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    How a Sequoia Capital Partner’s Mamdani Posts Dragged the Firm Into Politics

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    Sequoia Capital, which backed Nvidia, Google and Apple when they were start-ups, has long stayed above the fray. But one partner’s post about Zohran Mamdani set off a chain reaction.Roelof Botha arrived last week at the annual Allen & Company conference in Sun Valley, Idaho, to meet and mingle with tech and media moguls. A controversy brewing back home followed him to the exclusive retreat.Mr. Botha, the managing partner of Sequoia Capital, a storied Silicon Valley venture capital firm, was repeatedly asked at the event about a colleague, Shaun Maguire, two people with knowledge of the matter said. Mr. Maguire — perhaps Sequoia’s most outspoken partner — had posted on X on July 4 that Zohran Mamdani, the progressive Democrat running for New York City mayor, came from a “culture that lies about everything” and was lying to advance “his Islamist agenda.”Mr. Maguire’s post was immediately condemned across social media as Islamophobic. More than 1,000 technologists signed an open letter calling for him to be disciplined. Investors, founders and technologists have sent messages to the firm’s partners about Mr. Maguire’s behavior. His critics have continued pressuring Sequoia to deal with what they see as hate speech and other invective, while his supporters have said Mr. Maguire has the right to free speech.In Sun Valley, Mr. Botha listened, but remained neutral, the people with knowledge of the matter said.Roelof Botha, the managing partner at Sequoia Capital, arriving at the Allen & Company conference in Sun Valley, Idaho, where people repeatedly asked him about Mr. Maguire. Brendan Mcdermid/ReutersFor half a century, Sequoia has tried to maintain that neutrality, even as rival venture capital firms such as Andreessen Horowitz and Founders Fund started taking political stances. But as Mr. Maguire has increasingly made inflammatory comments, including saying that diversity, equity and inclusion “kills people,” Sequoia is now in a place that its leaders never wanted to be: smack in the middle of the culture wars.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      A Prominent Investor Is Criticized Over Mamdani Comments

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      A partner at Sequoia, the venture capital giant drew criticism for calling the Democratic mayoral candidate for New York an “Islamist.” Shaun Maguire of Sequoia Capital is in the hot seat.Tasos Katopodis/Getty Images For 137 Ventures/FoA battle over a venture capitalist’s Mamdani postsZohran Mamdani, the Democratic candidate for New York City mayor, has drawn heated opposition from many business elites for his policy positions, including higher taxes on businesses and the wealthy.But comments by a leading figure at Sequoia, the venture capital giant, calling Mamdani an “Islamist” have drawn backlash — and put the institution at odds with some of the founders it has backed.TL;DR: Shaun Maguire, a partner at Sequoia and a prominent Silicon Valley conservative, referred on social media last week to the news that Mamdani had checked boxes in his application to Columbia in 2009 indicating his ethnicity as “Asian” and “Black or African American.” (His parents are of Indian origin and he was born in Uganda, and he told The Times that he had sought to represent his complex background, and had noted his Ugandan origins in the application.)Maguire wrote on X that the news showed that Mamdani “comes from a culture that lies about everything” and added, “It’s literally a virtue to lie if it advances his Islamist agenda.”Entrepreneurs and others have censured Maguire’s comments. An online petition went up over this weekend calling the investor’s posts “a deliberate, inflammatory attack that promotes dangerous anti-Muslim stereotypes and stokes division.”It had more than 700 signatories as of Tuesday. Among them was a founder of a company that have been backed by Sequoia; others received investment from entities that have since been spun off from the firm. One, Hisham Al-Falih of Lean Technologies, told Bloomberg that Maguire’s post was “not only a sweeping and harmful generalization of Muslims, but part of a broader pattern of Islamophobic rhetoric that has no place in our industry.” More

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      How Trump Could Make Larry Ellison the Next Media Mogul

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      For decades, Larry Ellison reveled in being the Silicon Valley executive who really knew how to have a good time. He spent as much as $200 million building a Japanese-inspired imperial villa near Palo Alto, Calif., bought the sixth-largest Hawaiian island and dated and married and divorced with never-ending zeal.Few paid much attention to exactly what his database company, Oracle, did. Sometimes, neither did Mr. Ellison. He did not show up for his keynote talk at Oracle’s annual convention in San Francisco in 2013 because he was on his yacht trying to win the America’s Cup, which he did. A biography about him was titled, “The Difference Between God and Larry Ellison: God Doesn’t Think He’s Larry Ellison.”With a fortune of $175 billion, there is not much left for Mr. Ellison to buy that would seriously dent his wallet. He broke a Florida record in 2022 when he purchased a 22-acre estate near Palm Beach — but at $173 million, the price was one-tenth of 1 percent of his wealth. He invested $1 billion in Elon Musk’s takeover of Twitter that same year because, he said at the time, “it would be lots of fun.”Now 80 years old and married for the fifth or possibly the sixth time, Mr. Ellison is expanding his ambitions beyond having fun and surrounding himself with beautiful things. Following a path laid down by his friend Mr. Musk, who has at least six companies that feed off one another, Mr. Ellison also appears to be planning to grow his corporate empire.Oracle keeps emerging as a possible bidder for TikTok, the wildly popular video app that Congress has decreed needs to divest itself of its ownership by the Chinese internet company ByteDance or be banned in the United States. On Wednesday, President Trump plans to meet with top White House officials to discuss a new ownership structure for the app. The deadline for a deal is Saturday, though TikTok deadlines have come and gone before.Oracle almost became a minority owner of TikTok’s U.S. operations in 2020, along with Walmart, when concerns about the app’s data security ran rampant. A deal was negotiated where Oracle started storing the data of U.S. users on its cloud. Oracle would also own 12.5 percent of a new company, TikTok Global. The latter part, like many TikTok deals, never happened.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      A.I. Is Changing How Silicon Valley Builds Start-Ups

