The Briefing by Martin Peers, Jessica Lessin and the team at The Information

Five times/week

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.

By providing your email, you agree to The Information’s Privacy Policy

Recent Editions

Social Capital's Chamath Palihapitiya. Photo by Bloomberg

How We Can Regulate AI Even if Congress Won’t Act

By Jillian Goodman · May 4, 2023 4:33pm PDT · 1 comment

Rapid innovations in artificial intelligence have already upended many aspects of our lives, from the way we view and access the internet to how we think about the future of work. It’s only natural, then, that this swift-moving newscycle also upended the agenda for our call with subscribers on the need for AI regulation. In just the three... Rapid innovations in artificial intelligence have already upended many aspects of our lives, from...

A First Republic Bank branch in San Francisco. Photo by Bloomberg.

Apathy Valley

By Kate Clark · May 4, 2023 1:31pm PDT · 1 comment

The biggest bank failure since the financial crisis and the fourth bank failure of the year happened this week. But no one in Silicon Valley seemed to care. That’s probably because they’re all exhausted by the slow-moving train wreck that’s transpired over the past three months. Or because—after the fall of crypto exchange FTX last fall and... The biggest bank failure since the financial crisis and the fourth bank failure of the year...

Sam Altman in Tokyo in April. Photo by AP

OpenAI’s Losses Doubled to $540 Million as It Developed ChatGPT

By Erin Woo and Amir Efrati · May 4, 2023 1:11pm PDT · 9 comments

OpenAI’s losses roughly doubled to around $540 million last year as it developed ChatGPT and hired key employees from Google, according to three people with knowledge of the startup’s financials. The previously unreported figure reflects the steep costs of training its machine-learning models during the period before it started... OpenAI’s losses roughly doubled to around $540 million last year as it developed ChatGPT...

Art by Shane Burke. Photos via Getty and Bloomberg.

Sam Bankman-Fried Is Just Being Rational

By Maria Konnikova · May 4, 2023 9:00am PDT · 5 comments

Art by Shane Burke. Photos via Getty and Bloomberg.

Sam Bankman-Fried Is Just Being Rational

By Maria Konnikova · May 4, 2023 9:00am PDT · 5 comments

When I was researching my book about con artists, I encountered the chief financial officer of a large company who’d been arrested for fixing the books after a series of losses. He seemed like a nice, down-to-earth guy, like someone who was just caught in a bad situation. Yes, he fudged a few numbers to stay afloat—a bad choice, but... When I was researching my book about con artists, I encountered the chief financial officer of a...

Art by Mike Sullivan.

Nearly Half of YouTube’s U.S. Viewership Is Now on TVs, Helping Drive Ad Shift

By Sahil Patel · May 4, 2023 7:00am PDT · 8 comments

For years, Google’s YouTube couldn’t get any respect from the TV industry. TV marketers wouldn’t go near it out of fear that their ads would be tainted by running alongside YouTube’s amateur content. And analysts and research firms treated the streaming service as separate from the rest of television when analyzing TV... For years, Google’s YouTube couldn’t get any respect from the TV industry. TV...

Klaviyo CEO Andrew Bialecki. Photo by Getty.

IPO Hopeful Klaviyo Tries to Prove There’s More to Life Than Shopify

By Ann Gehan and Cory Weinberg · May 4, 2023 6:00am PDT · 2 comments

For years, Klaviyo’s best partner was e-commerce giant Shopify. Now, as the marketing software firm once valued at $9.5 billion gears up for an initial public offering, it’s looking to make new friends. Most of the 110,000-plus merchants paying for the company’s software are e-commerce sellers who host their sites on Shopify.... For years, Klaviyo’s best partner was e-commerce giant Shopify. Now, as the marketing...

The 24-layer battery that QuantumScape will now concentrate on manufacturing. Photo: Courtesy QuantumScape

The Electric: QuantumScape Pivots to Small Batteries In a Bid to Stay Relevant

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

Trailing rivals in the U.S. and China, once high-flying electric vehicle battery developer QuantumScape is lowering its ambitions and aiming to make smartphone-size batteries, a pivot it hopes will restore its momentum and contain the damage from a delayed production ramp.Until now, the San Jose, Calif., company has sought to make a single... Trailing rivals in the U.S. and China, once high-flying electric vehicle battery developer...

