The Information

A TikTok advertisement at Union Station in Washington, D.C., on Wednesday, March 22, 2023. Photo by Bloomberg.

TikTok Shifts Into Damage Control Mode

By Kaya Yurieff · Mar 24, 2023 3:27pm PDT · 2 comments

TikTok and some companies that work with the popular app have shifted into damage control mode after a rancorous Congressional grilling of TikTok CEO Shou Zi Chew failed to allay lawmakers’ concerns that its Chinese parent, ByteDance, poses a national security risk. Golin, a major public relations firm that hires creators on behalf of... TikTok and some companies that work with the popular app have shifted into damage control mode...

Shivon Zilis. Photo: GeekWire/YouTube.

Shivon Zilis, Musk Associate, Leaves OpenAI Board

By Becky Peterson · Mar 23, 2023 8:22am PDT · 4 comments

Shivon Zilis, director of operations at Elon Musk’s Neuralink, has stepped down from the board of OpenAI, according to a person familiar with the move and Zilis’ LinkedIn profile. Her departure follows public criticism of OpenAI from Musk, who aside from being her boss at the brain-computer interface startup Neuralink is also the ... Shivon Zilis, director of operations at Elon Musk’s Neuralink, has stepped down from the...

Bill Gurley in 2019. Photo by Bloomberg

Good Eggs Cuts Its Valuation 94% in Lifeline Financing as More Startups Get Desperate

By Amir Efrati · Mar 23, 2023 6:00am PDT · 6 comments

As more startups struggle to raise money from venture capitalists and approach bankruptcy, they are going to extreme lengths to stay afloat. The latest example is Good Eggs, which delivers fresh produce and other groceries. The company this month raised around $7 million from Greenwich, Conn., investment firm Glade Brook Capital Partners at a... As more startups struggle to raise money from venture capitalists and approach bankruptcy, they...

SpaceX CEO Elon Musk last August. Photo by Bloomberg

SpaceX Plans New Funding With Backing From Saudi, UAE Investors

By Becky Peterson · Mar 22, 2023 3:07pm PDT

SpaceX CEO Elon Musk last August. Photo by Bloomberg

SpaceX Plans New Funding With Backing From Saudi, UAE Investors

By Becky Peterson · Mar 22, 2023 3:07pm PDT

A subsidiary of Saudi Arabia’s investment fund and an Abu Dhabi investment firm are planning to invest in a multibillion-dollar funding round for SpaceX, Elon Musk’s rocket company, according to people familiar with the investor discussions. Representatives of SpaceX and Morgan Stanley, which is organizing the ongoing funding effort,... A subsidiary of Saudi Arabia’s investment fund and an Abu Dhabi investment firm are...

The entrance to Indeed.com's office in Dublin. Photo by Shutterstock.

Indeed Lays Off 2,200 People, or 15% of Staff, as Job Postings Drop

By Theo Wayt · Mar 22, 2023 10:00am PDT · 3 comments

Job listings site Indeed.com told employees on Wednesday that it’s laying off 2,200 people, representing 15% of its headcount, according to a person with direct knowledge of the decision. Indeed CEO Chris Hyams broke the news to employees in an all-hands meeting on Wednesday morning, saying that the cuts would affect teams across the... Job listings site Indeed.com told employees on Wednesday that it’s laying off 2,200 people,...

Nick Grudin. Photo by Dapper Labs.

Meta Rehires Partnerships Executive After Vowing to Shrink Management

By Sahil Patel and Sylvia Varnham O'Regan · Mar 22, 2023 7:16am PDT · 2 comments

Meta Platforms CEO Mark Zuckerberg’s effort to cut back on middle managers isn’t stopping the company hiring more middle managers. Meta has re-hired a veteran manager, Nick Grudin, to oversee its relationships with media companies and other creators, just seven months after Grudin quit to join Dapper Labs, an NFT startup. Grudin will... Meta Platforms CEO Mark Zuckerberg’s effort to cut back on middle managers isn’t...

Art by Mike Sullivan

Amazon Faces Moment of Truth on Alexa as ChatGPT Steals Its Thunder

By Theo Wayt · Mar 22, 2023 6:05am PDT

At the 2018 Consumer Electronics Show, Amazon announced one of its biggest partnerships yet to help make its Alexa voice assistant ubiquitous: a deal with Toyota to integrate Alexa into the auto giant’s cars. “Our vision for Alexa is that she should be everywhere a customer might need her—at home, in the office, on... At the 2018 Consumer Electronics Show, Amazon announced one of its biggest partnerships yet to...

Tonal’s now-shuttered Palo Alto, Calif. retail store. Photo by Getty.

