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

Carl Icahn. Photo by Getty.

PayPal and the Activist Campaigns That Didn’t Work

By Martin Peers · Aug 14, 2023 5:05pm PDT

One of the more fun business stories of recent weeks was the pressure campaign waged by an activist investor against—wait for it—Carl Icahn, an activism icon for decades! Few other activists run public companies, as Icahn does, so we’re unlikely to see something like this repeated. But it is a good reminder that activists, who like to point out... One of the more fun business stories of recent weeks was the pressure campaign waged by an...

Cadre founder and CEO Ryan Williams. Photo by Getty

Yieldstreet Nears a Deal to Buy Real Estate Tech Startup Cadre

By Lauren Tara LaCapra, Kate Clark and Maria Heeter · Aug 14, 2023 2:56pm PDT

Asset manager Yieldstreet is near a deal to buy Cadre, a once-promising real estate investment firm whose value has fallen sharply in recent years, said people familiar with the situation. If the two sides finalize an agreement, it would be the latest sign that mergers and acquisitions activity among troubled startups is beginning to pick... Asset manager Yieldstreet is near a deal to buy Cadre, a once-promising real estate...

Creator Cassey Ho. Photo courtesy of subject

Creator Economy

How the ‘Blogilates’ YouTube Channel Spawned Two Merchandise Brands—and a Target Deal

By Kaya Yurieff · Aug 14, 2023 2:20pm PDT

Creators’ success on social media often has a limited shelf life. They need to generate a constant stream of new content, keep up with frequent changes on social platforms and deal with inconsistent income. So many are starting offline brands to expand their businesses and find new ways to connect with their fans. Take Cassey Ho, 36, who... Creators’ success on social media often has a limited shelf life. They need to generate a...

Left: Aidan Gomez, CEO of Cohere. Photo via Cohere. Right: Edo Liberty, CEO of Pinecone. Photo via Pinecone.

Pinecone and Cohere CEOs Warn About Leaving the GPU ‘Faucet’ Running in the Age of AI

By Stephanie Palazzolo · Aug 14, 2023 7:00am PDT · 2 comments

Left: Aidan Gomez, CEO of Cohere. Photo via Cohere. Right: Edo Liberty, CEO of Pinecone. Photo via Pinecone.

Pinecone and Cohere CEOs Warn About Leaving the GPU ‘Faucet’ Running in the Age of AI

By Stephanie Palazzolo · Aug 14, 2023 7:00am PDT · 2 comments

You know those horror stories of people who leave a faucet running in their house while on vacation for a week, returning to a flooded residence? That kind of thing is happening in AI.Edo Liberty, founder of Pinecone, a buzzy infrastructure startup which helps developers build AI applications using their own data, says he heard about an intern... You know those horror stories of people who leave a faucet running in their house while on...

Artwork by Clark Miller. Gracias photo by Marco Bello/Bloomberg via Getty Images

How Antonio Gracias Became the Most Hardcore of Elon Musk’s Loyalists

By Becky Peterson · Aug 14, 2023 6:00am PDT

Early this year, as the interest costs from the $13 billion in loans Elon Musk took out to buy Twitter began weighing on his pocketbook, the billionaire turned for help to a longtime trusted partner. The investor, Antonio Gracias, head of Valor Equity Partners, got involved early in Musk’s effort last year to acquire Twitter, helping him... Early this year, as the interest costs from the $13 billion in loans Elon Musk took out to buy...

Toyota's first hybrid Land Cruiser, to be distributed in North America and China.

The Electric: Is Toyota Right to Be Skeptical About EVs?

By Steve LeVine · Aug 14, 2023 4:30am PDT

On Aug. 2 in Tokyo, Toyota unveiled the first hybrid electric Land Cruiser, a refreshed version of a large SUV previously known for its off-road muscle-bound chops, now containing both a gasoline engine and a small electric motor. Toyota, which had pulled the Land Cruiser from its U.S. lineup in 2021 after Americans began to balk at its $85,000... On Aug. 2 in Tokyo, Toyota unveiled the first hybrid electric Land Cruiser, a refreshed version...

