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

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Hastings Turns Wheel Over as Streaming Market Slows

By Martin Peers · Jan 19, 2023 5:00pm PST

It’s the end of an era in streaming. Reed Hastings, co-founder of video-streaming pioneer Netflix, is stepping down as co-CEO, kicking himself upstairs to be executive chair (as he was already chair, he’s giving up more than he’s gaining). Greg Peters, chief operating officer and a 15-year veteran of Netflix, was promoted to be Ted Sarandos’... It’s the end of an era in streaming. Reed Hastings, co-founder of video-streaming pioneer...

Noam Shazeer, co-founder and CEO of Character. Photo by Getty

Don’t Sleep on Google in AI Battle with OpenAI and Microsoft, Says a Key Former Engineer

By Amir Efrati · Jan 19, 2023 2:37pm PST · 5 comments

OpenAI has sparked an explosion of funding and software development around artificial-intelligence software that understands human language. While the technology still makes plenty of mistakes, new applications are coming out in droves, from tools that help marketers write copy to audio chatbots that may be able to negotiate discounts for... OpenAI has sparked an explosion of funding and software development around...

via Bloomberg

Creator Economy

What Creators Really Want From Twitter

By Kaya Yurieff · Jan 19, 2023 2:16pm PST

Since taking over Twitter, billionaire Elon Musk has made some efforts to court creators, from speaking with them over Zoom to telling staff about his aspirations to turn the social network into a home for video creators. Musk has even indicated he’s open to a potential acquisition of newsletter publisher Substack. But he faces an uphill... Since taking over Twitter, billionaire Elon Musk has made some efforts to court creators, from ...

Photo via Bloomberg

Founders, Beware. An AI Chatbot May Have Written That Pitch Rejection

By Kate Clark · Jan 19, 2023 11:36am PST

Photo via Bloomberg

Founders, Beware. An AI Chatbot May Have Written That Pitch Rejection

By Kate Clark · Jan 19, 2023 11:36am PST

Founders, remember that note in your inbox from a venture capitalist who’s “decided not to invest” but “would still like to stay in touch”? It might have been written by an artificial intelligence chatbot.Venture capital investors are tripping over themselves to buy stakes in OpenAI, the company behind the ultra popular new AI tool ChatGPT,... Founders, remember that note in your inbox from a venture capitalist who’s “decided not to invest...

Chart by Shane Burke.

After Apple, Amazon May Face Pressure on Executive Pay This Year

By Mark Matousek · Jan 19, 2023 6:00am PST

Apple may not be the only tech company to cut its CEO’s target compensation this year. Apple drew headlines last week when it announced a 40% cut to Tim Cook’s target pay this year. What was more interesting is that it attributed that cut to a big increase in shareholders voting against its executive compensation at its annual... Apple may not be the only tech company to cut its CEO’s target compensation this year. ...

Photo by Bloomberg

What’s Really Holding Back Twitter Ads

By Jessica E. Lessin · Jan 18, 2023 5:39pm PST

A few weeks ago, I was having lunch with a former magazine editor in New York when the subject of Elon Musk and Twitter came up. We talked about the advertisers spooked by Musk’s disastrous rollout of the Twitter Blue subscription service, among other things. “Oh, they’ll come back,” he said. “They always do.”Now, we all know how bad the... A few weeks ago, I was having lunch with a former magazine editor in New York when the subject of...

Deputy Attorney General Lisa Monaco. Photo by Bloomberg

The DOJ’s Bitzlato Buzzkill; Genesis Teeters Toward the Edge

By Aidan Ryan · Jan 18, 2023 4:38pm PST

So, how about that DOJ presser? The U.S. Department of Justice promised a “major, international cryptocurrency enforcement action” on Wednesday, prompting speculation that it might announce news related to the crypto exchange Binance (which it has reportedly been investigating for its compliance with U.S. anti-money laundering laws and sanctions... So, how about that DOJ presser? The U.S. Department of Justice promised a “major, international...

