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

Chart by Shane Burke

How Money-Losing Tech Firms Redefine Profits

By Cory Weinberg · Oct 31, 2022 6:00am PDT · 12 comments

Last month, Rent the Runway CEO Jennifer Hyman announced that the e-commerce company, used by tens of thousands of fashion aficionados on a budget, had turned a tiny profit during the second quarter after several years of losses—at least, that is, by the firm’s favorite metric of profitability. But that definition of profitability... Last month, Rent the Runway CEO Jennifer Hyman announced that the e-commerce company, used by...

To make green hydrogen, electricity is applied to water in an electrolyzer. Photo: Adam Glanzman/Bloomberg

The Electric: Hydrogen Is Again Confounding the Dreams of Its Promoters

By Steve LeVine · Oct 30, 2022 2:00pm PDT

This Tuesday: The global lithium shortage stands to severely stunt the production of electric vehicles through the end of the decade. To discuss how the industry is responding—and China's dominance of the supply chain—I'm excited to host Eric Norris, president for lithium at Albemarle, the world's largest lithium producer, for the next Live Chat... This Tuesday: The global lithium shortage stands to severely stunt the production of electric...

Elon Musk

Musk Fired Executives For ‘Cause,’ In Apparent Attempt to Avoid Payouts

By Martin Peers · Oct 29, 2022 7:14pm PDT · 11 comments

When Elon Musk terminated four top Twitter executives, including CEO Parag Agrawal and CFO Ned Segal on Thursday, he did so “for cause,” said a person familiar with the situation, in an apparent effort to avoid paying out tens of millions of dollars in severance pay and unvested stock awards. Musk fired the executives—including... When Elon Musk terminated four top Twitter executives, including CEO Parag Agrawal and CFO Ned...

The Weird Science of Generative AI

The Weird Science of Generative AI

By Jon Steinberg · Oct 29, 2022 7:00am PDT

The Weird Science of Generative AI

The Weird Science of Generative AI

By Jon Steinberg · Oct 29, 2022 7:00am PDT

Hi, welcome to your Weekend!First, some good news: This week’s issue is 100% Elon free. If you’re dying to read more about the Birdman who shall not be named, may we suggest The Information’s coverage of yesterday’s Twitter takeover here, here, here and here. (Also an interesting Forum post here.)Instead, we bring you a special themed... Hi, welcome to your Weekend!First, some good news: This week’s issue is 100% Elon free. If you’re...

Art by Mike Sullivan.

Generating Clout

Meet the AInfluencers: 14 Creators Using Generative AI to Gain Big Followings

By Arielle Pardes and Annie Goldsmith · Oct 29, 2022 6:00am PDT

We’re living through the palace revolution of artificial intelligence. Creatives, once thought immune to the looming threat of AI, are suddenly competing with software like Open AI's Dall-E and Jasper’s text-generation platform, which use neural networks to generate original images and text. These tools are new enough that we’ve only just begun... We’re living through the palace revolution of artificial intelligence. Creatives, once thought...

Mixed AI art by Clark Miller

War of the Art Worlds: Generative AI Sparks a New Culture Clash Among Creatives

By Jessica Lucas · Oct 28, 2022 1:00pm PDT · 3 comments

“When I was a small kid,” said Curio, a nonbinary artist and web developer from Pennsylvania, “I literally had the most expansive, vivid daydreams of a device that I could put on my head, and it would just pull the images out and put them on paper.” Curio,who is in their 20s and asked to remain anonymous, has a form of autoimmune arthritis that... “When I was a small kid,” said Curio, a nonbinary artist and web developer from Pennsylvania, “I...

Photo by Getty Images

Creator Economy

Twitter Shuts Down an Audio Feature; Musk to Take CEO Role

By Kaya Yurieff · Oct 28, 2022 12:22pm PDT

What features could be on the chopping block now that Elon Musk owns Twitter?Like other tech companies, Twitter rolled out a swath of new creator features since pandemic lockdowns, ranging from live audio Spaces to Super Follows, where accounts can charge followers for bonus tweets. Now Musk, a super Tweeter himself, has indicated he’s ready to... What features could be on the chopping block now that Elon Musk owns Twitter?Like other tech...