Evangelists of Two Different Silicon Valleys

Evangelists of Two Different Silicon Valleys

By Jon Steinberg · Aug 12, 2023 7:00am PDT · 1 comment

Heads up, Weekenders: The Information is asking subscribers how much time and money they spend on their various fitness and wellness routines. Please fill out our completely anonymous Brain-Body Investment survey (done in five minutes, tops), and we'll share the results soon. Thanks for participating! Hi, welcome to your Weekend.... Heads up, Weekenders: The Information is asking subscribers how much time and money they spend on...

After presiding over the largest cutbacks in company history, Alphabet CFO Ruth Porat made it clear to CEO Sundar Pichai last February that she was ready for change. Photos Getty

Is Ruth Porat’s New Job at Alphabet a Coronation or a Last Dance?

By Anita Raghavan · Aug 12, 2023 6:00am PDT · 6 comments

After presiding over the largest cutbacks in company history, Alphabet CFO Ruth Porat made it clear to CEO Sundar Pichai last February that she was ready for change. Photos Getty

Is Ruth Porat’s New Job at Alphabet a Coronation or a Last Dance?

By Anita Raghavan · Aug 12, 2023 6:00am PDT · 6 comments

In February, after Alphabet had put the finishing touches on the technology giant’s 2023 plan, CEO Sundar Pichai and Chief Financial Officer Ruth Porat sat down to brainstorm about the future of the organization and its people. One of the people the two discussed was Porat herself, according to sources familiar with the conversation. The... In February, after Alphabet had put the finishing touches on the technology giant’s 2023...

Photo by Getty

Why Apple Remains on Top

By Martin Peers · Aug 11, 2023 4:30pm PDT

These must be lonely times for iPhone haters. Apple’s share of the mobile market has been growing, according to IDC, which has insulated the company a little from the shrinkage in the smartphone market. (Those damn iPhones are just so easy to use!) As the 2.4% iPhone sales decline in its recently reported June-quarter results showed, though,... These must be lonely times for iPhone haters. Apple’s share of the mobile market has been...

Modular co-founder Chris Lattner. Image via YouTube

Modular, AI Startup Challenging Nvidia, Discusses Funding at $600 Million Valuation

By Kate Clark, Aaron Holmes and Stephanie Palazzolo · Aug 11, 2023 4:21pm PDT

Modular, a startup whose software aims to loosen Nvidia’s chokehold over in-demand artificial intelligence chips, has been in talks with investors including General Catalyst to raise Series A funding that would value it at roughly $600 million, according to two people with knowledge of the deal discussions. The new capital would come less... Modular, a startup whose software aims to loosen Nvidia’s chokehold over in-demand...

Art by Clark Miller.

The New Ballgame

The Next Frontier for Sports Betting: Your TV

By Daniel Kaplan · Aug 11, 2023 11:00am PDT · 4 comments

For all the ways sports gambling has infiltrated American life since the Supreme Court legalized the industry five years ago, there was one area where betting still did not exist: within actual sports broadcasts. Bettors couldn’t watch a game on Fox or ESPN and point their remote at an on-screen button to place a wager. But all that is... For all the ways sports gambling has infiltrated American life since the Supreme Court legalized...

How to Save ESPN. Barstool’s Bad (Good?) Example

By Jessica E. Lessin · Aug 11, 2023 10:29am PDT

How to Save ESPN. Barstool’s Bad (Good?) Example

By Jessica E. Lessin · Aug 11, 2023 10:29am PDT

It is not, shall we say, boom times in the media business. Even ESPN—the crown jewel, cash cow, you name it—of the business is on shaky ground. And it is freaking people—at least media people—out. So I had to ask the squad what they think? What saves live sports coverage? That, a snazzy new video introduction from Wizard... It is not, shall we say, boom times in the media business. Even ESPN—the crown jewel, cash...

Andreessen Horowitz general partner Katherine Boyle wants "American dynamism" on the lips of both lawmakers and founders. Art by Clark Miller

American Dynamo: An ‘Iconic’ Andreessen Horowitz Investor Is Turning Heads in Defense Tech

By Margaux MacColl · Aug 11, 2023 9:00am PDT · 3 comments

On November 16, 2022, Silicon Valley came to Washington—specifically, to the airy, upscale Italian restaurant Piccolina da Centrolina, where the evening’s co-host, Andreessen Horowitz general partner Katherine Boyle, was waiting. It was the night before Andreessen’s American Dynamism summit, and Boyle had helped convene around... On November 16, 2022, Silicon Valley came to Washington—specifically, to the airy, upscale...

