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

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Pro Weekly: Creators Meet Creative Destruction

By Akash Pasricha · Aug 18, 2023 8:00am PDT

For the creator economy, it’s a moment of what economists call creative destruction. Six startups in our Creator Economy Database have been acquired this year, and three others have shut down. At the same time, entrepreneurs continue to form new companies aimed at creators and investors continue to back them. To that end, we added six... For the creator economy, it’s a moment of what economists call creative destruction. Six startups...

Photos via Shutterstock and CoreWeave.

Nvidia-Backed CoreWeave Feels the Pain of Rapid Growth

By Anissa Gardizy · Aug 18, 2023 6:00am PDT

CoreWeave, a fast-growing cloud computing provider that rents access to Nvidia’s hard-to-get artificial intelligence chips, has raised more than $2.7 billion in debt and equity this year to obtain more chips and space in data centers. Now CoreWeave may be feeling growing pains. The company recently lowered its projected revenue and capital... CoreWeave, a fast-growing cloud computing provider that rents access to Nvidia’s...

Photo via Penguin Random House

Founders Should Know When to Quit

By Jessica E. Lessin · Aug 17, 2023 5:00pm PDT · 3 comments

I’ve got a book that all founders—and probably most everyone else—should read. It’s called “Quit: The Power of Knowing When to Walk Away” by Annie Duke. And it’s suited to this moment. The news of later-stage companies fundraising at dramatically lower valuations continues with The Information’s scoop today about Ramp. I’ve got a book that all founders—and probably most everyone else—should read. It’s called “Quit:...

Image by Shane Burke.

How to Get Creators Excited About Threads Again

By Alex Perry · Aug 17, 2023 4:10pm PDT · 2 comments

Image by Shane Burke.

Creator Economy

How to Get Creators Excited About Threads Again

By Alex Perry · Aug 17, 2023 4:10pm PDT · 2 comments

By now, it’s no news that Threads has lost much of its initial buzz. Daily active users on the Android version of the Meta Platforms-owned app fell 79% to 10.3 million as of August 7 from a peak in early July, according to data analytics firm SimilarWeb. One problem: even creators, who tend to put in the time and effort to figure out new social... By now, it’s no news that Threads has lost much of its initial buzz. Daily active users on the...

Meta Platforms CEO Mark Zuckerberg. Photo via Getty/Shane Burke

Meta’s Next AI Attack on OpenAI: Free Code-Generating Software

By Kevin McLaughlin, Amir Efrati and Stephanie Palazzolo · Aug 17, 2023 3:58pm PDT · 1 comment

Meta Platforms is preparing to launch software to help developers automatically generate programming code, a challenge to proprietary software from OpenAI, Google and others, according to two people with direct knowledge of the product. Meta’s code-generating artificial intelligence model, dubbed Code Llama, will be open-source and could... Meta Platforms is preparing to launch software to help developers automatically generate...

From left, OpenAI CEO Sam Altman, Microsoft CEO Satya Nadella, and Databricks CEO Ali Ghodsi. Collage by Clark Miller

Microsoft Plans AI Service With Databricks That Could Hurt OpenAI

By Aaron Holmes and Kevin McLaughlin · Aug 17, 2023 2:03pm PDT · 4 comments

Microsoft has hitched its wagon to OpenAI when it comes to selling artificial intelligence that can understand language and write emails, meeting summaries and slide decks. Now Microsoft has found a second horse to ride in the AI race: Databricks, which has positioned itself as a kind of anti-OpenAI. Microsoft plans to start selling a new... Microsoft has hitched its wagon to OpenAI when it comes to selling artificial intelligence that...

Photo via Ramp

Ramp’s Down Round and Why Startups Should Let Employees Cash Out

By Kate Clark · Aug 17, 2023 12:53pm PDT · 1 comment

Since it was founded in 2019, credit card startup Ramp has won over investors with a blistering pace of growth. As card payment volume surged, the startup’s valuation exploded from $1 billion in early to 2021 to over $8 billion last year, thanks to investments from Thrive Capital and Redpoint Ventures, among others. Those heady times are... Since it was founded in 2019, credit card startup Ramp has won over investors with a blistering...

