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

Photo by Bloomberg.

Twitter Manager: Daily Revenue Has Dropped 40%, 500 Top Advertisers Have Left

By Erin Woo · Jan 17, 2023 10:20pm PST · 1 comment

A senior Twitter manager told employees that the company’s daily revenue on Tuesday was 40% lower than the same day a year ago, underscoring the crisis facing its core ads business, according to a person with direct knowledge. In a staff meeting on Tuesday, Siddharth Rao, an engineering manager overseeing the engineers working on... A senior Twitter manager told employees that the company’s daily revenue on Tuesday was 40%...

Apple CEO Tim Cook in 2018. Photo by Bloomberg

Apple Working on Cheaper Mixed-Reality Headset to Reach More Consumers

By Wayne Ma · Jan 17, 2023 6:10pm PST · 2 comments

Apple’s first mixed-reality headset, which it has discussed pricing at around $3,000, could test the limits of how much Apple fans are willing to spend on one of its devices. But the company’s engineers are already at work on a more affordable version of the headset to reach more consumers, according to three people familiar with the... Apple’s first mixed-reality headset, which it has discussed pricing at around $3,000, could...

Microsoft CEO Satya Nadella

Microsoft Prepares to Lay Off Thousands of Employees, Including in Azure-Related Units

By Amir Efrati and Aaron Holmes · Jan 17, 2023 5:07pm PST

Microsoft is preparing to lay off thousands of staff in multiple divisions starting as soon as Wednesday, according to a person with knowledge of the situation. Wednesday update: Microsoft CEO Satya Nadella said the company will lay off 10,000 people in the coming months, or roughly 4.5% of the workforce, and take a $1.2 billion charge for costs... Microsoft is preparing to lay off thousands of staff in multiple divisions starting as soon as...

Photo by Getty Images

VC’s $8 Billion ByteDance Headache

By Jessica E. Lessin · Jan 17, 2023 5:00pm PST · 2 comments

Photo by Getty Images

VC’s $8 Billion ByteDance Headache

By Jessica E. Lessin · Jan 17, 2023 5:00pm PST · 2 comments

Amid all the crises venture capitalists are facing, there’s one that deserves more attention and it centers on a number: $8 billion. That's roughly the amount of money investors like Sequoia, Susquehanna International Group, Coatue Management and Tiger Global Management have poured into TikTok owner ByteDance—money that is largely locked up... Amid all the crises venture capitalists are facing, there’s one that deserves more attention and...

Photo: Bloomberg

Creator Economy

TikTok’s Leadership Ties to China; Influencers at Davos

By Mahira Dayal · Jan 17, 2023 2:24pm PST

For the past two years, TikTok has been positioning itself as an entity with decision-making that’s independent from its Chinese parent company ByteDance, as it tries to convince U.S. lawmakers that China’s government will not access American user data or use the app to influence Americans. The app has had mixed success placating U.S. security... For the past two years, TikTok has been positioning itself as an entity with decision-making that...

Impulse Space CEO Tom Mueller. Photo courtesy of Impulse Space.

The Big Interview

SpaceX’s Founding Engineer Has 10 Months to Bring ‘Last-Mile Delivery’ to Space

By Becky Peterson · Jan 17, 2023 10:24am PST · 1 comment

Elon Musk wants to get to Mars as soon as possible. One of his first employees at SpaceX, Tom Mueller, is focused on another destination: the moon. Mueller—who founded his own startup, Impulse Space, in 2021 after retiring from SpaceX—recently announced that Impulse’s first ever vehicle, the Mira, will head into outer space... Elon Musk wants to get to Mars as soon as possible. One of his first employees at SpaceX, Tom...

A ByteDance employee at the entrance to a ByteDance office in Beijing. Photo by Getty Images.

TikTok’s E-Commerce Management Structure Undercuts Claims of Autonomy From China

By Juro Osawa · Jan 17, 2023 6:00am PST · 2 comments

The new head of TikTok’s important push into e-commerce in the U.S. answers directly to a boss at the app’s Chinese owner, ByteDance, bypassing TikTok’s own CEO. The previously unreported structure could undercut TikTok’s efforts to convince Washington lawmakers that it can operate independently from ByteDance. Sandie... The new head of TikTok’s important push into e-commerce in the U.S. answers directly to a...