David Wadhwani, president of Adobe's digital media business. Photo by Getty.

Pro Weekly: Behind Adobe's Matrix Magic

By Akash Pasricha · Aug 11, 2023 8:00am PDT

Let’s talk about the matrix. No, not “The Matrix”—rather, Adobe’s matrix.My colleague Kalley published an org chart earlier this week outlining the 64 people with power at Adobe. Artificial intelligence is front and center for the company, with multiple C-suite executives managing people working on AI initiatives, including Firefly, the company’... Let’s talk about the matrix. No, not “The Matrix”—rather, Adobe’s matrix.My colleague Kalley...

Databricks co-founder and CEO Ali Ghodsi. Photo by Bloomberg.

Without IPOs, Some Startup Workers Pay Steep Price to Get Cash

By Cory Weinberg · Aug 11, 2023 6:00am PDT · 3 comments

Some Databricks employees and executives sitting on valuable stock options in the decade-old startup are considering going to extraordinary lengths to turn their private stakes into $30 million in cash. Investors say they have discussed a deal that would lend the employees money in exchange for a share in the proceeds of their stock if the... Some Databricks employees and executives sitting on valuable stock options in the decade-old...

Photo by Getty.

What ByteDance’s Financial Picture Tells Us

By Jessica E. Lessin · Aug 10, 2023 5:00pm PDT

Photo by Getty.

What ByteDance’s Financial Picture Tells Us

By Jessica E. Lessin · Aug 10, 2023 5:00pm PDT

There is something to the phrase “Follow the money.” Looking at the finances of a company can go a long way toward clearing up certain unanswered questions. And this is especially important for private enterprises, who don’t regularly disclose such information.And so, when Jing and Juro today reported extensive details about ByteDance’s... There is something to the phrase “Follow the money.” Looking at the finances of a company can go...

Braid founders Chris Piro and Matthew Cahill. Credit: Mike Sullivan

Creator Economy

The Startup That Lets Fans Shoot a Quick Text to Their Favorite Creator

By Alex Perry · Aug 10, 2023 4:25pm PDT · 8 comments

While creators can quickly build audiences on YouTube and TikTok, they often find it hard to keep up communication with their fans. That’s encouraged some to embrace email publishing services such as Substack and Beehiiv. The founders of startup Braid want to make those direct connections to fans through text messaging.Braid, founded by ex-... While creators can quickly build audiences on YouTube and TikTok, they often find it hard to keep...

GGV Capital Managing Partner Hans Tung. Photo via Getty.

GGV’s ByteDance Sale Won’t Solve Its China Dilemma

By Kate Clark · Aug 10, 2023 3:32pm PDT

For a long time the debate around American venture capital investment in China has centered on Sequoia Capital, the blue-chip VC firm that’s earned billions of dollars from its overseas investments. But since Sequoia announced in June that it would split from its Chinese counterpart, the spotlight has expanded to a cohort of smaller firms that... For a long time the debate around American venture capital investment in China has centered on...

ByteDance's Singapore office. Photo by Bloomberg.

ByteDance’s China Business Is Slowing, Putting Spotlight on TikTok

By Jing Yang and Juro Osawa · Aug 10, 2023 9:13am PDT

ByteDance might be best known globally as the parent company of TikTok, but the bulk of its money comes from its home base of China, thanks to its Chinese video app Douyin. But previously unreported internal data shows that the tech giant’s red-hot pace of growth in China has slowed markedly, underscoring the importance of TikTok for the... ByteDance might be best known globally as the parent company of TikTok, but the bulk of its money...

Art by Shane Burke.

Revenue Is a Dirty Word in the Land of AI; Biden Takes a Swing at China

By Stephanie Palazzolo · Aug 10, 2023 7:00am PDT

Art by Shane Burke.

Revenue Is a Dirty Word in the Land of AI; Biden Takes a Swing at China

By Stephanie Palazzolo · Aug 10, 2023 7:00am PDT

It’s been a tough year for tech startups. In the midst of down rounds and deep layoffs, tech CEOs and VCs have been careful to emphasize profitability and strong financials above all else. Except, that is, for startups having anything to do with generative AI. The most recent example, as my colleagues Natasha Mascarenhas, Erin Woo and I ... It’s been a tough year for tech startups. In the midst of down rounds and deep layoffs, tech CEOs...