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

Why AWS Makes Money and Google Cloud Doesn’t

By Kevin McLaughlin and Amir Efrati · Mar 7, 2022 6:00am PST

Google’s cloud computing arm is the company’s biggest hope of creating a substantial moneymaker outside of advertising, but it has been struggling to make up meaningful ground against industry pioneer Amazon Web Services. That extends to profitability: Last year, despite generating $19 billion in revenue, the kind of scale that... Google’s cloud computing arm is the company’s biggest hope of creating a substantial...

Photo: Qilai Shen/Bloomberg

Why EV Battery Makers Need to Start Using Machine Learning

By Steve LeVine · Mar 6, 2022 2:00pm PST

Welcome back to The Electric! At a time of fast transformation of the transportation system, the lithium-ion battery industry is still largely mired in decades-old ways of invention and development. This week, we look at companies that are using “small data” to create artificial intelligence algorithms and accelerate battery development.In... Welcome back to The Electric! At a time of fast transformation of the transportation system,...

Tech Workers Respond to the Realities of War, While Tech Leaders Grapple With the Realities of Their Own Power

Tech Workers Respond to the Realities of War, While Tech Leaders Grapple With the Realities of Their Own Power

By Jon Steinberg · Mar 5, 2022 8:00am PST

Hi, welcome to your Weekend!More than any other industry, tech attracts a global workforce. According to one 2018 report, 71% of tech workers in Silicon Valley are foreign born. And tech leaders have never been shy about their desires for the US to reform its immigration laws in order to attract even more foreign talent. So it should come... Hi, welcome to your Weekend!More than any other industry, tech attracts a global workforce....

The city of Nizhny Novgorod. Intel has operated a major software development center in the city for decades. Photo by Bloomberg.

Intel’s Decades-Old Russian Software Operations Underscore Tough Choices for U.S. Tech Firms

By Stephen Nellis and Sylvia Varnham O'Regan · Mar 5, 2022 6:07am PST · 2 comments

The city of Nizhny Novgorod. Intel has operated a major software development center in the city for decades. Photo by Bloomberg.

Intel’s Decades-Old Russian Software Operations Underscore Tough Choices for U.S. Tech Firms

By Stephen Nellis and Sylvia Varnham O'Regan · Mar 5, 2022 6:07am PST · 2 comments

When Intel Corp. suspended chip sales to Russia last week, it joined a stampede of U.S. tech companies cutting off sales after President Vladimir Putin’s invasion of Ukraine. But Intel’s ties to Russia run far deeper than chip sales. For more than two decades, the company has operated a major software development center in Nizhny... When Intel Corp. suspended chip sales to Russia last week, it joined a stampede of U.S. tech...

Art by Haejin Park

Covid Didn’t End the Tech Backlash. Could Putin?

By Jessica E. Lessin · Mar 5, 2022 5:00am PST

It is a truth universally acknowledged in Silicon Valley that when one tech platform takes a stand against some injustice, others are quick to follow. Big tech companies—like many corporations—wait for the first mover and follow in droves.And so it was this week, when Meta, Alphabet, Apple, Netflix, Reddit and many more blocked or curbed the... It is a truth universally acknowledged in Silicon Valley that when one tech platform takes a...

Shopify's headquarters in Canada. Photo by Bloomberg.

What the Shift to Cash Comp Means for Tech Profit Margins

By Martin Peers · Mar 4, 2022 5:00pm PST · 1 comment

Cash is once again king. We got more evidence this week—in our interview with Cisco’s chief people officer—that some tech companies are raising salaries to sweeten pay at a time when falling stock prices make stock less appealing as a form of compensation. While workers may be pleased, investors might not be. Companies (and investors) like to... Cash is once again king. We got more evidence this week—in our interview with Cisco’s chief...

Art by Haejin Park.

How a Venture Founder’s Aesthetics Obsession Influences How She Picks Companies

By Malique Morris · Mar 4, 2022 2:00pm PST · 1 comment

This isMy Life’s Work, a column about the unique life experiencesthat influenced the careers of tech founders and executives. Interviews have been edited and condensed for clarity. Sarah Kunst’s venture fund, Cleo Capital, which she founded in 2018, has invested in culture-shifting media companies like Cameo and MasterClass, cryptocurrency... This isMy Life’s Work, a column about the unique life experiencesthat influenced the careers of...

