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

SES joined the New York Stock Exchange in 2022. Photo: Sipa/AP

The Electric: In a Deal With Hyundai, SES Widens Lithium-Metal Lead

By Steve LeVine · Apr 25, 2024 4:30am PDT

Next-generation battery developer SES AI pushed further ahead in the race to commercialize lithium-metal anodes, moving to the B Sample qualification stage with South Korea’s Hyundai Motor. The automaker has not committed to deploying the anodes in its electric vehicles, but the deal sets SES on the path of putting its anodes in Hyundai test... Next-generation battery developer SES AI pushed further ahead in the race to commercialize...

Mark Zuckerberg. Photo by Andrej Sokolow/picture alliance via Getty Images.

Meta’s Big AI Spending Turns Off Investors

By Martin Peers · Apr 24, 2024 5:00pm PDT

Meta Platforms may have just got kicked off Wall Street’s favorites list. Stock of the Facebook owner dropped 16% after CEO Mark Zuckerberg warned the company was entering a new investment cycle, this time in artificial intelligence, that would take a while to flow through to create “profitable services.” Zuckerberg’s comments hit a nerve:... Meta Platforms may have just got kicked off Wall Street’s favorites list. Stock of the Facebook...

VR headsets at the Meta's booth at a trade fair in Germany. Photo by Krisztian Bocsi/Bloomberg via Getty Images.

Creator Economy

Reels Is Eating Instagram; TikTok Lite Gets Muzzled

By Sylvia Varnham O'Regan · Apr 24, 2024 4:15pm PDT

Meta Platforms’ warning of slowing growth and higher expenses Wednesday night sank the stock, which had run up 43% this year. But Meta executives, not surprisingly, focused on the bright spots —among them, video. Instagram Reels—Meta’s answer to TikTok—now makes up 50% of the time spent on the app, a pretty big number when you think about... Meta Platforms’ warning of slowing growth and higher expenses Wednesday night sank the stock,...

Nvidia headquarters in Santa Clara. Photo by Getty.

Nvidia to Buy Two Israeli Startups That Make Its AI Chips Cheaper to Use

By Stephanie Palazzolo · Apr 24, 2024 3:13pm PDT · 1 comment

Nvidia headquarters in Santa Clara. Photo by Getty.

Nvidia to Buy Two Israeli Startups That Make Its AI Chips Cheaper to Use

By Stephanie Palazzolo · Apr 24, 2024 3:13pm PDT · 1 comment

During the artificial intelligence boom, chipmaker Nvidia became one of the most active corporate venture capitalists, investing in over 30 startups last year alone, according to PitchBook. Now it may become one of the most active acquirers of AI startups. Nvidia has recently struck two agreements to buy Israeli AI startups, including one... During the artificial intelligence boom, chipmaker Nvidia became one of the most active corporate...

Rubrik CEO Bipul Sinha. Photo by Bloomberg via Getty Images.

Inside Rubrik’s Pitch for Its High-Stakes Software IPO

By Cory Weinberg · Apr 24, 2024 11:00am PDT · 1 comment

The next big test of the big IPO market for software firms comes later on Wednesday, when data security firm Rubrik is expected to price its initial public offering. On the surface, the company would be an unlikely IPO success right now. It is small and its business very niche, and it is losing money, which might turn off investors. To get Wall... The next big test of the big IPO market for software firms comes later on Wednesday, when data...

Cognition AI CEO, Scott Wu, and the company's software development assistant, Devin. Screenshots via YouTube.

Six-Month-Old AI Coding Startup Valued at $2 Billion by Founders Fund

By Kate Clark · Apr 24, 2024 8:52am PDT · 1 comment

The promise of a chatbot that can write and fix code has attracted repeat investments in a six-month-old startup—even after it appeared to flub its product launch. Founders Fund has led a $175 million investment in Cognition, a startup that recently launched an artificial intelligence–powered coding assistant called Devin, according... The promise of a chatbot that can write and fix code has attracted repeat investments in a...

Mark Zuckerberg at Meta Connect 2023. Photo by Bloomberg via Getty Images.

Meta’s Llama 3 Proves a Hit With Developers; Snowflake Gets In The LLM Game

By Stephanie Palazzolo · Apr 24, 2024 7:00am PDT

It’s been five days since the release of Meta Platforms’ highly-anticipated Llama 3 models, and the new large language models have seemingly won the mindshare of AI developers—so much so that barely anyone was talking about new model releases from Microsoft, Adobe and Amazon on Monday.A number of developers told me that they’re already... It’s been five days since the release of Meta Platforms’ highly-anticipated Llama 3 models, and...

