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

Photo via Getty Images.

More Google DeepMind Staff Depart to Launch an AI Startup

By Jon Victor, Kate Clark and Becky Peterson · Jan 23, 2024 12:22pm PST

Three Google researchers who helped develop artificial intelligence that generates images and music recently left the company to launch their own AI startup called Uncharted Labs, according to two people with direct knowledge of their plans and a securities filing. It’s the latest example of top researchers who faced bureaucratic delays in... Three Google researchers who helped develop artificial intelligence that generates images and...

Henrique Dubugras and Pedro Franceschi. Photos via Getty and YouTube.

Brex Cuts 20% of Staff and Shakes Up Senior Management

By Maria Heeter and Mark Matousek · Jan 23, 2024 9:30am PST · 4 comments

Brex is cutting 20% of its workforce and shaking up senior management ranks in a new effort to slash its cash burn, as the fintech firm grapples with slower revenue growth. The company told employees in an email on Tuesday that Chief Operating Officer Michael Tannenbaum and Chief Technology Officer Cosmin Nicolaescu are both giving up their... Brex is cutting 20% of its workforce and shaking up senior management ranks in a new effort to...

From left: Anish Acharya, Connie Chan and Jeff Jordan. Photos by Getty.

Andreessen Horowitz’s Connie Chan to Leave as Consumer Focus Shifts to AI

By Kate Clark, Erin Woo and Cory Weinberg · Jan 23, 2024 7:22am PST

For years, partners at Andreessen Horowitz proclaimed they would scour the startup world for the next big consumer marketplace like Airbnb or the next hit consumer app out of China, areas in which the firm had unique expertise. Now, it’s shifting toward an area more en vogue across venture capital: consumer apps powered by artificial... For years, partners at Andreessen Horowitz proclaimed they would scour the startup world for the...

Photo via Midjourney.

What’s Driving AI Costs Down and What’s Driving Them Back Up

By Stephanie Palazzolo · Jan 23, 2024 7:00am PST

Photo via Midjourney.

What’s Driving AI Costs Down and What’s Driving Them Back Up

By Stephanie Palazzolo · Jan 23, 2024 7:00am PST

Developing large language models is expensive work: the costs of running LLMs in the cloud knocked out more than half of the revenue Anthropic generated last month, Maria Heeter and I reported yesterday. And that doesn’t include the cost to train its models in the first place.Recent technological advancements should make it cheaper to develop... Developing large language models is expensive work: the costs of running LLMs in the cloud...

Brex CEO Henrique Dubugras. Photo by Bloomberg via Getty Images.

Brex Is Burning $17 Million a Month, Raising Questions About Future Growth

By Mark Matousek · Jan 23, 2024 6:00am PST · 2 comments

One of the pandemic-era darlings of the fintech sector is stuck in a rut. Brex, which issues credit cards and manages cash for businesses, burned an average of about $17 million a month in cash in the fourth quarter, the company told staff at an all-hands meeting earlier this month. Brex has enough cash to last through March 2026, according to... One of the pandemic-era darlings of the fintech sector is stuck in a rut. Brex, which issues...

Photo via Adobe Stock

Chips Are Hot, and That Won’t Stop

By Cory Weinberg · Jan 22, 2024 5:00pm PST

Whenever I fly to or from San Francisco, I like to snoop on people in first class as I shuffle back to my coach seat. What gadgets are they using? What are they reading? (And, maybe, are there any confidential documents on their laptop screens? Shh.) On Sunday, as I flew back to New York from a West Coast visit, one gentleman was about halfway... Whenever I fly to or from San Francisco, I like to snoop on people in first class as I shuffle...

Photos via Getty Images, Shutterstock and TikTok.

Creator Economy

In Politics, the ‘New Norm’ Includes Creators

By Kaya Yurieff · Jan 22, 2024 2:42pm PST

Earlier today, we published a story about creators’ growing role in the 2024 election. President Joe Biden’s re-election campaign is hiring a director of digital partnerships to work with creators to amplify his message and reach key voting blocs, including working with local nanoinfluencers. Staffers have discussed having a creator... Earlier today, we published a story about creators’ growing role in the 2024 election. President...