Art by Haejin Park.

Laurie Segall’s Memoir Confronts Tech Titans, Media Moguls and All Sorts of “Special Characters”

By Annie Goldsmith · Mar 4, 2022 12:00pm PST · 2 comments

Art by Haejin Park.

Laurie Segall’s Memoir Confronts Tech Titans, Media Moguls and All Sorts of “Special Characters”

By Annie Goldsmith · Mar 4, 2022 12:00pm PST · 2 comments

This is 10 Questions, in which we ask tech authors to pull back the covers on their recently released books. Interviews have been edited and condensed for clarity. “Putting out a memoir is like walking down the street naked. It’s scary and it’s vulnerable and—well, I don’t know if walking down the street naked is rewarding—but it’s also very... This is 10 Questions, in which we ask tech authors to pull back the covers on their recently...

All photographs courtesy of the subjects.

‘Defend the Country, Defend the Truth’: How 16 Ukrainian- and Russian-Born Tech Workers Are Responding to a Nightmare

By The Information Staff · Mar 4, 2022 11:00am PST · 2 comments

“My entire family is still there, in Kyiv,” says New York–based entrepreneur and investor Constantin Kogan. “When I’m communicating with them, I am feeling like this is the last time I’ll talk with them in my life.” For thousands of people in the tech industry, abject fear for their loved ones has dominated life over the past week. More than a... “My entire family is still there, in Kyiv,” says New York–based entrepreneur and investor...

How Google Is Preparing for the End of Internet Advertising (as We Know It)

By Sarah Krouse · Mar 4, 2022 6:00am PST · 6 comments

In 2020, when Apple announced plans for sweeping privacy changes to its mobile phones, Meta Platforms—the parent of Facebook and one of the advertising powerhouses most likely to feel the pain of the changes—duked it out with Apple for days on Twitter and in full-page newspaper ads. Another internet ad giant, Google, barely made a... In 2020, when Apple announced plans for sweeping privacy changes to its mobile phones, Meta...

Photo: Bloomberg

The Big Deal Over Staking-Startup Lido; Serena Williams’ Diversity-Driven $111 Million Fund

By Akash Pasricha · Mar 3, 2022 6:45pm PST

On Thursday, Andreessen Horowitz announced it was investing $70 million in Lido, a startup that makes money “staking” for blockchain protocols. What’s noteworthy is that Andreessen Horowitz did this deal alone, a sign of its confidence. So we decided to break down the business model.The situation: Many newer blockchains rely on a process called... On Thursday, Andreessen Horowitz announced it was investing $70 million in Lido, a startup that...

Disney's name on a screen at the New York Stock Exchange. Photo by Bloomberg.

Why Disney’s Ad-Streaming Move Would Be a Big Deal

By Martin Peers · Mar 3, 2022 5:00pm PST

Disney's name on a screen at the New York Stock Exchange. Photo by Bloomberg.

Why Disney’s Ad-Streaming Move Would Be a Big Deal

By Martin Peers · Mar 3, 2022 5:00pm PST

Netflix’s revolutionary impact on television is beginning to fade. Our scoop today that Disney is considering a cheaper, ad-supported version of its Disney+ service shows how streaming is inexorably gravitating toward the traditional TV model. Such a move means Disney would follow NBCUniversal, Discovery, Paramount, WarnerMedia and even Amazon... Netflix’s revolutionary impact on television is beginning to fade. Our scoop today that Disney is...

An advertisement for Crytpo Wolves Club NFT in Times Square, New York. Photo: Bloomberg

Creator Economy

How the SEC Could Rattle NFT Startups; India’s YouTuber Boom

By Mahira Dayal · Mar 3, 2022 4:08pm PST

A Securities and Exchange Commission probe into the developers of non-fungible tokens and the marketplaces that sell them poses ramifications for several creator economy startups. At least nine in The Information’s Creator Economy Database are focused on these NFTs, which became wildly popular collectible and trading assets last year. An... A Securities and Exchange Commission probe into the developers of non-fungible tokens and...

Disney CEO Bob Chapek. Photo by Bloomberg.

Disney Discusses Launching Ad-Supported Tier of Disney+ in U.S.

