The Information

Former FDIC Chief Innovation Officer Sultan Meghji. Photo via YouTube/Art by Shane Burke.

The FDIC’s First Chief Innovation Officer Made Big Claims. Many Don’t Stack Up

By Michael Roddan · Feb 9, 2024 6:00am PST · 5 comments

In 2015, fintech founder and eventual FDIC Chief Innovation Officer Sultan Meghji was sitting in a co-working space when a loud bang clapped through the room. It startled his colleagues, a group of founders from the St. Louis startup community, according to a person who was there. Meghji turned to a colleague and said the violent pop gave him... In 2015, fintech founder and eventual FDIC Chief Innovation Officer Sultan Meghji was sitting in...

Epic Games CEO Tim Sweeney. Photo by Bloomberg via Getty Images.

Disney’s Epic Deal Values Fortnite Maker at $22.5 Billion, a Sharp Cut

By Cory Weinberg · Feb 8, 2024 1:45pm PST

Disney’s $1.5 billion investment in Epic Games values the Fortnite maker at $22.5 billion, a person familiar with the matter said. The price is about a 29% drop from where investors last valued the company less than two years ago. The investment makes the “Fortnite” maker one of the largest private, venture-backed companies to... Disney’s $1.5 billion investment in Epic Games values the Fortnite maker at $22.5 billion,...

Photo via YouTube.

Flexport’s Apple Air Freight Deal Has Burned Through Cash

By Theo Wayt and Ann Gehan · Feb 8, 2024 6:00am PST · 2 comments

For Flexport, a logistics company billing itself as the future of trade, it’s hard to think of a more impressive client than Apple, the poster child of globalization. Since late 2022, the iPhone maker has been using Flexport’s air freight services to fly products from some of its factories in Asia to U.S. cities for distribution to... For Flexport, a logistics company billing itself as the future of trade, it’s hard to think...

Sam Altman, CEO of OpenAI. Photo by Hollie Adams/Bloomberg via Getty Images

OpenAI Shifts AI Battleground to Software That Operates Devices, Automates Tasks

By Stephanie Palazzolo and Amir Efrati · Feb 7, 2024 1:50pm PST · 4 comments

Sam Altman, CEO of OpenAI. Photo by Hollie Adams/Bloomberg via Getty Images

OpenAI Shifts AI Battleground to Software That Operates Devices, Automates Tasks

By Stephanie Palazzolo and Amir Efrati · Feb 7, 2024 1:50pm PST · 4 comments

OpenAI’s first major product, ChatGPT, proved so popular that it sparked a generation of wannabes. But as rivals like Google catch up, OpenAI is hustling to release a product that could prove almost as revolutionary. OpenAI is developing a form of agent software to automate complex tasks by effectively taking over a customer’s... OpenAI’s first major product, ChatGPT, proved so popular that it sparked a generation of...

Pictured: Temu and Amazon packages; Doug Herrington, CEO of Worldwide Amazon Stores; and Amazon CEO Andy Jassy. Photos via Getty Images, Shutterstock and YouTube

Inside Amazon, Temu’s Rise Prompts Soul Searching

By Theo Wayt and Jing Yang · Feb 7, 2024 7:00am PST · 3 comments

Amazon’s executives pride themselves on their obsession with customers rather than competitors. A year ago, though, the head of Amazon’s e-commerce business, Doug Herrington, had one Amazon competitor very much on his mind. Herrington sent his subordinates a news article about Temu, at the time a little-known subsidiary of Chinese... Amazon’s executives pride themselves on their obsession with customers rather than...

Image by Clark Miller

Apple Develops a Foldable Clamshell iPhone

By Wayne Ma · Feb 7, 2024 6:00am PST

Apple is building prototypes of at least two iPhones that fold widthwise like a clamshell, according to a person with direct knowledge of the situation. If Apple ends up launching a foldable iPhone, it would be one of the biggest hardware design changes in the product’s history. Foldable phones can be smaller and more portable than typical... Apple is building prototypes of at least two iPhones that fold widthwise like a clamshell,...

Photo by NurPhoto via Getty Images.

Amazon Pilots New Driver Safety Features After Shootings

By Theo Wayt · Feb 6, 2024 2:17pm PST

Amazon is working on several new safety features for Amazon Flex gig drivers who make deliveries in their own vehicles, the company said. The measures follow several incidents in which residents had shot Flex drivers or threatened them with guns, in many instances saying they had mistaken them for intruders. Amazon is working on a feature in its... Amazon is working on several new safety features for Amazon Flex gig drivers who make deliveries...

