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

Why This Week Changed Social Media Forever

By Jessica E. Lessin · Oct 13, 2023 9:26am PDT · 2 comments

Where will news go when social media bans it? What can tech leaders and politicians say in a globalized world? Do founders have the right to ask VCs who their LPs are? The world will be changed in many ways by Hamas's horrific attacks against Israel. This week, on More or Less, we discuss and debate some of these questions... Where will news go when social media bans it? What can tech leaders and politicians say in a...

Photo via Shutterstock.

Trio of Top Executives Exit Chime

By Mark Matousek · Oct 13, 2023 9:14am PDT

Several top executives at Chime, the once-highflying online banking startup whose growth has lately slowed, are heading for the exits. Beth Steinberg, Chime’s chief people officer, is planning to leave the company, she told The Information. She follows out the door general counsel Kate Karas, who stepped down in August, and Chief... Several top executives at Chime, the once-highflying online banking startup whose growth has...

GeoGuessr phenom Trevor Rainbolt. Art by Clark Miller

A Geography Game Has Its First Superstar. Can It Survive Its First Player Revolt?

By Jessica Lucas · Oct 13, 2023 9:00am PDT · 1 comment

The final round of GeoGuessr’s World Cup qualifiers was a tense watch for fans of the game, which challenges players to precisely locate a completely random location on Earth, as seen on Google Street View. It had all boiled down to two players and one picture: a narrow tarmac road flanked by two sloping banks of snow, with only a hint of... The final round of GeoGuessr’s World Cup qualifiers was a tense watch for fans of the game,...

London-based ticketing platform Dice raised $65 million in the third quarter. Photo via Getty.

Pro Weekly: Creator Economy Investors Go Global

By Akash Pasricha · Oct 13, 2023 8:00am PDT

London-based ticketing platform Dice raised $65 million in the third quarter. Photo via Getty.

Pro Weekly: Creator Economy Investors Go Global

By Akash Pasricha · Oct 13, 2023 8:00am PDT

Now more than ever, the creator economy is a global economy. That was a key takeaway from the third-quarter update to our Creator Economy database, which now tracks more than 460 startups that have raised more than $13 billion in venture funding since early 2021. Creator-focused startups raised more than $472 million in the third quarter,... Now more than ever, the creator economy is a global economy. That was a key takeaway from the...

The Baidu Technology Park in Beijing. Photo by Bloomberg via Getty.

Baidu Seeks Edge in China’s Crowded Race for AI Dominance

By Juro Osawa · Oct 13, 2023 6:00am PDT

In the U.S., all eyes are on OpenAI and Google’s battle for supremacy in generative artificial intelligence. In China, where the government blocks those companies’ internet services, a parallel race is heating up among domestic giants, even as the Chinese firms face growing restrictions on their access to American chips needed for... In the U.S., all eyes are on OpenAI and Google’s battle for supremacy in generative...

Photo via Shutterstock

Atlassian-Loom Discount Deal Suggests M&A Market is Reviving

By Martin Peers · Oct 12, 2023 5:00pm PDT · 2 comments

The brief revival of the IPO market may be petering out, thanks to a spate of disappointing offerings lately. But the M&A market, at least for enterprise software firms, seems to be coming to life—even if the valuations are a little painful for sellers. On Thursday, for instance, Atlassian said it would swallow up video messaging firm Loom... The brief revival of the IPO market may be petering out, thanks to a spate of disappointing...

Photo by Lee Campbell via Unsplash

Creator Economy

Startups for Music Fans Are a Hit With Investors

By Kalley Huang · Oct 12, 2023 3:51pm PDT

Music startups are still in tune for creator economy investors. Fave, an app for music fans to connect with artists and each other, said it had secured $2 million in funding. It’s trying to raise an additional $4 million for the round, which would bring its total funding to $8 million. The company said existing investors including Female... Music startups are still in tune for creator economy investors. Fave, an app for music fans...

Photo by Tomohiro Ohsumi/Getty.

SoftBank's Secret Project

By Kate Clark · Oct 12, 2023 1:25pm PDT · 2 comments

Photo by Tomohiro Ohsumi/Getty.

