The Information

Art by Mike Sullivan.

How a Hidden Bar Code in iPhone Screens Saved Apple Hundreds of Millions of Dollars

By Wayne Ma · Sep 29, 2023 6:00am PDT · 3 comments

Next time you try to wipe a smudge off your iPhone screen, take a closer look. See if you can spot one of the two tiny QR codes etched into its glass. Chances are you won’t be able to find them. Both codes are tiny—one is the size of a grain of sand and can only be seen with special equipment, while the other, roughly the size of the... Next time you try to wipe a smudge off your iPhone screen, take a closer look. See if you can...

Dave Rogenmoser, cofounder of Jasper. Photo via Getty.

Jasper, an Early Generative AI Winner, Cuts Internal Valuation as Growth Slows

By Natasha Mascarenhas and Stephanie Palazzolo · Sep 28, 2023 6:40pm PDT · 8 comments

Jasper AI, an early darling of the generative artificial intelligence boom, has cut the internal value of its common shares 20%, according to former employees who were notified by the company. The drop in Jasper’s internal valuation could indicate that the growth of its AI-powered writing tool for marketers has slowed since the company... Jasper AI, an early darling of the generative artificial intelligence boom, has cut the internal...

Left to right: Sarah Guo, founder of Conviction; Saam Motamedi, general partner at Greylock; and Nat Friedman, investor and former CEO of GitHub. Photos via Getty, Greylock and Erin Beach (right).

VCs Dangle AI Chips to Woo Founders

By Natasha Mascarenhas, Kate Clark and Stephanie Palazzolo · Sep 28, 2023 1:24pm PDT

Venture capitalists have long flaunted their ties with startup founders. Lately they have been touting a different relationship: their connections with the biggest providers of artificial intelligence chips. VC partners competing to win sought-after investments in AI startups have been highlighting their relationships with Amazon, Microsoft... Venture capitalists have long flaunted their ties with startup founders. Lately they have been...

From left: Paul Graham, Garry Tan and Michael Seibel. Photos by Getty. Art by Mike Sullivan.

Y Combinator’s Garry Tan Goes to the Mat

By Kate Clark · Sep 28, 2023 6:00am PDT · 5 comments

From left: Paul Graham, Garry Tan and Michael Seibel. Photos by Getty. Art by Mike Sullivan.

Y Combinator’s Garry Tan Goes to the Mat

By Kate Clark · Sep 28, 2023 6:00am PDT · 5 comments

Garry Tan was in his happy place. Surrounded by food trucks and techies basking in San Francisco’s September sun, the CEO of Y Combinator snapped selfies with entrepreneurs as he meandered through a crowd of 2,700 attendees at the startup accelerator’s annual alumni event. A week earlier, though, Tan had been blowing a fuse. In a... Garry Tan was in his happy place. Surrounded by food trucks and techies basking in San...

Merchandise purchased through Xiaohongshu (“little red book”) in Jinhua, China. VCG via Getty Images

Sequoia Capital China Buys Discounted Stake in Prominent E-Commerce App

By Jing Yang and Juro Osawa · Sep 26, 2023 10:26pm PDT · 1 comment

Sequoia Capital China recently acquired a stake in Chinese social e-commerce app Xiaohongshu from existing investors at a discount to the company’s most recent equity financing valuation, according to three people with knowledge of the matter. Sequoia China, which is preparing to separate from Silicon Valley’s Sequoia Capital next... Sequoia Capital China recently acquired a stake in Chinese social e-commerce app Xiaohongshu from...

Former Apple design chief Jony Ive and OpenAI CEO Sam Altman. Photos by Getty.

Designer Jony Ive and OpenAI’s Sam Altman Discuss AI Hardware Project

By Jessica E. Lessin and Stephanie Palazzolo · Sep 26, 2023 6:51pm PDT · 16 comments

Jony Ive, the renowned designer of the iPhone, and OpenAI CEO Sam Altman have been discussing building a new AI hardware device, according to two people familiar with the conversations. SoftBank CEO and investor Masayoshi Son has talked to both about the idea, according to one of these people, but it is unclear if he will remain involved. Jony Ive, the renowned designer of the iPhone, and OpenAI CEO Sam Altman have been...

