The Briefing by Martin Peers, Jessica E. Lessin and the team at The Information

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The Briefing

By Martin Peers, Jessica E. 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

Art by Clark Miller

Copy and Kill: The Ex-Tweeps Hatching a Plan to Knock Off Twitter

By Arielle Pardes · Apr 28, 2023 9:00am PDT · 6 comments

On the day Sarah Oh got laid off from Twitter last November, her friend Gabor Cselle called with his condolences. Then he made her an offer: Would she help him build a better Twitter? Cselle wasn’t trying to reinvent the social media wheel. He just wanted to return to a simpler time on the platform—before 4,000-character tweets or... On the day Sarah Oh got laid off from Twitter last November, her friend Gabor Cselle called with...

Photo by Bloomberg.

Pro Weekly: Cost Cutting Shakes up the Org Charts

By Kalley Huang · Apr 28, 2023 8:00am PDT

Welcome back!I’m Kalley Huang, a data reporter for The Information. I’m now writing The Pro Weekly. Please feel free to ask questions and share feedback at [email protected]. With sales stagnating or falling, tech companies continue looking for ways to cut costs. They are thinning their ranks, shuttering products and streamlining... Welcome back!I’m Kalley Huang, a data reporter for The Information. I’m now writing The Pro...

Jon Korngold. Photo by Getty/Illustration by Shane Burke.

The Big Interview

Blackstone Growth Chief Korngold Sees Opportunity in Wake of Turmoil

By Rachel Graf · Apr 28, 2023 6:00am PDT · 1 comment

Blackstone’s Jon Korngold has been winning deals since he was nine years old. Back then, the venue was a flea market rather than a boardroom, and the prize was often a random antique rather than a multibillion-dollar company. But he was a deal hound nonetheless, and he often got a better price than his mom, who collected antiques, could. ... Blackstone’s Jon Korngold has been winning deals since he was nine years old. Back then,...

Photo by Getty.

Snap and Amazon Q1 Shows Big Tech’s Advertising Advantage

By Martin Peers · Apr 27, 2023 5:00pm PDT

Photo by Getty.

Snap and Amazon Q1 Shows Big Tech’s Advertising Advantage

By Martin Peers · Apr 27, 2023 5:00pm PDT

Advantage, big tech. Snap’s first-quarter report today, showing a 7% drop in revenue, was a markedly worse performance than what its much bigger rival Meta Platforms reported on Wednesday night. (For those who’ve already forgotten, Meta’s ad revenue rose 4% in the quarter.) More noticeable was the difference in the second-quarter revenue... Advantage, big tech. Snap’s first-quarter report today, showing a 7% drop in revenue, was a...

Photo via Shutterstock

Creator Economy

No Bottom for Snap Ad Business

By Isabelle Sarraf · Apr 27, 2023 3:43pm PDT

So much for the burst of good tidings about the ad market from Meta Platforms’ first quarter results. Snap results, out Thursday, took up the baton that YouTube’s drooping ad sales left off. Snap told investors that the advertising slump that hammered first-quarter results would extend into the second quarter. Pinterest, meanwhile, forecast a... So much for the burst of good tidings about the ad market from Meta Platforms’ first quarter...

Photo via Shutterstock

The Looming Layoffs for Venture Capitalists

By Kate Clark · Apr 27, 2023 12:32pm PDT · 2 comments

This week’s news that fintech investor Anthemis Group has cut 28% of its staff, which comes one month after Y Combinator slashed about 20% of its workers, suggests more venture capital layoffs are coming.The shrinking appetite of their limited partners means many will likely raise smaller funds, taking away resources to maintain headcount that... This week’s news that fintech investor Anthemis Group has cut 28% of its staff, which comes one...

John Hegeman, VP of Monetization at Meta. Photo via Meta.

Meta Ads Boss Merges Ads and Business Messaging in New Product Group

By Sylvia Varnham O'Regan · Apr 27, 2023 11:37am PDT

Meta Platforms has combined its advertising product, business messaging and commerce departments into one division as part of a broader effort to reduce the ranks of middle management across the company. The changes, communicated internally last week by Meta’s vice president of monetization, John Hegeman, also show how closely Meta has... Meta Platforms has combined its advertising product, business messaging and commerce departments...

