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

Get smarter about the day’s news in tech, media and finance by following Silicon Valley’s most-read executive newsletter.

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Recent Editions

Mathias Döpfner. Photo by Chesnot/Getty Images.

KKR Grabs the Best of Axel Springer

By Martin Peers · Sep 19, 2024 5:00pm PDT

Smart money and digital media don’t always mix well. Just ask KKR. Five years after the private equity firm, together with the Canada Pension Plan, bought a roughly 49% stake in German media giant Axel Springer, parent of Business Insider and Politico, the two investors are fleeing the scene.That might be hyperbolic. Technically what’s happening... Smart money and digital media don’t always mix well. Just ask KKR. Five years after the private...

Sam Altman. Photo by Bloomberg via Getty.

OpenAI Asks Investors to Fork Over $250 Million

By Kate Clark · Sep 19, 2024 3:06pm PDT

Surely if you’re a reader of this newsletter, you know by now that OpenAI is in late-stage talks to raise a mammoth funding round that could value it at $150 billion. What you may not know is that the company has asked investors to fork over a minimum of $250 million, according to people with knowledge of the terms. To recap, OpenAI is... Surely if you’re a reader of this newsletter, you know by now that OpenAI is in late-stage talks...

MrBeast during the MrBeast Feastables launch car giveaway at Sydney Opera House. Photo by Don Arnold/WireImage via Getty.

Creator Economy

MrBeast Fumbles His $100 Million Amazon Deal

By Kaya Yurieff · Sep 19, 2024 2:00pm PDT

It’s been quite the summer for MrBeast—and not in a good way. The latest: He and Amazon were hit with a class action lawsuit this week from five unnamed contestants on the upcoming $100 million reality competition show “Beast Games.” They cited a wide array of complaints, ranging from sexual harassment during the production to lack of overtime... It’s been quite the summer for MrBeast—and not in a good way. The latest: He and Amazon were hit...

AI Tools Are Displacing Web Searches for The Information Readers

By Akash Pasricha · Sep 19, 2024 11:14am PDT · 2 comments

Subscriber Survey

AI Tools Are Displacing Web Searches for The Information Readers

By Akash Pasricha · Sep 19, 2024 11:14am PDT · 2 comments

More than three-quarters of The Information readers say they have used artificial intelligence tools in place of traditional search engines such as Google, and nearly the same proportion say they use chatbots to help them at work. Readers also are more optimistic about the technology sector after a summer dip, according to The... More than three-quarters of The Information readers say they have used artificial intelligence...

Image via Grok

OpenAI's Miniature Reasoning Model is Mighty—and Affordable

By Amir Efrati · Sep 19, 2024 7:00am PDT

OpenAI’s week of good news keeps getting better.After releasing an initial version of its o1 reasoning model, o1-preview, last week, new details are emerging about a smaller but faster version, o1-mini. OpenAI’s week of good news keeps getting better.After releasing an initial version of its o1...

Art by Shane Burke

AI Chip Startups, Seeking an Edge on Nvidia, Sell to Mideast

By Natasha Mascarenhas · Sep 19, 2024 6:00am PDT

Startups that design artificial intelligence chips are eyeing the Middle East as a lucrative market where they can gain an advantage on market leader Nvidia. SambaNova Systems, Cerebras and Groq—three of the dozens of startups developing AI chips—in the past year have announced deals to supply semiconductors and computer systems for... Startups that design artificial intelligence chips are eyeing the Middle East as a lucrative...

Photo: Courtesy 6K

The Electric: Facing a Skeptical Clientele, a Battery Company Builds Its Own Plant

By Steve LeVine · Sep 19, 2024 4:30am PDT

In 2020, 6K, a North Andover, Mass., materials company, launched an energy division with the aim of making the toxic and laborious manufacture of battery electrodes cheaper and cleaner. Now, after failing to win business from large established electrode makers, the company plans to make the electrodes itself.The move reflects how Western battery... In 2020, 6K, a North Andover, Mass., materials company, launched an energy division with the aim...

