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

Emad Mostaque, CEO of Stability AI. Photo via Scale AI on YouTube

Stability AI CEO, After Ruffling Feathers of Researchers, Discussed $1 Billion in New Financing

By Erin Woo and Jon Victor · Oct 25, 2022 6:21pm PDT · 4 comments

Emad Mostaque, the former hedge fund manager who made his startup, Stability AI, one of the most visible standard-bearers of software that creates original images from simple text descriptions, could soon test the limits of hype around the new technology. After raising $100 million of venture capital in three successive equity funding deals in... Emad Mostaque, the former hedge fund manager who made his startup, Stability AI, one of the most...

Photo by Bloomberg

Google’s Head-Scratcher, Microsoft’s Slowing Azure

By Jessica E. Lessin · Oct 25, 2022 5:28pm PDT

So much for doing more with less. Alphabet, one of the many tech giants that has been discussing the need to be more efficient, still spent a lot in its most recent quarter, which ended up hurting them. Google’s parent company reported a big 19% drop in operating profit for its third quarter on Tuesday as it continued to hire heavily and... So much for doing more with less. Alphabet, one of the many tech giants that has been discussing...

Photo: Bloomberg

Creator Economy

A Tale of Two YouTubes; Podcasts Fuel Spotify Growth; Most Promising Creator Economy Startups

By Mahira Dayal · Oct 25, 2022 4:35pm PDT · 1 comment

It’s the season of downbeat superlatives for internet companies, as advertisers rein in spending. The latest: YouTube said its ad revenue dropped 2% to $7.07 billion in the third quarter, the first time that metric has dropped year over year since parent-company Alphabet began reporting it in 2019. Snap last week reported its weakest quarterly... It’s the season of downbeat superlatives for internet companies, as advertisers rein in spending....

What We Learned From The Information’s 50 Most Promising Startups

By Amir Efrati · Oct 25, 2022 6:50am PDT · 15 comments

The Information 50

What We Learned From The Information’s 50 Most Promising Startups

By Amir Efrati · Oct 25, 2022 6:50am PDT · 15 comments

After splurging in 2020 and 2021, investors this year turned less generous toward startups. But that didn’t slow the pipeline of promising companies that could become the next ByteDance, Stripe or Databricks. The third edition of The Information’s 50 most promising startups looked for the next big winners in artificial intelligence... After splurging in 2020 and 2021, investors this year turned less generous toward startups. But...

Mark Zuckerberg. Photo by Bloomberg.

What Altimeter’s Meta Manifesto Says About Investor Attitudes to Big Tech

By Martin Peers · Oct 24, 2022 5:00pm PDT

It’s no fun being a Big Tech executive nowadays. Not only do they have antitrust regulators breathing down their necks, now investors are beginning to complain about their spending! Today, for instance, Altimeter Capital’s Brad Gerstner published an open letter to Meta Platforms CEO Mark Zuckerberg calling for him to reduce staffing by at least... It’s no fun being a Big Tech executive nowadays. Not only do they have antitrust regulators...

Chart: Shane Burke

Creator Economy

Taking Stock of Meta’s Creator Initiatives; Spotify to Hire for Creator Roles

By Kaya Yurieff · Oct 24, 2022 2:31pm PDT

Since launching this newsletter 18 months ago, we’ve chronicled how large tech platforms have raced to roll out features aimed at creators. Last year, Facebook and Instagram parent Meta Platforms was especially active, in some cases announcing several new features in the span of a month. Meta CEO Mark Zuckerberg proclaimed: “We want to build the... Since launching this newsletter 18 months ago, we’ve chronicled how large tech platforms have...

113 People Who Run Tesla

By Mark Matousek · Oct 24, 2022 10:52am PDT

Elon Musk, who is set to add Twitter to the sprawling roster of companies he oversees, is known for juggling many responsibilities. His 28 direct reports at Tesla, where he is CEO, reflect his tendency to spread his attention wider than most executives do. Musk has long advocated for a flat management structure and encouraged employees from... Elon Musk, who is set to add Twitter to the sprawling roster of companies he oversees, is known...

Chart by Shane Burke.

Apple, Microsoft and Alphabet Grapple With Bond Investment Losses

By Akash Pasricha · Oct 24, 2022 6:00am PDT · 2 comments

Chart by Shane Burke.

