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

A presentation at Amazon's NewFront Conference on May 1. Photo by Getty.

Amazon Plans to Generate Photos and Videos for Advertisers Using AI

By Theo Wayt · May 5, 2023 1:45pm PDT

Amazon is building a team to work on artificial intelligence tools that will generate photos and videos for merchants to use in advertising campaigns on its platform, a company spokesperson confirmed, efforts that could help diversify its ad business. Amazon's ad business has grown by double-digit percentages every quarter since Amazon... Amazon is building a team to work on artificial intelligence tools that will generate photos and...

Stills from Pizza Later's "Pepperoni Hug Spot" commercial, Kris Kashtanova's Burning Man video and Ammaar Reshi's World War II movie trailer—all created entirely with AI.

How AI Built This

Staring at the Black Hole Sun: Generative AI Artists Deconstruct Their Viral Videos

By Margaux MacColl · May 5, 2023 11:43am PDT · 4 comments

Will AI video kill the radio star? Judging from the surge of artificial intelligence–generated beer commercials and “Star Wars”–themed Wes Anderson trailers popping up on social feeds this week, it just might. The AI video onslaught began officially in late March, when Runway, an AI startup newly valued at $1.5 billion,... Will AI video kill the radio star? Judging from the surge of artificial...

Instacart CEO Fidji Simo. Photo by Bloomberg.

Instacart’s Growth Slowed in First Quarter

By Cory Weinberg · May 5, 2023 10:42am PDT · 3 comments

Instacart has long primed itself for a much-watched public debut, keeping its regulatory filings up to date and improving profits. But one new factor may delay a public debut: a slowdown in growth. In the first quarter, Instacart saw its gross order volume grow between 5% and 10% compared to the same period last year, people briefed on the... Instacart has long primed itself for a much-watched public debut, keeping its regulatory filings...

Roelof Botha, senior steward of Sequoia Capital. Photo-illustration by Clark Miller for The Information (photo Getty)

Sequoia Capital’s Mighty Struggle

By Kate Clark and Abram Brown · May 5, 2023 9:00am PDT · 5 comments

Roelof Botha, senior steward of Sequoia Capital. Photo-illustration by Clark Miller for The Information (photo Getty)

Sequoia Capital’s Mighty Struggle

By Kate Clark and Abram Brown · May 5, 2023 9:00am PDT · 5 comments

One day in March, Sequoia Capital assembled a show of force: a private summit on artificial intelligence hosted at the firm’s airy offices in San Francisco’s Mission District. Around 100 people gathered—a who’s who of tech’s hottest sector, including OpenAI CEO Sam Altman; Kevin Scott, Microsoft’s chief... One day in March, Sequoia Capital assembled a show of force: a private summit on artificial...

Pro Weekly: More Shuffling in the Org Charts

Pro Weekly: More Shuffling in the Org Charts

By Kalley Huang · May 5, 2023 8:00am PDT

Welcome back!Last week, we detailed how cost cutting had shaken up management at Amazon and Meta Platforms. Snap too is shuffling its ranks, while Google parent Alphabet now has its two sometimes-squabbling artificial intelligence labs working together. We continually update our Org Charts for 40 companies, sometimes without publishing stories... Welcome back!Last week, we detailed how cost cutting had shaken up management at Amazon and Meta...

Brian Armstrong, CEO of Coinbase. Photo by Bloomberg.

Brian Armstrong, Crypto’s Reluctant Hero, Gears Up for the Fight of a Lifetime

By Aidan Ryan · May 5, 2023 6:00am PDT · 2 comments

In 2018, Coinbase CEO Brian Armstrong made a trip to Washington in what was one of his first formal visits to meet with lawmakers. Over two days, Armstrong and his team, which included senior policy and communications staff and lobbyists from Franklin Square Group, met with roughly 30 people, including lawmakers, according to two people with... In 2018, Coinbase CEO Brian Armstrong made a trip to Washington in what was one of his first...

Photo by Bloomberg.

