The Information

Amazon's Echo devices, powered by Alexa. Photo by Bloomberg.

Amazon Is Becoming an AI Chip Maker, Speeding Alexa Responses

By Aaron Tilley · Feb 12, 2018 7:00am PST · 2 comments

Amazon.com is developing a chip designed for artificial intelligence to work on the Echo and other hardware powered by Amazon’s Alexa virtual assistant, says a person familiar with Amazon’s plans. The chip should allow Alexa-powered devices to respond more quickly to commands, by allowing more data processing to be handled on the... Amazon.com is developing a chip designed for artificial intelligence to work on the Echo and...

WeChat founder Allen Zhang speaking last month at a conference in Guangzhou, China. Photo by Bloomberg.

At Tencent, Tensions Rise Over the Future of WeChat

By Juro Osawa · Feb 8, 2018 7:01am PST · 3 comments

WeChat had just turned seven. At a luxury hotel in southern China last month, the anniversary party raged for workers at one of the world’s most popular apps. There were lucky draws. Some employees performed a Chinese rap. Allen Zhang, WeChat’s creator, gave everyone a personally engraved iPhone X. But beneath the glitter and fun,... WeChat had just turned seven. At a luxury hotel in southern China last month, the anniversary...

Google's hardware chief Rick Osterloh at a product launch last October. Photo by Bloomberg.

Google May Step Into Gaming With ‘Yeti’ Streaming Service

By Kevin McLaughlin and Amir Efrati · Feb 7, 2018 7:01am PST · 2 comments

Google may be about to take its most serious steps to get into the videogame business. The company is developing a subscription-based game streaming service that could work either on Google’s Chromecast or possibly a Google-made console still being developed, according to people with knowledge of the project.The service, codenamed Yeti,... Google may be about to take its most serious steps to get into the videogame business. The...

Spotify CEO Daniel Ek. Photo by Bloomberg.

Spotify’s Q3 Revenue Points to Full Year Growth of 40%

By Alfred Lee · Feb 6, 2018 3:21pm PST

Spotify CEO Daniel Ek. Photo by Bloomberg.

Spotify’s Q3 Revenue Points to Full Year Growth of 40%

By Alfred Lee · Feb 6, 2018 3:21pm PST

Spotify generated a billion euros ($1.2 billion) in revenue in the third quarter of 2017, according to two investors briefed on the numbers. That puts it on track for full year revenue of more than four billion euros, up about 40% from 2016. And it would continue a streak of fast growth as Spotify readies for one of the highest-valued tech... Spotify generated a billion euros ($1.2 billion) in revenue in the third quarter of 2017,...

Note: Share price is for preferred stock;
Sources: CoinMarketCap, Company filings, The Information reporting

Cryptocurrency Surge Raises Questions About Company Valuations

By Alfred Lee · Jan 31, 2018 10:50am PST · 1 comment

Investors are finding yet another way to bet on the cryptocurrency boom: buying up stock in a well-known cryptocurrency company on private marketplaces.Investment funds and money managers for wealthy individuals have bid up shares of Ripple, the company behind the cryptocurrency XRP, to more than 10 times its previous price, valuing the private... Investors are finding yet another way to bet on the cryptocurrency boom: buying up stock in a...

Art by Javier Garcia

Amazon Says No to Ads on Alexa, Frustrating Sony

By Kevin McLaughlin · Jan 29, 2018 7:01am PST

Here’s a question for Amazon’s Alexa: Will running ads on the virtual assistant turn off users?The answer, according to Amazon, is yes. Last year, Sony Corp., maker of the Jeopardy game on Alexa, approached Amazon several times about running ads during the game, said a person with knowledge of the matter. But Amazon refused,... Here’s a question for Amazon’s Alexa: Will running ads on the virtual assistant turn...

A Lyft car. Photo by Bloomberg.

Lyft Investigates Allegation That Employees Abused Customer Data

By Amir Efrati · Jan 25, 2018 12:51pm PST · 2 comments

Lyft is investigating whether employees abused access to its customers’ data, a spokeswoman said on Thursday, after a current or former Lyft employee anonymously alleged online that some employees had tracked Lyft rides taken by their romantic partners and pulled information about celebrities such as Facebook CEO Mark Zuckerberg.The... Lyft is investigating whether employees abused access to its customers’ data, a spokeswoman...

