The Information

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Supply Chain Unicorns Say: We’re Not the Next Convoy

By Theo Wayt and Ann Gehan · Nov 7, 2023 6:00am PST · 1 comment

Trucking startup Convoy abruptly shut down last month, while freight forwarder Flexport’s revenue has cratered. Other supply chain unicorns are now trying to prove they will have a different fate. Previously unreported financial data for three other major supply chain startups, including Project44 and Cart.com, show all of them are on... Trucking startup Convoy abruptly shut down last month, while freight forwarder Flexport’s...

Tom Bernthal and Sheryl Sandberg. Photo by Bloomberg via Getty.

Ex-Meta COO Sandberg Sets Up Venture Investment Firm with Husband

By Sylvia Varnham O'Regan and Natasha Mascarenhas · Nov 2, 2023 12:43pm PDT · 2 comments

Sheryl Sandberg, the longtime former chief operating officer at Meta Platforms, and her husband Tom Bernthal have started an investment firm to fund businesses in various sectors, according to a spokesperson for Sandberg. An internationally recognized figure, Sandberg often was the public face of the Facebook parent company before leaving last... Sheryl Sandberg, the longtime former chief operating officer at Meta Platforms, and her husband...

CEO of X Intervened to Get Hitler Post Taken Down

By Kaya Yurieff and Erin Woo · Nov 2, 2023 12:13pm PDT · 6 comments

Last weekend, staffers at X grew increasingly upset after a Pakistani senator posted a photo of Adolf Hitler on the service with the text “at least now the world know, why he did, what he did,” in reference to the Holocaust. Over the course of several hours, the post drew about a million views, as well as complaints from several... Last weekend, staffers at X grew increasingly upset after a Pakistani senator posted a photo of...

Photo by Harry Murphy via Getty.

Flexport Buys Shuttered Trucking Startup Convoy’s Technology

By Theo Wayt, Ann Gehan and Maria Heeter · Nov 1, 2023 12:25pm PDT · 1 comment

Photo by Harry Murphy via Getty.

Flexport Buys Shuttered Trucking Startup Convoy’s Technology

By Theo Wayt, Ann Gehan and Maria Heeter · Nov 1, 2023 12:25pm PDT · 1 comment

Flexport has reached a deal to buy the technology of shuttered trucking startup Convoy, as Flexport doubles down on its U.S. trucking ambitions even as it grapples with its own business slump. Convoy, once valued at $3.8 billion, shut down in October after failing to find a buyer or raise fresh capital. Convoy CEO Dan Lewis will join... Flexport has reached a deal to buy the technology of shuttered trucking startup Convoy, as...

Oculus founder Palmer Luckey speaks in Laguna Beach, Calif. on October 16, 2023.

Anduril’s Luckey Warns of ‘No Mercy’ After Suing Startup Launched by Alums

By Margaux MacColl and Natasha Mascarenhas · Nov 1, 2023 11:37am PDT · 2 comments

Anduril founder Palmer Luckey issued a warning to his staff last month: If he believes current or former employees are stealing confidential information from the nearly 2,200-worker defense tech startup, he will “show no mercy.” Luckey sent the Slack message, a screenshot of which The Information viewed, after the $8.5... Anduril founder Palmer Luckey issued a warning to his staff last month: If he believes current or...

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Inside TikTok’s Livestream Expansion: Tipping Contests, Creator Support

By Erin Woo · Nov 1, 2023 6:00am PDT · 1 comment

A young man with a shaved head and leather jacket bounces up and down in New York’s Union Square, chanting “TGIF” as viewers send him a stream of tips costing a few cents each. For more than an hour, he reacts to each tip as it comes in, shouting about a “glizzy” when a viewer sends him a hot dog, bobbing endlessly... A young man with a shaved head and leather jacket bounces up and down in New York’s Union...

Art by Shane Burke

Fire Sales Sweep the Creator Economy as Startups Struggle

By Kaya Yurieff · Oct 31, 2023 6:00am PDT · 1 comment

Fire-sale prices for startups. Investors hung out to dry. Founders pulling the rip cord even when they’ve still got cash left in the bank. The harsh realities facing creator economy startups are getting even harsher, prompting a stampede of founders looking for exits as they struggle to find growth and funding for their businesses. So far... Fire-sale prices for startups. Investors hung out to dry. Founders pulling the rip cord even when...

Art by Clark Miller.

Inside the War Between Square and Cash App at Dorsey’s Block

By Mark Matousek · Oct 30, 2023 6:00am PDT · 3 comments

Art by Clark Miller.

