The Briefing by Martin Peers, Jessica Lessin and the team at The Information

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The Briefing

By Martin Peers, Jessica Lessin and the team at The Information

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Recent Editions

Photo via Midjourney

The Return of the 100X Club

By Kate Clark · May 30, 2024 3:40pm PDT · 4 comments

It’s funny how history has a way of repeating itself. This week, we wrote that artificial intelligence-powered search engine Perplexity is raising more money at a $3 billion valuation in a deal led by Bessemer Venture Partners, a lofty price considering it is generating just over $20 million in annual recurring revenue. That news got... It’s funny how history has a way of repeating itself. This week, we wrote that artificial...

Photo via Midjourney

Creator Economy

The AI Video Startups Competing With OpenAI’s Sora

By Abubakar Idris · May 30, 2024 3:22pm PDT

When OpenAI teased its new text-to-video generator Sora earlier this year, it upped the ante in the race to develop artificial intelligence applications to create art. Since then, Google has unveiled AI video generator Veo, and Erin has reported TikTok is working on an AI feature to create virtual influencers for advertisers, as well. As... When OpenAI teased its new text-to-video generator Sora earlier this year, it upped the ante in...

Art by Shane Burke.

U.S. Commerce Dept. Probes South Korean Chip-Equipment Makers

By Qianer Liu and Laura Mandaro · May 30, 2024 10:15am PDT

The U.S. Commerce Department is probing whether a South Korean maker of parts for machines that produce semiconductors has been selling to Chinese companies that are subject to U.S. sanctions, said two people with knowledge of the investigation. The review signals a new effort by the U.S. government to root out how companies such as Huawei are... The U.S. Commerce Department is probing whether a South Korean maker of parts for machines that...

Art by Clark Miller

To Succeed With AI, Give up Control

By Sarah Hinkfuss · May 30, 2024 9:00am PDT · 4 comments

Art by Clark Miller

To Succeed With AI, Give up Control

By Sarah Hinkfuss · May 30, 2024 9:00am PDT · 4 comments

In 2023, companies large and small engaged in a mania around artificial intelligence to capture a slice of the action. Publicly traded companies mentioned AI more than 30,000 times on earnings calls, and private companies launched their own announcements, pilots and productivity projects. Now, executives are looking for a financial return on... In 2023, companies large and small engaged in a mania around artificial intelligence to capture a...

Photo via Shutterstock

The Cold, Hard Numbers of AI Returns

By Stephanie Palazzolo · May 30, 2024 7:00am PDT · 3 comments

Over and over again, I’ve heard the same mantra from AI founders and big tech execs: 2023 was the year that businesses experimented with AI, but 2024 will be the year they truly put it to use.So for the last five months, we’ve been on the lookout for the cold, hard numbers demonstrating what value businesses and consumers are getting from... Over and over again, I’ve heard the same mantra from AI founders and big tech execs: 2023 was the...

Art by Shane Burke/Shutterstock.

Temu Keeps An Iron Grip on Suppliers, Exposing Itself to U.S. Ban Threat

By Jing Yang · May 30, 2024 6:00am PDT

As U.S. lawmakers step up efforts to penalize Chinese-owned bargain retail site Temu over the alleged sale of goods made with forced labor on its site, the company is holding fast to its longstanding response: It is a marketplace for independent sellers, just like Amazon and Etsy, and shouldn’t be held responsible for what those merchants... As U.S. lawmakers step up efforts to penalize Chinese-owned bargain retail site Temu over the...

The $9,600 Byd Seagull. Photo: Lillian Suwanrumpha/AFP/Getty

The Electric: A U.S. Official Plots a $16,000 U.S.-Made Electric Vehicle

By Steve LeVine · May 30, 2024 4:30am PDT

For a year, one electric vehicle has stood out as an emblem of China’s yawning lead in EVs and batteries—the Byd Seagull hatchback, which at $9,650 in China has made some U.S. industry watchers worry whether the West can ever catch up. Now, a program manager for the Department of Energy’s technology incubator says U.S. entrepreneurs should stop... For a year, one electric vehicle has stood out as an emblem of China’s yawning lead in EVs and...

