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 Stord.

Logistics Startup Stord Buys Part of Pitney Bowes’ E-Commerce Business

By Ann Gehan and Theo Wayt · Jul 26, 2024 12:44pm PDT

Logistics startup Stord is acquiring the e-commerce fulfillment services operations of publicly traded shipping services company Pitney Bowes, according to an internal memo sent to Pitney Bowes staff. It’s the second acquisition so far this year by the Kleiner Perkins– and Founders Fund–backed startup, which aims to help... Logistics startup Stord is acquiring the e-commerce fulfillment services operations of publicly...

Photoillustration by Clark Miller

An Asbestos Lawyer’s New Crusade: Suing Social Media Companies

By Paris Martineau · Jul 26, 2024 9:01am PDT · 2 comments

In January, after members of the Senate Judiciary Committee had spent hours grilling tech CEOs about their platforms’ effects on children, Missouri Sen. Josh Hawley pounced on Meta Platforms CEO Mark Zuckerberg. Hawley, a Republican firebrand and a vocal tech critic, accused Zuckerberg of ignoring internal company data that suggested... In January, after members of the Senate Judiciary Committee had spent hours grilling tech CEOs...

Pro Weekly: Omens of Past Corrections

Pro Weekly: Omens of Past Corrections

By Akash Pasricha · Jul 26, 2024 8:00am PDT

A large majority of respondents to our July survey said they expect a stock market correction of 10% or more within the next 12 months, and more than half said shares of technology companies are in a bubble. We also asked readers which year since 1980 they think 2024 feels closest to. Their answers also reflected anxiety about a looming... A large majority of respondents to our July survey said they expect a stock market correction of...

This Fintech Stock May Not Be the Deal Its Executives Say It Is

By Anita Ramaswamy · Jul 26, 2024 7:00am PDT · 2 comments

This Fintech Stock May Not Be the Deal Its Executives Say It Is

By Anita Ramaswamy · Jul 26, 2024 7:00am PDT · 2 comments

In the world of online lenders, Enova International stands out. It has been growing rapidly, lending more money last year than ever before even as rising interest rates caused competitors to cut back. Meanwhile, Enova executives have repeatedly argued the company’s stock was “undervalued,” and the company has spent heavily on... In the world of online lenders, Enova International stands out. It has been growing rapidly,...

Photo by Bloomberg via Getty.

DoorDash Hires Flexport Executive to Deliver More Than Just Takeout

By Ann Gehan and Theo Wayt · Jul 26, 2024 6:00am PDT

DoorDash is doubling down on its push to deliver more than just takeout noodles and late-night fast food. The company has hired an Amazon veteran and current Flexport executive, Parisa Sadrzadeh, as vice president of strategy and operations, a spokesperson confirmed. Her hire will help boost DoorDash’s efforts to deliver more types of... DoorDash is doubling down on its push to deliver more than just takeout noodles and late-night...

Photo by View Press via Getty.

Google’s Shrinking Ad-Tech Business

By Martin Peers · Jul 25, 2024 5:00pm PDT

Quick quiz: Which part of Google’s business has declined for eight straight quarters? If you guessed the Google network business—which sells advertising on other companies’ websites—you deserve an A in Google-nomics.In the second quarter, reported on Tuesday, Google reported that revenue from the network operation shrank 5% even as ad sales on... Quick quiz: Which part of Google’s business has declined for eight straight quarters? If you...

Reid Hoffman. Photo by Kimberly White/Getty.

Reid Hoffman On His ‘Key Mission’ until November

By Natasha Mascarenhas · Jul 25, 2024 3:00pm PDT · 1 comment

While we’re more than three months away from the election, there is no shortage of political squabbles, monologuing and grandstanding in every corner of Silicon Valley. I checked in with one of tech’s most outspoken Democrats, Reid Hoffman, who plans to co-host or host a fundraiser for Vice President Kamala Harris as soon as September,... While we’re more than three months away from the election, there is no shortage of political ...

