Thursday 31 December 2020

The 10 stories that defined tech in 2020 — and reveal what to expect in 2021 and beyond

 
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2020 is almost over (finally). 

But before we close the book on this difficult and eventful year, it's worth reviewing some of the big developments in tech that defined 2020 and will shape the months and years to come.

Readers of the Insider Tech newsletter have followed all the industry's twists and turns in this weekly report (subscribe here to get Insider Tech in your inbox every Wednesday). Highlighted below, in this special edition of this newsletter, are some of the top stories reported by Business Insider's crew of intrepid journalists this past year.

Note: Insider Tech will be back to its regular schedule on Wednesday, January 6. Happy New Year!


Meet the SPAC King: Chamath Palihapitiya's ego and a scattershot strategy gutted his venture-capital firm. Now the investor has a new playbook that could put him back on top. By Melia Russell

In May, Melia reported that Chamath Palihapitiya's Social Capital had found a new investment vehicle maybe better suited to his ambitions: a special-purpose acquisition company, or SPAC. The rest of the year saw a SPAC boom — with Social Capital and Palihapitiya as major players. 

chamath palihapitiya profile controversial silicon valley 4x3


Jeff Bezos is back in the trenches at Amazon. Insiders describe working with a more deeply involved CEO. By Eugene Kim

After having spent the past few years almost exclusively focused on long-term initiatives, the Amazon CEO is responding to a plethora of disruptions caused by COVID-19, including supply-chain lockdowns and shipment delays. as well as new competition from Shopify.


Former Pinterest employees describe a traumatic workplace where managers humiliate employees until they cry, Black people feel alienated, and the toxic culture 'eats away at your soul' By Julie Bort and Taylor Nicole Rogers

Eleven former Pinterest employees told Business Insider that despite the company's upbeat product, it was a toxic and difficult place to work, especially for Black employees. Julie and Taylor's reporting oo Pinterest's workplace culture caused CEO Ben Silbermann to admit to employees: "I'm embarrassed."


The 199 days that doomed Quibi: How $1.75 billion couldn't save the most hyped app of the year from a pandemic and apathetic users By Rob Price, Meghan Morris, and Becky Peterson

Jeffrey Katzenberg and Meg Whitman merged Hollywood and Silicon Valley connections, but it wasn't enough to save Quibi. They missed warning signs and took costly missteps in the leadup to and after its debut, and the short-form video app died after only six months.

quibi rise and fall 4x3


Inside Larry Page and Sergey Brin's quiet agreement with Sundar Pichai that has forced Google's CEO to distinguish his leadership style By Hugh Langley

When Larry Page and Sergey Brin stepped away from Alphabet last year, they struck a deal with CEO Sundar Pichai: you can call us, but we won't call you. It's propelled Pichai into a tough job: Google has been in a midlife crisis for some time. Now it's faced with an antitrust lawsuit and renewed criticism, and Pichai is at the center of the mess.


Is Silicon Valley finally dead? By Meghan Morris and Berber Jin 

Silicon Valley's mix of startup-friendly features made it the world's tech capital. As tech CEOs and VCs move away, the region faces difficult questions.


Rent the Runway CEO Jennifer Hyman, one of the most successful female founders, is fighting to save her company By Becky Peterson

Becky spoke with more than two dozen of Hyman's colleagues and former coworkers — and spent hours talking to Hyman — to see firsthand what it looks like when a talented entrepreneur confronts an unprecedented challenge.

rent the runway jennifer hyman profile 4x3


How a video-game wunderkind raised $446 million for a robot revolution that mesmerized SoftBank but went off the rails: The inside story of Zume Pizza By Meghan Hernbroth

Alex Garden founded Zume Pizza with a bold vision of harnessing a robot army and upending an industry. But the revolution didn't go according to plan.


Tony Hsieh sold Zappos for $1.2 billion in his 30s. He was dead by 46. Inside his final Park City months, where he hoped to deliver more happiness as he spiraled. By Meghan Morris and Connor Perrett

Meghan and Connor's thoughtful exploration into Tony Hsieh's tragic final months show an eccentric entrepreneur who gave generously, isolated himself from longtime friends, and developed a fascination with fire and nitrous oxide.

tony hsieh final months 4x3


Aggressive and misleading sales tactics by Yelp employees knowingly prey on small businesses during the pandemic, insiders say By Rob Price

Yelp insiders detailed the company's hyper-aggressive approach to sales and its high-pressure corporate culture. Some said they knowingly sold to small business owners who they didn't think understood what they were buying and regularly heard complaints from business owners about unexpected bills.


