What we’re reading (7/18)
“Wall Street Can’t Shake Off Investment-Banking Slump” (Wall Street Journal). “The picture for Wall Street businesses is more complicated. A resilient U.S. economy hasn’t done much to shake the uncertainty that has kept corporate executives from taking their companies public and pursuing deals. And calmer financial markets have reined in the trading boom that had been a bright spot for the industry.”
“Meta Unveils A More Powerful A.I. And Isn’t Fretting Over Who Uses It” (New York Times). “Mr. Zuckerberg, the chief executive of Meta, said on Tuesday that he planned to provide the code behind the company’s latest and most advanced A.I. technology to developers and software enthusiasts around the world free of charge.”
“The Dirty Little Secret That Could Bring Down Big Tech” (Insider). “Let's be clear here: This isn't the traditional capitalist story of ‘you win some, you lose some.’ The point isn't that venture capitalists sometimes invest in companies that don’t make their money back. The point is that the entire model deployed by VCs is to profit by disrupting the marketplace with predatory pricing, and leave the losses to the suckers who buy into the IPO. A company that engages in predatory pricing and its late-stage investors might not recoup, but the venture investors do.”
“US Startups Are Having A Bad Year. Relief Isn’t Coming” (CNN Business). “Venture capital funding for startups across the globe halved in the first six months of the year, according to new Pitchbook data – it would have been even worse, they said, if there hadn’t been a big boost in AI investment. More than 400 companies haven’t been able to raise any new money since 2021, according to Pitchbook. Meanwhile, nearly 95% of all tech startups worth more than $1 billion aren’t able to generate a profit at all. The carnage is so bad that some insiders are calling this an extinction-level event for startups.”
“You’re Going To See More AI-Written Articles Whether You Like It Or Not” (Vox). “In early July, managers at G/O media, the digital publisher that owns sites like Gizmodo, the Onion, and Jezebel, published four stories that had been almost entirely generated by AI engines. The stories — which included multiple errors and which ran without input from G/O’s editors or writers — infuriated G/O staff and generated scorn in media circles. They should get used to it.”
