The Information

Photo by Bloomberg.

Microsoft Kills Its Industrial Metaverse Team After 4 Months

By Kevin McLaughlin · Feb 9, 2023 1:07pm PST · 3 comments

In a surprising reversal, Microsoft has killed a team it formed four months ago to help customers use the metaverse in industrial settings, according to a person with direct knowledge of the matter. The group’s roughly 100 employees have all been laid off, the person said. Microsoft created its Industrial Metaverse Core team in October to... In a surprising reversal, Microsoft has killed a team it formed four months ago to help customers...

Elon Musk. Photo by Bloomberg.

Musk Tells Twitter Staff to Pause Development Amid Outage

By Erin Woo · Feb 8, 2023 3:11pm PST

Elon Musk told employees on Wednesday afternoon to pause feature development as Twitter staff worked to solve an outage that left users unable to tweet or send and read direct messages for more than an hour. “Please pause for now on new feature development in favor of maximizing system stability and robustness, especially with the Super... Elon Musk told employees on Wednesday afternoon to pause feature development as Twitter staff...

Alexis Ohanian. Photo by AP.

Alexis Ohanian Venture Fund Plots $776 Million in New Funds

By Kate Clark · Feb 8, 2023 12:26pm PST

Seven Seven Six, the venture capital fund launched by Reddit co-founder Alexis Ohanian in 2020, plans to raise $776 million for two new funds, according to investment documents viewed by The Information. The planned fundraising is more than 50% bigger than what it raised last year and will test investor appetite for bigger funds during a tough... Seven Seven Six, the venture capital fund launched by Reddit co-founder Alexis Ohanian in 2020,...

OpenAI CEO Sam Altman and President Greg Brockman. Art by Clark Miller. Photos by David Paul Morris/Bloomberg

OpenAI’s Hidden Weapon: Ex-Google Engineers

By Jon Victor · Feb 8, 2023 11:00am PST · 3 comments

OpenAI CEO Sam Altman and President Greg Brockman. Art by Clark Miller. Photos by David Paul Morris/Bloomberg

OpenAI’s Hidden Weapon: Ex-Google Engineers

By Jon Victor · Feb 8, 2023 11:00am PST · 3 comments

As OpenAI’s web chatbot became a global sensation in recent months, artificial intelligence practitioners and investors have wondered how a seven-year-old startup beat Google to the punch. Google runs two of the world’s foremost AI research groups, yet a startup quickly developed a product, ChatGPT, that tens of millions of people... As OpenAI’s web chatbot became a global sensation in recent months, artificial intelligence...

Art by Shane Burke. Photos via Reddit/Shutterstock.

How Reddit Grew Its Ad Business, Bolstering IPO Hopes

By Isabelle Sarraf · Feb 8, 2023 6:00am PST

While whiling away the hours on Call of Duty and other videogames, gamers love to chew on Kraft Singles. At least, that’s what research done by food giant Kraft Heinz implies. So to drive more sales of the individually wrapped pieces of processed cheese, Kraft Heinz targeted gaming interest groups on Reddit and launched an ad in the form... While whiling away the hours on Call of Duty and other videogames, gamers love to chew on Kraft...

Photo by Getty.

Fast-Delivery Startups Getir and Flink Held Merger Talks

By Maria Heeter and Erin Woo · Feb 7, 2023 11:46am PST

Turkey-based fast-delivery firm Getir had preliminary talks late last year about merging with Flink, the Germany-based startup, in a sign that consolidation in the fast-delivery sector may have another round to go. Merging with Flink would strengthen Getir in Germany, where it expanded through last year’s acquisition of Gorillas. Flink... Turkey-based fast-delivery firm Getir had preliminary talks late last year about merging with...

Ben Schwerin. Photo: Getty

Coatue Hires Snap Exec as New General Partner After String of Exits

By Kate Clark · Feb 7, 2023 10:34am PST · 2 comments

Ben Schwerin, a senior vice president of content and partnerships at Snap who helps lead the company's TikTok competitor Spotlight, will join Coatue Management as a general partner, Schwerin told The Information. The new hire follows the departures of four general partners at the New York-based firm, including most recently David Cahn, chief... Ben Schwerin, a senior vice president of content and partnerships at Snap who helps lead the...

Hedge funds, pensions funds and even huge asset managers are outsourcing more and more of their trading. Photo by Bloomberg.