Joe Biden, Candace Owens, Jake Paul, Vivek Ramaswamy and Donald Trump. Photos by Getty. Art by Mike Sullivan.

Biden Campaign Courts Creators as White House Race Heats Up

By Kaya Yurieff · Jan 22, 2024 11:31am PST

Joe Biden, Candace Owens, Jake Paul, Vivek Ramaswamy and Donald Trump. Photos by Getty. Art by Mike Sullivan.

Biden Campaign Courts Creators as White House Race Heats Up

By Kaya Yurieff · Jan 22, 2024 11:31am PST

Politicians used to make pilgrimages to military veterans and labor union members as they hit the campaign trail. This year they’re courting creators. President Joe Biden’s reelection campaign is hiring a director of digital partnerships to work with creators to “amplify Joe Biden’s message and reach key voting... Politicians used to make pilgrimages to military veterans and labor union members as they hit the...

Chart by Shane Burke.

AI Agenda: OpenAI Is a (Relative) Steal

By Stephanie Palazzolo · Jan 22, 2024 7:35am PST · 1 comment

Over the past year, we’ve seen billions in funding thrown at AI startups at eye-popping valuations. More important than the absolute valuation figures, though, is how they stack up to those startups’ revenue numbers.In the chart above, we’ve tracked the valuations of eight AI startups that have recently raised funding, calculated against their... Over the past year, we’ve seen billions in funding thrown at AI startups at eye-popping...

Anthropic’s Gross Margin Flags Long-Term AI Profit Questions

By Stephanie Palazzolo and Maria Heeter · Jan 22, 2024 6:00am PST · 9 comments

In the past year, artificial intelligence developer Anthropic has raised billions of dollars at a more than $15 billion valuation due to its fast revenue growth and big projections for future sales. But as Anthropic and scores of rivals mature, they’ll need to prioritize profit margins and cash flows if they want to build a sustainable... In the past year, artificial intelligence developer Anthropic has raised billions of dollars at a...

At a lithium evaporation pond in Golmud, China, a billboard promotes the production of battery metals and minerals. Photo: Qilai Shen/Bloomberg/Getty.

The Electric: How China's Massive Over-Production of Cathodes Is Driving Down Battery Costs

By Steve LeVine · Jan 22, 2024 4:30am PST

Even as large inventories piled up through 2023, Chinese makers of cathodes for electric vehicles continued to run their factories at high volume, ending the year with a surplus of some 2.5 million EVs’ worth of iron-based electrodes, according to CRU Group, a U.K.-based metals research firm. The overproduction—which exceeded demand by 54%—helps... Even as large inventories piled up through 2023, Chinese makers of cathodes for electric vehicles...

Middle East Money Is Back on the Table

Middle East Money Is Back on the Table

By Nick Wingfield · Jan 20, 2024 6:00am PST

Middle East Money Is Back on the Table

Middle East Money Is Back on the Table

By Nick Wingfield · Jan 20, 2024 6:00am PST

Hi, welcome to your Weekend.When a team of assassins killed the dissident journalist Jamal Khashoggi inside the Saudi consulate in Istanbul a little over five years ago, Silicon Valley for a moment found its vertebrae. At the time, tech investors and founders were growing increasingly intoxicated by funding from Saudi sources. But those days... Hi, welcome to your Weekend.When a team of assassins killed the dissident journalist Jamal...

The Information founder and CEO Jessica Lessin (left) and attendees at the publications 10th anniversary gala. All photos by Erin Beach

Tech Founders, Investors Celebrate at The Information’s 10th Anniversary Gala

By The Information Staff · Jan 20, 2024 5:55am PST · 7 comments

Instagram co-founder Kevin Systrom, Sequoia Capital’s Roelof Botha and ThirdLove CEO Heidi Zak were among the guests who packed a restaurant in San Francisco Friday night to celebrate The Information’s 10 year anniversary. Party goers traded in their hoodies for black ties and gowns at the gala, held at Foreign Cinema restaurant in... Instagram co-founder Kevin Systrom, Sequoia Capital’s Roelof Botha and ThirdLove CEO Heidi...

