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

Chart by Mike Sullivan

Creator Economy

The Sudden Rise of Twitch Rival Kick

By Kaya Yurieff · May 25, 2023 2:12pm PDT

A new livestreaming service called Kick has been attracting streamers with a revenue-split that lets creators keep 95% of their subscription revenue, a more generous deal than the 50% split they get from streaming site Twitch. A new report Thursday shows just how successful that perk has been. Hours watched on Kick climbed to 51.8... A new livestreaming service called Kick has been attracting streamers with a revenue-split that...

Bilal Zuberi. Photo courtesy of Lux Capital.

The Perils of Venture Patriotism

By Kate Clark · May 25, 2023 1:30pm PDT · 2 comments

Welcome back!U.S. venture capitalists seem to be gripped by patriotic fervor, with a growing faction urging their peers to back more companies that help the U.S. battle adversaries like China. That’s put other venture capital firms with large China footprints on the defensive, as I reported this week.The recent bout of nationalism has worried... Welcome back!U.S. venture capitalists seem to be gripped by patriotic fervor, with a growing...

Photo by Bloomberg.

JPMorgan Culling First Republic Bank’s Personal Credit Lines

By Maria Heeter and Michael Roddan · May 25, 2023 10:02am PDT · 1 comment

JPMorgan has told customers with personal credit lines at First Republic Bank that it will no longer offer those lines when they come up for renewal, according to correspondence viewed by The Information. The failed lender, which has been sold to JPMorgan, had offered personal lines of credit to its wealthy client base as a key way of attracting... JPMorgan has told customers with personal credit lines at First Republic Bank that it will no...

Art by Clark Miller, Shutterstock (2).

It’s Storytelling, Stupid

By Andrew A. Rosen · May 25, 2023 9:00am PDT · 7 comments

Art by Clark Miller, Shutterstock (2).

It’s Storytelling, Stupid

By Andrew A. Rosen · May 25, 2023 9:00am PDT · 7 comments

Sign up for Rosen’s newsletter, The Medium, part of The Information’s newsletter network. I doubt the shareholder lawsuit filed against former Disney CEO Bob Chapek and current Chief Financial Officer Christine McCarthy a couple weeks ago will go to trial. If Disney is guilty of fraud in how it represented the performance of its... Sign up for Rosen’s newsletter, The Medium, part of The Information’s newsletter...

Microsoft's Satya Nadella, left, and Peter Lee. Photo by Bloomberg, Microsoft

How Microsoft Swallowed Its Pride to Make a Massive Bet on OpenAI

By Aaron Holmes · May 25, 2023 6:00am PDT · 15 comments

Satya Nadella didn’t want to hear it. Last December, Peter Lee, who oversees Microsoft’s sprawling research efforts, was briefing Nadella, Microsoft’s CEO, and his deputies about a series of tests Microsoft had conducted of GPT-4, the then-unreleased new artificial intelligence large-language model built by OpenAI. Lee told... Satya Nadella didn’t want to hear it. Last December, Peter Lee, who oversees...

Ford CEO Jim Farley got concrete about his plans for iron-based batteries. Photo: Courtesy Ford

The Electric: Ford EVs Will Use Iron-Based Batteries, but Not Many and Not for a While

By Steve LeVine · May 25, 2023 4:30am PDT

The world’s top-selling electric vehicle makers, Tesla and China’s Byd, have one thing in common—they largely use inexpensive iron-based batteries in their cars. By contrast, legacy Western car manufacturers have stuck almost entirely with more costly nickel-based EV batteries. Volkswagen, Mercedes-Benz and Stellantis have said they will use... The world’s top-selling electric vehicle makers, Tesla and China’s Byd, have one thing in common—...

Nvidia CEO Jensen Huang. Photo by Bloomberg.

Nvidia’s AI Victory Lap

By Amir Efrati · May 24, 2023 5:31pm PDT · 1 comment

The most important acronym in business right now is AI, but another one—GPU—isn’t far behind. Today’s earnings forecast from chip designer Nvidia, which makes graphics processing units that power ChatGPT and its ilk, shows what surging demand for the data center chip is worth. Nvidia said it expected to generate about $11 billion in revenue... The most important acronym in business right now is AI, but another one—GPU—isn’t far behind....

