The Information

The Baidu Technology Park in Beijing. Photo by Bloomberg via Getty.

Baidu Seeks Edge in China’s Crowded Race for AI Dominance

By Juro Osawa · Oct 13, 2023 6:00am PDT

In the U.S., all eyes are on OpenAI and Google’s battle for supremacy in generative artificial intelligence. In China, where the government blocks those companies’ internet services, a parallel race is heating up among domestic giants, even as the Chinese firms face growing restrictions on their access to American chips needed for... In the U.S., all eyes are on OpenAI and Google’s battle for supremacy in generative...

Sam Altman, CEO of OpenAI. Photo by Bloomberg via Getty.

OpenAI’s Revenue Crossed $1.3 Billion Annualized Rate, CEO Tells Staff

By Amir Efrati · Oct 12, 2023 8:09am PDT · 2 comments

ChatGPT maker OpenAI is generating revenue at a pace of $1.3 billion a year, CEO Sam Altman told staff this week, according to several people with knowledge of the matter. Altman’s remark implies the company is generating more than $100 million per month, up 30% from this summer, when the Microsoft-backed startup generated revenue at a $1... ChatGPT maker OpenAI is generating revenue at a pace of $1.3 billion a year, CEO Sam Altman told...

Photo via Getty.

Tiny Banks That Powered Cash App Grew Like Crazy. Then the Feds Came Calling

By Michael Roddan · Oct 12, 2023 6:00am PDT

When Lincoln Savings Bank struck a partnership in 2017 to process direct deposits for Cash App, it was a big break for the small, century-old lender based in Cedar Falls, Iowa. The Venmo-like app, part of Jack Dorsey’s financial services company now known as Block, was growing quickly. By partnering with Cash App and other fintechs,... When Lincoln Savings Bank struck a partnership in 2017 to process direct deposits for Cash App,...

Deepgram CEO Scott Stephenson. Photo courtesy of Deepgram.

AI Startup Lays Off Workers Again in Fresh Sign of Sector Belt-Tightening

By Natasha Mascarenhas · Oct 11, 2023 7:17pm PDT

Deepgram CEO Scott Stephenson. Photo courtesy of Deepgram.

AI Startup Lays Off Workers Again in Fresh Sign of Sector Belt-Tightening

By Natasha Mascarenhas · Oct 11, 2023 7:17pm PDT

Deepgram, an artificial intelligence startup selling speech recognition software that generates transcripts, has cut around 20% of staff, or around 20 people, CEO Scott Stephenson said. It was at least the second time this year the San Francisco startup has laid off workers, according to two people familiar with the cuts. Stephenson blamed... Deepgram, an artificial intelligence startup selling speech recognition software that generates...

Illustration by Shane Burke

China’s Venture Firms Reckon With a Power Shift to LPs

By Juro Osawa and Jing Yang · Oct 11, 2023 6:00am PDT · 1 comment

In mid-September, dozens of global investors, including U.S. endowments, foundations and family offices, descended on the Chinese city of Chengdu looking for answers. They were there for a gathering hosted by Unicorn Capital Partners, a Hong Kong–based investment firm that helps global investors like them take stakes in funds run by... In mid-September, dozens of global investors, including U.S. endowments, foundations and family...

Jeremi Gorman. Photo by Getty.

Netflix’s Ad Exec Shakeup Was Part of Effort to Speed Growth

By Sahil Patel · Oct 10, 2023 9:30am PDT

Turning Netflix into an advertising goliath is proving tougher than the video-streaming giant expected. Netflix co-CEO Greg Peters decided to replace ad sales chief Jeremi Gorman with Amy Reinhard, a longtime Netflix executive, in hopes of accelerating the ad business’ growth, according to people with knowledge of the matter. One sign of... Turning Netflix into an advertising goliath is proving tougher than the video-streaming giant...

Art by Clark Miller

Tesla Builds a New Home for ‘Dojo’ Supercomputer as AI Ambitions Rise

By Becky Peterson · Oct 10, 2023 6:00am PDT · 3 comments

At Tesla’s headquarters in Austin, Texas, a new bunkerlike structure is under construction that could one day help move the company beyond electric vehicle manufacturing. When it’s completed, the building will house part of a new supercomputer, known as Dojo, that Tesla is assembling to help run the artificial intelligence software... At Tesla’s headquarters in Austin, Texas, a new bunkerlike structure is under construction...

