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

OpenAI CEO Sam Altman. Photo by Getty.

Who Could Lead OpenAI’s VC Fund?

By Kate Clark · Jul 13, 2023 4:29pm PDT · 1 comment

OpenAI is on the prowl for a seasoned venture capitalist or two to run its startup investment fund.The San Francisco developer of ChatGPT is gearing up to soon start raising its second fund, which will be far larger than its $175 million debut, representatives of OpenAI have told several venture capital investors. They want an established... OpenAI is on the prowl for a seasoned venture capitalist or two to run its startup investment...

Fanhouse co-founder Rosie Nguyen (left) and Passes CEO Lucy Guo. Photos via YouTube/Karat and Celia D. Luna for The Information.

Creator Economy

Lucy Guo’s Passes to Buy Fanhouse

By Kaya Yurieff · Jul 13, 2023 2:12pm PDT

A startup that rode the pandemic-era frenzy around OnlyFans is selling to a rival. Fanhouse, which operates a website where creators charge fans for exclusive content, has agreed to sell itself to Passes, a Miami-based membership service for creators and their superfans, Fanhouse CEO Khoi Le and Passes CEO Lucy Guo said in an interview with The... A startup that rode the pandemic-era frenzy around OnlyFans is selling to a rival. Fanhouse,...

The Ripple Labs Inc. booth at the Blockchain Week Summit in Paris on March 22. Photo by Getty.

Why the Crypto World Is Celebrating Ripple’s Partial Win Over the SEC

By Aidan Ryan · Jul 13, 2023 1:32pm PDT · 2 comments

The crypto world is celebrating after a federal judge issued a long-awaited ruling in the Securities and Exchange Commission’s case against Ripple Labs, saying some sales of Ripple’s xrp token did not constitute illegal securities sales. Shares in top U.S. crypto exchange Coinbase soared 25% after the ruling dropped, and xrp tokens... The crypto world is celebrating after a federal judge issued a long-awaited ruling in the...

Art by Clark Miller.

If Gig Workers Are Truly Independent Contractors, Treat Them That Way

By David Pickerell · Jul 13, 2023 9:00am PDT · 3 comments

Art by Clark Miller.

If Gig Workers Are Truly Independent Contractors, Treat Them That Way

By David Pickerell · Jul 13, 2023 9:00am PDT · 3 comments

The California Supreme Court recently agreed to hear a challenge from labor unions to Proposition 22, which classified gig workers as independent contractors rather than as employees. Many gig workers want to be independent contractors, but Prop 22 doesn’t honor the spirit of what this means. I run a company that works frequently with gig... The California Supreme Court recently agreed to hear a challenge from labor unions to Proposition...

Foreground: Source Code Capital founder Charlie Cao. Background: Zhang Yiming, founder of ByteDance. Photos via Source Code Capital and Getty.

For Early ByteDance Investor and China Venture Star, the Results Are a Paper Tiger

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

In some ways, Source Code Capital is China’s version of Andreessen Horowitz—it’s a relative newbie to venture investing that has surged to the top echelons of the Chinese venture capital industry and raised billions of dollars—in large part thanks to founder Cao Yi’s early bet on ByteDance. In fact, some of the... In some ways, Source Code Capital is China’s version of Andreessen...

Jeff Dahn. Photo: Courtesy Dalhousie University

The Electric: A New Way to Save Water, and Money, in Making Cathodes

By Steve LeVine · Jul 13, 2023 4:30am PDT

Three years ago, Tesla CEO Elon Musk pledged to halve the cost of batteries and produce a $25,000 electric vehicle for the mass market. Much of the savings was to come from changing how the batteries’ electrodes were produced, using a dry process that would eliminate thousands of gallons of chemicals, solvent and water.Now, in a new paper, Jeff... Three years ago, Tesla CEO Elon Musk pledged to halve the cost of batteries and produce a $25,000...

Bob Iger. Photo by Getty.

What Disney’s Iger Should Do With His Extra Two Years

By Martin Peers · Jul 12, 2023 5:00pm PDT

Talk about kicking the can down the road. Disney today extended CEO Bob Iger’s contract by two more years, giving him until the end of 2026 to fix the beleaguered House of Mouse. Oh, and he’ll work on a CEO succession plan, the company said, although it made the same comment when it brought Iger back to replace his short-lived successor (the... Talk about kicking the can down the road. Disney today extended CEO Bob Iger’s contract by two...