A still from TikTok's Los Angeles office. Photo via YouTube/TikTok.

On TikTok and Publishers, We’ve Seen This Story Before

By Jessica E. Lessin · May 3, 2023 5:00pm PDT

A still from TikTok's Los Angeles office. Photo via YouTube/TikTok.

On TikTok and Publishers, We’ve Seen This Story Before

By Jessica E. Lessin · May 3, 2023 5:00pm PDT

Uh oh. Here we go again. In today’s headlines: TikTok, which could use some positive press attention at the moment, has begun allowing publishers to sell ads alongside their videos while keeping half the revenue. And some big publishers are taking it up on the invitation.The Wall Street Journal heralds the move thusly: “The opportunity to... Uh oh. Here we go again. In today’s headlines: TikTok, which could use some positive press...

Augie in action. Photos via Aug X Labs.

Creator Economy

Startup Aug X Labs Jumps Into Video Editing Fray

By Isabelle Sarraf · May 3, 2023 3:07pm PDT

More videos created with the help of AI tools are circulating online. In one of the latest examples, a commercial for an imaginary pizza chain created by a video producer with the handle Pizza Later garnered more than half a million views across YouTube, Reddit and Twitter. The anonymous producer used a bevy of AI tools, including ... More videos created with the help of AI tools are circulating online. In one of the latest...

Pay Falls for Many Tech Workers as the Downturn Hits Home

By Kalley Huang · May 3, 2023 10:26am PDT · 4 comments

Reduced profits and declining share prices hit many tech workers last year where it hurts—in their wallets. Median pay for employees declined in 2022 at at least 18 well-known tech companies, according to an analysis of securities filings by The Information. At two companies—Snap and Cloudflare—median pay declined more than... Reduced profits and declining share prices hit many tech workers last year where it...

Standard Crypto Co-Founder Alok Vasudev. Photo by Standard Crypto

A Reality Check for Blockchain Infrastructure

By Aidan Ryan · May 3, 2023 9:00am PDT · 2 comments

These days it seems like crypto venture capitalists can’t stop talking about blockchain infrastructure. But that doesn’t mean everyone is all in on the idea.Many VCs have been pulling back from flashy consumer startups following the blowup of FTX, favoring safer bets on software that helps power the back end of blockchains. But Alok Vasudev,... These days it seems like crypto venture capitalists can’t stop talking about blockchain...

Ryan Williams, CEO of Cadre. Photo by Bloomberg.

Faded Hype for Real Estate Tech Leaves Cadre, Others Scrambling

By Maria Heeter and Cory Weinberg · May 3, 2023 6:00am PDT · 6 comments

Ryan Williams, CEO of Cadre. Photo by Bloomberg.

Faded Hype for Real Estate Tech Leaves Cadre, Others Scrambling

By Maria Heeter and Cory Weinberg · May 3, 2023 6:00am PDT · 6 comments

A flock of big-name investors—Andreessen Horowitz, Thrive Capital, Founders Fund and even Jack Ma and George Soros—piled into Cadre six years ago at an $800 million valuation, seeing potential in its promise to bring commercial real estate investing to the masses. The company, co-founded by Jared Kushner and former Blackstone... A flock of big-name investors—Andreessen Horowitz, Thrive Capital, Founders Fund and even...

Chegg headquarters in Santa Clara, Calif on May 2. Photo by Bloomberg.

ChatGPT Bandwagon Runs Over Chegg

By Martin Peers · May 2, 2023 5:00pm PDT

Are we at peak ChatGPT hype yet? It seems every company has got the memo that they need to declare how they’re using the technology. Just today, for instance, we heard from Uber (artificial intelligence will help Uber predict ETAs more accurately for riders), Box (announcing Box AI, “a breakthrough in how you can interact with your content”) and... Are we at peak ChatGPT hype yet? It seems every company has got the memo that they need to...

An advertisement in the Washington D.C. metro on March 30. Photo by Bloomberg.