Source: Second Measure

Sun Basket Raising Money Amid Pressure on Meal Kit Startups

By Alfred Lee · Jan 24, 2018 11:32am PST · 1 comment

Source: Second Measure

Sun Basket Raising Money Amid Pressure on Meal Kit Startups

By Alfred Lee · Jan 24, 2018 11:32am PST · 1 comment

Since Blue Apron’s disappointing IPO last summer, meal kit delivery startups have been under pressure to sell or fold. But at least one smaller competitor, Sun Basket, is showing decent growth, according to credit card data. Now the firm is raising money—and offering big protections to investors to limit their risk.Sun Basket, which... Since Blue Apron’s disappointing IPO last summer, meal kit delivery startups have been...

SoftBank CEO Masayoshi Son at a news conference announcing quarterly earnings late last year. Photo by Bloomberg.

SoftBank Looks to Raise Billions More Against Arm and Uber Stakes

By Juro Osawa · Jan 23, 2018 10:21pm PST

SoftBank, which controls the $93 billion Vision Fund, wants to raise even more money. The Japanese investment giant is in talks with banks to raise as much as $5 billion in new debt by using its U.K. chip subsidiary Arm as collateral, according to people familiar with the matter. At the same time, SoftBank is also considering how it might use... SoftBank, which controls the $93 billion Vision Fund, wants to raise even more money. The...

Ring CEO Jamie Siminoff. Photo by Flickr/Christopher Michel.

Smart Doorbell Maker Ring Raising Money at Close to $1 Billion Value

By Aaron Tilley, Serena Saitto and Jessica E. Lessin · Jan 23, 2018 4:09pm PST · 1 comment

Ring, a maker of camera-enabled doorbell products, is raising $160 million at a valuation of nearly $1 billion, nearly double from only a year ago, according to a securities filing and investors.The rapid rise reflects investor interest in smart home products, particularly doorbell cameras, which are useful for tracking package delivery and home... Ring, a maker of camera-enabled doorbell products, is raising $160 million at a valuation of...

Laurence Tosi and Brian Chesky. Photos by Bloomberg.

At Airbnb, Tensions Bubble Between Chesky and Tosi

By Cory Weinberg · Jan 23, 2018 12:01pm PST · 1 comment

When Airbnb was contemplating getting into the air travel business a year ago, CEO Brian Chesky considered launching an airline to reinvent the “actual experience of taking a plane,” according to a person familiar with the situation. CFO Laurence Tosi, a former Wall Street executive, thought it would be wiser to integrate with an... When Airbnb was contemplating getting into the air travel business a year ago, CEO Brian Chesky...

Wag's app. Photo by Bloomberg.

How SoftBank’s Interest Cost One Startup Other Potential Investors

By Serena Saitto · Jan 19, 2018 2:53pm PST

Wag's app. Photo by Bloomberg.

How SoftBank’s Interest Cost One Startup Other Potential Investors

By Serena Saitto · Jan 19, 2018 2:53pm PST

Late last year Wag, an app that helps people find dog walkers, was in talks to raise $100 million. SoftBank took a look but would only invest if the round was $300 million. Other investors, including NEA and Kleiner Perkins, felt that was too much money for the startup to raise and dropped out, say people involved in the deal. SoftBank still... Late last year Wag, an app that helps people find dog walkers, was in talks to raise $100...

Photo by Bloomberg.

Snap Lays Off Two Dozen Employees

By Tom Dotan · Jan 18, 2018 1:21pm PST · 1 comment

Snap laid off around two dozen people in recent days, mostly in its content team, according to people close to the company. The staff cuts, which also affected people in several other departments, are the latest sign of how Snap is being cost-conscious amid struggles with slow user and revenue growth. Snap’s content team, which reports to... Snap laid off around two dozen people in recent days, mostly in its content team, according to...

An AWS office in Virginia. Photo by AP

Can’t Code? AWS Project Aims to Attract Broader Range of Users

By Kevin McLaughlin · Jan 18, 2018 10:02am PST

Amazon is entering the “no-code" game. The cloud leader wants to enable business users who aren't engineers to build customized apps solving specific problems, merely by dragging and dropping app components into a graphical interface. Google and Microsoft, among others, got a head start in the market for so-called... Amazon is entering the “no-code" game. The cloud leader wants to enable business users...