Clearco's departing CEO, Michele Romanow, in 2019. Photo by Bloomberg

CEO of SoftBank-Backed Clearco Resigns as Onetime Fintech Darling Cuts Staff

By Jon Victor · Jan 15, 2023 4:49pm PST · 6 comments

Clearco's departing CEO, Michele Romanow, in 2019. Photo by Bloomberg

CEO of SoftBank-Backed Clearco Resigns as Onetime Fintech Darling Cuts Staff

By Jon Victor · Jan 15, 2023 4:49pm PST · 6 comments

The CEO of Clearco, which provides capital to e-commerce businesses in exchange for a cut of future revenue, has resigned the post, according to a person with direct knowledge of the situation. The departing leader, Michele Romanow, co-founded Toronto-based Clearco in 2015 and is one of Canada’s most prominent entrepreneurs. She is being... The CEO of Clearco, which provides capital to e-commerce businesses in exchange for a cut of...

In 2019, Volkswagen became a joint investor with Ford in Argo AI. Left to right: Ford CEO Jim Hackett, Argo CEO Bryan Salesky, VW CEO Herbert Diess. Photo: Courtesy VW

The Electric: Will Assisted Driving Tech Give Detroit a Stock Boost? Don’t Bet on It

By Steve LeVine · Jan 15, 2023 2:00pm PST

In March 2017, Mark Fields, then CEO of Ford, announced one of the most surprising gambles in company history—a $1 billion investment in Argo AI, a little-known Pittsburgh startup that promised to help Ford produce a driverless car by 2021. Though Ford wasn’t prone to betting on unproven startups, Fields suggested he had little choice: By the... In March 2017, Mark Fields, then CEO of Ford, announced one of the most surprising gambles in...

Elon Musk.

Musk’s Twitter Intentionally Suspended Tweetbot, Third-Party Apps, Messages Show

By Erin Woo · Jan 14, 2023 3:03pm PST · 5 comments

The mysterious outage of Tweetbot and other third-party Twitter clients that began Thursday night was an intentional suspension, according to internal messages viewed by The Information. The suspension cut off the ability of people to use Twitter on outside apps, forcing them to go to Twitter’s own app. The reason for the suspension... The mysterious outage of Tweetbot and other third-party Twitter clients that began Thursday night...

Art by Mike Sullivan. Photos courtesy Sequel

The Frustrated Athletes Who Reinvented the Tampon in Their Stanford Dorm Room

By Margaux MacColl · Jan 14, 2023 9:00am PST · 6 comments

Amanda Calabrese has traveled all over the world as a competitive lifeguard—picture a decathlon, but at the beach—diving into 15-foot waves in South Africa and sprinting across Italian beaches. But she struggled to find a tampon that wouldn’t leak during competitions. During her senior year at Stanford University, she met up... Amanda Calabrese has traveled all over the world as a competitive lifeguard—picture a...

He Helped Conceive Instagram. Can He Strike Gold Again as a Novelist?

He Helped Conceive Instagram. Can He Strike Gold Again as a Novelist?

By Jon Steinberg · Jan 14, 2023 7:00am PST

He Helped Conceive Instagram. Can He Strike Gold Again as a Novelist?

He Helped Conceive Instagram. Can He Strike Gold Again as a Novelist?

By Jon Steinberg · Jan 14, 2023 7:00am PST

Hi, welcome to your Weekend!If there’s an unintended theme for this week’s stories, it’s the comeback, the second act, the immune response to a contagion.In the case of Josh Riedel, it’s the story of a young tech employee who lands at the seminal startup of the early 2010s, Instagram. He devotes his whole life to the company, watching in awe as... Hi, welcome to your Weekend!If there’s an unintended theme for this week’s stories, it’s the...

Midjourney art by Clark Miller

Did a Bot Write This?: New Tools Are Already Taking Aim at AI-Generated Work

By Chris Stokel-Walker · Jan 13, 2023 12:00pm PST · 6 comments

If an artificial intelligence program were to engineer a human with the potential to destroy it—or at least slow its march to global domination—it might create Edward Tian. Tian, a 22-year-old Princeton University student, is a computer science major who specializes in natural-language processing. He’s a former researcher for... If an artificial intelligence program were to engineer a human with the potential to destroy...