Inside the War Between Square and Cash App at Dorsey’s Block

By Mark Matousek · Oct 30, 2023 6:00am PDT · 3 comments

As CEO of Twitter, Jack Dorsey was widely panned for his hands-off style, seen as contributing to the company’s uneven growth and slow-to-evolve culture, which paved the way for last year’s takeover by Elon Musk. Dorsey’s other public company, Block, originally known as Square, has a whole different problem: Its divisions feud... As CEO of Twitter, Jack Dorsey was widely panned for his hands-off style, seen as contributing to...

Left to right: Palmer Luckey, co-founder of Anduril; Ryan and Brandon Tseng, co-founders of Shield AI. Photos via Getty, Shield AI and Anduril.

How Anduril Is Fueling VC’s Push Into Defense Tech

By Cory Weinberg, Natasha Mascarenhas and Kate Clark · Oct 26, 2023 6:00am PDT · 5 comments

Anduril, the defense tech startup that says it’s trying to build the “Lockheed Martin of the 21st century,” laid out lofty goals to investors early last year. It set its sights on $1 billion in annual revenue by 2026, five times its expectation for $200 million of revenue in 2022. Achieving that ambition will be expensive.... Anduril, the defense tech startup that says it’s trying to build the “Lockheed Martin...

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AI Laggard Intel Expands Effort to Help Companies Build ChatGPT-Like Apps

By Anissa Gardizy · Oct 25, 2023 2:31pm PDT · 1 comment

Intel has been largely left behind as an artificial intelligence boom has catapulted rival chipmakers such as Nvidia and Broadcom. While the once-iconic U.S. chipmaker still hopes to grab a piece of the fast-growing AI chip market, in the short term it is trying something different—selling specialized AI software and services. Intel is... Intel has been largely left behind as an artificial intelligence boom has catapulted rival...

Apple CEO Tim Cook and a Vision Pro headset during an Apple conference in June. Photo by Bloomberg via Getty

Apple Has Discussed Using Vision Pro for Mental Health Diagnosis, Treatment

By Wayne Ma · Oct 25, 2023 6:00am PDT · 1 comment

So far, Apple has pitched its upcoming Vision Pro mixed-reality headset as a tool for working and enjoying various forms of entertainment. But inside the company, employees have also discussed another, more specialized use of the product as a way to diagnose and treat mental health issues, according to people with direct knowledge of the matter.... So far, Apple has pitched its upcoming Vision Pro mixed-reality headset as a tool for working and...

Perplexity CEO Aravind Srinivas. Screengrab via YouTube.

IVP Leads Investment in AI Search Startup Perplexity at $500 Million Valuation

By Kate Clark and Stephanie Palazzolo · Oct 24, 2023 2:28pm PDT

Perplexity CEO Aravind Srinivas. Screengrab via YouTube.

IVP Leads Investment in AI Search Startup Perplexity at $500 Million Valuation

By Kate Clark and Stephanie Palazzolo · Oct 24, 2023 2:28pm PDT

Venture capital firm IVP is leading an investment in Perplexity, developer of an artificial intelligence–powered search engine that competes with OpenAI’s ChatGPT and Google’s Bard, according to people with direct knowledge. The deal values the 1-year-old company at around $500 million, including the new capital, up from a $150... Venture capital firm IVP is leading an investment in Perplexity, developer of an artificial...

OpenAI CEO Sam Altman. Photo by Getty

OpenAI’s Corporate Sales Come Under Pressure From Microsoft as AI Customers Eye Cheaper Options

By Aaron Holmes · Oct 24, 2023 12:53pm PDT · 2 comments

OpenAI is no longer the only game in town when it comes to selling generative artificial intelligence. That’s beginning to affect the growth of its sales to corporate customers. Less than a year after OpenAI launched ChatGPT and built a considerable consumer business, several big companies that were also early customers of its AI, such as... OpenAI is no longer the only game in town when it comes to selling generative artificial...

Photo via SiFive.

Semiconductor Firm SiFive, on Sidelines of AI Chip Boom, Lays Off 130 Workers

By Anissa Gardizy · Oct 24, 2023 12:48pm PDT · 2 comments

SiFive, a semiconductor startup that counted Google as a user of its products, has laid off 20% of its staff, or about 130 people, a company spokesperson confirmed. It’s a sign of strain within the semiconductor sector even as intense demand for artificial intelligence chips buoys Nvidia and others. SiFive, which was valued on paper at... SiFive, a semiconductor startup that counted Google as a user of its products, has laid off 20%...