Photo by Getty.

As Doubts About WeWork’s Future Rise, Landlords Look for Backup Tenants

By Alex Perry · Aug 17, 2023 10:44am PDT · 5 comments

Photo by Getty.

As Doubts About WeWork’s Future Rise, Landlords Look for Backup Tenants

By Alex Perry · Aug 17, 2023 10:44am PDT · 5 comments

Landlords leasing spaces to WeWork have been increasingly approaching rival venture- and private equity–backed office rental startups, such as Codi, Industrious and Serendipity Labs, to gauge their interest in taking over WeWork spaces ahead of a possible WeWork bankruptcy, say industry executives. One challenge for landlords, however, is... Landlords leasing spaces to WeWork have been increasingly approaching rival venture- and private...

Photo via Ramp.

Fintech Ramp is Raising Capital at $5.5 Billion Valuation, Down 30%

By Kate Clark · Aug 17, 2023 8:16am PDT · 5 comments

Fintech startup Ramp is raising several hundred million from investors at a $5.5 billion valuation, measured before the investment, according to two people familiar with the matter. That’s a 32% cut to the $8.1 billion at which Ramp was valued at in early 2022, reflecting how startup values have fallen in the past two years. Thrive Capital... Fintech startup Ramp is raising several hundred million from investors at a $5.5 billion...

Photos courtesy of Llion Jones and David Ha.

A Godfather of Transformers Launches Lab Developing More Adaptable AI Models; Databricks and OpenAI in Dealmaking Mode

By Stephanie Palazzolo · Aug 17, 2023 7:00am PDT

Much to the dismay of antsy bankers and investors, it doesn’t look like Databricks, which has aided the rise of artificial intelligence software in the business world, will be going public anytime soon.Instead, the company, which sells tools for building machine-learning models, has been chatting with investors about potentially raising hundreds... Much to the dismay of antsy bankers and investors, it doesn’t look like Databricks, which has...

Illustration by Clark Miller.

Wall Street Turns to AI to Solve WhatsApp Compliance Nightmare

By Michael Roddan · Aug 17, 2023 7:00am PDT

The Securities and Exchange Commission’s latest crackdown on Wall Street bankers and traders’ use of encrypted apps is sparking interest in whether large-language models and other artificial intelligence tools can catch Wall Street workers talking in code about something they shouldn’t be—or switching to an encrypted app... The Securities and Exchange Commission’s latest crackdown on Wall Street bankers and...

From left, Alphabet CFO Ruth Porat, Verily CEO Stephen Gillett, and Alphabet CEO Sundar PIchai.

Alphabet’s Verily Moves Toward Spinoff as Revenue Surges

By Jon Victor · Aug 17, 2023 6:00am PDT · 1 comment

From left, Alphabet CFO Ruth Porat, Verily CEO Stephen Gillett, and Alphabet CEO Sundar PIchai.

Alphabet’s Verily Moves Toward Spinoff as Revenue Surges

By Jon Victor · Aug 17, 2023 6:00am PDT · 1 comment

Alphabet’s biggest “other bet,” part of the blue-sky investment projects carved off from the company’s Google ad-based empire several years ago, is moving toward the exits. Stephen Gillett, CEO of Verily, an Alphabet subsidiary that aims to apply data analytics to healthcare, told employees this month that by... Alphabet’s biggest “other bet,” part of the blue-sky investment projects...

In September, Lucid Motors plans to release the 419-mile, rear-wheel-drive Air Pure, whose battery efficiency will be 4.7 miles per kilowatt hour, the highest in the industry. Photo: Courtesy Lucid

The Electric: Lucid Touts Its Vehicles' Efficiency

By Steve LeVine · Aug 17, 2023 4:30am PDT · 1 comment

Most auto companies and their customers are obsessed with how far electric vehicles will go on a charge. To be taken seriously, most carmakers think an EV should have 250 to 300 miles of range; 400 to 500 miles on a charge is the ultragold standard. EVs that deliver such long range are kings of the hill.Lucid Motors says this thinking is all... Most auto companies and their customers are obsessed with how far electric vehicles will go on a...

Photo by Shutterstock.