Apple Isn’t Growing, but That’s OK (for Now)

By Martin Peers · May 4, 2023 5:00pm PDT

We got a barrage of March-quarter earnings today and they provide a good summary of who’s up and who’s down in tech and media. (Spoiler alert: Apple did fine, but given how weak the smartphone and PC markets are, that’s not saying much). For more details, grab a coffee (or a beer) and relax. Here we go:In ride hailing, Lyft is barely growing and... We got a barrage of March-quarter earnings today and they provide a good summary of who’s up and...

Table: Shane Burke

How Social Media Boosting Features Compare

By Isabelle Sarraf · May 4, 2023 4:57pm PDT

Table: Shane Burke

Creator Economy

How Social Media Boosting Features Compare

By Isabelle Sarraf · May 4, 2023 4:57pm PDT

Most social media platforms have a similar method for users to increase the visibility of their posts: pay to turn existing posts into revenue-generating advertisements. At least, that’s the case for Instagram, Facebook, LinkedIn, Pinterest and TikTok, where users can pay for their post to show up in user’s feeds as an ad. Facebook has... Most social media platforms have a similar method for users to increase the visibility of their...

Social Capital's Chamath Palihapitiya. Photo by Bloomberg

How We Can Regulate AI Even if Congress Won’t Act

By Jillian Goodman · May 4, 2023 4:33pm PDT · 1 comment

Rapid innovations in artificial intelligence have already upended many aspects of our lives, from the way we view and access the internet to how we think about the future of work. It’s only natural, then, that this swift-moving newscycle also upended the agenda for our call with subscribers on the need for AI regulation. In just the three... Rapid innovations in artificial intelligence have already upended many aspects of our lives, from...

A First Republic Bank branch in San Francisco. Photo by Bloomberg.

Apathy Valley

By Kate Clark · May 4, 2023 1:31pm PDT · 1 comment

The biggest bank failure since the financial crisis and the fourth bank failure of the year happened this week. But no one in Silicon Valley seemed to care. That’s probably because they’re all exhausted by the slow-moving train wreck that’s transpired over the past three months. Or because—after the fall of crypto exchange FTX last fall and... The biggest bank failure since the financial crisis and the fourth bank failure of the year...

Sam Altman in Tokyo in April. Photo by AP

OpenAI’s Losses Doubled to $540 Million as It Developed ChatGPT

By Erin Woo and Amir Efrati · May 4, 2023 1:11pm PDT · 9 comments

OpenAI’s losses roughly doubled to around $540 million last year as it developed ChatGPT and hired key employees from Google, according to three people with knowledge of the startup’s financials. The previously unreported figure reflects the steep costs of training its machine-learning models during the period before it started... OpenAI’s losses roughly doubled to around $540 million last year as it developed ChatGPT...

Art by Shane Burke. Photos via Getty and Bloomberg.

Sam Bankman-Fried Is Just Being Rational

By Maria Konnikova · May 4, 2023 9:00am PDT · 5 comments

Art by Shane Burke. Photos via Getty and Bloomberg.

Sam Bankman-Fried Is Just Being Rational

By Maria Konnikova · May 4, 2023 9:00am PDT · 5 comments

When I was researching my book about con artists, I encountered the chief financial officer of a large company who’d been arrested for fixing the books after a series of losses. He seemed like a nice, down-to-earth guy, like someone who was just caught in a bad situation. Yes, he fudged a few numbers to stay afloat—a bad choice, but... When I was researching my book about con artists, I encountered the chief financial officer of a...

Art by Mike Sullivan.

Nearly Half of YouTube’s U.S. Viewership Is Now on TVs, Helping Drive Ad Shift

By Sahil Patel · May 4, 2023 7:00am PDT · 8 comments

For years, Google’s YouTube couldn’t get any respect from the TV industry. TV marketers wouldn’t go near it out of fear that their ads would be tainted by running alongside YouTube’s amateur content. And analysts and research firms treated the streaming service as separate from the rest of television when analyzing TV... For years, Google’s YouTube couldn’t get any respect from the TV industry. TV...

Klaviyo CEO Andrew Bialecki. Photo by Getty.