Photo via Nasdaq

What CoreWeave’s IPO Plans Say About IPO Market

By Cory Weinberg · May 29, 2024 5:00pm PDT

Photo via Nasdaq

What CoreWeave’s IPO Plans Say About IPO Market

By Cory Weinberg · May 29, 2024 5:00pm PDT

Nothing focuses the mind quite like an impending hanging. That’s according to English poet Samuel Johnson, speaking in the 18th century. The paraphrased quote perhaps explains the mindset of the small circle of companies taking concrete steps to go public in the near future: It’s easier to carry heavy debt loads when you’re a public company than... Nothing focuses the mind quite like an impending hanging. That’s according to English poet Samuel...

Aravind Srinivas. Photo by Tasos Katopodis/Getty Images.

AI Startup Perplexity in Talks to Raise Money at $3 Billion Valuation

By Kate Clark and Natasha Mascarenhas · May 29, 2024 2:51pm PDT · 5 comments

Bessemer Venture Partners is in talks to lead a $250 million investment in Perplexity, a developer of an artificial intelligence-powered search engine, at a $3 billion valuation, according to a person familiar with the matter. The new valuation would be triple what the San Francisco-based startup was valued at earlier this year. The new... Bessemer Venture Partners is in talks to lead a $250 million investment in Perplexity, a...

Art by Clark Miller. Altman via Getty Images.

OpenAI CEO Cements Control as He Secures Apple Deal

By Amir Efrati and Wayne Ma · May 29, 2024 2:13pm PDT · 11 comments

When OpenAI’s board of directors ousted Sam Altman as CEO last year, it looked like a shocking derailment of a fast-rising career. Even after Altman returned to the role just days later, it seemed like he would be kept on a shorter leash. Instead, he has become more powerful than ever. His primary foes within OpenAI resigned or were pushed... When OpenAI’s board of directors ousted Sam Altman as CEO last year, it looked like a...

Photo by Sebastian Gollnow/picture alliance via Getty Images.

Creator Economy

The Influencers Campaigning For Elon’s $45 Billion Payday

By Becky Peterson and Abubakar Idris · May 29, 2024 2:05pm PDT · 3 comments

Elon Musk’s superfans are taking a page out of the influential CEO’s social media playbook. Today I reported on a grassroots effort by Tesla influencers to swing an upcoming shareholder vote in favor of board proposals that could reinstate a $45 billion pay package for Elon Musk and move Tesla’s legal home to Texas. Popular X posters and Tesla... Elon Musk’s superfans are taking a page out of the influential CEO’s social media playbook. Today...

Aerial view of the Port of Long Beach. Photo by The Los Angeles Times via Getty Images.

U.S. Escalates Crackdown on Trade Rule Behind Shein and Temu

By Jing Yang, Theo Wayt and Ann Gehan · May 29, 2024 12:53pm PDT · 1 comment

Aerial view of the Port of Long Beach. Photo by The Los Angeles Times via Getty Images.

U.S. Escalates Crackdown on Trade Rule Behind Shein and Temu

By Jing Yang, Theo Wayt and Ann Gehan · May 29, 2024 12:53pm PDT · 1 comment

U.S. officials have escalated a crackdown on the controversial customs exemption that Temu, Shein and other e-commerce firms use to send cheap items from overseas to American shoppers without paying tariffs. The U.S. Customs and Border Protection agency in recent weeks suspended several customs brokers from a program that makes it easier... U.S. officials have escalated a crackdown on the controversial customs exemption that Temu, Shein...

Photo via CoreWeave/Facebook

Cloud Computing Startup CoreWeave Prepares for 2025 IPO

By Cory Weinberg · May 29, 2024 10:38am PDT

Cloud computing startup CoreWeave, one of the biggest beneficiaries of the artificial intelligence boom, has been on a fundraising spree over the past year from some of the deepest pockets on Wall Street. Now it’s planning an initial public offering. The startup has started early preparations to go public by the first half of next... Cloud computing startup CoreWeave, one of the biggest beneficiaries of the artificial...

Photo by Getty

Why OpenAI’s Safety Reorg Might Actually Be a Good Idea; An Ex-OpenAI Board Member Speaks Out; Meta Enters the Chatbot Subscription Race

By Aaron Holmes · May 29, 2024 7:00am PDT · 1 comment

When the leaders of OpenAI’s “superalignment” team quit two weeks ago, CEO Sam Altman found himself once again facing allegations that he’s not sufficiently worried about artificial intelligence bringing about the end of the world (or other, less-apocalyptic safety concerns). After the high-profile resignations, OpenAI said it had folded... When the leaders of OpenAI’s “superalignment” team quit two weeks ago, CEO Sam Altman found...