Photo via Upstart.

Fintech’s Credit Crunch

By Ann Gehan · Apr 27, 2023 10:00am PDT · 1 comment

Photo via Upstart.

Fintech’s Credit Crunch

By Ann Gehan · Apr 27, 2023 10:00am PDT · 1 comment

Fintechs, beat down by the tech meltdown last year, are struggling to make good on their pitch to consumers. Consumer lending–focused fintechs like Upstart and Pagaya touted artificial intelligence and other flashy tech as a way to lend money to people quickly and easily—even to customers with bad or limited credit histories that... Fintechs, beat down by the tech meltdown last year, are struggling to make good on their pitch to...

Art by Clark Miller, Shutterstock (2).

The Case for Realistic Action to Regulate Artificial Intelligence

By Robert Lindsay · Apr 27, 2023 9:00am PDT · 11 comments

The overnight success of ChatGPT and GPT-4 marks a clear turning point for artificial intelligence. It also marks an inflection point for public discourse about the risks and benefits of AI for our society. Practitioners, policymakers and pundits alike have voiced loud concerns, ranging from fear of a potential flood of AI-generated... The overnight success of ChatGPT and GPT-4 marks a clear turning point for artificial...

Art by Clark Miller.

Former IRL Employee Alleges Company Inflated User Count

By Mark Matousek · Apr 27, 2023 8:00am PDT · 1 comment

A former employee of SoftBank-backed messaging app IRL alleged in a legal filing that the company has inflated its user count and retaliated against him and other employees who raised concerns about the accuracy of its user numbers. The former employee, Nicholas Grant, made the allegations in an unfair dismissal complaint he filed with the Welsh... A former employee of SoftBank-backed messaging app IRL alleged in a legal filing that the company...

Elon Musk. Photo by Bloomberg.

Tesla Replaces South Korea Chief as Musk Meets With Head of State

By Becky Peterson · Apr 27, 2023 7:07am PDT

Tesla is shaking up its top leadership in South Korea just one day after CEO Elon Musk met with South Korea’s president to discuss further investment in the country. Yvonne Chan, a regional director for Tesla’s business in Thailand and Taiwan and close deputy to Tesla automotive head Tom Zhu, has added South Korea business to her... Tesla is shaking up its top leadership in South Korea just one day after CEO Elon Musk met with...

Apple's John Giannandrea. Photo by Getty

Apple’s AI Chief Struggles With Turf Wars as New Era Begins

By Wayne Ma · Apr 27, 2023 6:00am PDT · 3 comments

Apple's John Giannandrea. Photo by Getty

Apple’s AI Chief Struggles With Turf Wars as New Era Begins

By Wayne Ma · Apr 27, 2023 6:00am PDT · 3 comments

Late last year, a trio of engineers who had just helped Apple modernize its search technology began working on the type of technology underlying ChatGPT, the chatbot from OpenAI that has captivated the public since it launched last November. For Apple, there was only one problem: The engineers no longer worked there. They had left the company to... Late last year, a trio of engineers who had just helped Apple modernize its search technology...

The 2017 debut Chevy Bolt at the Brussels Expo. In Europe, the EV is called the Opel Ampera. Photo: Sjoerd van der Wal/Getty

The Electric: GM’s Baffling Decision to Kill the Magnificently Priced Bolt EV

By Steve LeVine · Apr 27, 2023 4:30am PDT · 2 comments

General Motors’ decision this week to kill the electric Chevy Bolt brings to a close a turbulent chapter in the company’s foray into electric vehicles, including one of the past decade’s biggest battery scandals and a fire hazard that forced the recall of the entire Bolt fleet. It’s a mystifying decision—and a big mistake. General Motors’ decision this week to kill the electric Chevy Bolt brings to a close a turbulent...

Photo via Shutterstock.