Art by Mike Sullivan

The Cybersecurity Takeover List: 6 Unicorns That Could Seek a Sale

By Aaron Holmes · Apr 24, 2024 6:00am PDT

Art by Mike Sullivan

The Cybersecurity Takeover List: 6 Unicorns That Could Seek a Sale

By Aaron Holmes · Apr 24, 2024 6:00am PDT

As companies lose faith in the effectiveness of cybersecurity software and reexamine or rein in their spending on it, startups that sell that type of software have struggled to grow. Many of them will have little choice but to look for a buyout, some of their shareholders say, despite having raised record amounts of capital during the... As companies lose faith in the effectiveness of cybersecurity software and reexamine or rein in...

Demonstrators hold signs in support of TikTok in front of the U.S. Capitol Building earlier today. Photo by Anna Moneymaker/Getty Images.

The TikTok Political Debate Is Over, Bar the Shouting

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

The political debate about TikTok is all but over, with the sell-or-ban bill now virtually assured of becoming law, judging by its progress in the Senate today. Once the formalities are over, we’ll see TikTok or its users file a legal challenge, which could delay implementation. Even so, the final passage of this legislation is momentous. The... The political debate about TikTok is all but over, with the sell-or-ban bill now virtually...

Anton Levy of General Atlantic at The Information's Private Capital Conference earlier this month. Photo by Nicole Pereira.

ByteDance Investors’ Waiting Game

By Natasha Mascarenhas and Laura Mandaro · Apr 23, 2024 4:31pm PDT

Most venture capitalists often see themselves as long-term investors. Those who backed ByteDance, the world’s most valuable venture-backed company, have had plenty of opportunity to test that credo. After pouring $8 billion into TikTok’s parent company, and sometimes buying more shares from other shareholders, these investors have seen the... Most venture capitalists often see themselves as long-term investors. Those who backed ByteDance,...

Photo by NurPhoto via Getty Images.

Creator Economy

Threads Offers Creators $500 to Post About ‘Positivity’

By Kaya Yurieff · Apr 23, 2024 2:07pm PDT

Since Threads’ launch last summer, creators have grumbled to me about the lack of money-making opportunities or clear reasons for them to spend time posting on Instagram’s text-focused sister app. Threads is now trying one obvious route: paying them (a little) to post. Instagram invited some creators this month to join a challenge focused... Since Threads’ launch last summer, creators have grumbled to me about the lack of money-making...

Andy Jassy and four notable vendors Amazon has taken warrants in. Rivian, Hawaiian Airlines, Kohl's and Astera Labs. Photos via Getty Images and Shutterstock.

How Amazon’s Equity-for-Spending Deals Have Evolved

By Abubakar Idris · Apr 23, 2024 10:37am PDT · 1 comment

Andy Jassy and four notable vendors Amazon has taken warrants in. Rivian, Hawaiian Airlines, Kohl's and Astera Labs. Photos via Getty Images and Shutterstock.

How Amazon’s Equity-for-Spending Deals Have Evolved

By Abubakar Idris · Apr 23, 2024 10:37am PDT · 1 comment

Amazon must have quite the investment portfolio by now. Thanks to its status as a giant tech conglomerate, Amazon often gets a chance to buy equity in its suppliers at a deep discount. Over the years, it has accumulated interests in companies providing everything from autonomous vehicle technology to air freight, according to public company... Amazon must have quite the investment portfolio by now. Thanks to its status as a giant tech...

Partner Content

Recap: The New Tech IPO Landscape

By The Information Partnerships · Apr 23, 2024 9:10am PDT

With layoffs, shake-ups, and surprising stars, the tech initial public offering market has been volatile lately as it rebounds from a particularly dry period. But will that rebound continue? And when’s the best time for companies to go public? As part of the Private Capital Conference, Jessica Lessin, CEO and founder of The Information,... With layoffs, shake-ups, and surprising stars, the tech initial public offering market has been...