SoftBank's Secret Project

By Kate Clark · Oct 12, 2023 1:25pm PDT · 2 comments

If you've been a reader of The Information for several years now, you remember the wave of SoftBank Vision Fund investments that dominated our headlines. From WeWork to construction startup Katerra, the high-profile blow-ups were worthy of an Apple TV series!After enduring stain after stain on its reputation, the Vision Fund went into hiding and... If you've been a reader of The Information for several years now, you remember the wave of...

Art by Clark Miller

Why So Many Streaming Services Are Struggling

By Andrew A. Rosen · Oct 12, 2023 9:01am PDT · 27 comments

Desperate to stem losses from streaming and pay down billions in debt, media companies including Warner Bros. Discovery are raising prices. That’s in part because they’ve been focused almost exclusively on their content libraries. Instead, they must rethink what consumers need in the streaming era. That’s the lesson of Netflix... Desperate to stem losses from streaming and pay down billions in debt, media companies including...

Chart by Shane Burke

New Data Show OpenAI’s Viral Growth Among Startups. Can It Last?

By Stephanie Palazzolo · Oct 12, 2023 8:30am PDT · 1 comment

There’s no doubt large language model leader OpenAI and rivals like Anthropic are quickly expanding revenue, judging from reports in The Information in the past few weeks. (The latest data point from my colleague Amir today reveals that OpenAI is generating revenue at a pace of $1.3 billion a year, up 30% from the $1 billion-a-year pace we... There’s no doubt large language model leader OpenAI and rivals like Anthropic are quickly...

Sam Altman, CEO of OpenAI. Photo by Bloomberg via Getty.

OpenAI’s Revenue Crossed $1.3 Billion Annualized Rate, CEO Tells Staff

By Amir Efrati · Oct 12, 2023 8:09am PDT · 2 comments

ChatGPT maker OpenAI is generating revenue at a pace of $1.3 billion a year, CEO Sam Altman told staff this week, according to several people with knowledge of the matter. Altman’s remark implies the company is generating more than $100 million per month, up 30% from this summer, when the Microsoft-backed startup generated revenue at a $1... ChatGPT maker OpenAI is generating revenue at a pace of $1.3 billion a year, CEO Sam Altman told...

Photo via Getty.

Tiny Banks That Powered Cash App Grew Like Crazy. Then the Feds Came Calling

By Michael Roddan · Oct 12, 2023 6:00am PDT

Photo via Getty.

Tiny Banks That Powered Cash App Grew Like Crazy. Then the Feds Came Calling

By Michael Roddan · Oct 12, 2023 6:00am PDT

When Lincoln Savings Bank struck a partnership in 2017 to process direct deposits for Cash App, it was a big break for the small, century-old lender based in Cedar Falls, Iowa. The Venmo-like app, part of Jack Dorsey’s financial services company now known as Block, was growing quickly. By partnering with Cash App and other fintechs,... When Lincoln Savings Bank struck a partnership in 2017 to process direct deposits for Cash App,...

BMW will offer hands- and eye-free driving—within limits—in its electric i7 starting next year. Photo: Hector Retamal/AFP/Getty Photo

The Electric: Hands-Free Driving Inches Closer, With Moves by BMW and Mercedes

By Steve LeVine · Oct 12, 2023 4:40am PDT

Germany’s BMW will become the second major automaker to deploy a sensor and computer system allowing motorists to drive hands-free in bumper-to-bumper highway traffic while conversing with a passenger, watching a video or reading a book. Almost all driver-assist systems such as Tesla’s attempt to prevent such distractions by requiring drivers to... Germany’s BMW will become the second major automaker to deploy a sensor and computer system...

Deepgram CEO Scott Stephenson. Photo courtesy of Deepgram.

AI Startup Lays Off Workers Again in Fresh Sign of Sector Belt-Tightening

By Natasha Mascarenhas · Oct 11, 2023 7:17pm PDT

Deepgram, an artificial intelligence startup selling speech recognition software that generates transcripts, has cut around 20% of staff, or around 20 people, CEO Scott Stephenson said. It was at least the second time this year the San Francisco startup has laid off workers, according to two people familiar with the cuts. Stephenson blamed... Deepgram, an artificial intelligence startup selling speech recognition software that generates...