Tonal’s Valuation May Fall 90% in ‘Cram-Down’ Financing

By Maria Heeter · Mar 21, 2023 3:11pm PDT · 7 comments

Tonal’s now-shuttered Palo Alto, Calif. retail store. Photo by Getty.

Tonal’s Valuation May Fall 90% in ‘Cram-Down’ Financing

By Maria Heeter · Mar 21, 2023 3:11pm PDT · 7 comments

Tonal, a fitness startup with a cadre of celebrity backers, is crunched for cash after failing to find a buyer. The company now may take a drastic step: raising money at a valuation nearly 90% lower than its last one, in a deal that would effectively wipe out the stakes of many existing investors, people familiar with the matter said. Private... Tonal, a fitness startup with a cadre of celebrity backers, is crunched for cash after failing to...

A sign outside TikTok's offices in Culver City, Calif. this week. Photo by Getty.

TikTok Tries to Allay Advertisers’ Concerns as U.S. Ban Threat Looms

By Kaya Yurieff and Sylvia Varnham O'Regan · Mar 17, 2023 12:21pm PDT

No matter what happens in Washington, TikTok needs to keep advertisers spending money on the app. The latest threat of a ban, made recently by the Biden administration, has prompted marketers to consider their alternatives, ad executives say. TikTok has been taking steps to reassure the ad industry, including convening a closed-door meeting with... No matter what happens in Washington, TikTok needs to keep advertisers spending money on the app....

A First Republic Bank in Los Angeles. Photo by Bloomberg.

First Republic CEO Told Regulators Earlier This Year His Bank Didn’t Need More Rules

By Michael Roddan and Lauren Tara LaCapra · Mar 16, 2023 2:02pm PDT

On Thursday, First Republic Bank CEO Mike Roffler hashed out a $30 billion rescue plan for his bank with the biggest institutions on Wall Street at the urging of the federal government. But less than two months ago, he was pleading with the Federal Reserve and the Federal Deposit Insurance Corp. to exclude his San Francisco-based lender from... On Thursday, First Republic Bank CEO Mike Roffler hashed out a $30 billion rescue plan for his...

Google Cloud CEO Thomas Kurian in 2019. Photo by Bloomberg

In Search of Profits, Google Cloud Shifts Focus to Midsize Customers

By Kevin McLaughlin · Mar 16, 2023 6:00am PDT

During Thomas Kurian’s nearly five years at the helm of Google’s cloud-server business, the unit has raised its profile by inking long-term agreements with companies such as Deutsche Bank, Dun & Bradstreet Holdings and Mayo Clinic. But Google Cloud has struggled to get those companies to quickly increase their spending on cloud... During Thomas Kurian’s nearly five years at the helm of Google’s cloud-server...

A pedestrian passes a Silicon Valley Bank branch in San Francisco, on Monday, March 13, 2023. Photo by AP.

SVB’s $9.5 Billion Venture Unit Included Large Investments in Andreessen, Sequoia, Documents Show

By Kate Clark · Mar 15, 2023 5:29pm PDT · 4 comments

A pedestrian passes a Silicon Valley Bank branch in San Francisco, on Monday, March 13, 2023. Photo by AP.

SVB’s $9.5 Billion Venture Unit Included Large Investments in Andreessen, Sequoia, Documents Show

By Kate Clark · Mar 15, 2023 5:29pm PDT · 4 comments

As potential buyers circle the remnants of Silicon Valley Bank and its affiliates, one asset could be particularly appealing: the company’s venture capital arm. The unit manages $9.5 billion with stakes in many of Silicon Valley's top-tier venture firms, including Sequoia Capital, giving it indirect access to some of the tech... As potential buyers circle the remnants of Silicon Valley Bank and its affiliates, one asset...

Art by Clark Miller.

Microsoft Rations Access to AI Hardware for Internal Teams

By Aaron Holmes and Kevin McLaughlin · Mar 15, 2023 1:32pm PDT · 4 comments

Microsoft is poised to announce a suite of Office 365 tools powered by GPT-4, the powerful new artificial intelligence software made by OpenAI. But now Microsoft is facing an internal shortage of the server hardware needed to run the AI, according to three current Microsoft employees. That has forced the company to ration access to the hardware... Microsoft is poised to announce a suite of Office 365 tools powered by GPT-4, the powerful new...

Two Silicon Valley Bank customers enter a branch in Palo Alto, Calif., on Monday. Photo by AP.