Barry Silbert. Photo by Bloomberg.

A Genesis Bankruptcy Would Burn DCG’s Investors

By Akash Pasricha, Aidan Ryan and Lauren Tara LaCapra · Jan 18, 2023 3:25pm PST · 1 comment

Barry Silbert. Photo by Bloomberg.

A Genesis Bankruptcy Would Burn DCG’s Investors

By Akash Pasricha, Aidan Ryan and Lauren Tara LaCapra · Jan 18, 2023 3:25pm PST · 1 comment

Whatever happens to crypto broker and lender Genesis, investors in its parent company, Barry Silbert’s Digital Currency Group, are likely to get badly burned. As DCG endeavors to solve Genesis’ financial crisis, it has discussed proposals to pay cash, crypto and issue equity to Genesis’ creditors, say people familiar with the... Whatever happens to crypto broker and lender Genesis, investors in its parent company, Barry...

Photo: Getty

Creator Economy

Why YouTube’s Plan to Share Ad Revenue on Shorts May Disappoint

By Kaya Yurieff · Jan 18, 2023 3:03pm PST

YouTube made a splash when it announced last fall it would begin sharing ad revenue with creators who make short-form videos known as Shorts, starting February 1. But I predict that creators will be disappointed by the payouts they receive. Creators have long considered the Google-owned video sharing site the most consistent and lucrative... YouTube made a splash when it announced last fall it would begin sharing ad revenue with creators...

A woman walks by the New York City Twitter office on January 12, 2023. Photo via Getty Images.

Musk’s Twitter Saw Revenue Drop 35% in Q4, Sharply Below Projections

By Erin Woo · Jan 18, 2023 9:49am PST · 3 comments

Twitter’s fourth quarter revenue fell about 35% year over year to $1.025 billion, a top ad executive revealed at a staff meeting Wednesday, the most detailed sign yet of how much revenue has fallen. That was 72% of Twitter’s internal goal for the quarter, according to a slide showed to employees. The executive, Twitter’s... Twitter’s fourth quarter revenue fell about 35% year over year to $1.025 billion, a top ad...

Illustration by Jesús Escudero.

Red Flags Are (Mostly) in the Eye of the Beholder

By Aaron Harris · Jan 18, 2023 9:00am PST · 9 comments

Let’s accept, for the purposes of this essay, that founders and venture capitalists are engaged in a simple trade. Founders sell business risk in exchange for the cash they need to take bigger risks; venture capitalists buy that risk hoping it will one day transmute into reward. Each side does this because they believe that ultimately the... Let’s accept, for the purposes of this essay, that founders and venture capitalists are...

Photo by Getty Images.

Meta Pressures Average-Rated Employees to Up Their Game

By Sylvia Varnham O'Regan and Lauren Tara LaCapra · Jan 18, 2023 6:00am PST · 1 comment

Photo by Getty Images.

Meta Pressures Average-Rated Employees to Up Their Game

By Sylvia Varnham O'Regan and Lauren Tara LaCapra · Jan 18, 2023 6:00am PST · 1 comment

At Meta Platforms, meeting expectations no longer meets expectations. Company leaders have told some managers that employees who receive a “meets all expectations” grade in their performance review have to up their game, said a current manager. In the past, employees receiving such a grade were told that was a positive sign. The new... At Meta Platforms, meeting expectations no longer meets expectations. Company leaders have told...

Site of the proposed Rhyolite Ridge lithium mine. Photo: Courtesy Ioneer

The Electric: Biden Administration Attempts to Woo Wary Investors in Battery Metals Mining

By Steve LeVine · Jan 18, 2023 5:00am PST

The Biden administration, hoping to win over private investors who have been slow to back U.S. projects to mine metals for electric vehicle batteries, is framing its support for a proposed Nevada lithium mine as evidence that the U.S. is serious about reversing a decadeslong decline in heavy industry.The conditional $700 million Department of... The Biden administration, hoping to win over private investors who have been slow to back U.S....

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 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

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

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...