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

Alphabet CEO Sundar Pichai speaking at a conference last November. Photo by Bloomberg.

Google Buys microLED Supplier; Snap Expands AR for Landmarks; Meta’s New VR Parental Controls

By Mathew Olson · Mar 16, 2022 11:45am PDT

Here’s an Information-exclusive scoop that could send tremors throughout the AR/VR industry: Google has made a deal to buy Raxium, a Bay Area-based developer of microLED components. The move suggests that Google is indeed getting serious about launching a mixed reality headset and selling its Starline video conferencing booths within the next... Here’s an Information-exclusive scoop that could send tremors throughout the AR/VR industry: ...

Google co-founder Sergey Brin wearing Google Glass, the company's failed consumer smart glasses, a decade ago.

Google Buys Hardware Startup Raxium to Fuel AR Ambitions

By Josh Sisco, Stephen Nellis, Mathew Olson and Sarah Krouse · Mar 16, 2022 11:30am PDT · 1 comment

Google has struck a deal to buy Raxium, a five-year-old startup that develops tiny light-emitting diodes for displays used in augmented and mixed reality devices, according to people familiar with the deal. The acquisition, which has not been previously reported, is a sign that Google wants to own more of the physical components needed to... Google has struck a deal to buy Raxium, a five-year-old startup that develops tiny light-emitting...

Illustration by Jesus Escudero

Web 2.0 Investors Aren’t Cut Out for the Web3 World

By Edith Yeung · Mar 16, 2022 9:00am PDT · 10 comments

Solana was my very first token investment, and it was not an easy one to make. Back in 2018 when I first met Solana co-founder Anatoly Yakovenko, my fund at the time, 500 Mobile Collective, was legally not allowed to invest in digital assets. To back Yakovenko’s company, then known as Loom, I had to get two-thirds of my limited partners to... Solana was my very first token investment, and it was not an easy one to make. Back in 2018 when...

A worker for the instant delivery service Buyk in New York. Photo by Shutterstock

Hours After Russian Invasion, Funding for Instant-Delivery Startup Collapsed

By Berber Jin · Mar 16, 2022 6:00am PDT

A worker for the instant delivery service Buyk in New York. Photo by Shutterstock

Hours After Russian Invasion, Funding for Instant-Delivery Startup Collapsed

By Berber Jin · Mar 16, 2022 6:00am PDT

In February, instant-delivery firm Buyk was just days away from receiving $275 million in cash when the Russian invasion of Ukraine sent the startup spiraling into liquidation, co-founder Rodion Shishkov told The Information. The New York–based startup had arranged new funding from Russian investors including USM Holdings, the global... In February, instant-delivery firm Buyk was just days away from receiving $275 million in cash...

Simon Morris, Chief Strategy Officer of ConsenSys. Photo by ConsenSys. Art by Mike Sullivan.

ConsenSys’s MetaMask Growth Drives $7 Billion Valuation

By Akash Pasricha · Mar 15, 2022 6:18pm PDT

To anyone wondering if the months-long crypto slump that tanked token prices is holding back investments in blockchain startups, ConsenSys’s whopping $450 million Series D fundraising, at a $7 billion post-money valuation, provides a partial answer.The New York company more than doubled its valuation since its previous funding round in November,... To anyone wondering if the months-long crypto slump that tanked token prices is holding back...

Arm CEO Rene Haas. Photo by Bloomberg.

Arm’s Job Cuts Could Be a Sign of Things to Come

By Martin Peers · Mar 15, 2022 5:00pm PDT

Amid the crush of bad news lately, one thing we haven’t seen too much of is job cuts. In fact, the story has been more about the tightness of the labor market, as tech companies struggle to hire enough people. But a Bloomberg report today about chip designer Arm planning to cut up to 1,000 jobs to improve its profitability ahead of an IPO may be... Amid the crush of bad news lately, one thing we haven’t seen too much of is job cuts. In fact,...

Meta Platforms CEO Mark Zuckerberg during a virtual conference in October. Photo: Bloomberg

Creator Economy

Zuckerberg on Instagram NFTs; How Facebook Could Use its TikTok Account

By Mahira Dayal · Mar 15, 2022 3:38pm PDT

Mark Zuckerberg’s meandering keynote at SXSW was fairly short on details. But he did drop a few:In the next several months, users will be able to bring their non-fungible tokens to Instagram, the Meta Platforms’ founder and CEO said via video livestream to the festival on Tuesday. Zuckerberg added that users will also eventually be able to mint... Mark Zuckerberg’s meandering keynote at SXSW was fairly short on details. But he did drop a few:...