Intel’s Scrapped Deal Shows Power of China Antitrust Regulators

By Martin Peers · Aug 16, 2023 5:00pm PDT

Believe it or not, U.S. companies’ biggest antitrust irritant may not be Lina Khan’s Federal Trade Commission. International regulators—mainly in China and Britain—are increasingly elbowing their way into foreign deals that don’t obviously require their attention. The latest example is Intel’s decision on Wednesday to walk away from its $5.4... Believe it or not, U.S. companies’ biggest antitrust irritant may not be Lina Khan’s Federal...

Chart by Shane Burke

Creator Economy

Company Plans YouTuber Trip to Ukraine as Social Media Awareness Drops

By Kaya Yurieff · Aug 16, 2023 3:52pm PDT

When Russia invaded Ukraine in February 2022, the war took over social media as people outside the country posted videos and photos pledging support for the residents. Ordinary people as well as professional creators also published updates from Ukraine, including a livestream of the invasion on Twitch. But 18 months later, it’s no longer a... When Russia invaded Ukraine in February 2022, the war took over social media as people outside...

Databricks CEO Ali Ghodsi. Photo by Bloomberg/Getty.

Databricks, After $380 Million Loss, in Talks to Raise More Cash

By Cory Weinberg and Amir Efrati · Aug 16, 2023 12:59pm PDT · 8 comments

Databricks CEO Ali Ghodsi. Photo by Bloomberg/Getty.

Databricks, After $380 Million Loss, in Talks to Raise More Cash

By Cory Weinberg and Amir Efrati · Aug 16, 2023 12:59pm PDT · 8 comments

Enterprise software firm Databricks is in early discussions with investors for a new cash infusion, likely totaling hundreds of millions of dollars, as it looks to capitalize on the fervor over artificial intelligence, two people familiar with the matter said. The investment talks come as Databricks has moved closer to break-even, after losing a... Enterprise software firm Databricks is in early discussions with investors for a new cash...

Crypto Startup Investors Go Bargain Hunting

Crypto Startup Investors Go Bargain Hunting

By Aidan Ryan · Aug 16, 2023 9:00am PDT

Unless you’re running an AI startup, it’s tough to raise money these days. That’s especially true for crypto companies, where global venture funding fell by 78% in the first half compared to the same period last year, according to data from PitchBook.Crypto focused venture capitalists still have plenty of money to put to work though, and several... Unless you’re running an AI startup, it’s tough to raise money these days. That’s especially true...

Chart by Shane Burke.

How Eight AI Coding Assistants Stack Up

By Stephanie Palazzolo · Aug 16, 2023 7:00am PDT · 2 comments

Hello!One of the earliest companies to commercialize generative AI was GitHub, the Microsoft-owned code repository, which released its AI coding assistant Copilot under preview in June 2021. Powered by OpenAI’s technology, the assistant quickly captured the hearts of developers by giving them a tool that suggests code fragments while they type,... Hello!One of the earliest companies to commercialize generative AI was GitHub, the Microsoft...

The Key People Driving Meta’s Generative AI Work

By Sylvia Varnham O'Regan and Kalley Huang · Aug 16, 2023 6:00am PDT

As Meta Platforms has tried to cut costs and trim headcount over the past year, one area has emerged as an exception: generative artificial intelligence. Caught flat-footed by the explosion of interest in OpenAI’s ChatGPT, Meta scrambled to put together a team in February focused on the buzzy technology in the hopes of deploying it in... As Meta Platforms has tried to cut costs and trim headcount over the past year, one area has...

Photo via Shutterstock.

Don’t Fall for the Musk Distraction Machine

By Jessica E. Lessin · Aug 15, 2023 5:00pm PDT · 14 comments

Photo via Shutterstock.

Don’t Fall for the Musk Distraction Machine

By Jessica E. Lessin · Aug 15, 2023 5:00pm PDT · 14 comments

For years, politicians and the public have attacked the leaders of companies like Facebook, Twitter and Google, arguing they had their “thumbs on the scales” of political discourse. Critics worried these companies had too much power over how content was amplified on their sites, were picking winners and losers in elections, and on and on.And so... For years, politicians and the public have attacked the leaders of companies like Facebook,...