Google paid a star self-driving engineer $120 million. Then he quit, joined a rival, and headed to prison. By Alex Davies

Together, Anthony Levandowski and Chris Urmson launched the self-driving car industry. Their rivalry threatened to tear it apart. Alex dives even deeper into the rivalry in his book, "Driven: The Race to Create the Autonomous Car," which hits shelves January 5.

google uber self driving race 4x3


Thanks for reading, and if you like this newsletter, tell your friends and colleagues they can sign up here to receive it.

See you in 2021!

— Alexei

 
 
 
 
 
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Wednesday 30 December 2020

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Tuesday 29 December 2020

Microsoft is tying employee bonuses to their 'integrity'

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Microsoft is tying employee bonuses to their 'integrity'

Microsoft is tying bonuses to some employees based on whether they "generate and protect Microsoft trust by modeling integrity," according to internal documents.

The company has generally tried to position itself as an ethical tech company, publishing ethical principles to guide its work in facial recognition technology.

Read now →
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Tuesday 22 December 2020

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Wednesday 16 December 2020

Twitter sends Periscope to its app abattoir while MacKenzie Scott sets a $4 billion example for the rest of the tech billionaires

 
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Hello, and welcome to this Wednesday's edition of the Insider Tech newsletter, where we break down the biggest news in tech. This will be the last weekly newsletter of 2020 — Insider Tech will be back in January!

Did someone forward this newsletter to you? Get Insider Tech straight in your inbox by subscribing here.

Soundtrack: For maximum enjoyment of this newsletter, we recommend listening to George Benson's version of "Take Five."


This week: Twitter's app abattoir and MacKenzie Scott's $4 billion example

jack dorsey

Periscope, the livestreaming app, that Twitter acquired in 2015, is going the way of Vine. Twitter announced plans Tuesday to shut down the Periscope standalone app, the latest example of Twitter's odd habit of euthanizing apps that it buys. 

  • Unlike the 2017 shutdown of video-clip-looping app Vine, which came as a shock to many loyal users and for which Twitter never really provided an explanation, Twitter ascribed Periscope's death to simple economics: The app was not getting enough use to justify the ongoing costs of supporting it.
  • Many commentators pointed out that Vine's demise came shortly before TikTok conquered the world with its similar service of looping video clips. The counterargument is that TikTok's secret sauce is more about the discovery AI than the basic concept of looping clips. Still, it's reasonable to wonder whether Twitter is being myopic by sending Periscope into its app abattoir.

Meanwhile, in Google-land, a storm of outages caused havoc with some of the company's most popular apps this week, including YouTube, Google Maps, and Gmail. In the case of Gmail, the service disruptions occurred on two successive days.

And Amazon Web Services has ratcheted up the rhetoric in its dispute over losing the Pentagon's $10 billion JEDI cloud contract to Microsoft.

Speaking of Amazon, don't miss Eugene Kim's fantastic, in-depth report on Jeff Bezos' renewed presence at the controls of the ecommerce giant. Among the takeaways:

  • After recent years focusing on longer-term projects like the space company Blue Origin, Bezos is back in the trenches and heavily involved in day-to-day operations at Amazon.
  • The return of Bezos was triggered by the disruptions caused by COVID-19, including supply-chain lockdowns and shipment delays, as well as Amazon's coronavirus testing lab.
  • But emerging threats like Shopify have caused Bezos to take a more hands-on approach.

Read the full story here.


Mackenzie Bezos

While Bezos tries to crush the competition, his ex-wife MacKenzie Scott is making headlines for her largesse. Scott has given away $4.2 billion to more than 300 organizations over the past 4 months.

The money is going to a variety of efforts including food banks and emergency relief funds that Scott says will hope those most affected by the coronavirus.

"This pandemic has been a wrecking ball in the lives of Americans already struggling. Economic losses and health outcomes alike have been worse for women, for people of color, and for people living in poverty. Meanwhile, it has substantially increased the wealth of billionaires," Scott wrote in a blog post.

Now that's a good example to set for the holidays.


Quote of the week: 

"Candidly, there has been a cultural shift in Europe which is leading to there being more founders on the continent, that's been a catalyst for us."

— Rytis Vitkauskas, partner at early-stage VC firm Lightspeed Venture Partners, regarding the firm's decision to open an office in London and make its first on-the-ground foray into Europe.

Rytis Lightspeed Ventures


Snapshot: Amazon's self-driving "carriage"

It was only a matter of time before Amazon got into the taxi business. The "carriage-style" taxi unveiled this week is a completely autonomous vehicle — there's no driver to chat with, and no steering wheel or other controls. The robotaxi is being developed by Zoox, the self-driving car company Amazon acquired in June for a reported $1.2 billion.