Sam Altman. Photo via Getty Images

Some OpenAI Investors Sit Out Share Sale, Reflecting AI Divide

By Natasha Mascarenhas and Kate Clark · Feb 6, 2024 6:00am PST · 2 comments

Sam Altman. Photo via Getty Images

Some OpenAI Investors Sit Out Share Sale, Reflecting AI Divide

By Natasha Mascarenhas and Kate Clark · Feb 6, 2024 6:00am PST · 2 comments

For the past year, owning a stake in OpenAI was akin to possessing Silicon Valley gold, signaling that the investor had a ticket to the next great tech transformation. But as the valuation of the startup has tripled, some investors have refrained from buying more. And a number of marquee venture capital firms have shied from investing in dozens... For the past year, owning a stake in OpenAI was akin to possessing Silicon Valley gold, signaling...

A Shein warehouse in Indiana. Photo by Scott Olson/Getty Images.

Shein’s Top U.S. Lawyer Departs

By Ann Gehan · Feb 5, 2024 1:47pm PST · 1 comment

Shein lawyers have plenty of work on their plate right now, as the China-founded fast-fashion firm fends off a raft of trademark infringement lawsuits and gears up for a potential U.S. initial public offering. But Shein’s internal legal ranks are going through a change in leadership, with Shein’s top U.S. lawyer, Valerie Ho,... Shein lawyers have plenty of work on their plate right now, as the China-founded fast-fashion...

Mike Clayville. Photo via Stripe.

Top Stripe Executive Clayville Departs, Is Helping Secretive Startup Omniva Hire

By Theo Wayt, Cory Weinberg and Anissa Gardizy · Feb 5, 2024 12:25pm PST

Stripe returned to profitability last year in part by squeezing spending on sales and marketing. The executive in charge of growing sales to large customers isn’t sticking around to see how the slimmed-down strategy plays out. Mike Clayville, a former Amazon Web Services executive who became a marquee Stripe hire three and a half years ago... Stripe returned to profitability last year in part by squeezing spending on sales and marketing....

Evan Spiegel. Photo by Getty.

Snap Targets Senior Leadership in Sweeping Layoffs

By Erin Woo · Feb 5, 2024 9:48am PST · 3 comments

Snap cut several senior executives in its layoffs announced on Monday, aiming in part to reduce the amount of stock based compensation it pays out to senior people, CEO Evan Spiegel told staff on Monday. The company said it would cut its workforce by 10%, or around 550 employees. Included in the cuts were Sam Corrao Clanon, director of content;... Snap cut several senior executives in its layoffs announced on Monday, aiming in part to reduce...

Art by Mike Sullivan

Musk’s X is Flooded With Ad Spam—Stolen Credit Cards May Be Key

By Erin Woo · Feb 5, 2024 6:00am PST · 3 comments

Art by Mike Sullivan

Musk’s X is Flooded With Ad Spam—Stolen Credit Cards May Be Key

By Erin Woo · Feb 5, 2024 6:00am PST · 3 comments

Elon Musk’s X, formerly known as Twitter, has in the past couple of months been inundated with a wave of ads for porn sites and fake luxury goods. That might sound like a low-priority problem for X, as these ads—no matter how sketchy—could in theory bring in much-needed ad revenue. The problem is that the flood of ad spam, as... Elon Musk’s X, formerly known as Twitter, has in the past couple of months been inundated...

Shane Burke/Shutterstock

As China-U.S. Relations Sour, Baidu’s VC Affiliate Tries to Sell Its U.S. Startup Stakes

By Juro Osawa · Feb 2, 2024 6:00am PST · 1 comment

A venture capital firm backed by Chinese internet firm Baidu is in talks to sell a portfolio of stakes in a range of U.S. startups, including artificial intelligence robotics startup Machina Labs, whose customers include the U.S. Air Force, according to two people with knowledge of the matter. The firm, Baidu Venture, has been in discussions... A venture capital firm backed by Chinese internet firm Baidu is in talks to sell a portfolio of...

Art by Mike Sullivan.

AI Data Center Startup Astera Labs Plans March IPO

By Cory Weinberg and Anissa Gardizy · Feb 1, 2024 11:46am PST · 1 comment

A little-known startup that sells crucial data center components to customers like Amazon Web Services and Microsoft is aiming to become one of the first firms to go public off the back of the boom in generative artificial intelligence. Astera Labs, backed by Sutter Hill Ventures and Intel, has been meeting with prospective investors ahead of a... A little-known startup that sells crucial data center components to customers like Amazon Web...

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

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

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

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...