A soldier wearing the IVAS headset during a test. Photo: Microsoft/U.S. Army.

More Doubts on the Army’s AR Deal; Adobe’s New Metaverse Angle

By Mathew Olson · Mar 15, 2022 11:30am PDT

A soldier wearing the IVAS headset during a test. Photo: Microsoft/U.S. Army.

More Doubts on the Army’s AR Deal; Adobe’s New Metaverse Angle

By Mathew Olson · Mar 15, 2022 11:30am PDT

It’s been almost a year since Microsoft won a $22 billion U.S. Army contract to create combat-ready AR headsets based on HoloLens technology. The work doesn’t appear to be going well; a new report from Business Insider quotes from a memo sent to members of Microsoft’s team working on the headsets warning that the company is “expecting negative... It’s been almost a year since Microsoft won a $22 billion U.S. Army contract to create...

TSMC CEO C. C. Wei, center, at the company's annual shareholder meeting in Taiwan in 2020. Photo by Bloomberg

Apple’s Latest Chip Could Help TSMC Gain an Edge on Intel in New Battleground

By Stephen Nellis · Mar 15, 2022 10:28am PDT · 1 comment

When Apple Inc. introduced its newest computer last week—a boxy desktop machine called Mac Studio—the star of the show was the powerful chip at the heart of it. But that chip, the M1 Ultra, isn’t new at all. It consists of two existing Apple chips—the M1 Max, which powers Apple’s high-end MacBook Pro... When Apple Inc. introduced its newest computer last week—a boxy desktop machine called Mac...

Photo by Bloomberg

Startups to Watch

Five Cloud Startups Going After AWS’ Blind Spots

By Kevin McLaughlin · Mar 15, 2022 6:00am PDT · 4 comments

Amazon Web Services has built a commanding lead in the cloud computing market by listening to what services and features its customers want and then delivering them. But some application developers believe AWS, in its relentless pursuit of Fortune 500 customers to fuel revenue growth, has become more aligned with corporate IT departments than... Amazon Web Services has built a commanding lead in the cloud computing market by listening to...

Amy Wu, Head of FTX Ventures. Photo by FTX Ventures. Art by Akash Pasricha.

FTX Ventures’ Amy Wu on Startup Valuations and Rate Hikes; Stellar Foundation Backs Early Stage Startups

By Akash Pasricha · Mar 14, 2022 6:20pm PDT

The Federal Reserve is expected to raise the federal funds target rate this week by a quarter percentage point, from 0%-0.25%, and major banks have forecast it will steadily raise rates to as high as 2% this year. One way of valuing companies, using discounted cash flows, suggests these rising rates should compress private valuations even among... The Federal Reserve is expected to raise the federal funds target rate this week by a quarter...

Foxconn employees walking past a company facility in Shenzhen. Photo by Bloomberg.

China Covid Lockdowns Cast Shadows on Apple

By Martin Peers · Mar 14, 2022 5:00pm PDT

Foxconn employees walking past a company facility in Shenzhen. Photo by Bloomberg.

China Covid Lockdowns Cast Shadows on Apple

By Martin Peers · Mar 14, 2022 5:00pm PDT

What a year this is turning out to be. If war and inflation wasn’t enough, we’ve still got Covid-19 doing its thing. Whoever sent the memo that the pandemic is waning apparently left China off the distribution list. Yet another Covid-inspired lockdown in China has closed Foxconn factories in Shenzhen until at least March 20. That’s bad news for... What a year this is turning out to be. If war and inflation wasn’t enough, we’ve still got...

David Dobrik, Credit: Killer Films

Creator Economy

Casey Neistat on Chronicling David Dobrik’s Rise and Fall; Facebook Sets Up a TikTok Account; Bob Iger Joins Genies

By Kaya Yurieff · Mar 14, 2022 2:07pm PDT

I’ve been at South by Southwest, which is back in person for the first time since 2019. This is my first time going to the tech and arts festival in Austin, Tex., but longtime attendees tell me the conference isn’t as packed as usual. There’s less hustle and bustle at events and in hotel lobbies, and companies are putting on fewer pop-ups on... I’ve been at South by Southwest, which is back in person for the first time since 2019. This is...

Peter Moore pictured with Liverpool FC's 2019 Champions League trophy. Photo: AP.