IPO Hopeful Klaviyo Tries to Prove There’s More to Life Than Shopify

By Ann Gehan and Cory Weinberg · May 4, 2023 6:00am PDT · 2 comments

For years, Klaviyo’s best partner was e-commerce giant Shopify. Now, as the marketing software firm once valued at $9.5 billion gears up for an initial public offering, it’s looking to make new friends. Most of the 110,000-plus merchants paying for the company’s software are e-commerce sellers who host their sites on Shopify.... For years, Klaviyo’s best partner was e-commerce giant Shopify. Now, as the marketing...

The 24-layer battery that QuantumScape will now concentrate on manufacturing. Photo: Courtesy QuantumScape

The Electric: QuantumScape Pivots to Small Batteries In a Bid to Stay Relevant

By Steve LeVine · May 4, 2023 4:30am PDT

Trailing rivals in the U.S. and China, once high-flying electric vehicle battery developer QuantumScape is lowering its ambitions and aiming to make smartphone-size batteries, a pivot it hopes will restore its momentum and contain the damage from a delayed production ramp.Until now, the San Jose, Calif., company has sought to make a single... Trailing rivals in the U.S. and China, once high-flying electric vehicle battery developer...

A still from TikTok's Los Angeles office. Photo via YouTube/TikTok.

On TikTok and Publishers, We’ve Seen This Story Before

By Jessica E. Lessin · May 3, 2023 5:00pm PDT

A still from TikTok's Los Angeles office. Photo via YouTube/TikTok.

On TikTok and Publishers, We’ve Seen This Story Before

By Jessica E. Lessin · May 3, 2023 5:00pm PDT

Uh oh. Here we go again. In today’s headlines: TikTok, which could use some positive press attention at the moment, has begun allowing publishers to sell ads alongside their videos while keeping half the revenue. And some big publishers are taking it up on the invitation.The Wall Street Journal heralds the move thusly: “The opportunity to... Uh oh. Here we go again. In today’s headlines: TikTok, which could use some positive press...

Augie in action. Photos via Aug X Labs.

Creator Economy

Startup Aug X Labs Jumps Into Video Editing Fray

By Isabelle Sarraf · May 3, 2023 3:07pm PDT

More videos created with the help of AI tools are circulating online. In one of the latest examples, a commercial for an imaginary pizza chain created by a video producer with the handle Pizza Later garnered more than half a million views across YouTube, Reddit and Twitter. The anonymous producer used a bevy of AI tools, including ... More videos created with the help of AI tools are circulating online. In one of the latest...

Pay Falls for Many Tech Workers as the Downturn Hits Home

By Kalley Huang · May 3, 2023 10:26am PDT · 4 comments

Reduced profits and declining share prices hit many tech workers last year where it hurts—in their wallets. Median pay for employees declined in 2022 at at least 18 well-known tech companies, according to an analysis of securities filings by The Information. At two companies—Snap and Cloudflare—median pay declined more than... Reduced profits and declining share prices hit many tech workers last year where it...

Standard Crypto Co-Founder Alok Vasudev. Photo by Standard Crypto

A Reality Check for Blockchain Infrastructure

By Aidan Ryan · May 3, 2023 9:00am PDT · 2 comments

These days it seems like crypto venture capitalists can’t stop talking about blockchain infrastructure. But that doesn’t mean everyone is all in on the idea.Many VCs have been pulling back from flashy consumer startups following the blowup of FTX, favoring safer bets on software that helps power the back end of blockchains. But Alok Vasudev,... These days it seems like crypto venture capitalists can’t stop talking about blockchain...

Ryan Williams, CEO of Cadre. Photo by Bloomberg.

Faded Hype for Real Estate Tech Leaves Cadre, Others Scrambling

By Maria Heeter and Cory Weinberg · May 3, 2023 6:00am PDT · 6 comments

Ryan Williams, CEO of Cadre. Photo by Bloomberg.

Faded Hype for Real Estate Tech Leaves Cadre, Others Scrambling

By Maria Heeter and Cory Weinberg · May 3, 2023 6:00am PDT · 6 comments

A flock of big-name investors—Andreessen Horowitz, Thrive Capital, Founders Fund and even Jack Ma and George Soros—piled into Cadre six years ago at an $800 million valuation, seeing potential in its promise to bring commercial real estate investing to the masses. The company, co-founded by Jared Kushner and former Blackstone... A flock of big-name investors—Andreessen Horowitz, Thrive Capital, Founders Fund and even...