Elon Musk. Photo via AP.

Elon Musk’s X Cut Disinformation-Fighting Tool Ahead of Israel-Hamas Conflict

By Erin Woo · Oct 9, 2023 5:33pm PDT · 6 comments

Elon Musk. Photo via AP.

Elon Musk’s X Cut Disinformation-Fighting Tool Ahead of Israel-Hamas Conflict

By Erin Woo · Oct 9, 2023 5:33pm PDT · 6 comments

Elon Musk’s X, in the months before conflict erupted in Gaza, ceased utilizing a software tool used to identify organized misinformation now spreading across the platform formerly known as Twitter. In recent months, the company shut down an internal product that could identify when different accounts shared the same or similar media,... Elon Musk’s X, in the months before conflict erupted in Gaza, ceased utilizing a software...

Nvidia Cloud Ally Nears $300 Million Financing

By Kate Clark and Anissa Gardizy · Oct 9, 2023 5:21pm PDT

Lambda Labs, which competes with Amazon Web Services in renting out servers with Nvidia chips to developers of artificial intelligence, is nearing a $300 million equity financing, according to two people with direct knowledge of the matter. An investment fund led by billionaire Thomas Tull plans to fund a substantial part of the round,... Lambda Labs, which competes with Amazon Web Services in renting out servers with Nvidia chips to...

Art by Clark Miller

SoftBank’s Masayoshi Son Looks for Investing Redemption

By Cory Weinberg and Kate Clark · Oct 9, 2023 6:00am PDT · 1 comment

There was a time, not long ago, when Masayoshi Son couldn’t keep his hands off the Vision Fund, the swashbuckling investment firm overseen by the Japanese conglomerate he runs, SoftBank Group. He micromanaged the firm’s partners, frequently butting in on deals to play Silicon Valley kingmaker by throwing billions of... There was a time, not long ago, when Masayoshi Son couldn’t keep his hands off the Vision...

Image via Shutterstock

Microsoft to Debut AI Chip Next Month That Could Cut Nvidia GPU Costs

By Anissa Gardizy · Oct 6, 2023 1:06pm PDT · 3 comments

Microsoft next month plans to unveil the company’s first chip designed for artificial intelligence at its annual developers’ conference, according to a person with direct knowledge. The move, a culmination of years of work, could help Microsoft lessen its reliance on Nvidia-designed AI chips, which have been in short supply as demand... Microsoft next month plans to unveil the company’s first chip designed for artificial...

Photo via Parade.

How Underwear Startup Parade Wiped Out Investors

By Natasha Mascarenhas and Ann Gehan · Oct 6, 2023 5:00am PDT · 7 comments

Photo via Parade.

How Underwear Startup Parade Wiped Out Investors

By Natasha Mascarenhas and Ann Gehan · Oct 6, 2023 5:00am PDT · 7 comments

When lingerie manufacturer Ariela & Associates International announced its purchase of buzzy direct-to-consumer intimates startup Parade in August, the deal appeared to be yet another example of larger holding companies and licensing firms buying up popular digitally native brands. Parade, valued by investors last year at about $200 million,... When lingerie manufacturer Ariela & Associates International announced its purchase of buzzy...

Flexport CEO Ryan Petersen. Photo by Bloomberg via Getty.

Flexport Plans to Cut Up to 30% of Workforce

By Theo Wayt · Oct 5, 2023 3:57pm PDT · 10 comments

Logistics startup Flexport plans to lay off up to 30% of its workforce, according to a person close to the company. That would represent about 1,000 people based on a headcount of around 3,300 people. The cuts are the latest and most drastic in a series of cost-cutting moves founder Ryan Petersen has made at the decade-old company since he... Logistics startup Flexport plans to lay off up to 30% of its workforce, according to a person...

Illustration generated in Ideogram

Andreessen Horowitz Discussed Backing a Rival to Midjourney Seeking $500 Million Valuation

By Stephanie Palazzolo and Jon Victor · Oct 5, 2023 3:09pm PDT · 3 comments

Investment firm Andreessen Horowitz recently discussed leading a new equity financing for Ideogram, a startup that uses artificial intelligence to create unique images, said a person with knowledge of the situation. The Toronto startup, which has been seeking a $500 million pre-money valuation, doesn’t generate revenue. But... Investment firm Andreessen Horowitz recently discussed leading a new equity financing...