Metaverse Partnerships and Skepticism Trickle Out of SXSW

By Mathew Olson · Mar 14, 2022 11:01am PDT

Why did Peter Moore, a former games industry executive who most recently enjoyed a few years as CEO of Liverpool FC, travel to a massive dance music festival in Las Vegas last fall? He was there on a mission, establishing a bond with the festival’s organizers Insomniac Events while drinking in the atmosphere—and wondering how it could be... Why did Peter Moore, a former games industry executive who most recently enjoyed a few years as...

From left: Apple's Tim Cook, Erik Neuenschwander, Craig Federighi, Eddy Cue and Phil Schiller. Photos by Bloomberg. Art by Mike Sullivan

Inside Apple’s Decision to Blow Up the Digital Ads Business

By Wayne Ma · Mar 14, 2022 6:00am PDT · 7 comments

For years, Apple CEO Tim Cook has been the most vocal privacy champion among all of big tech’s top leaders. But within Apple, a decision to curtail ad tracking of iPhone users in 2020 sparked an intense debate about just how far to push privacy changes poised to upend the digital advertising industry. On one side of the discussions... For years, Apple CEO Tim Cook has been the most vocal privacy champion among all of big...

At Norilsk Nickel's plant in Nadezhda, Russia. Norilsk produces 15%-20% of the world's battery-grade nickel. Photo: Andrey Rudakov/Bloomberg

Winners and Losers From Russia’s War, Spike in Oil Prices

By Steve LeVine · Mar 13, 2022 2:00pm PDT

At Norilsk Nickel's plant in Nadezhda, Russia. Norilsk produces 15%-20% of the world's battery-grade nickel. Photo: Andrey Rudakov/Bloomberg

Winners and Losers From Russia’s War, Spike in Oil Prices

By Steve LeVine · Mar 13, 2022 2:00pm PDT

Welcome back to The Electric! Save the date: Tesla and China are far in the lead in the global electric vehicle race. How to compete against them? One way is to invent an entirely new battery that bypasses the assumptions on which almost everyone else is relying. For the next live chat, I’m delighted to host Mujeeb Ijaz, founder and CEO of... Welcome back to The Electric! Save the date: Tesla and China are far in the lead in the...

Photographs by Bloomberg. Art by Mike Sullivan.

The Other Sides of Sunny Balwani

By Jon Steinberg · Mar 12, 2022 8:00am PST

Hi, welcome to your Weekend!Anita Raghavan’s investigation into the life of Sunny Balwani began with a photograph. While googling around for images of the reclusive ex-president of Theranos, who went on trial this week for his part in the Elizabeth Holmes scandal, Anita stumbled over a 1988 yearbook from the University of Texas at Austin. There,... Hi, welcome to your Weekend!Anita Raghavan’s investigation into the life of Sunny Balwani began...

Moscow. Photo by Bloomberg.

Russia Pullout Costs Add to First-Quarter Pressures for Tech Firms

By Martin Peers · Mar 11, 2022 5:00pm PST

The stragglers are still reporting their fourth-quarter numbers, but it’s time to focus on what the first and second quarters will bring. And it’s not shaping up to be good. Rising inflation, supply chain constraints and labor shortages are the macro factors bearing down on many, if not most, companies, although they’re surely baked into stock... The stragglers are still reporting their fourth-quarter numbers, but it’s time to focus on what...

Workers from Instacart, the same-day grocery delivery service, receive instructions at a grocery store. Photo by AP.

Fidelity, T. Rowe Mark Down Instacart Stake by Up to 18%

By Berber Jin · Mar 11, 2022 1:59pm PST · 1 comment

Some large investors in Instacart have marked down the value of their stakes in the privately held grocery-delivery company by as much as 18% since it raised funds a year ago at a $39 billion post-investment valuation, previously unreported figures show. The moves indicate that the recent sell-off in technology stocks may be starting to affect... Some large investors in Instacart have marked down the value of their stakes in the privately...

Art by Haejin Park.

Making Sense of Zappos CEO Tony Hsieh’s Tragic Pursuit of Happiness

By Annie Goldsmith · Mar 11, 2022 12:00pm PST · 2 comments

Art by Haejin Park.

Making Sense of Zappos CEO Tony Hsieh’s Tragic Pursuit of Happiness

By Annie Goldsmith · Mar 11, 2022 12:00pm PST · 2 comments

This is 10 Questions, a new column in which we ask tech authors to pull back the covers on their recently released books. Interviews have been edited and condensed for clarity. Zappos CEO Tony Hsieh was widely regarded by his tech peers and employees as a fun-first visionary. It’s why he located his company’s headquarters in Las Vegas, why the... This is 10 Questions, a new column in which we ask tech authors to pull back the covers on their...