Apple, Microsoft and Alphabet Grapple With Bond Investment Losses

By Akash Pasricha · Oct 24, 2022 6:00am PDT · 2 comments

The bond market’s historic sell-off this year, in response to rising interest rates, has been disastrous for retirees dependent on bonds for income. It’s been almost as bad for Apple, Microsoft and Alphabet, wiping out billions of dollars from the mountains of cash they’re sitting on. Worst hit is Apple, which reported that... The bond market’s historic sell-off this year, in response to rising interest rates, has...

Biden announces the initial grants from the $135 billion pot to build a U.S. battery supply chain. Photo: Al Drago/Bloomberg

The Electric: How the Biden Administration Should Interpret the New Battery Law

By Steve LeVine · Oct 23, 2022 2:00pm PDT

Save the date: Automakers face a massive shortage of lithium this decade, hobbling their plans to produce millions of electric vehicles. To discuss how the lithium mining industry is responding, I'm excited to host Eric Norris, president of lithium at Albemarle, the world's largest lithium producer, for the next Live Chat With The Electric... Save the date: Automakers face a massive shortage of lithium this decade, hobbling their...

Still Deep Blue, But Trending Red

Still Deep Blue, But Trending Red

By Jon Steinberg · Oct 22, 2022 7:00am PDT · 5 comments

Hi, welcome to your Weekend!Midterms, super PACs, Taylor Swift, Razzlekhan: We’re going very high and very low this week. First off, we have Abe’s cover story of Jeff Lawson, the Twilio CEO whose company became a Wall Street darling during the pandemic, only to take a terrifying plunge during this year’s selloff. What makes Lawson... Hi, welcome to your Weekend!Midterms, super PACs, Taylor Swift, Razzlekhan: We’re going very high...

Art by Mike Sullivan.

Screentime: Investor Katie Stanton Is Working Through Her 2,000 Unread Emails

By Annie Goldsmith · Oct 22, 2022 6:00am PDT · 8 comments

Katie Stanton is in high demand. The Moxxie Ventures founder and general partner has 2,007 unread emails and 530 unread texts on her phone. She’s “always” running down her battery and her voicemail message is “please don’t leave a message.” But Stanton, a Yahoo and Vivendi board member, who formerly worked for the U.S. Department of State under... Katie Stanton is in high demand. The Moxxie Ventures founder and general partner has 2,007 unread...

Art by Clark Miller and Mike Sullivan.

The Top 20 Tech-Themed Halloween Costumes of 2022

By The Information Staff · Oct 21, 2022 2:00pm PDT

Art by Clark Miller and Mike Sullivan.

The Top 20 Tech-Themed Halloween Costumes of 2022

By The Information Staff · Oct 21, 2022 2:00pm PDT

Witches and werewolves: tired. Scary-mucci and Semafor: wired. It’s the spooky season, and here at The Information, we are pumpkin spice–pilled. This year’s Halloweenfestivities may be somewhat muted, what with tens of thousands of axed tech employees, terra coin investors, and 15-minute grocery delivery guys wandering the streets like the... Witches and werewolves: tired. Scary-mucci and Semafor: wired. It’s the spooky season, and here...

Art by Clark Miller

Follow the Money

Big Tech Moves (Slightly) to the Right: Employee Contributions Show Silicon Valley’s Growing Embrace of Conservatives

By Arielle Pardes and Shane Burke · Oct 21, 2022 12:19pm PDT · 10 comments

It’s not just Elon Musk who is tacking to the right. Employees of four big tech companies are directing a greater share of their midterm political contributions to conservative candidates than in the two previous election cycles. The Information’s analysis of political giving by employees of Google, Apple, Amazon and Meta shows that 15% of... It’s not just Elon Musk who is tacking to the right. Employees of four big tech companies are...

Cybereason co-founder and CEO, Lior Div. Photo by Bloomberg. Art by Mike Sullivan

$2.5 Billion–Valuation Security Firm Cybereason Hires JPMorgan to Find Buyer

By Kevin McLaughlin and Maria Heeter · Oct 21, 2022 11:12am PDT · 1 comment

Cybereason, a prominent Israeli security software firm valued at $2.5 billion by investors including Google, SoftBank and ex-Treasury Secretary Steve Mnuchin’s private equity firm, has hired JPMorgan Chase & Co. to find a buyer, according to a person with direct knowledge of the matter. The company considered going public earlier this... Cybereason, a prominent Israeli security software firm valued at $2.5 billion by investors...