Ofo bikes parked in Shanghai last year. Photo by Bloomberg.

Inside Alibaba and Didi’s Tussle Over a Multibillion Dollar Startup

By Juro Osawa and Yunan Zhang · Jan 18, 2018 7:02am PST · 1 comment

Last fall, Didi Chuxing tried to get bike-sharing company Ofo to merge with main competitor Mobike. The attempt, led by Didi and other Ofo investors, failed because the bike startups strongly opposed it, according to people familiar with the talks. Then Didi, Ofo’s largest shareholder, changed course and launched its own bike-sharing... Last fall, Didi Chuxing tried to get bike-sharing company Ofo to merge with main competitor...

Clockwise from top left: Amish Jani; Hemant Taneja; Mike Volpi; John Frankel; Joe Lonsdale; Navin Chaddha; Scott Sandell; John Doerr. Photos: Messrs. Jani, Taneja and Doerr via TechCrunch; other via Bloomberg.

How Many Board Seats Is Too Many?

By Alfred Lee · Jan 17, 2018 7:01am PST · 4 comments

Clockwise from top left: Amish Jani; Hemant Taneja; Mike Volpi; John Frankel; Joe Lonsdale; Navin Chaddha; Scott Sandell; John Doerr. Photos: Messrs. Jani, Taneja and Doerr via TechCrunch; other via Bloomberg.

How Many Board Seats Is Too Many?

By Alfred Lee · Jan 17, 2018 7:01am PST · 4 comments

Scandals at Uber and SoFi have led to renewed calls for stronger board oversight in Silicon Valley. But is that possible from a director who sits on 18 boards?The Information identified at least 24 venture capitalists who hold nine or more directorships at technology companies, including partners at Benchmark, Kleiner Perkins and Andreessen... Scandals at Uber and SoFi have led to renewed calls for stronger board oversight in Silicon...

Uber's headquarters. Photo by AP

The Numbers Uber Shows Investors

By Amir Efrati · Jan 11, 2018 11:29am PST · 5 comments

If you're curious about the details of Uber's finances, check out the table below.It shows Uber’s financial statements for two quarters of 2016 and 2017, including revenue and the ride-hailing giant’s three main categories of costs. One is operating expenses, including marketing to attract riders and drivers. Another is... If you're curious about the details of Uber's finances, check out the table below.It...

Francis Davidson and Lucas Pellan, cofounders of Sonder. Photo by Sonder.

Airbnb Fuels Boutique Rental Startups, but Regulatory Risks Loom

By Cory Weinberg · Jan 10, 2018 10:38am PST · 1 comment

A new breed of vacation rental startup offering upscale apartments to tourists is attracting interest from venture capital firms. But some investors are staying away, worried that tight regulations in some of North America’s hottest real estate markets will limit the startups’ growth. Two early entrants in the market, Sonder and... A new breed of vacation rental startup offering upscale apartments to tourists is attracting...

A Voyage self-driving car. Photo by Voyage.

When Self-Driving Car Startups Go Private

By Amir Efrati · Jan 10, 2018 7:01am PST

Every weekday at 4 p.m., retirees Irene and Daniel Grim use an app to summon a self-driving car. Operated by the startup Voyage, the car takes them from their San Jose home to a gym a mile and a half away, all inside in a private, gated community.Voyage has an exclusive deal to operate its “robotaxi” prototypes within the San Jose... Every weekday at 4 p.m., retirees Irene and Daniel Grim use an app to summon a self-driving car....

Photo by Bloomberg

China’s Didi Misses December Ride Target, Declares ‘War of the Century’

By Yunan Zhang · Jan 9, 2018 11:02am PST · 3 comments

Photo by Bloomberg

China’s Didi Misses December Ride Target, Declares ‘War of the Century’

By Yunan Zhang · Jan 9, 2018 11:02am PST · 3 comments

Didi Chuxing missed its target for the number of daily rides taken in December, according to internal data seen by The Information, sparking concerns about growth for the world’s biggest ride-hailing company.The shortfall—which could reflect new local government rules on ride-hailing and competition from bike-rental... Didi Chuxing missed its target for the number of daily rides taken in December, according to...