Art by Clark Miller

Tech’s ‘Doom-and-Gloom Guy’ Builds a Database for Happier Days

By Arielle Pardes · Jan 13, 2023 11:00am PST · 5 comments

In February 2020, Roger Lee found himself out of a job. He had stepped down as CEO of Human Interest, the 401K startup he co-founded in 2015, to spend time with his newborn daughter on an extended paternity leave. Within a few months, he found he was not alone: Thousands of other tech workers were also suddenly unemployed, as the pandemic... In February 2020, Roger Lee found himself out of a job. He had stepped down as CEO of Human...

Photos of Adam Mosseri via Instagram. Art by Shane Burke.

Is Instagram Going the Way of AOL?

By Ryan Broderick · Jan 13, 2023 10:00am PST · 3 comments

Have you hovered over the Instagram app recently, too exhausted at the mere thought of all the notifications, widgets, inboxes and posts awaiting you to open it? It wasn’t always this way. Until recently, Instagram’s success had always come from its relative simplicity. It didn’t even let you post photos from your desktop until... Have you hovered over the Instagram app recently, too exhausted at the mere thought of all the...

Art by Clark Miller

From Instagram’s First Employee to Tech’s Newest Thriller Writer

By Annie Goldsmith · Jan 13, 2023 9:00am PST · 3 comments

Art by Clark Miller

From Instagram’s First Employee to Tech’s Newest Thriller Writer

By Annie Goldsmith · Jan 13, 2023 9:00am PST · 3 comments

Josh Riedel was getting hit by a bomb cyclone. From his home in San Francisco’s Mission District, the former Instagram manager and first-time novelist found himself in the eye of one of California’s endless storms. Driving through the city near SoMa, he passed cars halfway submerged in murky water, huge limbs torn off trees and other... Josh Riedel was getting hit by a bomb cyclone. From his home in San Francisco’s Mission...

How Crypto Company Circle’s Power Structure Marries Big Tech and Finance

By Akash Pasricha · Jan 13, 2023 6:00am PST

Circle, which issues the popular stablecoin USD Coin, has largely been insulated from the crypto market chaos of recent months. Its revenue has been growing thanks to rising interest rates, and it’s looking to expand into new markets. Circle co-founder and CEO Jeremy Allaire likens the firm’s structure to a hybrid between a tech... Circle, which issues the popular stablecoin USD Coin, has largely been insulated from the crypto...

Photo by Bloomberg

What’s Google Cloud So Worried About?

By Jessica E. Lessin · Jan 12, 2023 5:03pm PST

What is going on at Google Cloud? Today, Jon, Kevin and Amir had an important story about an executive shakeup involving the departure of Google’s top sales executive in the U.S., Kirsten Kliphouse. You may recall that Google Cloud, after 10 years of trying, is still a distant second to Amazon and Microsoft in the business. Google didn’t... What is going on at Google Cloud? Today, Jon, Kevin and Amir had an important story about an...

Photo: Shutterstock

Creator Economy

The Creator Startups That Tapped Extension Rounds; Introducing SBF, Substack Writer

By Mahira Dayal · Jan 12, 2023 4:08pm PST

One thing that stood out to me as I analyzed The Information’s Creator Economy Database for our latest story was the increase in the number of rounds that were extensions to previous rounds, which means investors poured more money into existing investments while generally maintaining prior deal terms. Those rounds have murky labels, like... One thing that stood out to me as I analyzed The Information’s Creator Economy Database for our...

OpenAI co-founder Sam Altman. Photo: Bloomberg

What OpenAI’s ‘Bonkers’ Deal Structure Means For Silicon Valley

By Kate Clark · Jan 12, 2023 2:31pm PST · 7 comments

OpenAI co-founder Sam Altman. Photo: Bloomberg

What OpenAI’s ‘Bonkers’ Deal Structure Means For Silicon Valley

By Kate Clark · Jan 12, 2023 2:31pm PST · 7 comments

Microsoft’s expected investment in OpenAI, destined to be one of the biggest startup stories of the year, comes with a whole lot of strings attached. It’s a deal structure that two lawyers told me this week they had never seen before in VC dealmaking, and that one venture capitalist described as “really bonkers.” But the arrangement could... Microsoft’s expected investment in OpenAI, destined to be one of the biggest startup stories of...