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

Sam Altman. Photo by Bloomberg.

Why AI Scientists Are Freaking Us Out

By Martin Peers · May 30, 2023 5:00pm PDT · 2 comments

Well that’s one way to get attention. According to a statement issued today by a bunch of leading names in AI, “mitigating the risk of extinction from AI should be a global priority.” Right. It’s hard to imagine anyone out there disagrees—who but the most extreme misanthrope wants to extinguish the human race? The question, then, is why the very... Well that’s one way to get attention. According to a statement issued today by a bunch of leading...

Art by Mike Sullivan

Creator Economy

The Gaming Startups Bucking the Funding Drought

By Isabelle Sarraf · May 30, 2023 2:46pm PDT · 2 comments

Like most startups, gaming companies have seen interest from venture capitalists fall off sharply in the last year. But appetite is not completely dead. Investors have been backing those that prioritize creator-generated content and those that incorporate generative artificial intelligence—and sometimes both.Gaming startups raised $1.1 billion... Like most startups, gaming companies have seen interest from venture capitalists fall off sharply...

Twilio CEO Jeff Lawson. Photo by Bloomberg.

Twilio, Set to Lose Supervoting Protection Next Month, Has Been Meeting With Activist

By Maria Heeter · May 30, 2023 1:43pm PDT · 2 comments

Activist investor Legion Partners, which owns a stake in Twilio, has met several times with the company’s board of directors and management, urging them to make changes to the board and consider divestitures, among other moves, according to people familiar with the matter. The conversations come at a critical moment for the $11.5 billion... Activist investor Legion Partners, which owns a stake in Twilio, has met several times with the...

Art by Clark Miller.

MoonPay CEO, Other Executives Cashed Out Before Crypto Business Dropped

By Aidan Ryan · May 30, 2023 11:03am PDT · 4 comments

Art by Clark Miller.

MoonPay CEO, Other Executives Cashed Out Before Crypto Business Dropped

By Aidan Ryan · May 30, 2023 11:03am PDT · 4 comments

In November 2021, just as crypto prices were hitting all-time highs, MoonPay—a crypto payments startup that celebrities including Jimmy Fallon and Paris Hilton had praised for its non-fungible token “concierge” service—announced it had completed its first ever outside fundraising: an eye-popping $555 million round at a... In November 2021, just as crypto prices were hitting all-time highs, MoonPay—a crypto...

Art by Clark Miller, Shutterstock (4)

Don’t Count the Metaverse Out

By Brittan Heller · May 30, 2023 9:00am PDT · 9 comments

The technology hype cycle would have us believe that the metaverse—so recently the darling of digital trendsetters—is on the decline, its place usurped by generative artificial intelligence. Yet this narrative, while superficially attractive, is a fiction. The truth is that emerging technologies are part of a synergistic ecosystem.... The technology hype cycle would have us believe that the metaverse—so recently the darling...

Illustration via Shutterstock.

What Deals Drought? Founders Without Backing Are Still Selling Their Businesses

By Rachel Graf · May 30, 2023 8:00am PDT

Merger and acquisition activity has been anemic for more than a year, with buyers and sellers often far apart on price after valuations have taken a beating. But one corner of the M&A market has held up much better than others during the doldrums: the sale of companies owned by a founder with neither venture capital nor private equity... Merger and acquisition activity has been anemic for more than a year, with buyers and sellers...

TikTok CEO Shou Zi Chew. Photo by Bloomberg.

TikTok CEO Expands Purview to Include ByteDance’s New App Lemon8

By Juro Osawa · May 30, 2023 5:59am PDT

The Singapore-based CEO of TikTok, Shou Zi Chew, is getting a bigger job. TikTok’s Chinese parent company, ByteDance, is putting its newer social media app, Lemon8, under Chew’s supervision, according to a person with direct knowledge of the matter. The move appears to reflect ByteDance’s strategy of locating the heads of its... The Singapore-based CEO of TikTok, Shou Zi Chew, is getting a bigger job. TikTok’s Chinese...

Mixed hydroxide precipitate, the go-to feedstock for battery nickel sulfate, on a conveyor belt at Indonesia's Harita Group, which pioneered the process. Photo: Dimas Ardian/Bloomberg

The Electric: Western Auto and Battery Makers’ Big Gamble on Indonesian Nickel

By Steve LeVine · May 29, 2023 4:30am PDT

Mixed hydroxide precipitate, the go-to feedstock for battery nickel sulfate, on a conveyor belt at Indonesia's Harita Group, which pioneered the process. Photo: Dimas Ardian/Bloomberg

The Electric: Western Auto and Battery Makers’ Big Gamble on Indonesian Nickel

By Steve LeVine · May 29, 2023 4:30am PDT

For much of the last century, metals companies have made stainless steel from nickel mined in Russia or the Philippines and smelted at temperatures up to 2,900 degrees. But demand for nickel is outstripping supplies because the metal is a key component in most electric vehicle batteries. So metals producers have turned to a new supplier—... For much of the last century, metals companies have made stainless steel from nickel mined in...