Art by Clark Miller

Jeff Lawson’s Great Leap: Can the Twilio CEO Fix His Company and His Country at the Same Time?

By Abram Brown · Oct 21, 2022 9:00am PDT · 11 comments

One afternoon toward the end of September, Jeff Lawson’s household was turned upside down: Barack Obama was coming to visit. At their glassy, modernist home high above San Francisco’s Dolores Park, Lawson and his wife Erica shuffled around the furniture to make room for the former president and their three dozen other guests. Venture capitalist... One afternoon toward the end of September, Jeff Lawson’s household was turned upside down: Barack...

Microsoft competition attorney Rima Alaily. Art by Mike Sullivan

How a Microsoft Antitrust Attorney Keeps Its Mega-Acquisitions From Getting Killed

By Aaron Holmes · Oct 21, 2022 6:00am PDT · 2 comments

Microsoft competition attorney Rima Alaily. Art by Mike Sullivan

How a Microsoft Antitrust Attorney Keeps Its Mega-Acquisitions From Getting Killed

By Aaron Holmes · Oct 21, 2022 6:00am PDT · 2 comments

As head of Microsoft’s competition law group, Rima Alaily’s main job is to help close mergers at one of the world’s most acquisitive companies by shepherding them through sometimes sticky antitrust reviews. In early 2021, though, Alaily had a different goal: killing a deal. The team Alaily leads aimed to torpedo Nvidia’s... As head of Microsoft’s competition law group, Rima Alaily’s main job is to help close...

Photo by Bloomberg

Snap Delivers Downbeat Q4 Outlook

By Martin Peers · Oct 20, 2022 5:00pm PDT

Yes, folks, it seems the economy really is deteriorating. After weeks of downbeat economic forecasts—including from Amazon’s Jeff Bezos—Snap’s third-quarter earnings Thursday provided some specifics. Snap reported 6% revenue growth for the quarter—half the rate of the second quarter, and a fraction of the first-quarter growth rate. Snap had... Yes, folks, it seems the economy really is deteriorating. After weeks of downbeat economic...

Photo: Bloomberg

Creator Economy

Snap Needs Some Subscription Juice

By Mahira Dayal · Oct 20, 2022 4:47pm PDT

Snap’s earnings call had a standout message: The camera app needs to quickly find new ways to tap into its young, growing audience to revitalize revenue growth. One way to do this is by expanding beyond advertising and building a stronger subscription feature. But if Twitter's subscription feature Twitter Blue is any model, Snap has its work cut... Snap’s earnings call had a standout message: The camera app needs to quickly find new ways to tap...

Image of Sam Altman raising money, generated by OpenAI’s Dall·e 2

OpenAI, Valued at Nearly $20 Billion, in Advanced Talks with Microsoft For More Funding

By Aaron Holmes, Kate Clark, Erin Woo and Amir Efrati · Oct 20, 2022 1:47pm PDT · 6 comments

OpenAI, whose text- and image-generating artificial intelligence has become a mainstream hit, is in advanced talks to raise more funding from Microsoft, which previously backed the startup with capital that includes credits to use Microsoft’s Azure cloud computing services to develop its technology, according to a person with knowledge of... OpenAI, whose text- and image-generating artificial intelligence has become a mainstream hit, is...

Art by Shane Burke

Why Too Much Dry Powder Is Bad

By Kate Clark · Oct 20, 2022 11:00am PDT

Art by Shane Burke

Why Too Much Dry Powder Is Bad

By Kate Clark · Oct 20, 2022 11:00am PDT

It’s time to address the downsides of the $290 billion mountain of cash raised by venture capitalists over the last few years.About a month ago, I wrote that this dry powder, as it’s referred to, would revive startup funding after what’s been a rather sleepy year for deals. I still believe that to be true. But recently, a top limited partner... It’s time to address the downsides of the $290 billion mountain of cash raised by venture...