Government Will Likely Only Sell Silicon Valley Bank to Another Bank, Sources Say

By Michael Roddan, Erin Woo and Lauren Tara LaCapra · Mar 15, 2023 11:18am PDT · 9 comments

The U.S. government will likely only sell Silicon Valley Bank to another bank, people familiar with the matter said, essentially ruling out the private equity firms and venture capitalists that had been exploring making a bid. The Federal Deposit Insurance Corp. took over SVB, which failed Friday, and is in the process of selling it. A person... The U.S. government will likely only sell Silicon Valley Bank to another bank, people familiar...

A recent New York Knicks/Los Angeles Lakers game. Photo by Adam Pantozzi/NBAE via Getty Images.

NBA Wants Billions More in Sports Deals: Media and Tech Firms Are Resistant

By Sahil Patel · Mar 15, 2023 6:00am PDT · 1 comment

The NBA is one of the most popular sports leagues in the world. It also has high hopes for squeezing far more money out of media outlets in negotiations for future TV broadcast rights, in part because tech giants including Amazon and Google have told the league of their interest in streaming the games. According to two people who have recently... The NBA is one of the most popular sports leagues in the world. It also has high hopes for...

Jamie Dimon, chief executive officer of JPMorgan Chase. Photo by Bloomberg.

How JPMorgan Maneuvered During the Fall of Silicon Valley Bank

By Lauren Tara LaCapra and Michael Roddan · Mar 14, 2023 3:10pm PDT

Jamie Dimon, chief executive officer of JPMorgan Chase. Photo by Bloomberg.

How JPMorgan Maneuvered During the Fall of Silicon Valley Bank

By Lauren Tara LaCapra and Michael Roddan · Mar 14, 2023 3:10pm PDT

When Silicon Valley Bank was crumbling last week, eyes turned to the biggest lender in the country—the bank that had stepped in to save failing competitors during the financial crisis in 2008, whose CEO has been called “America’s banker” and whose views and decisions influence the corporate world. But JPMorgan Chase was... When Silicon Valley Bank was crumbling last week, eyes turned to the biggest lender in the...

Marc Rowan, chief executive officer of Apollo Global Management LLC. Photo by Bloomberg.

Apollo Asks VCs to Back Its Bid For Silicon Valley Bank Assets

By Erin Woo and Amir Efrati · Mar 14, 2023 12:44pm PDT · 2 comments

Private equity giant Apollo Global Management has asked major venture capital firms to help finance a bid for the assets of Silicon Valley Bank, according to a person with knowledge of the discussion. Earlier, The Information reported that several firms, including General Catalyst, Andreessen Horowitz and Redpoint Ventures, had discussed the... Private equity giant Apollo Global Management has asked major venture capital firms to help...

Fetch's booth at the Groceryshop 2022 Conference in Las Vegas. Photo by Fetch.

SoftBank-Backed Fetch Rewards Cuts Staff Amid Shopping Slowdown

By Theo Wayt and Ann Gehan · Mar 14, 2023 9:32am PDT

SoftBank-backed shopper rewards startup Fetch Rewards laid off around 100 employees on Monday, making up at least 10% of its workforce, the company confirmed to The Information. Fetch had pitched itself as a way for sellers to battle rising digital marketing costs following Apple’s privacy restrictions. But the Madison, Wis.-based company... SoftBank-backed shopper rewards startup Fetch Rewards laid off around 100 employees on Monday,...

Photo by Bloomberg.

Wall Street Firm Pounces on SVB Implosion With Offer to Buy Deposit Claims

By Maria Heeter · Mar 11, 2023 12:19pm PST · 9 comments

At least one Wall Street firm is sensing an opportunity in the panic around failed Silicon Valley Bank. Traders from Jefferies are contacting startup founders with money stuck at the bank, offering to buy their deposit claims at a discount, according to several people with direct knowledge of the matter. The firm is offering at least 70 cents on... At least one Wall Street firm is sensing an opportunity in the panic around failed Silicon Valley...

People line up outside of the shuttered Silicon Valley Bank headquarters on March 10 in Santa Clara, Calif. Photo by Getty.

The Final Breaths of Silicon Valley Bank

By Michael Roddan, Lauren Tara LaCapra and Kate Clark · Mar 11, 2023 5:30am PST · 16 comments

People line up outside of the shuttered Silicon Valley Bank headquarters on March 10 in Santa Clara, Calif. Photo by Getty.

The Final Breaths of Silicon Valley Bank

By Michael Roddan, Lauren Tara LaCapra and Kate Clark · Mar 11, 2023 5:30am PST · 16 comments

Silicon Valley Bank wasn't just a bank—it was a central artery in the venture capital circulatory system. VC firms recruiting new partners would tell them SVB could set them up with a mortgage in a day. The bank wined and dined the industry in Napa. It sponsored numerous events across the Valley. While other banks that routinely... Silicon Valley Bank wasn't just a bank—it was a central artery in the venture capital...