Naveen Rao, CEO of MosaicML, and Jake Heller, CEO of Casetext. Photos via Getty and YouTube/Casetext; Art by Shane Burke.

VCs’ Latest Foe in Race for AI Startup Deals: Buyout Offers

By Kate Clark and Erin Woo · Jul 12, 2023 3:25pm PDT · 2 comments

Naveen Rao, CEO of MosaicML, and Jake Heller, CEO of Casetext. Photos via Getty and YouTube/Casetext; Art by Shane Burke.

VCs’ Latest Foe in Race for AI Startup Deals: Buyout Offers

By Kate Clark and Erin Woo · Jul 12, 2023 3:25pm PDT · 2 comments

Venture capital investors face stiff competition in artificial intelligence startup deals from Google and Nvidia, which are increasingly winning stakes in the startups by offering founders price breaks on cloud computing or chips. But VC investors face competition from another quarter: corporations that are willing to pay top dollar to buy... Venture capital investors face stiff competition in artificial intelligence startup deals from...

Photo by Getty.

Liquid Death Hires Goldman Sachs, Aiming for 2024 IPO

By Cory Weinberg, Maria Heeter and Erin Woo · Jul 12, 2023 2:58pm PDT · 13 comments

The parched market for initial public offerings is likely to see a new entrant soon: a canned water company. Liquid Death, the irreverent water brand backed by venture capitalists, has hired Goldman Sachs to lead a potential IPO as soon as next spring, according to a person familiar with the matter. The decision follows one of the few IPO... The parched market for initial public offerings is likely to see a new entrant soon: a canned...

Beehiiv co-founders Tyler Denk, Benjamin Hargett and Jake Hurd, from left to right. Photo courtesy of Beehiiv.

Creator Economy

The Newsletter Upstart Taking on Substack

By Kaya Yurieff · Jul 12, 2023 2:35pm PDT

Two summers ago, when a group of employees who previously worked at newsletter and media startup Morning Brew was fundraising for their newsletter startup Beehiiv, they had to contend with Meta Platforms’ newly launched Bulletin newsletter service, Twitter’s Revue, as well as startup Substack, which had recently been valued at $650 million. A... Two summers ago, when a group of employees who previously worked at newsletter and media startup...

OpenAI CEO Sam Altman. Photo by Getty. Art by Mike Sullivan

Sam Altman’s Tangle of Investments

By Natasha Mascarenhas · Jul 12, 2023 11:11am PDT · 4 comments

Among the many unusual facts about OpenAI, the buzzy startup behind the hugely popular chatbot ChatGPT, the most extraordinary may be that Sam Altman, its CEO and co-founder, doesn’t have any equity in it. He gave up the opportunity for a huge potential payday, he says, simply because he doesn’t need the money. But Altman, 38, has a... Among the many unusual facts about OpenAI, the buzzy startup behind the hugely popular chatbot...

Wiz CEO, Assaf Rappaport. Photo by Getty.

Cloud Security Startup Orca Sues Biggest Competitor, Wiz, for Patent Infringement

By Aaron Holmes and Kate Clark · Jul 12, 2023 9:53am PDT · 1 comment

Wiz CEO, Assaf Rappaport. Photo by Getty.

Cloud Security Startup Orca Sues Biggest Competitor, Wiz, for Patent Infringement

By Aaron Holmes and Kate Clark · Jul 12, 2023 9:53am PDT · 1 comment

Fierce competition between two of the hottest and most highly valued security startups has turned into a legal battle. Orca Security, which became known for spotting glaring security flaws in Microsoft software, on Wednesday sued its biggest competitor, Wiz, alleging it illegally copied patented software that monitors data stored on cloud... Fierce competition between two of the hottest and most highly valued security startups has turned...

An interview with NBA player Channing Frye (center) and Alison Kutler, former Dapper Labs senior vice president of global government affairs (right). Photo via Dapper Labs/Chamber of Digital Commerce.

Dapper Labs Exit Marks Latest NFT Policy Shakeup

By Aidan Ryan · Jul 12, 2023 9:32am PDT

It’s hard to talk about crypto these days without bringing up regulation in the U.S., specifically, the Securities and Exchange Commission’s recent crackdown on top crypto exchanges Binance and Coinbase. Where does this leave NFTs? The SEC has gone after exchanges and other crypto companies by alleging that most crypto tokens they... It’s hard to talk about crypto these days without bringing up regulation in the U.S.,...

