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

Art by Clark Miller

Don’t Fuss About Training AIs. Train Our Kids

By Esther Dyson · Jan 24, 2024 9:08am PST · 9 comments

Humanity is waking up to the challenges and opportunities of artificial intelligence, but we don’t yet understand our role. People talk about unexplainable AI when they should be more concerned about the unexplainable humans running the companies that develop the AI. (Hiya, Sam!) People worried about AI taking their jobs and taking control... Humanity is waking up to the challenges and opportunities of artificial intelligence, but we...

Photo via Adobe Stock.

4% of AI Startups Prioritize Social Interests in Corporate Structure

By Abubakar Idris · Jan 24, 2024 8:07am PST

OpenAI, Anthropic and Elon Musk’s xAI have drawn attention for their unconventional governance structures, ones that prioritize public interest over obligations to shareholders. But these companies are the outliers, The Information’s analysis shows, as most AI developers opt for traditional approaches that appeal to investors. Only 4 of the... OpenAI, Anthropic and Elon Musk’s xAI have drawn attention for their unconventional governance...

Verizon CRO Frank Boulben. Photo by Arturo Holmes/Getty Images.

The Big Interview

Verizon Thinks It Can Solve Streaming’s Biggest Problem

By Sahil Patel · Jan 24, 2024 6:00am PST · 2 comments

If you ask the typical TV executive about the challenges of video streaming, they’re likely to use one word: churn. Unlike cable TV, streaming services let viewers chop and change their subscriptions at a moment’s notice, complicating the companies’ ability to build an audience and make money. Telecom giant Verizon sees an... If you ask the typical TV executive about the challenges of video streaming, they’re likely...

A WWE Raw event in London. Photo via Shutterstock.

Why Netflix’s Raw Deal Will Strengthen Its Streaming Lead

By Martin Peers · Jan 23, 2024 5:00pm PST · 2 comments

A WWE Raw event in London. Photo via Shutterstock.

Why Netflix’s Raw Deal Will Strengthen Its Streaming Lead

By Martin Peers · Jan 23, 2024 5:00pm PST · 2 comments

Netflix has put media companies in a chokehold. The streaming giant’s $5 billion deal to assume the rights to World Wrestling Entertainment’s Raw from NBCUniversal’s USA network—and other WWE programming overseas—demonstrates its growing competitive advantage over older TV companies. USA has aired Raw since 1993—with a five-year break in the... Netflix has put media companies in a chokehold. The streaming giant’s $5 billion deal to assume...

Creator Now co-founder Airrack at the 2022 YouTube Streamy Awards. Photo by Emma McIntyre/Getty Images.

Creator Economy

Startup Co-Founded by YouTuber Airrack Sells to VidIQ

By Kaya Yurieff · Jan 23, 2024 2:05pm PST

New year, new M&A in the creator economy! VidIQ, an analytics provider for creators, is acquiring Creator Now, a Los Angeles-based online education startup for aspiring creators, The Information is first to report. New year, new M&A in the creator economy! VidIQ, an analytics provider for creators, is...

Photo via AP

Microsoft Forms Team to Make Cheaper Generative AI

By Aaron Holmes · Jan 23, 2024 1:16pm PST · 2 comments

Microsoft is doubling down on artificial intelligence that’s smaller and cheaper to run than OpenAI’s. The enterprise software maker has formed a new team to develop conversational AI that requires less computing power compared to software it’s using from OpenAI, according to two people with direct knowledge of it.... Microsoft is doubling down on artificial intelligence that’s smaller and cheaper to...

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

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

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

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

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

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

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

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...