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      Tech start-ups typically raised huge sums to hire armies of workers and grow fast. Now artificial intelligence tools are making workers more productive and spurring tales of “tiny team” success.Almost every day, Grant Lee, a Silicon Valley entrepreneur, hears from investors who try to persuade him to take their money. Some have even sent him and his co-founders personalized gift baskets.Mr. Lee, 41, would normally be flattered. In the past, a fast-growing start-up like Gamma, the artificial intelligence start-up he helped establish in 2020, would have constantly looked out for more funding.But like many young start-ups in Silicon Valley today, Gamma is pursuing a different strategy. It is using artificial intelligence tools to increase its employees’ productivity in everything from customer service and marketing to coding and customer research.That means Gamma, which makes software that lets people create presentations and websites, has no need for more cash, Mr. Lee said. His company has hired only 28 people to get “tens of millions” in annual recurring revenue and nearly 50 million users. Gamma is also profitable.“If we were from the generation before, we would easily be at 200 employees,” Mr. Lee said. “We get a chance to rethink that, basically rewrite the playbook.”The old Silicon Valley model dictated that start-ups should raise a huge sum of money from venture capital investors and spend it hiring an army of employees to scale up fast. Profits would come much later. Until then, head count and fund-raising were badges of honor among founders, who philosophized that bigger was better.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Why Google, Microsoft and Amazon Shy Away From Buying A.I. Start-Ups

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      Google, Microsoft and Amazon have made deals with A.I. start-ups for their technology and top employees, but have shied from owning the firms. Here’s why.In 2022, Noam Shazeer and Daniel De Freitas left their jobs developing artificial intelligence at Google. They said the tech giant moved too slowly. So they created Character.AI, a chatbot start-up, and raised nearly $200 million.Last week, Mr. Shazeer and Mr. De Freitas announced that they were returning to Google. They had struck a deal to rejoin its A.I. research arm, along with roughly 20 percent of Character.AI’s employees, and provide their start-up’s technology, they said.But even though Google was getting all that, it was not buying Character.AI.Instead, Google agreed to pay $3 billion to license the technology, two people with knowledge of the deal said. About $2.5 billion of that sum will then be used to buy out Character.AI’s shareholders, including Mr. Shazeer, who owns 30 percent to 40 percent of the company and stands to net $750 million to $1 billion, the people said. What remains of Character.AI will continue operating without its founders and investors.The deal was one of several unusual transactions that have recently emerged in Silicon Valley. While big tech companies typically buy start-ups outright, they have turned to a more complicated deal structure for young A.I. companies. It involves licensing the technology and hiring the top employees — effectively swallowing the start-up and its main assets — without becoming the owner of the firm.These transactions are being driven by the big tech companies’ desire to sidestep regulatory scrutiny while trying to get ahead in A.I., said three people who have been involved in such agreements. Google, Amazon, Meta, Apple and Microsoft are under a magnifying glass from agencies like the Federal Trade Commission over whether they are squashing competition, including by buying start-ups.“Large tech firms may clearly be trying to avoid regulatory scrutiny by not directly acquiring the targeted firms,” said Justin Johnson, a business economist who focuses on antitrust at Cornell University. But “these deals do indeed start to look a lot like regular acquisitions.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Tech Investors Are the Latest to Zoom for Harris