Art by Clark Miller

Students Are Using AI Text Generators to Write Papers—Are They Cheating?

By Chris Stokel-Walker · Oct 28, 2022 11:30am PDT · 7 comments

Art by Clark Miller

Students Are Using AI Text Generators to Write Papers—Are They Cheating?

By Chris Stokel-Walker · Oct 28, 2022 11:30am PDT · 7 comments

When West—not his real name—enrolled in college last year at the University of Rhode Island, he quickly realized that his professors expected a lot out of him. He had scheduled teaching, he had assignments, he had tests—and he didn’t want to devote an equal amount of time to all of them. “I would like to say I’m pretty smart,” West said. So he... When West—not his real name—enrolled in college last year at the University of Rhode Island, he...

Kenny Man. Photo via 01Fintech. Art by Mike Sullivan.

Former Ant Group Executive Raising $300 Million for Asia Fintech Fund

By Juro Osawa · Oct 28, 2022 10:34am PDT · 2 comments

The former head of international investing at Chinese financial technology giant Ant Group has launched a new private equity firm, 01Fintech, and is raising $300 million to invest mainly in fintech startups in Southeast Asia, according to a person with direct knowledge of the matter. The debut of the previously unreported fund, whose backers... The former head of international investing at Chinese financial technology giant Ant Group has...

AI art generated by Clark Miller

‘This Time Is Really, Really Different’: The Early Adopter’s Guide to the Ingenious, Uncanny, Slightly Scary World of Generative AI

By Margaux MacColl · Oct 28, 2022 9:27am PDT · 7 comments

Martin Erlic, who runs an olive oil business in Croatia, used AI text-generating startup Jasper to write his dream sci-fi novel. Architect Nuno Fontarra turns to AI image software Midjourney to dream up whimsical buildings that inspire his real-life designs. And in moments of emotional turmoil, Serena, a physicist in Texas, asksthe artificially... Martin Erlic, who runs an olive oil business in Croatia, used AI text-generating startup Jasper...

With Musk Now Running Twitter, Spotlight is on Workforce

By Kaya Yurieff and Becky Peterson · Oct 28, 2022 3:00am PDT

Elon Musk is now in control of Twitter, having completed the $44 billion purchase of Twitter on Thursday and fired the company’s top leadership. For employees, there’s both good and bad news. While Twitter employees with stock can look forward to a cash payout from the takeover, some will likely lose their jobs, with those... Elon Musk is now in control of Twitter, having completed the $44 billion purchase of Twitter on...

Andrew Mason and Sam Altman. Photos by Bloomberg

OpenAI Leads Financing of Andrew Mason’s Descript at $500 Million–Plus Valuation

By Erin Woo · Oct 27, 2022 6:34pm PDT

Andrew Mason and Sam Altman. Photos by Bloomberg

OpenAI Leads Financing of Andrew Mason’s Descript at $500 Million–Plus Valuation

By Erin Woo · Oct 27, 2022 6:34pm PDT

OpenAI, whose software for generating original text and images is galvanizing interest in artificial intelligence, has agreed to lead an investment of tens of millions of dollars in Descript, an audio and video editing app, at a valuation of around $550 million, according to two people with direct knowledge of the investment. Groupon co-founder... OpenAI, whose software for generating original text and images is galvanizing interest in...

Photo by Bloomberg

Google’s Pain Is Amazon’s Gain

By Jessica E. Lessin · Oct 27, 2022 5:00pm PDT

They say downturns provide opportunities for those ready to seize them. And to see how, look no further than Amazon’s very healthy ads business. In the most recent quarter, when marketers pulled back from Google, Meta and just about everywhere else, Amazon grew its advertising business 25%. It’s now at an annualized run rate of almost $40... They say downturns provide opportunities for those ready to seize them. And to see how, look no...

Photo: Bloomberg

Creator Economy

Pinterest CEO Backburners Creator Strategy

By Mahira Dayal · Oct 27, 2022 4:23pm PDT

New Pinterest CEO Bill Ready has a vision for the company: In the future, every product on Pinterest will be shoppable. A user won’t need to navigate to a separate shopping tab and will instead be able to buy a product wherever they are on the digital scrapbooking app. But creators are no longer the most important part of that plan, he said.“... New Pinterest CEO Bill Ready has a vision for the company: In the future, every product on...