OpenAI CEO Sam Altman and Microsoft CEO Satya Nadella. Photos via Getty

How Microsoft is Trying to Lessen Its Addiction to OpenAI as AI Costs Soar

By Aaron Holmes · Sep 26, 2023 7:30am PDT · 3 comments

Microsoft’s push to put artificial intelligence into its software has hinged almost entirely on OpenAI, the startup Microsoft funded in exchange for the right to use its cutting-edge technology. But as the costs of running advanced AI models rise, Microsoft researchers and product teams are working on a plan B. In recent weeks, Peter Lee,... Microsoft’s push to put artificial intelligence into its software has hinged almost...

From left to right: Blair Effron, Robert Pruzan and David Handler. Photos by Getty; Tidal Partners.

Disputes, Employee Misconduct Rattle Centerview’s Silicon Valley Dreams

By Michael Roddan · Sep 26, 2023 6:00am PDT · 2 comments

From left to right: Blair Effron, Robert Pruzan and David Handler. Photos by Getty; Tidal Partners.

Disputes, Employee Misconduct Rattle Centerview’s Silicon Valley Dreams

By Michael Roddan · Sep 26, 2023 6:00am PDT · 2 comments

The San Francisco Bay Area–based bankers at Centerview Partners, the investment bank that advised Silicon Valley Bank’s owner and Credit Suisse through recent turmoil, got two doses of bad news last week. First, they learned officially what many already suspected: The firm had fired a male banker in its San Francisco office after he... The San Francisco Bay Area–based bankers at Centerview Partners, the investment bank that...

Art by Clark Miller

MasterClass Takes a Crash Course in Frugality

By Paris Martineau · Sep 25, 2023 6:00am PDT · 10 comments

MasterClass had a problem with the shoot featuring its latest star instructor, Walt Disney Co. CEO Bob Iger. The startup was emerging as a poster child of the new media landscape, one that was bringing Hollywood-style production values and A-list celebrities to a category—online education—often associated with dry lectures and crummy... MasterClass had a problem with the shoot featuring its latest star instructor, Walt Disney Co....

Art by Clark Miller

SpaceX’s Starship Setback Could Hold Up Cellphone Ambitions

By Becky Peterson · Sep 22, 2023 6:28am PDT

When SpaceX’s new Starship rocket exploded during a test flight in April, the company largely painted it as a success to have even gotten the 400-foot-tall behemoth off the ground. But inside the company, some employees were worried that the setback could delay, among other things, a SpaceX plan to provide wireless coverage to cellphones... When SpaceX’s new Starship rocket exploded during a test flight in April, the company...

Photo via Getty

TikTok Plans Seattle Beachhead for Shopping Expansion

By Erin Woo · Sep 21, 2023 6:00am PDT · 2 comments

As TikTok seeks to compete with Amazon, it’s planting a flag in the e-commerce giant’s backyard. The video app company is using the Seattle area as the base for an aggressive expansion into online shopping, the company confirmed. TikTok is offering existing employees in other TikTok offices, such as Los Angeles and New York... As TikTok seeks to compete with Amazon, it’s planting a flag in the e-commerce...

From left, a Google TPU, Broadcom CEO Hock Tan and Google Cloud chief Thomas Kurian. Photos via Getty, Google and YouTube.

To Reduce AI Costs, Google Wants to Ditch Broadcom as Its TPU Server Chip Supplier

By Wayne Ma, Anissa Gardizy and Jon Victor · Sep 21, 2023 1:22am PDT · 1 comment

From left, a Google TPU, Broadcom CEO Hock Tan and Google Cloud chief Thomas Kurian. Photos via Getty, Google and YouTube.

To Reduce AI Costs, Google Wants to Ditch Broadcom as Its TPU Server Chip Supplier

By Wayne Ma, Anissa Gardizy and Jon Victor · Sep 21, 2023 1:22am PDT · 1 comment

Google executives have extensively discussed dropping Broadcom as a supplier of artificial intelligence chips as early as 2027, according to a person with direct knowledge of the effort. In that scenario, Google would fully design the chips, known as tensor processing units, in-house, the person said. The move could help Google save billions of... Google executives have extensively discussed dropping Broadcom as a supplier of artificial...

Art by Mike Sullivan

Instagram Power Users Are Fuming Over Its $12-a-Month Subscription

By Kaya Yurieff · Sep 19, 2023 6:00am PDT · 4 comments

In late August, Jenny French discovered Instagram had disabled her account. That was a blow, since nearly half the prospects for her U.K. business, which trains physical therapists, jewelry boutiques and other clients on how to increase their Instagram reach, came from the account. But French figured she had an in with Instagram that would allow... In late August, Jenny French discovered Instagram had disabled her account. That was a blow,...