Reddit CEO, Steve Huffman, during the company's IPO at the New York Stock Exchange on March 21. Photo by Bloomberg via Getty.

A Future Reddit Opportunity for Creators

By Sahil Patel and Sylvia Varnham O'Regan · Jul 25, 2024 2:00pm PDT

Reddit CEO, Steve Huffman, during the company's IPO at the New York Stock Exchange on March 21. Photo by Bloomberg via Getty.

Creator Economy

A Future Reddit Opportunity for Creators

By Sahil Patel and Sylvia Varnham O'Regan · Jul 25, 2024 2:00pm PDT

Reddit has a new content and ad revenue-sharing program that it launched with sports leagues including the NFL, the NBA and NASCAR, as we reported earlier this week. The way it works is straightforward: Leagues post videos and other content on Reddit. Advertisers can buy ads against that content and the leagues and Reddit share the ad... Reddit has a new content and ad revenue-sharing program that it launched with sports leagues...

Art by Clark Miller (photos: Getty Images)

Power and Influence

‘A Unicorn Moment’: Inside Kamala Harris’ Reenergized Web of Silicon Valley Investors, Billionaires and Power Brokers

By Abram Brown, Julia Black, Natasha Mascarenhas and Theo Wayt · Jul 25, 2024 11:39am PDT · 9 comments

Democrats with power and money in California are in a Kamala mood. Reid Hoffman, billionaire venture capitalist, has already shifted his attention as a top Joe Biden fundraiser to bringing in cash for the person who has replaced Biden as the Democratic presidential candidate: Vice President Kamala Harris, a Golden State native who was previously... Democrats with power and money in California are in a Kamala mood. Reid Hoffman, billionaire...

Art by Clark Miller

California’s Proposed Regulation Would Strengthen, Not Harm, AI

By AnnaLee Saxenian · Jul 25, 2024 10:28am PDT · 6 comments

Silicon Valley’s success has spawned some pernicious myths, most notably the glorification of the lone entrepreneur working in a garage, unfettered by government oversight. A closely related myth holds that regulation always jeopardizes innovation and technological progress, because government can’t wisely oversee technological... Silicon Valley’s success has spawned some pernicious myths, most notably the glorification...

Photo via AP.

Is OpenAI a Good Business?

By Amir Efrati · Jul 25, 2024 7:00am PDT · 5 comments

In April this year, OpenAI CEO Sam Altman was asked during a talk at Stanford University about our report that his company had lost more than $500 million in 2022, just as it was releasing ChatGPT, and whether he was generally concerned about losses. His answer: "Whether we burn $500 million a year or $5 billion or $50 billion, I don't... In April this year, OpenAI CEO Sam Altman was asked during a talk at Stanford University about...

Art by Mike Sullivan

How Snapchat Struggled to Protect Teens From Drug Dealing, ‘Sextortion’

By Erin Woo · Jul 25, 2024 6:00am PDT

Art by Mike Sullivan

How Snapchat Struggled to Protect Teens From Drug Dealing, ‘Sextortion’

By Erin Woo · Jul 25, 2024 6:00am PDT

In the spring of 2021, Snap leapt into action. After the teenage son of a television host died from what his parents said were fentanyl-laced Xanax pills purchased on Snapchat—Snap’s social media app—the company declared a “code red,” an expression it uses for its highest-priority projects, according to two people... In the spring of 2021, Snap leapt into action. After the teenage son of a television host died...

Photo: Bloomberg/Getty

The Electric: The Case for Tesla Not to Make Robotaxis

By Steve LeVine · Jul 25, 2024 4:30am PDT · 1 comment

Sales of Tesla’s electric vehicles are falling, its profit margins are shrinking and investors show little near-term faith in CEO Elon Musk’s plan for deploying autonomous Robotaxis. Tesla shares fell 12% Wednesday, one day after a lackluster second-quarter earnings report, trimming what had been a 73% runup since late April. Sales of Tesla’s electric vehicles are falling, its profit margins are shrinking and investors...

Tech investors have recently paid more attention to glitzy generative AI startups than more traditional machine learning companies.