Photo via Flickr.

Paradigm’s Fred Ehrsam Stepping Down as Managing Partner

By Aidan Ryan · Oct 24, 2023 9:05am PDT

Paradigm co-founder Fred Ehrsam is stepping down as managing partner, according to an email to employees on Tuesday, as the top crypto-focused venture capital firm gears up to raise a new fund and move past the black eye of its major investment in failed crypto exchange FTX. Ehrsam, who co-founded Coinbase before starting the venture firm, told... Paradigm co-founder Fred Ehrsam is stepping down as managing partner, according to an email to...

Art by Shane Burke. Photo via Coastal Community Bank.

How a Fintech Reckoning Is Rippling Through a Small Bank in Washington

By Michael Roddan · Oct 24, 2023 6:00am PDT · 2 comments

Art by Shane Burke. Photo via Coastal Community Bank.

How a Fintech Reckoning Is Rippling Through a Small Bank in Washington

By Michael Roddan · Oct 24, 2023 6:00am PDT · 2 comments

When Washington state–based Coastal Community Bank struck its first fintech partnership with Aspiration, a startup backed by Leonardo DiCaprio and Orlando Bloom, it ushered in a new era for the sleepy bank north of Seattle. Starting with that agreement in 2017, Coastal quickly became one of the most prolific banking partners for... When Washington state–based Coastal Community Bank struck its first fintech partnership...

Elon Musk speaks in front of a test tunnel for The Boring Company in Hawthorne, Calif., in 2018. Photo via Bloomberg/Getty

Boring Co. Shares Rise Over 22% in Employee Share Sale

By Becky Peterson and Mark Matousek · Oct 23, 2023 4:41pm PDT · 4 comments

Elon Musk’s The Boring Company has sold shares owned by employees and investors at a price over 22% higher than in a funding round for the tunneling startup last year, according to two people familiar with the matter. The most recent price gives the startup an implied valuation of over $7 billion and suggests investors have faith that the... Elon Musk’s The Boring Company has sold shares owned by employees and investors at a price...

Aaron Frank. Photo via Lightspeed Venture Partners.

Apple Card Architect Heads to Lightspeed to Hunt for Fintech Deals

By Lauren Tara LaCapra · Oct 23, 2023 6:30am PDT

At a moment when many investors are retreating from fintech, Lightspeed Venture Partners is doubling down. The venture capital firm has hired Aaron Frank, who built the company that became the foundation for the Apple Card, to help seek out deals in payments and lending. The 37-year-old Frank was the co-founder and CEO of Final, the credit-card... At a moment when many investors are retreating from fintech, Lightspeed Venture Partners is...

Erin Bali photo courtesy of Carbon Health. Composite by Clark Miller

A Pandemic Windfall Turns into a Hangover for a High-Flying Healthcare Startup

By Paris Martineau · Oct 23, 2023 6:00am PDT · 2 comments

Two years ago, Eren Bali was on top of the world. The online education company he co-founded, Udemy, had gone public in 2021 at a $3.8 billion market value, and Bali was turning his focus to a startup he had formed in 2015: Carbon Health, a chain of urgent-care clinics that planned to use tech know-how to improve healthcare. At the time,... Two years ago, Eren Bali was on top of the world. The online education company he co-founded,...

Jay McGraw, Dax Shepard, Kristen Bell and Jennifer Pullen (left to right) at the grand opening of Hello Bello's diaper factory. Photo by Getty.

Kristen Bell’s Diaper Startup Hello Bello Files For Bankruptcy, Lines Up PE Buyer

By Maria Heeter and Ann Gehan · Oct 23, 2023 5:30am PDT · 4 comments

Jay McGraw, Dax Shepard, Kristen Bell and Jennifer Pullen (left to right) at the grand opening of Hello Bello's diaper factory. Photo by Getty.

Kristen Bell’s Diaper Startup Hello Bello Files For Bankruptcy, Lines Up PE Buyer

By Maria Heeter and Ann Gehan · Oct 23, 2023 5:30am PDT · 4 comments

Hello Bello, the venture-backed diaper and baby care company founded by celebrities Kristen Bell and Dax Shepard, filed for Chapter 11 bankruptcy on Monday. The filing is a high-profile symbol of the struggles many buzzy consumer-focused startups have faced from dealing with belt-tightening by shoppers and increases in digital marketing... Hello Bello, the venture-backed diaper and baby care company founded by celebrities Kristen Bell...