Zoox Autonomous Vehicle   Single Side   Coit Tower SF

The electric vehicle is 143 inches long (shorter than a Mini Cooper) and sits 4 people on opposite facing bench seats. It can reach a top speed of 75 mph, which frankly sounds a bit terrifying.

Amazon won't say when the robotaxi will begin to ply the streets with passengers aboard, though it apparently will not launch as a publicly available ride-hailing service until at least 2022, per Bloomberg. In the meantime, the robotaxi is being tested in Las Vegas, San Francisco, and  Foster City, Calif — if you see one in the wild, or get lucky enough to ride in one, please send us some photos.


SPECIAL LIVE EVENT: Insiders from Kleiner Perkins, Accel, and Index Ventures will break down how to get hired in VC

Thursday, December 17, at 3 p.m. EST/ 12 p.m. PST Business Insider's startups and VC reporter Melia Russell hosts a live panel discussion on how to get hired in VC, with a focus on young professionals breaking in. The panel of industry insiders will discuss what VC firms look for in candidates for analyst, associate, and junior partner jobs, and how those young professionals can best position themselves for success in the interview process.

You can sign up here if you're a Business Insider subscriber.


Recommended Readings:

How hackers breached IT company SolarWinds and staged an unprecedented attack that left US government agencies vulnerable for 9 months

These are the 5 most important people who left Microsoft in 2020 — and 5 new power players who signed on

How John Chambers is using everything he learned in his legendary stint as Cisco CEO to lead startups through the pandemic

Europe is about to hobble the power of tech giants like Facebook and Amazon. Here's what we know about its huge new proposals.

Billionaire investor Vinod Khosla shares the 4 most promising sectors he's betting on in the booming climate-tech industry


Not necessarily in tech:

Celebrity church Hillsong faces new accusations of racism, exploitation, and discrimination after NYC pastor Carl Lentz was fired for infidelity


Thanks for reading, and if you like this newsletter, tell your friends and colleagues they can sign up here to receive it.

And as always, please reach out with rants, raves, and tips at aoreskovic@businessinsider.com

— Alexei

 
 
 
 
 
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How hackers infiltrated US government agencies for months

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How hackers infiltrated US government agencies for months

Hackers compromised the software company SolarWinds and used its Orion software to spy on US government agencies and private companies for months, cybersecurity researchers said Monday.

This unprecedented breach began in March, and went completely undetected for 9 months — leaving the sensitive federal data vulnerable.

Read Now →
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10 things in tech you need to know today

Today's top news and analysis.
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10 THINGS IN TECH YOU NEED TO KNOW TODAY

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Good morning! This is the tech news you need to know this Wednesday. Sign up here to get this email in your inbox every morning.

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Event alert: Join us Thursday, December 17 at 3 p.m. ET for a panel discussion on how to get hired in VC. Sign up here.

  1. The EU is threatening to break up tech firms. The EU unveiled a raft of new policy proposals designed to curb the influence of the likes of Amazon and Facebook.

  2. Microsoft sinkholed the domain used in the SolarWinds attack. The domain served as the command and control center for a compromise that affected 18,000 customers.

  3. Twitter incurred a GDPR fine. The Irish Data Protection Commission fined Twitter $546,000 for violating the EU's GDPR privacy law and failing to notify the regulator of a data breach within 72 hours of one occurring.

  4. Pinterest settled a sexism suit. The firm on Monday paid $22.5 million to end a lawsuit brought by Francoise Brougher, its former chief operating officer, who alleged gender discrimination.

  5. Google faces a second antitrust suit. The suit from state attorneys general is expected to accuse Google of designing its search engine to favor its own specialized search products over the specialized search tools of competitors, according to Politico.

  6. iOS will tell you how you're being tracked. New App Store labels tell you how an iPhone app collects "data used to track you," "data linked to you," and "data not linked to you."

  7. TikTok will label posts about coronavirus vaccines. The company said that starting December 21 it would roll out information banners on any TikTok videos that mention vaccines.

  8. Here's how Amazon bought self-driving car firm Zoox. Zoox co-founder and CTO Jesse Levinson told Business Insider the companies had talked from time-to-time over the past few years, but started seriously discussing an acquisition this year.

  9. There's an overabundance of dildos on "Cyberpunk 2077." A bug in the game means the sex toys can be found in nearly every area, which quickly turned into a meme online. 

  10. Prince Harry and Meghan Markle will podcast on Spotify. The royal pair will produce and host podcasts exclusively on Spotify as part of a multi-year partnership.
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