Alphabet CEO Sundar Pichai

Shareholder Advisory Firms Call for Alphabet Chair’s Ouster

By Jon Victor · May 24, 2023 3:13pm PDT · 8 comments

Alphabet CEO Sundar Pichai

Shareholder Advisory Firms Call for Alphabet Chair’s Ouster

By Jon Victor · May 24, 2023 3:13pm PDT · 8 comments

Two influential shareholder advisory firms have taken an aggressive stance against Alphabet’s board of directors ahead of the company’s June 2 annual meeting, telling clients they should vote in favor of a majority of proposals submitted by shareholders to improve the company’s corporate governance—proposals the board... Two influential shareholder advisory firms have taken an aggressive stance against...

Mike Minton, Twitch's chief monetization officer. Photo: Twitch

Creator Economy

Twitch Weighs Live Shopping and Even a Chatbot for Creators

By Kaya Yurieff · May 24, 2023 2:57pm PDT

Given that Amazon owns Twitch, you’d think that the live streaming service would have made commerce a key part of its product. That hasn’t been the case, though it’s tested features like affiliate links and even live shopping games. But Mike Minton, Twitch’s chief monetization officer, said it still has hopes for commerce—and live shopping may... Given that Amazon owns Twitch, you’d think that the live streaming service would have made...

Ledger CEO Pascal Gauthier. Photo by Getty.

The Volatility of Crypto Customer Loyalty

By Akash Pasricha · May 24, 2023 9:00am PDT

Crypto fans are freaking out! What else is new? Over the past week, the crypto hardware wallet maker Ledger came under fire for a product update that customers worried could jeopardize the safety of their digital assets. That prompted an apology from the company over how the change was communicated. And this is a familiar rhythm for crypto... Crypto fans are freaking out! What else is new? Over the past week, the crypto hardware wallet...

Photo by Tony Webster via Flickr

After Years of Resistance, AWS Opens Checkbook for Open-Source Providers

By Kevin McLaughlin and Anissa Gardizy · May 24, 2023 8:00am PDT · 2 comments

Several years ago, providers of open-source software had a beef with Amazon Web Services. They complained that AWS was selling cloud-based versions of their software, depriving them of hundreds of millions of dollars in annual revenue. The dispute was a public relations nightmare for AWS and risked inviting trouble from competition regulators.... Several years ago, providers of open-source software had a beef with Amazon Web Services. They...

Art by Mike Sullivan

Venture Capitalists Face Pressure to Divest From China

By Kate Clark · May 24, 2023 6:00am PDT · 5 comments

Art by Mike Sullivan

Venture Capitalists Face Pressure to Divest From China

By Kate Clark · May 24, 2023 6:00am PDT · 5 comments

Silicon Valley venture capitalists are coming to terms with a new reality: Their once-prized China investments may be victims of a simmering cold war. As tensions between the U.S. and China have risen, some firms have sought ways to distance themselves from China’s tech scene. NEA, a VC firm whose Chinese investments date back two decades... Silicon Valley venture capitalists are coming to terms with a new reality: Their once-prized...

BuzzFeed CEO Jonah Peretti. Photo by Getty.

BuzzFeed’s Chatbot Mistake, Bing’s Big Goal

By Jessica E. Lessin · May 23, 2023 5:00pm PDT

It’s been refreshing to hear BuzzFeed CEO Jonah Peretti declare that the era of media riding social media is over. But it’s depressing to hear his views on what’s next.Today, BuzzFeed announced a chatbot that helps people find recipes and said it hopes to charge subscription fees for similar services in the future. It’s part of the company’s... It’s been refreshing to hear BuzzFeed CEO Jonah Peretti declare that the era of media riding...

Photo via Dylan Huey. Art by Mike Sullivan.