PayPal's San Jose headquarters. Photo via Adobe

PayPal Makes Headway With Flurry of Deals

By Martin Peers · Sep 18, 2024 5:00pm PDT

PayPal's San Jose headquarters. Photo via Adobe

PayPal Makes Headway With Flurry of Deals

By Martin Peers · Sep 18, 2024 5:00pm PDT

Can an old dog learn new tricks? If the old dog is PayPal, the answer seems to be yes. Under newish CEO Alex Chriss—who’s about to celebrate his first anniversary in the job—the digital payments pioneer is striking deals that should rejuvenate its business and help it challenge newer rivals such as Silicon Valley star Stripe. Today, for... Can an old dog learn new tricks? If the old dog is PayPal, the answer seems to be yes. Under...

Photo Credit: Erin Beach

Partner Content

AI Summit Recap: IBM’s Gil on How Enterprises Can Get AI Right

By The Information Partnerships · Sep 18, 2024 3:15pm PDT

As director of IBM Research and co-chair of the MIT-IBM Watson AI Lab, Dr. Dario Gil oversees one of the world’s largest research institutes. He shapes IBM’s AI vision and, as chair of the National Science Board, has a rare vantage point into the technology’s many evolutions and uses. As part of The Information’s recent... As director of IBM Research and co-chair of the MIT-IBM Watson AI Lab, Dr. Dario Gil oversees one...

YouTube CEO Neal Mohan. Photo via YouTube

Creator Economy

YouTube Unveils a Cornucopia of AI Tools

By Kaya Yurieff · Sep 18, 2024 2:01pm PDT

It’s been a busy week for creator economy events, from TikTok’s day in court to LTKCon and Snap’s Partner Summit—and it’s only Wednesday!Earlier today, I attended the annual Made On YouTube presentation, where executives including CEO Neal Mohan announced a host of new features for creators. Some will probably be popular, as they copy already... It’s been a busy week for creator economy events, from TikTok’s day in court to LTKCon and Snap’s...

Mitchell Green. Photo provided by Lead Edge Capital.

The Big Interview

Why One Investor Is Buying ByteDance Stock Despite TikTok Ban Threat

By Kate Clark · Sep 18, 2024 12:01pm PDT · 2 comments

A growing number of ByteDance shareholders have been selling their shares as hopes fade that the TikTok parent will go public anytime soon. But one New York–based venture firm that’s already invested over $100 million in the internet company is still eager to buy. Mitchell Green, founder of Lead Edge Capital, which has been... A growing number of ByteDance shareholders have been selling their shares as hopes fade that...

Evan Spiegel using Spectacles. Photo by Snap

Snap Shows AI Wearables Are Far Off; Salesforce CEO Says Microsoft Sells ‘Science Projects’

By Erin Woo and Jon Victor · Sep 18, 2024 7:00am PDT · 1 comment

Evan Spiegel using Spectacles. Photo by Snap

Snap Shows AI Wearables Are Far Off; Salesforce CEO Says Microsoft Sells ‘Science Projects’

By Erin Woo and Jon Victor · Sep 18, 2024 7:00am PDT · 1 comment

Before we get to the main part of today’s column, we wanted to share a juicy tidbit about Nvidia’s $165 million offer to buy artificial intelligence software startup OctoAI, which Anissa broke Tuesday.Most OctoAI shareholders aren’t expected to get much of a payout, but merger documents show the startup’s senior management team would do quite... Before we get to the main part of today’s column, we wanted to share a juicy tidbit about Nvidia’...

Lawyers leave the U.S. District Court for the Eastern District of Virginia on Sept. 9 where the Department of Justice's antitrust trial against Google is being held. Photo by AP

YouTube Could Be Hurt By Ad-Tech Antitrust Lawsuit Against Google

By Sahil Patel · Sep 18, 2024 6:00am PDT · 1 comment

Google’s YouTube isn’t the focus of the Justice Department’s second antitrust case against Google, now on trial in a Virginia courthouse. The case centers on the tech giant’s dominance of tools used by other companies buying and selling ads across the web and whether that sway hurts independent publishers. But YouTube... Google’s YouTube isn’t the focus of the Justice Department’s second antitrust...