Where Did All the Traders Go? Investment Funds Lean on Outsourcing to Cut Costs

By Lauren Tara LaCapra · Feb 7, 2023 7:11am PST · 2 comments

Hedge funds, pensions funds and even huge asset managers are outsourcing more and more of their trading. Photo by Bloomberg.

Where Did All the Traders Go? Investment Funds Lean on Outsourcing to Cut Costs

By Lauren Tara LaCapra · Feb 7, 2023 7:11am PST · 2 comments

More and more investment funds are outsourcing their trading, a move that cuts costs and aims to boost returns but also poses risks for the funds’ portfolios and underlying investors. Once a niche Wall Street business that catered to young hedge funds, outsourced trading has now attracted mutual funds, pension funds and other asset... More and more investment funds are outsourcing their trading, a move that cuts costs and aims to...

Artwork by Clark Miller. Photo of SpaceX Starship by The Asahi Shimbun via Getty Images

Musk’s Long Road to Mars: How Poor Planning Dogged the Development of SpaceX Rocket

By Becky Peterson · Feb 7, 2023 6:00am PST · 6 comments

Early last year, Elon Musk stood on a stage near the coast of Southern Texas with a 400-foot-tall stainless steel rocket made by his company, SpaceX, jutting up into the night sky behind him. That rocket was supposed to be the first of a powerful new class of space vehicles, known as Starship, that SpaceX was preparing to blast into orbit, part... Early last year, Elon Musk stood on a stage near the coast of Southern Texas with a 400-foot-tall...

Luke Voiles. Art: Shane Burke.

Pipe, a Lending Startup Backed By Benioff and Shopify, Nears CEO Appointment

By Maria Heeter and Erin Woo · Feb 6, 2023 4:53pm PST

Pipe, one of a cluster of startups that found a niche in lending money to companies against their recurring revenues, is close to naming a new CEO to succeed co-founders Harry Hurst and Josh Mangel, who were co-CEOs until last fall, according to people familiar with the decision. Luke Voiles, an executive from payment app Block, has surfaced as... Pipe, one of a cluster of startups that found a niche in lending money to companies against their...

Elon Musk, right, last month. Photo by Getty.

Musk’s Twitter Has Just 180,000 U.S. Subscribers, Two Months After Launch

By Erin Woo · Feb 6, 2023 1:16pm PST · 5 comments

Around 180,000 people in the U.S. were paying for subscriptions to Twitter, including Twitter Blue, as of mid-January, or less than 0.2% of monthly active users, according to a document viewed by The Information. The tiny number signals the challenge Elon Musk faces in turning the subscription product into a major source of revenue. The U.S.... Around 180,000 people in the U.S. were paying for subscriptions to Twitter, including Twitter...

Art by Mike Sullivan.

Genesis Creditors Could Miss Out on Recent Crypto Rally

By Akash Pasricha and Aidan Ryan · Feb 3, 2023 10:35am PST · 3 comments

Art by Mike Sullivan.

Genesis Creditors Could Miss Out on Recent Crypto Rally

By Akash Pasricha and Aidan Ryan · Feb 3, 2023 10:35am PST · 3 comments

Crypto prices have risen since parts of crypto lender Genesis filed for chapter 11 bankruptcy last month, lifting the value of customers’ crypto assets stuck in Genesis accounts. That’s not necessarily good news for Genesis’ creditors, however. Creditors are worried that any repayments they get from the bankruptcy will be made... Crypto prices have risen since parts of crypto lender Genesis filed for chapter 11 bankruptcy...

Amazon executive chairman Jeff Bezos. Art by Mike Sullivan

How Amazon’s Bricks-and-Mortar Dreams Hit a Wall

By Theo Wayt and Nick Wingfield · Feb 3, 2023 6:09am PST · 2 comments

If Amazon’s ambitious vision for becoming a power in bricks-and-mortar retail had gone to plan, last month would have been a big milestone for the company. As recently as late 2021, Amazon had set January 2023 as the target date for a ribbon-cutting ceremony for its first ever big-box store. It would have been a bit smaller than a Target... If Amazon’s ambitious vision for becoming a power in bricks-and-mortar retail had gone to...

