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

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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

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

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

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

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

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

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...

Chart by Shane Burke

Creator Economy

Funding for U.S. Creator Economy Startups Is (Slowly) Recovering

By Kaya Yurieff · Oct 10, 2023 3:12pm PDT

Funding for U.S. creator economy startups is showing slow signs of recovery after hitting a record low during the first quarter of the year, although it’s nowhere near the funding bonanza of 2021. Deals for services startups such as payments company Karat and link-in-bio and commerce startup Komi helped drive investments.U.S. funding... Funding for U.S. creator economy startups is showing slow signs of recovery after hitting a...

Jeremi Gorman. Photo by Getty.

Netflix’s Ad Exec Shakeup Was Part of Effort to Speed Growth

By Sahil Patel · Oct 10, 2023 9:30am PDT

Turning Netflix into an advertising goliath is proving tougher than the video-streaming giant expected. Netflix co-CEO Greg Peters decided to replace ad sales chief Jeremi Gorman with Amy Reinhard, a longtime Netflix executive, in hopes of accelerating the ad business’ growth, according to people with knowledge of the matter. One sign of... Turning Netflix into an advertising goliath is proving tougher than the video-streaming giant...

Photo courtesy of Neil Serebryany.

Want to Trick an LLM? Try Asking It Nicely or Use Argentinian Spanish

By Stephanie Palazzolo · Oct 10, 2023 7:00am PDT · 1 comment

Photo courtesy of Neil Serebryany.

Want to Trick an LLM? Try Asking It Nicely or Use Argentinian Spanish

By Stephanie Palazzolo · Oct 10, 2023 7:00am PDT · 1 comment

Here’s a tip: if you want ChatGPT, or any other large-language model, to tell you something that it’s trained not to give you, try paying it a compliment. For instance, telling ChatGPT that it’s the best AI-powered chatbot in the world before asking it to provide instructions to build a bomb is more likely to work than just asking... Here’s a tip: if you want ChatGPT, or any other large-language model, to tell you something that...

Art by Clark Miller

Tesla Builds a New Home for ‘Dojo’ Supercomputer as AI Ambitions Rise

By Becky Peterson · Oct 10, 2023 6:00am PDT · 3 comments

At Tesla’s headquarters in Austin, Texas, a new bunkerlike structure is under construction that could one day help move the company beyond electric vehicle manufacturing. When it’s completed, the building will house part of a new supercomputer, known as Dojo, that Tesla is assembling to help run the artificial intelligence software... At Tesla’s headquarters in Austin, Texas, a new bunkerlike structure is under construction...

Elon Musk. Photo via AP.

Elon Musk’s X Cut Disinformation-Fighting Tool Ahead of Israel-Hamas Conflict

By Erin Woo · Oct 9, 2023 5:33pm PDT · 6 comments

Elon Musk’s X, in the months before conflict erupted in Gaza, ceased utilizing a software tool used to identify organized misinformation now spreading across the platform formerly known as Twitter. In recent months, the company shut down an internal product that could identify when different accounts shared the same or similar media,... Elon Musk’s X, in the months before conflict erupted in Gaza, ceased utilizing a software...

Nvidia Cloud Ally Nears $300 Million Financing

By Kate Clark and Anissa Gardizy · Oct 9, 2023 5:21pm PDT

Lambda Labs, which competes with Amazon Web Services in renting out servers with Nvidia chips to developers of artificial intelligence, is nearing a $300 million equity financing, according to two people with direct knowledge of the matter. An investment fund led by billionaire Thomas Tull plans to fund a substantial part of the round,... Lambda Labs, which competes with Amazon Web Services in renting out servers with Nvidia chips to...

Nelson Peltz. Photo by Bloomberg via Getty.

Why Peltz Isn’t the Solution for Disney’s Problems

By Martin Peers · Oct 9, 2023 5:00pm PDT

Nelson Peltz. Photo by Bloomberg via Getty.

Why Peltz Isn’t the Solution for Disney’s Problems

By Martin Peers · Oct 9, 2023 5:00pm PDT

Here’s a shoutout to those tech folks—among many, many others—who are putting their lives on the line as members of Israel’s defense forces right now, responding to the Hamas attack over the weekend. It puts everything else into perspective. For more details on Israeli tech folks’ involvement, see our story here. Meanwhile, Nelson Peltz has... Here’s a shoutout to those tech folks—among many, many others—who are putting their lives on the...