Art by Mike Sullivan

The Information 50

What We Got Right—and Wrong—About Last Year’s The Information 50 List

By Amir Efrati · Oct 27, 2022 12:54pm PDT

A year ago, our second annual list of the most promising startups in tech highlighted 50 companies to watch based on their financial and other metrics. Since then, the downturn in startup funding and valuations amid higher interest rates and slowing economic activity has humbled many of the founders—but not all. Turing, the top-ranked... A year ago, our second annual list of the most promising startups in tech highlighted 50...

Audience members at TechCrunch Disrupt in San Francisco. Photo: Getty

The VC Slowdown Has Young Investors Sweating

By Kate Clark · Oct 27, 2022 12:09pm PDT · 1 comment

Audience members at TechCrunch Disrupt in San Francisco. Photo: Getty

The VC Slowdown Has Young Investors Sweating

By Kate Clark · Oct 27, 2022 12:09pm PDT · 1 comment

“They’re really anxious.”That was the comment from someone who works at a venture capital firm earlier this week when we talked about how their 20-something colleagues were doing.These rookie VC analysts, associates and principals, who do the grunt work required for general partners and managing directors to ink new deals, are worried the... “They’re really anxious.”That was the comment from someone who works at a venture capital firm...

An earlier version of the Starship and the Super Heavy booster stacked at the South Texas Starbase facility on February 10, 2022. Photo by Getty Images.

‘Make Fire’: Inside Musk’s Struggle to Launch SpaceX’s High-Stakes Mars Rocket

By Becky Peterson · Oct 27, 2022 11:00am PDT · 1 comment

Elon Musk’s ambitions of landing on Mars rest on a 394-foot-high rocket that currently sits in the open air in Boca Chica, Texas. Two weeks ago, Musk’s hopes nearly came crashing down in an incident that caused employees to question whether the world’s most important rocket company was moving too fast. A day after technicians... Elon Musk’s ambitions of landing on Mars rest on a 394-foot-high rocket that currently sits...

Partner Content

Recession-Proofing Your Software Business

By The Information Partnerships · Oct 27, 2022 10:24am PDT

Is growth at any cost still an effective strategy in a recession-prone economic landscape? That was the topic at hand in a panel moderated by Kevin McLaughlin, reporter for The Information. His guests included Prem Ananthakrishnan, managing director and software lead at Accenture; Anu Bharadwaj, chief operating officer at Atlassian; and Lara... Is growth at any cost still an effective strategy in a recession-prone economic landscape? That...

Adam Dell. Photo by Getty. Art by Mike Sullivan

Ex-Goldman Sachs Partner Adam Dell’s Crypto Startup Stumbles

By Maria Heeter and Aidan Ryan · Oct 27, 2022 4:03am PDT

At the start of this year, Adam Dell, a onetime Goldman Sachs executive who helped lead the Wall Street firm’s push into Main Street banking, grabbed headlines when he launched a crypto investing startup. His timing would prove to be disastrous. Dell’s Domain Money, backed with $33 million in funding from a host of big-name investors... At the start of this year, Adam Dell, a onetime Goldman Sachs executive who helped lead the Wall...

Photo by Bloomberg

On Metaverse Spending, Zuckerberg Doesn’t Care What Critics Say

By Martin Peers · Oct 26, 2022 5:00pm PDT · 1 comment

Photo by Bloomberg

On Metaverse Spending, Zuckerberg Doesn’t Care What Critics Say

By Martin Peers · Oct 26, 2022 5:00pm PDT · 1 comment

Mark Zuckerberg has a message to all his metaverse critics out there: He doesn’t care what you think. Not only is he not cutting back on augmented and virtual reality investments to take account of the economic slump, he plans to spend even more money! In reporting third-quarter earnings Wednesday, Facebook owner Meta Platforms—showing a... Mark Zuckerberg has a message to all his metaverse critics out there: He doesn’t care what you...