Photo Illustration by Shane Burke. Photos by Getty and Shutterstock

Musk’s Twitter Scores Super Bowl Deals, a Boon for Struggling Ad Business

By Erin Woo · Feb 2, 2023 3:16pm PST

After weeks of turmoil and layoffs, Twitter’s sales team in recent weeks has reorganized to focus more on big advertisers and launch new ad products, such as its recently released digital confetti. Now Twitter faces its biggest sales test since Elon Musk took over the company: Super Bowl Sunday, historically Twitter’s... After weeks of turmoil and layoffs, Twitter’s sales team in recent weeks has reorganized to...

Verily headquarters in San Francisco. Photo by AP.

Revenues Rise at Alphabet’s Biggest ‘Other Bet’ But So Do Losses

By Jon Victor · Feb 2, 2023 6:00am PST · 2 comments

Verily, by far the biggest Alphabet unit by revenue after Google, continues to post heavy losses, according to previously undisclosed financial information. The results show just how far Verily is from standing on its own—a key goal of the Alphabet corporate structure created in 2015. Revenue at Verily, which tries to apply data... Verily, by far the biggest Alphabet unit by revenue after Google, continues to post heavy losses,...

Netflix Tells Advertisers Sign-Ups to Ad Tier Doubled in January

By Sahil Patel · Feb 1, 2023 7:00am PST

Netflix Tells Advertisers Sign-Ups to Ad Tier Doubled in January

By Sahil Patel · Feb 1, 2023 7:00am PST

Netflix is making progress in its plunge into advertising—slowly. The streaming firm told advertisers in the past 10 days that new sign-ups for the tier with ads had doubled in January over December, a sign that low-cost offering was catching on with subscribers, ad executives say. Netflix didn’t tell advertisers how many sign-ups... Netflix is making progress in its plunge into advertising—slowly. The streaming firm told...

Photos via Adept Labs, Edmund Hillary Fellowship, Gantry ML, KIT Gründerschmiede, Sci Founders, Shutterstock, Stanford University, University of Central Florida, UC Irvine, UC Berkeley and YouTube.

OpenAI Is Making Headlines. It’s Also Seeding Talent Across Silicon Valley

By Jon Victor and Aaron Holmes · Feb 1, 2023 6:00am PST

OpenAI has just 375 full-time employees, but its buzzy chatbot, ChatGPT, is shaking up Silicon Valley. The company’s influence extends even further, through former employees who are now in top positions at other artificial intelligence firms or have founded startups of their own. Even as layoffs roil the tech sector, AI talent is in high... OpenAI has just 375 full-time employees, but its buzzy chatbot, ChatGPT, is shaking up Silicon...

Art by Shane Burke. Photo by Bloomberg

Musk Leaves Twitter Staff Without Equity Plan as Deadline Looms

By Erin Woo · Jan 31, 2023 1:40pm PST

Shortly after Elon Musk bought Twitter last fall, he promised Twitter staff that they could look forward to the kind of stock rewards employees at SpaceX—another private company Musk runs—enjoy. But as Musk’s ownership of Twitter nears the end of its third month, he has yet to release details of the new stock compensation plan,... Shortly after Elon Musk bought Twitter last fall, he promised Twitter staff that they could look...

Illustration by Josh Brill

Meta Insiders Debate Key Issue for Reels: Whether to Share Ad Dollars With Creators

By Sylvia Varnham O'Regan and Kaya Yurieff · Jan 31, 2023 6:00am PST · 1 comment

When Wall Street analysts dial into an earnings call tomorrow with Mark Zuckerberg, they’re likely to pepper the Meta Platforms CEO with different versions of a favorite question: What’s the latest on making money from Reels, Meta’s answer to TikTok? It’s a delicate topic inside Meta. After three years of work on... When Wall Street analysts dial into an earnings call tomorrow with Mark Zuckerberg, they’re...

Photo of Sam Altman by Bloomberg. Art by Mike Sullivan.

OpenAI Dangles Perks and Early Access to Win Investments in AI Startups

By Kate Clark · Jan 30, 2023 11:17am PST

Photo of Sam Altman by Bloomberg. Art by Mike Sullivan.

OpenAI Dangles Perks and Early Access to Win Investments in AI Startups

By Kate Clark · Jan 30, 2023 11:17am PST

OpenAI has proven itself to be a prolific fundraiser, collecting billions of dollars from Microsoft and others to perfect its artificial intelligence software. Lately, it’s also been flexing its muscles as an investor in other AI startups, a strategy that could tie a generation of young companies to its machine-learning models and... OpenAI has proven itself to be a prolific fundraiser, collecting billions of dollars from...