Creator Economy

TikTok’s Head of U.S. Trust & Safety to Leave

By Kaya Yurieff · May 2, 2023 2:48pm PDT

It hasn’t been an easy few years to be the head of TikTok’s U.S trust and safety team, as the popular app deals with everything from reports its algorithm promoted eating disorders and suicide content to misinformation. Now it’s in search of a new leader. Eric Han, who was responsible for overseeing efforts to police harmful content on... It hasn’t been an easy few years to be the head of TikTok’s U.S trust and safety team, as the...

Art by Clark Miller.

The Writers’ Strike, DVDs and the Death of Free Money

By Andrew A. Rosen · May 2, 2023 9:00am PDT · 4 comments

Sign up for Rosen’s newsletter, Parqor, part of The Information’s newsletter network. As of midnight last night, Hollywood’s writers are on strike. Their demands for better pay and better job security seem like the beginning of the end of this digital chapter in our entertainment industry. I would argue, however, that the... Sign up for Rosen’s newsletter, Parqor, part of The Information’s newsletter...

Photo by Bloomberg

Scared of Leaking Data to ChatGPT? Microsoft Tests a Private Alternative

By Aaron Holmes and Jon Victor · May 2, 2023 6:00am PDT · 3 comments

Photo by Bloomberg

Scared of Leaking Data to ChatGPT? Microsoft Tests a Private Alternative

By Aaron Holmes and Jon Victor · May 2, 2023 6:00am PDT · 3 comments

Not everyone trusts OpenAI’s ChatGPT. While the new artificial intelligence–powered chatbot has proved popular with some businesses looking to automate business tasks, other companies, such as banks, have avoided adopting ChatGPT for fear that their employees would inadvertently give the chatbot proprietary information when they use... Not everyone trusts OpenAI’s ChatGPT. While the new artificial intelligence–powered...

Jamie Dimon, chairman and CEO of JPMorgan Chase & Co. Photo by Bloomberg.

JPMorgan’s First Republic Deal Is a Home Run

By Martin Peers · May 1, 2023 5:00pm PDT

Talk about mixed feelings. Anyone who banks with First Republic is surely feeling relieved today, now that JPMorgan Chase has essentially taken over the bank in a rescue deal brokered by the federal government. After weeks of worrisome headlines and a steadily falling stock price, this is a good outcome for customers—even if it’s a disaster for... Talk about mixed feelings. Anyone who banks with First Republic is surely feeling relieved today,...

JPMorgan CEO Jamie Dimon. Photo by Bloomberg.

JPMorgan’s Silicon Valley Moment

By Michael Roddan, Cory Weinberg and Becky Peterson · May 1, 2023 2:50pm PDT · 4 comments

When business payments firm Bill.com went public in November 2019, the banks leading the initial public offering included Goldman Sachs, Bank of America and Jefferies. Missing was JPMorgan Chase, despite the fact that it had worked closely with the Palo Alto, Calif.–based company. Among other endeavors, JPMorgan made a strategic investment... When business payments firm Bill.com went public in November 2019, the banks leading the initial...

A TikTok ad in the Washington D.C. metro. Photo by Bloomberg.

Creator Economy

Where to Draw the Generative AI Line

By Kaya Yurieff · May 1, 2023 2:45pm PDT · 3 comments

We are living in interesting times. Recent advances in generative artificial intelligence are forcing social networks like TikTok, Twitter and Instagram to grapple with videos and posts that use AI to make facsimiles of real artists and public figures. The output can be lighthearted—think Pope Francis in a Balenciaga puffer. But the technology... We are living in interesting times. Recent advances in generative artificial intelligence are...

Art by Mike Sullivan.

TikTok Is Developing AI-Generated Video Disclosures as Deepfakes Rise

By Kaya Yurieff · May 1, 2023 11:28am PDT

Art by Mike Sullivan.

TikTok Is Developing AI-Generated Video Disclosures as Deepfakes Rise

By Kaya Yurieff · May 1, 2023 11:28am PDT

Some viral TikTok videos may soon show a new type of label: that it’s made by AI. The ByteDance-owned app is developing a tool for content creators to disclose they used generative artificial intelligence in making their videos, according to a person with direct knowledge of the efforts. The move comes as people increasingly turn to... Some viral TikTok videos may soon show a new type of label: that it’s made by AI. The...