A prototype of an autonomous vehicle by Glydways at its testing facility in Concord, Calif. Photo by Bloomberg via Getty

Robotaxi Startup Glydways Raises $56 Million, East Bay Project Advances

By Nick Wingfield · Oct 5, 2023 9:41am PDT · 4 comments

A startup seeking to bring robotaxis to dedicated roads surrounding airports and transit hubs is inching closer to realizing its vision. The startup, Glydways, has raised a $56 million Series B fundraising round, including about half of it from convertible debt that the notes holders are converting to equity. New Science Ventures led the round,... A startup seeking to bring robotaxis to dedicated roads surrounding airports and transit hubs is...

Linda Yaccarino, CEO of X. Photo via Getty.

Inside Elon Musk’s Plans for X: Shopping and Sports

By Erin Woo and Sahil Patel · Oct 4, 2023 10:09am PDT

Linda Yaccarino, CEO of X. Photo via Getty.

Inside Elon Musk’s Plans for X: Shopping and Sports

By Erin Woo and Sahil Patel · Oct 4, 2023 10:09am PDT

To turn around X, the company formerly known as Twitter, Elon Musk and CEO Linda Yaccarino are betting on shopping and sports. As Musk and Yaccarino try and turn the company around, there are growing signs they want to make X a shopping destination. For instance, X managers are considering ways of using direct messages on the platform to... To turn around X, the company formerly known as Twitter, Elon Musk and CEO Linda Yaccarino are...

Flexport CEO Ryan Petersen. Photo via Getty.

Flexport Exits Mount as CEO Ryan Petersen Overhauls Tech, Legal and Sales Teams

By Theo Wayt and Ann Gehan · Oct 4, 2023 6:41am PDT

Ryan Petersen’s clearout of Flexport’s top management is continuing. The company’s top engineering executive and longtime chief legal officer both departed the company this week, according to an internal memo reviewed by The Information. The logistics startup’s Asia sales head has also left the company, the memo said. The... Ryan Petersen’s clearout of Flexport’s top management is continuing. The...

Dario Amodei, co-founder and CEO of Anthropic. Photo via Getty.

Anthropic in Talks to Raise $2 Billion From Google and Others Just Days After Amazon Investment

By Kate Clark, Anissa Gardizy and Stephanie Palazzolo · Oct 3, 2023 3:17pm PDT · 4 comments

Anthropic, one of the main rivals of OpenAI, is in talks with investors to raise at least $2 billion in new funding, following a commitment from Amazon last week to invest $1.25 billion in the company, according to three people with direct knowledge. Anthropic has told investors that Google, which bought a roughly 10% stake in the startup in... Anthropic, one of the main rivals of OpenAI, is in talks with investors to raise at least $2...

Nvidia CEO Jensen Huang. Photo by Getty

Nvidia Deepens Push Into AWS’ Turf

By Anissa Gardizy · Oct 3, 2023 6:00am PDT · 2 comments

Nvidia’s ambition to compete with Amazon Web Services is growing. Nvidia is best known for designing server chips for artificial intelligence, but it has been running a nascent cloud service for corporate customers that develop AI with those chips. Nvidia operates the service, DGX Cloud, with servers located in the data centers of... Nvidia’s ambition to compete with Amazon Web Services is growing. Nvidia is best known for...

ByteDance's Singapore offices. Photo by Bloomberg via Getty.

TikTok’s Owner Generated Nearly $7 Billion in Cash From Operations in First Quarter

By Amir Efrati · Oct 2, 2023 3:16pm PDT

ByteDance's Singapore offices. Photo by Bloomberg via Getty.

TikTok’s Owner Generated Nearly $7 Billion in Cash From Operations in First Quarter

By Amir Efrati · Oct 2, 2023 3:16pm PDT

The cash machine of TikTok’s owner is getting bigger. ByteDance’s revenue rose 34% to $24.5 billion in the first quarter of 2023, a slight slowdown from its 38% revenue growth in the 2022 calendar year, according to detailed financial results viewed by The Information. But the company generated $6.8 billion in cash from operations in... The cash machine of TikTok’s owner is getting bigger. ByteDance’s revenue rose 34% to...