Instagram chief Adam Mosseri. Photo by Getty

Instagram’s Teen Safety Act

By Martin Peers · Sep 17, 2024 5:00pm PDT

Meta Platforms has come a long way from the “move fast” days. Instagram’s much-ballyhooed announcement on Tuesday—aimed at protecting teens from creepy adult stalkers as well as from bombardment by overnight notifications—will surely be welcomed by many parents and perhaps politicians. But it took several years of incremental Instagram... Meta Platforms has come a long way from the “move fast” days. Instagram’s much-ballyhooed...

Art by Mike Sullivan

Crypto Funds Are Hunting for Yield

By Yueqi Yang · Sep 17, 2024 3:44pm PDT

After a two-year drought of initial public offerings, venture capitalists are finding new ways to return cash to shareholders, we wrote last week. Crypto investors have a few other tools to get capital back to their investors, or limited partners. But they also are facing more hurdles these days.Funds that bought tokens, or digital assets tied... After a two-year drought of initial public offerings, venture capitalists are finding new ways to...

Snap CEO Evan Spiegel. Photo by Snap.

Snap Tries for a Streamlined App—With a Lot of Features

By Erin Woo · Sep 17, 2024 3:26pm PDT

Snap CEO Evan Spiegel. Photo by Snap.

Creator Economy

Snap Tries for a Streamlined App—With a Lot of Features

By Erin Woo · Sep 17, 2024 3:26pm PDT

Snapchat, launched more than a decade ago, has been showing its wear. The app is a jumble of features, from TikTok-like videos (Spotlight) to Maps to its flagship disappearing Stories. With a major redesign unveiled Tuesday, it’s attempting to streamline the way its 850 million monthly users interact with the photo messaging app. Many may... Snapchat, launched more than a decade ago, has been showing its wear. The app is a jumble of...

Nvidia CEO Jensen Huang, left, and Octo.AI CEO Luis Ceze. Photo by Getty; screenshot via YouTube.

Nvidia Recently Discussed Acquiring Software Startup OctoAI for $165 Million

By Anissa Gardizy, Aaron Holmes and Stephanie Palazzolo · Sep 17, 2024 11:37am PDT

Nvidia has been in advanced talks to buy OctoAI, a Seattle-based startup that sells software to make artificial intelligence models run more efficiently, according to a message sent to shareholders. The purchase would add to a string of small AI startup acquisitions by the AI chip heavyweight, which is trying to strengthen its software and... Nvidia has been in advanced talks to buy OctoAI, a Seattle-based startup that sells software to...

Art by Mike Sullivan via Midjourney

Why OpenAI is Hiding its Reasoning Model’s ‘Thoughts’

By Amir Efrati and Anissa Gardizy · Sep 17, 2024 7:00am PDT

In the artificial intelligence race, competition is fierce. Every big AI developer is watching rivals like a hawk and trying to reverse-engineer or copy their best work, as we’ve reported.What can a leader like OpenAI do to keep its edge? The company’s newly released reasoning model, o1-preview, aka Strawberry, shows one way: by hiding the ball... In the artificial intelligence race, competition is fierce. Every big AI developer is watching...

The People in Charge at Productivity App Notion

By Jon Victor · Sep 17, 2024 6:00am PDT · 2 comments

Notion, a maker of popular task-management software, is injecting artificial intelligence into every pore of its products, aiming to make it easier for people to draft documents, summarize data and query spreadsheets. AI is also reshaping Notion’s executive ranks. The company recently hired Jackie Rocca, formerly vice president of product... Notion, a maker of popular task-management software, is injecting artificial intelligence into...

Amazon CEO Andy Jassy. Photo via AP.

Amazon’s Jassy Vows to Fight Bureaucracy

By Martin Peers · Sep 16, 2024 5:00pm PDT · 1 comment

Amazon CEO Andy Jassy. Photo via AP.

Amazon’s Jassy Vows to Fight Bureaucracy

By Martin Peers · Sep 16, 2024 5:00pm PDT · 1 comment

CEO letters to staff are usually written with so much bombast and blather that they say little of note. But that’s not the case with one that came from Amazon CEO Andy Jassy today. Despite a sleepy headline, “Strengthening Our Culture and Teams,” Jassy’s letter delivers some home truths. Most notably, he made it clear his concern that Amazon is... CEO letters to staff are usually written with so much bombast and blather that they say little of...