By Jessica Toonkel · Mar 3, 2022 12:58pm PST

Disney is discussing launching a cheaper, ad-supported tier of its Disney+ streaming service in the U.S., according to a person involved in the discussions. The entertainment giant seeks to hit its goal of profitability for its direct-to-consumer business in 2024, and the move could fire up slowing subscriber growth for the service. Disney would... Disney is discussing launching a cheaper, ad-supported tier of its Disney+ streaming service in...

One World Trade Center in New York. Hyperscience plans to move into a top floor of the building. Photo by Bloomberg

Automation Firm Hyperscience Slashes Staff, Loses CEO as Startups Face Growing Pressure

By Kate Clark · Mar 3, 2022 11:50am PST

In December, automation-software startup Hyperscience said it raised $100 million in venture capital from Tiger Global Management, Bessemer Venture Partners and other firms at a post-investment valuation of $1.65 billion. Then last week, less than three months later, a harsh reality set in: The eight-year-old company laid off 100 workers, or 25%... In December, automation-software startup Hyperscience said it raised $100 million in venture...

A Vive Flow headset next to a smartphone. Credit: HTC.

A $10 Million Raise for AI “Native Inhabitants” of the Metaverse

By Mathew Olson · Mar 3, 2022 11:06am PST

A Vive Flow headset next to a smartphone. Credit: HTC.

A $10 Million Raise for AI “Native Inhabitants” of the Metaverse

By Mathew Olson · Mar 3, 2022 11:06am PST

Regardless of who you talk to or the degree of company spin you’re dealing with, most discussions and pitches involving the metaverse will touch upon the idea of feeling present with your fellow users, i.e. with other real people on the platform. But there’s also a strong push—backed by proven talent and reputable investment—to populate virtual... Regardless of who you talk to or the degree of company spin you’re dealing with, most discussions...

Tobias Lütke, founder and CEO of Shopify. Photo by Bloomberg

Shopify Doubles Down on ‘Pay Isn’t Everything’ Approach

By Malique Morris and Mark Di Stefano · Mar 3, 2022 6:02am PST · 2 comments

In the mind of Shopify CEO Tobias Lütke, working at the e-commerce firm shouldn’t be about making lots of money. Lately, that’s been a reality for at least some employees. Shopify has historically offered low base salaries, in line with Canadian nontech firms, an approach that has been offset by stock awards whose value has... In the mind of Shopify CEO Tobias Lütke, working at the e-commerce firm shouldn’t be...

Photo: Bloomberg

The Ukraine Lawyer Trying to Freeze Russians’ Crypto Wallets

By Aidan Ryan · Mar 2, 2022 6:03pm PST

Ukraine’s embattled government has called on crypto exchanges to block Russian users from using their crypto wallets to try to evade global sanctions. To find out how that effort is working, I talked to a Ukrainian lawyer who has been helping collect information about the crypto assets of Russian politicians.“This is our personal war, because,... Ukraine’s embattled government has called on crypto exchanges to block Russian users from using...

An Amazon Books store in New York. Photo by Bloomberg.

What Amazon’s Store Closures Tell Us

By Martin Peers · Mar 2, 2022 5:00pm PST · 1 comment

What a sign of the times. For years, Amazon has been blamed for brick-and-mortar retail chains closing stores and in some cases going out of business all together. Today, Amazon got a taste of its own medicine. The e-commerce giant said it would close 68 of its physical stores, Reuters reported, including a chain of shops called 4-star that... What a sign of the times. For years, Amazon has been blamed for brick-and-mortar retail chains...

Chart: Mike Sullivan

TikTok Video Limits, Once Similar to Vines, Are Now More Like YouTube

By Mahira Dayal · Mar 2, 2022 4:19pm PST

Chart: Mike Sullivan

Creator Economy

TikTok Video Limits, Once Similar to Vines, Are Now More Like YouTube

By Mahira Dayal · Mar 2, 2022 4:19pm PST

When ByteDance launched TikTok in the U.S. in 2018, videos on the app were just 15 seconds long, or about twice the length of popular looping videos on Vine, the short-form video app Twitter shut down in 2016. As our latest chart shows, TikTok videos have been steadily increasing ever since. This week TikTok said users could upload videos as... When ByteDance launched TikTok in the U.S. in 2018, videos on the app were just 15 seconds long,...