An Albertsons grocery store in L.A. Photo by Getty.

Instacart’s Secret Deals With Grocery Giants

By Cory Weinberg · Sep 18, 2023 7:00am PDT · 8 comments

When Instacart goes public on Tuesday, at least one shareholder likely to make money is its own customer: grocery giant Albertsons, one of several retailers that quietly struck stock deals with Instacart years ago that remained a closely held secret inside the delivery company, people familiar with the matter said. The grocery company’s... When Instacart goes public on Tuesday, at least one shareholder likely to make money is its own...

Tim Cook introduces Apple Card during a launch event at Apple headquarters on March 25, 2019. Photo via Getty.

Goldman Sachs Makes Adjustments to Fix Apple Savings Account Problems

By Lauren Tara LaCapra · Sep 15, 2023 2:19pm PDT

Goldman Sachs has made changes to how it handles Apple Savings transactions in an effort to resolve problems some customers had experienced when making withdrawals, according to people familiar with the matter. Some Apple Card customers who flocked to new Apple Savings accounts after they launched in April found it difficult or impossible to... Goldman Sachs has made changes to how it handles Apple Savings transactions in an effort to...

The California Public Employees' Retirement System (CalPER) office in Sacramento, Calif. Photo by Getty.

Thrive to Raise $300 Million From CalPERS Amid Dry Spell for VCs

By Kate Clark · Sep 15, 2023 11:50am PDT

The California Public Employees' Retirement System (CalPER) office in Sacramento, Calif. Photo by Getty.

Thrive to Raise $300 Million From CalPERS Amid Dry Spell for VCs

By Kate Clark · Sep 15, 2023 11:50am PDT

Thrive Capital is raising $300 million from California Public Employees' Retirement System, adding a marquee investor at a time when venture investors are finding it harder to raise money, according to a person with direct knowledge of the matter. The addition of CalPERS, which manages $463 billion, marks the pension plan’s first... Thrive Capital is raising $300 million from California Public Employees' Retirement System,...

Photo by Getty

Google Nears Release of Gemini AI to Challenge OpenAI

By Jon Victor · Sep 14, 2023 4:52pm PDT · 2 comments

Google has given a small group of companies access to an early version of its highly anticipated conversational artificial intelligence software, according to three people with direct knowledge of the matter. Giving outside developers access to the software, known as Gemini, means Google is getting close to incorporating it in its consumer... Google has given a small group of companies access to an early version of its highly anticipated...

Flexport founder, Ryan Petersen. Photo by Bloomberg via Getty.

Flexport’s Revenue Dropped 70% in First Half of 2023

By Maria Heeter, Aaron Holmes, Ann Gehan and Theo Wayt · Sep 14, 2023 12:40pm PDT · 10 comments

Flexport’s revenue fell nearly 70% in the first half of the year to $700 million and the company burned through cash, people familiar with the company’s financials said. The decline shows how the SoftBank- and Andreessen Horowitz-backed logistics startup’s performance has been deteriorating rapidly amid a broader freight market... Flexport’s revenue fell nearly 70% in the first half of the year to $700 million and the...

Paradigm co-founders Fred Ehrsam (left) and Matt Huang (right). Photos via Flickr and AP

The Paradigm Shift in Crypto That Wasn’t

By Aidan Ryan · Sep 14, 2023 6:00am PDT · 4 comments

Earlier this year, as some of the less die-hard crypto investors and entrepreneurs began distancing themselves from that turbulent sector, Paradigm—one of the largest venture firms specializing in crypto—also seemed to wobble. In May, Paradigm scrubbed any mention of crypto from the homepage of its website and Twitter bio, changing... Earlier this year, as some of the less die-hard crypto investors and entrepreneurs began...

Why the Two Biggest Winners in Instacart’s IPO Clashed

By Cory Weinberg · Sep 13, 2023 5:57pm PDT · 5 comments

Why the Two Biggest Winners in Instacart’s IPO Clashed

By Cory Weinberg · Sep 13, 2023 5:57pm PDT · 5 comments

By far, the two biggest winners of Instacart’s long-awaited initial public offering next week will be the grocery company’s largest individual shareholder, co-founder and former CEO Apoorva Mehta, and its largest venture backer, Sequoia Capital. Mehta’s profit from the listing stands to be more than $780 million, while Sequoia... By far, the two biggest winners of Instacart’s long-awaited initial public offering next...