Photo by AFP via Getty.

Birkenstock Stubs Its Toe in IPO

By Nick Wingfield · Oct 11, 2023 5:00pm PDT

Did you know the human foot uses 26 bones, 33 muscles and more than 100 tendons and ligaments when a person is walking? Neither did I, until I read the quirky IPO prospectus for Birkenstock, the German maker of sublimely ugly, supremely comfortable sandals that went public on Wednesday. It was a lackluster debut: Birkenstock shares closed at... Did you know the human foot uses 26 bones, 33 muscles and more than 100 tendons and ligaments...

More Social Networks Are Charging for Ad-Free Apps

More Social Networks Are Charging for Ad-Free Apps

By Kalley Huang · Oct 11, 2023 2:27pm PDT · 1 comment

More Social Networks Are Charging for Ad-Free Apps

Creator Economy

More Social Networks Are Charging for Ad-Free Apps

By Kalley Huang · Oct 11, 2023 2:27pm PDT · 1 comment

Just a few years ago, an ad-free social media network would have seemed like an oxymoron. But more have started testing subscriptions to ad-free versions of their apps, which could generate revenue beyond digital advertising—and in some cases, placate regulators. Our latest chart shows how their offerings compare.Last week, TikTok confirmed it... Just a few years ago, an ad-free social media network would have seemed like an oxymoron. But...

Caroline Ellison leaves Manhattan Federal Court after testifying on October 10. Photo by Michael M. Santiago via Getty.

Caroline Ellison’s Front Row Seat to SBF’s Risky Bets

By Aidan Ryan · Oct 11, 2023 10:08am PDT

Caroline Ellison, the former CEO of FTX’s Alameda Research hedge fund, kicked off the most high-profile testimony to date in the criminal trial of Sam Bankman-Fried on Tuesday, testifying that she committed financial crimes with the former FTX CEO and that he directed Alameda to “borrow as much” as possible. The government’s star witness,... Caroline Ellison, the former CEO of FTX’s Alameda Research hedge fund, kicked off the most...

Photo by Midjourney

Why AMD’s Upcoming Chips Won’t Be the Savior AI Startups Are Hoping For

By Stephanie Palazzolo · Oct 11, 2023 7:00am PDT

Two weeks ago, there was a flurry of excitement around a tweet from Sharon Zhou, cofounder and CEO of Lamini, a startup that helps AI developers create customized large language models. Zhou revealed in the tweet that, for the past year, she’s been using more than 100 chips from chipmaker Advanced Micro Devices to power her AI startup’s... Two weeks ago, there was a flurry of excitement around a tweet from Sharon Zhou, cofounder and...

Illustration by Shane Burke

China’s Venture Firms Reckon With a Power Shift to LPs

By Juro Osawa and Jing Yang · Oct 11, 2023 6:00am PDT · 1 comment

In mid-September, dozens of global investors, including U.S. endowments, foundations and family offices, descended on the Chinese city of Chengdu looking for answers. They were there for a gathering hosted by Unicorn Capital Partners, a Hong Kong–based investment firm that helps global investors like them take stakes in funds run by... In mid-September, dozens of global investors, including U.S. endowments, foundations and family...

Caroline Ellison arrives at court in New York today. Photo by Bloomberg via Getty.

SBF Didn’t Understand Risk-Reward

By Martin Peers · Oct 10, 2023 5:01pm PDT · 1 comment

Caroline Ellison arrives at court in New York today. Photo by Bloomberg via Getty.

SBF Didn’t Understand Risk-Reward

By Martin Peers · Oct 10, 2023 5:01pm PDT · 1 comment

Just when it seemed there was nothing new we could learn from the SBF saga, the FTX founder's onetime deputy (and onetime romantic partner) Caroline Ellison testified in court on Tuesday. And her account of Sam Bankman-Fried’s attitudes toward risk, which helped set the stage for FTX’s bankruptcy, was truly mind-blowing. Whatever the outcome of... Just when it seemed there was nothing new we could learn from the SBF saga, the FTX founder's...