Tim Cook, CEO of Apple. Photo by Getty

Apple’s Plan to Protect Privacy With AI: Putting Cloud Data in a Black Box

By Wayne Ma · May 29, 2024 6:38am PDT · 2 comments

When Apple executives appear at its annual developer conference in mid-June, they are expected to unveil details of how it will integrate AI in its Siri virtual assistant and other products. One of the big questions is how it will do so while still honoring its promises to protect the personal data of its users. The answer? Apple plans to... When Apple executives appear at its annual developer conference in mid-June, they are expected to...

Elon Musk with Tesla influencers Alexandra Merz (left) and Leo Koguan (right). Photos via Getty Images, YouTube and the Peking University Education Foundation

Tesla Harnesses an Influencer Army on $45 Billion Musk Pay Vote

By Becky Peterson · May 29, 2024 6:00am PDT · 8 comments

Elon Musk with Tesla influencers Alexandra Merz (left) and Leo Koguan (right). Photos via Getty Images, YouTube and the Peking University Education Foundation

Tesla Harnesses an Influencer Army on $45 Billion Musk Pay Vote

By Becky Peterson · May 29, 2024 6:00am PDT · 8 comments

Alexandra Merz was posting up a storm. Last week, the Tesla investor—better known to her 120,000 followers on X as TeslaBoomerMama—was dispensing instructions on the Elon Musk-owned social media platform about how Tesla shareholders around the world could get in touch with their stockbrokers ahead of a key shareholder vote on June... Alexandra Merz was posting up a storm. Last week, the Tesla investor—better known to her...

Vivek Ramaswamy in February. Photo via Shutterstock.

Ramaswamy Plays BuzzFeed For Attention

By Martin Peers · May 28, 2024 5:00pm PDT · 3 comments

Vivek Ramaswamy was obviously missing the adrenaline rush of being in the headlines. His faux-activist plunge into BuzzFeed stock has cost him less than $5 million and has already paid dividends in more free press than he’s had since he dropped out of the Republican presidential race in January. But let’s not mistake this for an activist play.... Vivek Ramaswamy was obviously missing the adrenaline rush of being in the headlines. His...

TikTok's Culver City, Calif. office. Photo by Bloomberg via Getty Images.

Creator Economy

TikTok’s Reorg Signals a Fresh Focus on Publishers

By Erin Woo and Abubakar Idris · May 28, 2024 3:30pm PDT

Last week Kaya and I reported on a broad restructuring at TikTok, which included layoffs in the U.S. and other countries. Among the many changes were those directly linked to creators and publishers. The latter could signal an increased effort to court media companies and bring more professional content to the app, best known for its... Last week Kaya and I reported on a broad restructuring at TikTok, which included layoffs in the...

Ilya Sutskever. Photo via YouTube/Dwarkesh Patel.

What’s Next for OpenAI’s Ilya Sutskever?

By Kate Clark · May 28, 2024 3:00pm PDT

Ilya Sutskever, a co-founder and former chief scientist at OpenAI, is currently the most sought-after entrepreneur in town. We don’t yet have the details on Sutskever’s next role. But we wouldn’t be surprised if he joins an OpenAI competitor, like Anthropic or Elon Musk’s xAI, moves that could further strain his relationship with OpenAI’s... Ilya Sutskever, a co-founder and former chief scientist at OpenAI, is currently the most...

Nvidia’s Cloud Spending Soars, as It Looks Beyond Chips

By Anissa Gardizy · May 28, 2024 10:00am PDT · 1 comment

Nvidia’s Cloud Spending Soars, as It Looks Beyond Chips

By Anissa Gardizy · May 28, 2024 10:00am PDT · 1 comment

Nvidia has become the world's third-most-valuable company by selling chips to power artificial intelligence. Now it's also one of the biggest corporate buyers of cloud computing services. Last week, Nvidia said it has committed to spend nearly $9 billion on cloud computing in the coming years, which involves spending with Amazon, ... Nvidia has become the world's third-most-valuable company by selling chips to power...