The Information

Jack Altman in 2019. Photo via Princeton University.

Alt Capital Raises $150 Million Fund, Extending Altman Brothers’ Funding Spree

By Natasha Mascarenhas · Feb 1, 2024 8:52am PST

Sam Altman’s younger brother Jack has raised a $150 million venture fund to invest in early-stage startups through his VC firm Alt Capital, the younger Altman said in an interview. The fund plans to lead or co-lead investments in startups right after they incorporate, with a focus on enterprise software, including artificial intelligence... Sam Altman’s younger brother Jack has raised a $150 million venture fund to invest in...

Meta campus in Menlo Park. Photo by Getty.

Advertisers Feel the Effects of Meta’s ‘Efficiency’ Drive

By Sylvia Varnham O'Regan and Sahil Patel · Feb 1, 2024 6:00am PST

Facebook parent Meta Platforms is testing the patience of its advertiser clients. After two rounds of layoffs over the past 14 months, Meta’s ad sales team is operating with fewer people, which ad executives complain is affecting the service they receive from the company. Sean Johnston, vice president of digital advertising at Closed Loop,... Facebook parent Meta Platforms is testing the patience of its advertiser clients. After two...

Twilio CEO Khozema Shipchandler, left, and Bird founder and CEO Robert Vis. Photos by Business Wire; Getty.

Dutch Messaging Startup Weighs Longshot Bid to Buy Twilio With Outside Investors

By Maria Heeter and Cory Weinberg · Feb 1, 2024 4:56am PST

A Dutch messaging software startup is in talks with outside investors to raise money for a longshot bid to buy its much larger U.S. publicly traded competitor Twilio, according to people familiar with the discussions. The Accel Partners-backed startup, which was known as MessageBird but just renamed itself Bird, could take advantage of the... A Dutch messaging software startup is in talks with outside investors to raise money for a...

Art by Mike Sullivan.

As AI Costs Soar, Some Startups Consider Selling

By Natasha Mascarenhas and Stephanie Palazzolo · Jan 31, 2024 9:00am PST · 4 comments

Art by Mike Sullivan.

As AI Costs Soar, Some Startups Consider Selling

By Natasha Mascarenhas and Stephanie Palazzolo · Jan 31, 2024 9:00am PST · 4 comments

The founders of artificial intelligence startups spent much of the past year seeking capital to fund the high cost of developing their software. Now those costs have pushed some to consider another alternative—merging with a larger company. Perplexity AI, a one-year-old San Francisco–based startup developing an AI-powered search... The founders of artificial intelligence startups spent much of the past year seeking capital to...

Art by Shane Burke/Shutterstock

A KKR-Backed Medical Waste Company Faces a Messy Situation

By Maria Heeter · Jan 31, 2024 6:00am PST

There are companies that suffer from management messes, and there are companies whose businesses involve disposing of messes. Private equity giant KKR & Co. helped create a company that combines both qualities. Nearly seven years ago, KKR became the controlling shareholder of a company, Trilogy MedWaste, that was seeking to become a national... There are companies that suffer from management messes, and there are companies whose businesses...

Art by Mike Sullivan.

Google DeepMind Veteran Departs to Launch AI Agent Startup

By Jon Victor and Amir Efrati · Jan 30, 2024 1:13pm PST

As OpenAI and Google develop artificial intelligence to power conversational AI chatbots like ChatGPT, a slew of startups is trying to stake out a lead in the nascent field of AI agents, which use similar technology to perform complex tasks such as booking flights or researching business competitors. The latest startup to go in this direction... As OpenAI and Google develop artificial intelligence to power conversational AI chatbots like...

PayPal headquarters in San Jose. Photo by Getty.

PayPal to Cut 9% of Staff in Companywide Layoffs

By Natasha Mascarenhas and Mark Matousek · Jan 30, 2024 11:12am PST · 1 comment

PayPal is laying off 9% of its staff, the company told employees in an email on Tuesday, as a newly appointed CEO looks to cut costs and improve profits. PayPal’s human resources team told staffers the layoffs were part of a cost-reduction effort, according to an employee who was in the meeting. The layoffs affected people across... PayPal is laying off 9% of its staff, the company told employees in an email on Tuesday, as a...