Chart by Shane Burke

AI Investors Turn Their Attention—And Deep Pockets—To Robotics

By Stephanie Palazzolo · Apr 23, 2024 8:15am PDT · 1 comment

If you’re anything like me, you may have found your jaw dropping at our scoop this morning that Skild, a young startup building an AI-powered brain for robots, is raising nearly $300 million from Lightspeed Venture Partners, Coatue Management and other investors at a whopping $1.5 billion valuation despite the fact that it has yet to generate... If you’re anything like me, you may have found your jaw dropping at our scoop this morning that ...

A humanoid robot at an expo in Beijing on April 9. Photo by VCG via Getty Images.

Venture FOMO Hits Robotics, as Young Startup Gets $1.5 Billion Valuation

By Stephanie Palazzolo and Amir Efrati · Apr 23, 2024 7:49am PDT · 4 comments

Venture investors are paying a hefty premium to back robotics startups harnessing artificial intelligence, hoping one of them can become the robotics version of OpenAI. In the latest example, Skild, a young firm that has been developing software to power various robots including ones with two or four legs, is nearing a deal to raise nearly $300... Venture investors are paying a hefty premium to back robotics startups harnessing artificial...

Photos via Aero Icarus/Flickr and Getty Images.

Shein’s China-U.S. Imports Boost Flexport

By Theo Wayt and Ann Gehan · Apr 23, 2024 6:00am PDT · 2 comments

Photos via Aero Icarus/Flickr and Getty Images.

Shein’s China-U.S. Imports Boost Flexport

By Theo Wayt and Ann Gehan · Apr 23, 2024 6:00am PDT · 2 comments

As logistics company Flexport looks to turn itself around after messy executive drama and a broader freight market slump last year, it’s leaning on an increasingly important customer: China-founded fast-fashion giant Shein. As of March, Flexport was arranging two Boeing 747 flights each week filled with goods sold by Shein—known... As logistics company Flexport looks to turn itself around after messy executive drama and a...

Photo by Bloomberg via Getty Images.

Tesla Investors Brace for Impact

By Nick Wingfield · Apr 22, 2024 5:00pm PDT

Tesla reports its earnings on Tuesday, and it’s likely to be a doozy. Elon Musk’s electric vehicle maker has already told analysts the number of Teslas it sold in the first three months of the year was about 9% lower than for the same period a year earlier. Wall Street analysts are currently expecting a 4% dip in revenue compared to the... Tesla reports its earnings on Tuesday, and it’s likely to be a doozy. Elon Musk’s electric...

Mark Zuckerberg speaking at Meta Connect 2023. Photo by David Paul Morris/Bloomberg via Getty Images.

Meta Platforms Retakes Its Open-Source Lead

By Kalley Huang and Stephanie Palazzolo · Apr 22, 2024 7:00am PDT

Meta Platforms made a splash Thursday with the release of Llama 3, the latest version of its popular open-source large language model, though we stole some of the thunder with our scoop earlier this month. Developers have a lot to say about it—most of it good.For the most part, the 8-billion and 70-billion parameter versions of Llama 3... Meta Platforms made a splash Thursday with the release of Llama 3, the latest version of its...

Art by Mike Sullivan.

How Investors Are Using SPVs to Buy Stakes in OpenAI and Anthropic

By Natasha Mascarenhas · Apr 22, 2024 6:00am PDT

To get a slice of hot artificial intelligence startups like OpenAI and Anthropic, investors have been flocking to investment vehicles that pool money from several parties to back just one company. These structures, known as special purpose vehicles, have long been part of Silicon Valley business but have quietly mushroomed as demand for AI... To get a slice of hot artificial intelligence startups like OpenAI and Anthropic, investors have...

Graphite processing in Hegang City, China. Photo: Xie Jianfei/Xinhua/Getty

The Electric: A Driving Range Booster, Silicon May Also Ease China’s Iron Grip

By Steve LeVine · Apr 22, 2024 4:30am PDT

Graphite processing in Hegang City, China. Photo: Xie Jianfei/Xinhua/Getty

The Electric: A Driving Range Booster, Silicon May Also Ease China’s Iron Grip

By Steve LeVine · Apr 22, 2024 4:30am PDT

Chinese companies dominate the processing of virtually every metal in an electric vehicle battery and make more batteries and EVs than anyone. But in no area of the battery and EV industries are they more dominant than in the production and processing of graphite, a material used in every commercial EV battery anode on the planet. China produces... Chinese companies dominate the processing of virtually every metal in an electric vehicle battery...