in business and occupation taxes, a new 9.9% capital gains tier, and a four-year 0.5% corporate surcharge - excluded for Boeing - affecting large employers and high-net-worth individuals, as outlined in this revenue overview:

Tax Measure	Estimated Revenue Impact
Business & Occupation tax increase	Affects thousands of businesses
Capital gains tax (9.9% new tier)	$280M annually; $560M over 4 years
Property tax cap increase	$200M next biennium; $618M in 2027-29
Corporate surcharge (0.5%)	Targets ~400 corporations; Boeing exempt
Total projected revenue	Nearly $12B two budget cycles

According to the Seattle Chamber of Commerce analysis on Washington tax proposals, costs could cascade through supply chains - raising expenses for tech firms, small businesses, and ultimately consumers, while risking relocation of investment and jobs out of state.

With legal challenges expected and uncertainty for tech innovation, the legislation's impact is poised to extend well beyond Washington. For a deep dive on the evolving legal landscape, see the Washington State expanded sales and use tax analysis.

Eufy has officially launched its AI-powered ProSecure System in Bellevue, setting a new benchmark for smart home security. The ProSecure is the company's first NVR-PoE security solution equipped with a Private Local AI Agent, offering instant, on-device analysis of suspicious activity near vehicles and packages, as well as proactive emergency response - without relying on cloud connectivity or recurring subscription fees.

According to Frank Zhu, General Manager of Eufy,

"The ProSecure System is the latest example of our commitment to bringing the very best security equipment and services to our customers locally, rather than depending solely on cloud-based services. Our local AI solution helps optimize data control and there are no fees for users storing and accessing their video."

Notable features include 4K tri-cam bullet and 2.5K PTZ cameras with 360° pan/tilt, 24/7 local recording, instant threat detection for vehicles, and porch piracy protection.

The base hardware bundle - including four cameras and an NVR with 2TB storage - retails for $1,299. For a detailed breakdown of hardware and AI features, see the official ProSecure launch announcement.

The product joined Eufy's broad Spring 2025 innovation lineup, which also introduced AI-powered home cleaning and wearables - explore the full set of launches on the Eufy Day's Spring 2025 event page.

With its emphasis on offline privacy, intelligent detection, and robust local storage, ProSecure is positioned as a standout choice for Bellevue residents seeking modern - and reliable - smart home protection.

View more about Eufy's complete smart home ecosystem at the press coverage of Eufy's Bellevue launch.

Workato has made a significant impact on Bellevue's tech scene with the recent launch of its unified Workato One platform, introducing enterprise AI agents that promise to transform how organizations orchestrate workflows across every business function.

Highlighted at the “Work to the Power of AI” event, Workato One aims to solve real-world challenges such as “fragmentation” and “agent sprawl” by offering end-to-end orchestration, best-in-class security, and low-code/no-code access.

The platform's new AgentX Apps - pre-built for sales, IT, customer support, and more - are built with enterprise context, secure orchestration, and integration capabilities, and Workato recently strengthened its AI leadership through a strategic partnership with AWS's Bedrock.

Workato is recognized as a Leader in the 2025 Gartner® Magic Quadrant™ for iPaaS, maintaining a 4.9/5 rating from over 450 reviews, with customers praising its flexibility and governance (see full Gartner recognition).

The platform's architecture is built around core capabilities - Orchestration, Agent Management, Business Insights, and Security - which are summarized here:

Feature Area	Key Capabilities
Workato Orchestrate	Integrates data/apps, delivers real-time context, 635K+ enterprise skills
Workato Agentic	AI agent management, governance, secure business operations
AgentX Apps	Ready-to-deploy, cross-functional business solutions
Agent Trust	Unified security & governance

As Ramanujam Theekshidar, Chief Digital Officer at U.S. Electrical Services, Inc., explains:

“Workato One envisions a future where a single, trusted platform empowers organizations to rapidly deploy, coordinate, and govern AI agents - unlocking the full value of enterprise data and redefining what's possible…”

Get a deeper look at Agentic Enterprise architecture on the Workato One resource page.

In May 2025, Microsoft marks its 50th anniversary by unveiling a milestone achievement: the successful development of its first quantum computing chip, Majorana 1, a breakthrough that leverages topological superconductors and creates a new state of matter, “topological superconductivity.” As highlighted in Quartz's feature on Microsoft's biggest moments, this advance cements Microsoft's long-term investment in quantum technology and underpins the company's drive to shape the next era of computing.

The quantum chip launch was recognized alongside reflections by CEO Satya Nadella and the gathering of all three Microsoft CEOs - Bill Gates, Steve Ballmer, and Nadella - at a celebratory anniversary event in Redmond, where the focus on AI and cloud innovation signaled the future direction for the company, as detailed in Emerging Tech Brew's event report.

Microsoft also used its anniversary to amplify local impact, supporting Washington's tech ecosystem through initiatives like the AI for Good Grant program, designed to power community solutions in sustainability, education, and healthcare, as explored in Microsoft's AI for Good grant announcement.

As the company looks ahead, its leadership reiterates a commitment to translating innovation into enduring value, setting the stage for the next fifty years of technological progress.

Year	Milestone
1975	Microsoft founded in Albuquerque, NM
1985	Windows 1.0 released
1986	NASDAQ IPO at $21/share
1989	Microsoft Office launched
2008	Azure cloud platform announced
2025	Majorana 1 quantum chip unveiled

Bellevue stands at a critical inflection point as state policymakers enact substantial new business tax legislation aiming to resolve a projected $13–17 billion budget shortfall.

Recent measures include permanent increases to the business and occupation (B&O) tax, expansion of sales tax to digital and tech services, and surcharges targeting large companies - policies that local business and tech leaders warn could undermine Bellevue's innovation-driven momentum and startup vitality.

Industry organizations such as the Association of Washington Business and the Bellevue Chamber of Commerce caution that increased tax burdens threaten both job growth and the region's global reputation as a cloud and AI talent hub.

“Washington is already one of the hardest places to start and grow a business, with the highest first-year business failure rate in the nation - over 40% of new businesses close within 12 months... Given these trends, it is the wrong time for more taxes on innovation, entrepreneurship, and job creation,”

stressed Joe Fain, Bellevue Chamber CEO.

Key tax changes for Bellevue companies are summarized below:

Tax/Policy Change	Details
B&O Tax Rate	Increases to 0.5% for core classifications starting Jan 2027. Progressive rates up to 2.1% for service businesses with $5M+ revenue. Read the full list of affected industries in Washington state business tax legislation.
Sales Tax Expansion	Applies to IT consulting, software customization, advertising, and more, effective Oct 2025 (see detailed Washington state tech sales tax information).
Advanced Computing Surcharge	Rises from 1.22% to 7.5% for tech giants; annual cap jumps from $9M to $75M. Exempts qualifying high-tech firms to avoid double taxation. Explore industry reactions to Washington state tech surcharge increases.

How state leadership handles these fiscal pressures will shape whether Bellevue continues to attract innovators and risk-takers - or faces headwinds that could slow its remarkable tech growth.