Sellers receive a live-streaming training on Douyin in Suqian, China. Photo by CFOTO/Future Publishing via Getty Images.

TikTok Plans Los Angeles Live Studios to Boost Shopping Sales

By Kaya Yurieff and Erin Woo · Jan 30, 2024 6:00am PST · 1 comment

Sellers receive a live-streaming training on Douyin in Suqian, China. Photo by CFOTO/Future Publishing via Getty Images.

TikTok Plans Los Angeles Live Studios to Boost Shopping Sales

By Kaya Yurieff and Erin Woo · Jan 30, 2024 6:00am PST · 1 comment

When TikTok creators start a livestream to chat about their new favorite hairbrush, dog toy or cleaning product, they’re usually doing so from a setup in their own home. Soon some may be broadcasting from a company-operated studio in Los Angeles. The short-video app is planning to open several locations in cities including LA where... When TikTok creators start a livestream to chat about their new favorite hairbrush, dog toy or...

Alphabet President Ruth Porat. Photo by Noam Galai/Getty Images

Google’s Parent Company Squeezes Its Moonshot Projects, ‘Other Bets’

By Jon Victor and Margaux MacColl · Jan 29, 2024 4:08pm PST

Alphabet, the parent company of Google, is cutting back its commitment to ambitious moonshot projects. Company executives have told staffers at the X unit, which converts promising investment projects into full-fledged subsidiaries, known as Other Bets, that no such conversions will happen this year, said a person familiar with the situation. At... Alphabet, the parent company of Google, is cutting back its commitment to ambitious moonshot...

Microsoft's GitHub versus GitLab. Illustration by Clark Miller

Microsoft’s AI Coding Product Becomes Weapon in Battle with AWS

By Aaron Holmes · Jan 29, 2024 6:00am PST · 2 comments

If you want to understand how Microsoft’s embrace of artificial intelligence is driving growth in its business, take a look at GitHub, a business it bought a few years ago that stores code for software developers around the world. It’s no secret that developers have flocked to GitHub Copilot, an AI-powered coding assistant Microsoft... If you want to understand how Microsoft’s embrace of artificial intelligence is driving...

Ryan Petersen, CEO and founder of Flexport. Photo by AP.

Flexport to Lay Off Nearly 20% of Staff in Latest Cuts

By Theo Wayt · Jan 26, 2024 11:00am PST · 3 comments

Flexport plans to lay off nearly 20% of its workforce in the coming weeks, representing several hundred roles, according to people familiar with the matter. It would mark the SoftBank-backed logistics startup’s third major round of cuts in just over a year. Flexport is planning the cuts even after it raised $260 million from Shopify... Flexport plans to lay off nearly 20% of its workforce in the coming weeks, representing several...

Snyk signage at AWS re:Invent last year.

Cybersecurity Upstarts Snyk, Cato Prepare for IPOs

By Cory Weinberg · Jan 26, 2024 6:00am PST · 1 comment

Snyk signage at AWS re:Invent last year.

Cybersecurity Upstarts Snyk, Cato Prepare for IPOs

By Cory Weinberg · Jan 26, 2024 6:00am PST · 1 comment

For some venture capital–backed cybersecurity startups, the slow-moving gears of initial public offerings are starting to turn. Snyk, an Accel Partners–backed startup that sells security tools for developers, valued at $7.4 billion in 2022, has been drafting its IPO investor prospectus and could file it confidentially with regulators... For some venture capital–backed cybersecurity startups, the slow-moving gears of initial...

Photo by Nicole Craine/Bloomberg via Getty Images.

Delivery Startup Veho Cuts Staff Despite Revenue Jump

By Ann Gehan · Jan 25, 2024 12:33pm PST

Many logistics startups were forced to make deep layoffs last year as their businesses slumped. Package-delivery startup Veho, in contrast, grew its revenue nearly 90% last year. Yet it’s also been cutting jobs. Veho cut 19% of its corporate workers last week, a person close to the company said, layoffs that came just a few months after it... Many logistics startups were forced to make deep layoffs last year as their businesses slumped....