Photo via Shutterstock

What to Expect From Tech Earnings Season

By Martin Peers · Jan 19, 2024 3:05pm PST

Earnings season is back! Netflix kicks off the tech sector’s round of December-quarter reports on Tuesday, followed the week after by Alphabet, Microsoft, Apple, Meta Platforms and others. This promises to be an unremarkable quarter, with big companies’ growth rates largely unchanged from the third quarter. That’s not as true for Netflix, which... Earnings season is back! Netflix kicks off the tech sector’s round of December-quarter reports on...

Flexport CEO Ryan Petersen. Photo by Getty

Struggling Logistics Firm Flexport Raises $260 Million from Shopify

By Theo Wayt · Jan 19, 2024 2:11pm PST · 3 comments

Flexport is raising $260 million from e-commerce software giant Shopify, one of its biggest shareholders, according to two people with direct knowledge, giving the struggling logistics startup more breathing room after it burned through cash last year. Shopify will get notes that are convertible into Flexport equity in exchange for the money.... Flexport is raising $260 million from e-commerce software giant Shopify, one of its biggest...

Art by Clark Miller

Where Tech Leaders Network, Stay and Eat When Fundraising in the Middle East

By Margaux MacColl · Jan 19, 2024 1:31pm PST · 4 comments

Art by Clark Miller

Where Tech Leaders Network, Stay and Eat When Fundraising in the Middle East

By Margaux MacColl · Jan 19, 2024 1:31pm PST · 4 comments

So you’ve decided to hop on an Emirates or Etihad flight to the Middle East for the first time to get sovereign wealth fund managers and family offices interested in your venture fund or startup. When do you go to maximize your networking? Where do you stay? And where do you talk business over a delicious kebab platter and a hookah? We... So you’ve decided to hop on an Emirates or Etihad flight to the Middle East for the first...

Photo by Leon Neal/Getty Images.

Citi in Talks With Analytics Startup to Expand Lending

By Michael Roddan · Jan 19, 2024 1:04pm PST · 3 comments

Citigroup is in discussions with cash flow analytics startup Prism Data about incorporating the firm’s technology in its consumer credit underwriting, according to people close to the discussions between the two firms. A Citi deal with Prism would be a boost for the startup. Spun off from Peter Thiel–backed credit card fintech firm... Citigroup is in discussions with cash flow analytics startup Prism Data about incorporating the...

The Apple Vision Pro. Photo via Getty Images.

Pro Weekly: Developers Eagerly Await the Vision Pro

By Akash Pasricha · Jan 19, 2024 8:01am PST

In our most recent subscriber survey, more than 40% of respondents said they are somewhat likely or extremely likely to consider buying the Apple Vision Pro, for which Apple is accepting pre-orders starting today. Among those most eagerly awaiting the Vision Pro are developers building apps for the mixed-reality device. Michael Markman, a... In our most recent subscriber survey, more than 40% of respondents said they are somewhat likely...

Art by Clark Miller

How Silicon Valley Learned to Stop Worrying and Love Middle East Money Again

By Margaux MacColl and Natasha Mascarenhas · Jan 19, 2024 6:00am PST · 1 comment

How do you know when a venture capitalist or founder is in Saudi Arabia looking to get a piece of the country’s piles of petro cash for their latest funds or startups? A telltale sign is the procession of Mercedes-Benz cars and SUVs weaving through the streets of Riyadh from the city’s Four Seasons Hotel to grand royal meeting rooms... How do you know when a venture capitalist or founder is in Saudi Arabia looking to get a piece of...

Google CEO Sundar Pichai. Photo by Anna Moneymaker/Getty Images.

Why Tech’s Latest Job Cut Wave Feels Different

By Jessica E. Lessin · Jan 18, 2024 5:00pm PST · 3 comments

Google CEO Sundar Pichai. Photo by Anna Moneymaker/Getty Images.

Why Tech’s Latest Job Cut Wave Feels Different

By Jessica E. Lessin · Jan 18, 2024 5:00pm PST · 3 comments

When a year or so ago tech companies including Amazon, Meta Platforms and Google announced broad layoffs—in some cases for the first time in their history—tech workers were on edge.But as 2023 wore on, there was a little sense of relief. It started to feel like the post-pandemic themes of “rightsizing” and “removing layers of management” that... When a year or so ago tech companies including Amazon, Meta Platforms and Google announced broad...