Art by Clark Miller

How to Grease a Chatbot: E-Commerce Companies Seek a Backdoor Into AI Responses

By Chris Stokel-Walker · May 27, 2023 6:00am PDT · 6 comments

When Andy Wilson’s company received its first successful client referral through ChatGPT, he was shaken to his core. The founder and CEO of Logikcull, a San Francisco–based legal technology company, Wilson “had the exact same reaction to ChatGPT as I had to the internet browser in the early ’90s,” he said.... When Andy Wilson’s company received its first successful client referral through ChatGPT,...

The Short Seller Who Told Us So

The Short Seller Who Told Us So

By Jon Steinberg · May 27, 2023 6:00am PDT

Hi, welcome to your Weekend.Wall Street short sellers are not everyone’s cup of tea. That goes double for a lifelong contrarian like Marc Cohodes, who sees himself as an anti-fraud vigilante fighting for the little guys—while also being a loudmouth bully on Twitter. Nobody knows this better than veteran finance journalist Michelle Celarier,... Hi, welcome to your Weekend.Wall Street short sellers are not everyone’s cup of tea. That goes...

Florida Gov. Ron DeSantis. Photo by Bloomberg.

Twitter Cut Key Software Before DeSantis Audio Glitch

By Kevin McLaughlin and Erin Woo · May 26, 2023 2:12pm PDT · 11 comments

On Wednesday night, Twitter experienced multiple outages during a high-profile live audio forum on the app in which Republican Florida Gov. Ron DeSantis launched his presidential campaign. While the specific reason for the flub couldn’t be learned, the company several weeks ago stopped paying for special software that handles high-traffic... On Wednesday night, Twitter experienced multiple outages during a high-profile live audio forum...

Art by Clark Miller.

The Day TikTok Went Dark in India

By Amanda Florian · May 26, 2023 11:00am PDT · 8 comments

Art by Clark Miller.

The Day TikTok Went Dark in India

By Amanda Florian · May 26, 2023 11:00am PDT · 8 comments

On June 29, 2020, as thunderstorms swept Mumbai and daily Covid-19 cases in India surged by almost 20,000, millions of people began experiencing a flood of network errors on their mobile devices. TikTok—and nearly 60 other Chinese apps—had been driven offline in the world’s largest democracy. A sweeping government crackdown on... On June 29, 2020, as thunderstorms swept Mumbai and daily Covid-19 cases in India surged by...

Art by Clark Miller

The Master of Destruction Rides Again

By Michelle Celarier · May 26, 2023 9:00am PDT · 10 comments

In the spring of 2022, the irascible Wall Street short seller Marc Cohodes was in a particularly foul mood. The 62-year-old’s second marriage was on the rocks. He was recuperating from shoulder surgery after his horse rammed him. He couldn’t do much of anything besides fume and tweet about the financial markets. On April 29,... In the spring of 2022, the irascible Wall Street short seller Marc Cohodes was in a particularly...

Fewer creator startups are based in Los Angeles. Photo by Bloomberg

Pro Weekly: Creator Funding Flows to More Places

By Kalley Huang · May 26, 2023 8:00am PDT

Welcome back!Los Angeles, with its close ties to the larger entertainment industry, has emerged as the center of the creator economy. For years, startups serving creators have flocked to Southern California. But this year, more money is flowing to creator startups based elsewhere.Only 14% of the creator economy startups that have raised funding... Welcome back!Los Angeles, with its close ties to the larger entertainment industry, has emerged...

Chris Britt, co-founder and CEO of Chime.

Chime’s Slowdown Highlights Limits of Bank Disruptors

By Mark Matousek and Erin Woo · May 26, 2023 6:14am PDT · 11 comments

Chime found a way to offer zero-fee banking services without being a bank itself. But that approach is starting to show its limits. While Chime brought in more than $1 billion in revenue last year, according to two people familiar with the figure, Chime’s revenue growth has slowed dramatically since 2020. And behind the scenes, the... Chime found a way to offer zero-fee banking services without being a bank itself. But that...

Sam Altman. Photo by Bloomberg.

Big Tech Investors Have Drunk the AI Kool-Aid

By Jessica E. Lessin · May 25, 2023 5:00pm PDT

Sam Altman. Photo by Bloomberg.

Big Tech Investors Have Drunk the AI Kool-Aid

By Jessica E. Lessin · May 25, 2023 5:00pm PDT

Since 100% of the conversations I have on a given day turn to artificial intelligence, I can’t stop thinking about the new technology, the new business models around it and how regulators will respond. And if I am being honest with myself, the answer to most of the questions that come up in these conversations is that I simply have no idea how... Since 100% of the conversations I have on a given day turn to artificial intelligence, I can’t...

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...