Tiger Global Investor Relations Staff Depart After Fundraising Challenges

By Francesca Friday and Maria Heeter · Jan 24, 2024 4:46pm PST · 1 comment

Several Tiger Global Management employees focused on raising capital for the New York firm’s venture funds have taken buyout offers, according to a person familiar with the matter. The departures of the staff, who worked with prospective investors, come as the firm has struggled to raise money for its latest venture capital fund after a... Several Tiger Global Management employees focused on raising capital for the New York...

Photo via AP

Microsoft Forms Team to Make Cheaper Generative AI

By Aaron Holmes · Jan 23, 2024 1:16pm PST · 2 comments

Microsoft is doubling down on artificial intelligence that’s smaller and cheaper to run than OpenAI’s. The enterprise software maker has formed a new team to develop conversational AI that requires less computing power compared to software it’s using from OpenAI, according to two people with direct knowledge of it.... Microsoft is doubling down on artificial intelligence that’s smaller and cheaper to...

Photo via Getty Images.

More Google DeepMind Staff Depart to Launch an AI Startup

By Jon Victor, Kate Clark and Becky Peterson · Jan 23, 2024 12:22pm PST

Photo via Getty Images.

More Google DeepMind Staff Depart to Launch an AI Startup

By Jon Victor, Kate Clark and Becky Peterson · Jan 23, 2024 12:22pm PST

Three Google researchers who helped develop artificial intelligence that generates images and music recently left the company to launch their own AI startup called Uncharted Labs, according to two people with direct knowledge of their plans and a securities filing. It’s the latest example of top researchers who faced bureaucratic delays in... Three Google researchers who helped develop artificial intelligence that generates images and...

Henrique Dubugras and Pedro Franceschi. Photos via Getty and YouTube.

Brex Cuts 20% of Staff and Shakes Up Senior Management

By Maria Heeter and Mark Matousek · Jan 23, 2024 9:30am PST · 4 comments

Brex is cutting 20% of its workforce and shaking up senior management ranks in a new effort to slash its cash burn, as the fintech firm grapples with slower revenue growth. The company told employees in an email on Tuesday that Chief Operating Officer Michael Tannenbaum and Chief Technology Officer Cosmin Nicolaescu are both giving up their... Brex is cutting 20% of its workforce and shaking up senior management ranks in a new effort to...

Brex CEO Henrique Dubugras. Photo by Bloomberg via Getty Images.

Brex Is Burning $17 Million a Month, Raising Questions About Future Growth

By Mark Matousek · Jan 23, 2024 6:00am PST · 2 comments

One of the pandemic-era darlings of the fintech sector is stuck in a rut. Brex, which issues credit cards and manages cash for businesses, burned an average of about $17 million a month in cash in the fourth quarter, the company told staff at an all-hands meeting earlier this month. Brex has enough cash to last through March 2026, according to... One of the pandemic-era darlings of the fintech sector is stuck in a rut. Brex, which issues...

Anthropic’s Gross Margin Flags Long-Term AI Profit Questions

By Stephanie Palazzolo and Maria Heeter · Jan 22, 2024 6:00am PST · 9 comments

In the past year, artificial intelligence developer Anthropic has raised billions of dollars at a more than $15 billion valuation due to its fast revenue growth and big projections for future sales. But as Anthropic and scores of rivals mature, they’ll need to prioritize profit margins and cash flows if they want to build a sustainable... In the past year, artificial intelligence developer Anthropic has raised billions of dollars at a...

Flexport CEO Ryan Petersen. Photo by Getty

Struggling Logistics Firm Flexport Raises $260 Million from Shopify

By Theo Wayt · Jan 19, 2024 2:11pm PST · 3 comments

Flexport CEO Ryan Petersen. Photo by Getty

Struggling Logistics Firm Flexport Raises $260 Million from Shopify

By Theo Wayt · Jan 19, 2024 2:11pm PST · 3 comments

Flexport is raising $260 million from e-commerce software giant Shopify, one of its biggest shareholders, according to two people with direct knowledge, giving the struggling logistics startup more breathing room after it burned through cash last year. Shopify will get notes that are convertible into Flexport equity in exchange for the money.... Flexport is raising $260 million from e-commerce software giant Shopify, one of its biggest...