TSMC's chief executive officer, C. C. Wei. Photo by Getty. Art by Mike Sullivan

World’s Largest Chip Maker Rethinks Security, Responding to Pressures on Hiring

By Wayne Ma · Jul 12, 2023 6:00am PDT · 1 comment

HSINCHU, Taiwan—For decades, Taiwan Semiconductor Manufacturing Co., the world’s largest chip manufacturer, has been notorious for its extreme culture of secrecy and security, designed to both prevent cyberattacks and to ensure that employees and outsiders don’t steal information about the company’s sophisticated... HSINCHU, Taiwan—For decades, Taiwan Semiconductor Manufacturing Co., the world’s...

Lina Khan, chair of the Federal Trade Commission on March 27. Photo by Getty.

FTC’s Khan Should Pick Her Targets More Carefully

By Martin Peers · Jul 11, 2023 5:00pm PDT · 1 comment

Lina Khan needs to work on her aim. A judge’s ruling today against the Federal Trade Commission’s request to block Microsoft’s purchase of Activision was so definitive that it has to hurt the regulator’s credibility, at least when it comes to tech cases. Coming immediately after a similar defeat involving Meta Platforms, the ruling suggests that... Lina Khan needs to work on her aim. A judge’s ruling today against the Federal Trade Commission’s...

Arlene Resendiz, left. Credit: Ghost Agency.

How the ‘Kanoodle Queen’ Found Success on TikTok Shop

By Alex Perry · Jul 11, 2023 2:58pm PDT

Arlene Resendiz, left. Credit: Ghost Agency.

Creator Economy

How the ‘Kanoodle Queen’ Found Success on TikTok Shop

By Alex Perry · Jul 11, 2023 2:58pm PDT

TikTok’s efforts to encourage its users to buy goods directly from the app, dubbed TikTok Shop, have gotten off to a slow start, as my colleagues reported earlier this year. But some influencers who have gained a following on the short-form video app have found some early success.Arlene Resendiz, a 29-year-old tutor who teaches math tips... TikTok’s efforts to encourage its users to buy goods directly from the app, dubbed TikTok Shop,...

ByteDance founder Zhang Yiming. Photo by Getty

ByteDance Plans Share Buyback for TikTok Employees Later This Year

By Kaya Yurieff and Cory Weinberg · Jul 11, 2023 2:00pm PDT

TikTok’s parent company, ByteDance, plans a share buyback for U.S. employees later this year, according to an email sent to current and former employees. The share sale could indicate that the company isn’t planning to go public anytime soon. Word of the buyback came the same day that ByteDance told employees it was... TikTok’s parent company, ByteDance, plans a share buyback for U.S. employees later this...

Photo by Getty.

SVB Tries to Heal Its Branding Black Eye

By Michael Roddan · Jul 11, 2023 6:00am PDT · 2 comments

When Abhi Yadav, co-founder of the Cambridge-based AI Innovators Community forum, was preparing a June summit for artificial intelligence startups, he reached out to Silicon Valley Bank to see if the lender would support the conference. “They jumped on it,” Yadav said. The event wound up drawing 150 executives. SVB’s director... When Abhi Yadav, co-founder of the Cambridge-based AI Innovators Community forum, was preparing a...

Photo by Getty

For Threads, Usage Is What Matters, Not Downloads

By Martin Peers · Jul 10, 2023 5:03pm PDT · 2 comments

It’s July, which means on the East Coast it’s hot and humid and in San Francisco it’s winter. It also means we’re in a news desert, which partly explains the breathlessness (not to mention brainlessness) of much of the coverage of Threads’ rapid rise to 100 million downloads. Leave aside the fact that it’s easier to get to 100 million... It’s July, which means on the East Coast it’s hot and humid and in San Francisco it’s winter. It...

Photo via Shutterstock

How Much Influencers Really Make

By Kaya Yurieff · Jul 10, 2023 2:29pm PDT

Photo via Shutterstock

Creator Economy

How Much Influencers Really Make

By Kaya Yurieff · Jul 10, 2023 2:29pm PDT

Earlier this year, we started asking our readers to submit their questions about the creator economy. Today I answer questions on how startups can reach creators, the downside of repurposing posts and how much influencers really make. Read previous Mailbag editions here and here. You can submit more questions through this page on The... Earlier this year, we started asking our readers to submit their questions about the creator...