Creator Economy

The Exclusive College Club Training Student Influencers

By Isabelle Sarraf · May 23, 2023 2:58pm PDT

At the University of Southern California, college kids aren’t just making TikTok videos for fun in their dorms: they’re teaching each other how to go viral. Reach, a social media and content creator club that started at USC, has cultivated a community of over 500 college students nationally who want to be influencers, digital marketers or work... At the University of Southern California, college kids aren’t just making TikTok videos for fun...

Art by Clark Miller.

Black Founders Needed SVB

By Rodney Williams · May 23, 2023 9:00am PDT · 1 comment

My first SXSW was 11 years ago. Arriving there in 2012 with just an idea for my first company—a secure communications platform called Lisnr—was scary, to say the least. I wasn’t on any event lists. But more than that, there wasn’t any programming aimed at encouraging Black founders, or even seemingly any desire to do so.... My first SXSW was 11 years ago. Arriving there in 2012 with just an idea for my first...

Chart by Mike Sullivan.

Enterprise Software’s Laggards: Firms Growing Slowly And Still Burning Cash

By Akash Pasricha · May 23, 2023 7:47am PDT · 1 comment

Chart by Mike Sullivan.

Enterprise Software’s Laggards: Firms Growing Slowly And Still Burning Cash

By Akash Pasricha · May 23, 2023 7:47am PDT · 1 comment

It’s the age-old refrain in American business: You have to spend money to make money. And it’s particularly true of the tech industry, where startups pour millions into untested new businesses and technologies. Investors usually don’t mind companies burning cash as long as they’re growing quickly—but some enterprise... It’s the age-old refrain in American business: You have to spend money to make money. And...

Photo by Bloomberg

Google and OpenAI’s Next Battleground: Firefox?

By Jon Victor · May 23, 2023 6:00am PDT · 1 comment

The race between Google, OpenAI and Microsoft for chatbot supremacy has only just begun. But the companies may soon compete to put their artificial intelligence–powered chatbots in front of nearly 200 million people who use Mozilla’s Firefox web browser each month. Mozilla plans to prominently feature a chatbot like Google’s... The race between Google, OpenAI and Microsoft for chatbot supremacy has only just begun. But the...

Photo by Bloomberg.

Europe’s Meta Ruling Tangles Web

By Martin Peers · May 22, 2023 5:00pm PDT

If you’re prone to narcolepsy, don’t try reading the European Data Protection Commission report on Meta Platforms’ data transfers, which led to today’s $1.3 billion fine of the Facebook owner. The report is so dry it makes the Sahara look like a rainforest. That’s a pity because it’s dealing with something of significance to everyone in the... If you’re prone to narcolepsy, don’t try reading the European Data Protection Commission report...

Loann Kaji, Ryan Kaji and Shion Kaji. Photo by Getty.

Creator Economy

Pocket.watch’s Streaming Expansion

By Isabelle Sarraf · May 22, 2023 2:09pm PDT

Pocket.watch, a TI 50 startup and entertainment company that helps young YouTube stars such as 11-year-old Ryan Kaji develop original shows, games and toys, is bringing its ad-free streaming service to Comcast’s Xfinity X1 and Stream platforms this summer. The move will bring kid creator content to Comcast’s 16 million customers.Ryan and... Pocket.watch, a TI 50 startup and entertainment company that helps young YouTube stars such...

Shou Zi Chew, CEO of TikTok. Photo by Bloomberg

TikTok Says U.S. Survival Plan is Going Forward. Its Cloud Provider Isn’t So Sure

By Anissa Gardizy · May 22, 2023 7:30am PDT · 1 comment

Shou Zi Chew, CEO of TikTok. Photo by Bloomberg

TikTok Says U.S. Survival Plan is Going Forward. Its Cloud Provider Isn’t So Sure

By Anissa Gardizy · May 22, 2023 7:30am PDT · 1 comment

TikTok’s leaders have spent much of this year telling Washington insiders the company was moving forward with Project Texas, a plan to run the viral video app in a way that alleviates U.S. government concerns about potential meddling by China. The reality isn’t so simple. Project Texas requires Oracle, the app’s cloud provider,... TikTok’s leaders have spent much of this year telling Washington insiders the company was...