Meta’s Quarter Offers Signs of Hope on Ads

By Martin Peers · Apr 26, 2023 5:00pm PDT

In tech, three is the new 30. Meta Platforms on Wednesday reported a 3% lift in revenue for the first quarter, the same revenue increase Alphabet reported for its first quarter on Tuesday. Increasing the top line by 3% is a far cry from the 25% to 30% quarterly growth Facebook’s owner once reported with monotonous regularity. But it’s a big... In tech, three is the new 30. Meta Platforms on Wednesday reported a 3% lift in revenue for the...

Photo via Shutterstock

Creator Economy

Instagram Reshuffles Internal Teams; Meta’s Ad Business Recovers

By Kaya Yurieff · Apr 26, 2023 3:36pm PDT

Before we get into Meta Platforms’ first quarter earnings report, we have some new details about internal changes happening at Instagram as a result of Meta’s latest job cuts. Instagram chief Adam Mosseri, in a note to Instagram employees last week, said the app needs a “flatter structure that gives everyone the opportunity to meaningfully... Before we get into Meta Platforms’ first quarter earnings report, we have some new details about...

Photo by Bloomberg.

First Republic Panic Ensnares SVB Refugees

By Michael Roddan and Cory Weinberg · Apr 26, 2023 1:48pm PDT · 1 comment

Photo by Bloomberg.

First Republic Panic Ensnares SVB Refugees

By Michael Roddan and Cory Weinberg · Apr 26, 2023 1:48pm PDT · 1 comment

A little over two weeks ago, before First Republic Bank revealed on Monday that depositors had yanked more than $100 billion from the bank, Brian Mac Mahon, the founder of Santa Monica, Calif., early-stage startup accelerator Expert Dojo, made an unusual call—to deposit his company’s funds into the stressed Californian lender. Having... A little over two weeks ago, before First Republic Bank revealed on Monday that depositors had...

Discord CEO Jason Citron. Photo by Getty.

Discord’s Revenue Growth Slows to 44% in 2022

By Mark Matousek · Apr 26, 2023 11:53am PDT · 5 comments

Many tech firms saw meager revenue growth, or even a decline, last year as the digital ad market stalled and businesses cut back spending on software. Messaging startup Discord was an exception. Discord, which makes money from subscription fees, lifted revenue 44% to $445 million last year, according to an internal presentation viewed by The... Many tech firms saw meager revenue growth, or even a decline, last year as the digital ad market...

Photos by Bloomberg

Coinbase, Gemini Can’t Resist Overseas Derivatives

By Akash Pasricha · Apr 26, 2023 9:04am PDT

Crypto exchanges based in the U.S. are wading further into overseas markets. Late last week, Winklevoss-founded exchange Gemini said it will soon launch a crypto derivatives trading platform outside the U.S. called Gemini Foundation, confirming our scoop from last month. The first product it will sell—a perpetual futures contract—is a crypto fan... Crypto exchanges based in the U.S. are wading further into overseas markets. Late last week,...

Alphabet CEO Sundar Pichai. Photo via Getty

In Google Founder’s Shadow, CEO Pichai Discovered the Limits of His Power

By Jon Victor and Amir Efrati · Apr 26, 2023 6:00am PDT · 11 comments

Since Sundar Pichai became CEO of Google’s parent company, Alphabet, in 2019, he has been honest with colleagues about the difficulties of overseeing a sprawling conglomerate that’s under constant strain from internal power struggles, regulators and rebellious employees. In one example of that candor, he said in an internal meeting... Since Sundar Pichai became CEO of Google’s parent company, Alphabet, in 2019, he has been...

Photos by Shutterstock.

Microsoft Outperforms Google in Q1

By Martin Peers · Apr 25, 2023 5:00pm PDT

Photos by Shutterstock.

Microsoft Outperforms Google in Q1

By Martin Peers · Apr 25, 2023 5:00pm PDT

Score one for Microsoft. At 48 years of age, the software giant may be old by tech standards, but it’s performing better than younger rival Alphabet, as their March quarter numbers showed today. Both companies posted better results than they had for the December quarter, although that’s a low bar, given that neither showed much growth at all... Score one for Microsoft. At 48 years of age, the software giant may be old by tech standards, but...