Stock Sell-Off, OneStream and AI

By Cory Weinberg · Jul 24, 2024 5:00pm PDT

Tech investors often embody the distracted boyfriend meme—the stock image where a man looks back admiringly at another woman, to the horror of his girlfriend. In that same vein, investors are always looking for the next hot thing. Companies working on earlier iterations of artificial intelligence technology, like machine learning, must have felt... Tech investors often embody the distracted boyfriend meme—the stock image where a man looks back...

Photo via Getty.

Creator Economy

How One Startup Is Using AI to Keep Readers Hooked

By Ann Gehan · Jul 24, 2024 2:30pm PDT

Fan fiction that riffs on beloved stories has long been popular with readers who can’t get enough of their favorite writers. Now, a Khosla Ventures-backed startup is trying to make it even easier for readers to satisfy their appetite.Inkitt, a startup that lets writers self-publish books and uses artificial intelligence to edit, distribute and... Fan fiction that riffs on beloved stories has long been popular with readers who can’t get enough...

The People in Charge at Databricks as It Moves Toward a Potential IPO

By Akash Pasricha · Jul 24, 2024 10:04am PDT · 1 comment

The People in Charge at Databricks as It Moves Toward a Potential IPO

By Akash Pasricha · Jul 24, 2024 10:04am PDT · 1 comment

Seven data scientists from the University of California, Berkeley, founded Databricks in 2013 to build a business around open-source software for data storage and analysis. As the company nears a possible initial public offering 11 years later, Databricks can boast a rare feat for startups its age: Nearly all of its co-founders still work there.... Seven data scientists from the University of California, Berkeley, founded Databricks in 2013 to...

Jensen Huang, CEO of Nvidia. Photo by Getty

Nvidia Devises Special Server Design to Boost China Sales

By Qianer Liu · Jul 24, 2024 7:49am PDT · 1 comment

Nvidia has a new workaround to U.S. export rules that block the sale of the most advanced artificial intelligence chips to China—pairing the chips with a special server. The company will next year launch a new AI chip specially tailored for the Chinese market that will be sold alongside a new server designed to maximize the performance of... Nvidia has a new workaround to U.S. export rules that block the sale of the most advanced...

Meta CEO Mark Zuckerberg. Photo by Bloomberg via Getty.

What Meta's Largest Llama Model is Missing

By Kalley Huang · Jul 24, 2024 7:00am PDT

If you haven’t caught our analysis of OpenAI’s finances in a story we published this morning, it’s worth a read. My colleagues Amir and Aaron have gone deep on how much the ChatGPT creator is spending on computing capacity and other expenses, based on previously undisclosed internal data. Paired with estimates of revenue, they’ve put a... If you haven’t caught our analysis of OpenAI’s finances in a story we published this morning, it’...

Art by Mike Sullivan

Why OpenAI Could Lose $5 Billion This Year

By Amir Efrati and Aaron Holmes · Jul 24, 2024 6:00am PDT · 14 comments

OpenAI has built one of the fastest-growing businesses in history. It may also be one of the costliest to run. The ChatGPT maker could lose as much as $5 billion this year, according to an analysis by The Information, based on previously undisclosed internal financial data and people involved in the business. If we’re right, OpenAI, most... OpenAI has built one of the fastest-growing businesses in history. It may also be one of the...

Photo by Anadolu via Getty.

Is Amazon to Blame for YouTube’s Ad Slowdown?

By Martin Peers · Jul 23, 2024 5:00pm PDT

Photo by Anadolu via Getty.

Is Amazon to Blame for YouTube’s Ad Slowdown?

By Martin Peers · Jul 23, 2024 5:00pm PDT

Google kicked off big tech’s portion of the summer earnings season with what seemed a middle-of-the-road report. Artificial intelligence appeared to give Google Cloud a bit of a lift, while search delivered another decent quarter. The outlier, surprisingly, was YouTube, for which ad growth slowed meaningfully.That raises the question of whether... Google kicked off big tech’s portion of the summer earnings season with what seemed a...