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      There was a Zoom call for cat ladies. Ones for Deadheads, Black women, white women, and then, of course, for the white dudes.And now, at long last, there was one for the venture capitalists.The latest affinity group to organize behind Kamala Harris on Wednesday represented the lowly millionaire and billionaire investors of Silicon Valley. Relative to the massive Zoom telethons that other groups had been hosting for Ms. Harris over the last two weeks, the “VCs for Kamala” call was a small group of around 600 people. But they represented some of the country’s most notable donors who have outsize influence in technology and Democratic politics.A week after publishing an open letter in support of Kamala Harris signed by more than 700 influential tech investors, a group of key backers took to Zoom to rally their peers in a way only they could: with PowerPoint presentations, startup aphorisms and a desire to make the Harris funding round “oversubscribed.” Their logo? Designed by AI, naturally.Ms. Harris, who grew up in Bay Area politics and has stronger personal relationships with tech executives and investors than did President Biden, has ushered in an enthusiasm for the Democratic ticket not seen in years. She is set to return to San Francisco for a fund-raiser this weekend, and the event is already sold out at all but the most expensive price points..On the call, Reid Hoffman, a major donor to President Biden and Ms. Harris, made the business case for supporting Ms. Harris over former President Donald J. Trump. “No chaos” was far better for business, he said. Other chief executives of major companies he has spoken to agreed, he added.Ron Conway, a billionaire investor and Silicon Valley Democratic leader, pledged on the call to match $50,000 in donations to the Harris effort. In total, the group received pledges of roughly $135,000 for the Harris campaign.John Corrigan, an organizer of the call, encouraged listeners to call their relatives in swing states and talk about politicsMr. Corrigan promised the group would reconvene in September: “After Burning Man.” More

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      Elon Musk, Reid Hoffman and Other Tech Billionaires Brawl Over Politics

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      Elon Musk, Reid Hoffman and other tech billionaires, many of whom are part of the “PayPal Mafia,” are openly brawling with one another over politics as tensions rise.Less than an hour after a gunman in Butler, Pa., tried to assassinate Donald J. Trump this month, David Sacks, a venture capitalist based in San Francisco, directed his anger about the incident toward a former colleague.“The Left normalized this,” Mr. Sacks wrote on X, linking to a post about Reid Hoffman, a technology investor and major Democratic donor. Mr. Sacks implied that Mr. Hoffman, a critic of Mr. Trump who had funded a lawsuit accusing the former president of rape and defamation, had helped cause the shooting.Elon Musk, who leads SpaceX and Tesla and previously worked with Mr. Sacks and Mr. Hoffman, then weighed in on X, name-checking Mr. Hoffman and saying people like him “got their dearest wish.”In Silicon Valley, the spectacle of tech billionaire attacking tech billionaire has suddenly exploded, as pro-Trump executives and their Democratic counterparts have openly turned on each other. The brawling has spilled into public view online, at conferences and on podcasts, as debates about the country’s future have turned into personal broadsides.The animus has pit those who once worked side by side and attended each other’s weddings against one another, fraying friendships and alliances that could shift Silicon Valley’s power centers. The fighting has been particularly acute among the “PayPal Mafia,” a wealthy group of tech executives — including Mr. Hoffman, Mr. Musk, Mr. Sacks and the investor Peter Thiel — who worked together at the online payments company in the 1990s and later founded their own companies or turned into high-profile investors.Other tech leaders have also been pulled into the political spats, including Vinod Khosla, a prominent investor, and Marc Andreessen and Ben Horowitz of the Silicon Valley venture firm Andreessen Horowitz.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Hey, Siri! Let’s Talk About How Apple Is Giving You an A.I. Makeover.

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      Apple, a latecomer to artificial intelligence, has struck a deal with OpenAI and developed tools to improve its Siri voice assistant, which it is set to showcase on Monday.Each June, Apple unveils its newest software features for the iPhone at its futuristic Silicon Valley campus. But at its annual developer conference on Monday, the company will shine a spotlight on a feature that isn’t new: Siri, its talking assistant, which has been around for more than a decade.What will be different this time is the technology powering Siri: generative artificial intelligence.In recent months, Adrian Perica, Apple’s vice president of corporate development, has helped spearhead an effort to bring generative A.I. to the masses, said two people with knowledge of the work, who asked for anonymity because of the sensitivity of the effort.Mr. Perica and his colleagues have talked with leading A.I. companies, including Google and OpenAI, seeking a partner to help Apple deliver generative A.I. across its business. Apple recently struck a deal with OpenAI, which makes the ChatGPT chatbot, to fold its technology into the iPhone, two people familiar with the agreement said. It was still in talks with Google as of last week, two people familiar with the conversations said.That has helped lead to a more conversational and versatile version of Siri, which will be shown on Monday, three people familiar with the company said. Siri will be powered by a generative A.I. system developed by Apple, which will allow the talking assistant to chat rather than just respond to one question at a time. Apple will market its new A.I. capabilities as Apple Intelligence, a person familiar with the marketing plan said.Apple, OpenAI and Google declined to comment. Apple’s agreement with OpenAI was previously reported by The Information and Bloomberg, which also reported the name for Apple’s A.I. system.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Technology Companies Are Cutting Jobs and Wall Street Likes It

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      The sector is laying off workers after a hiring boom during the pandemic and their share prices are soaring. Tech giants like Microsoft have continued to cut jobs, even after carrying out a wave of layoffs last year.Caroline Brehman/EPA, via ShutterstockTech giants are set to report quarterly earnings, starting on Tuesday with Alphabet and Microsoft. Wall Street is expecting good news, including more progress on artificial intelligence.But the industry has also relied on another strategy to improve financials: layoffs. The cuts aren’t as widespread as last year, when hundreds of thousands of jobs were eliminated. But they’re a reminder that the tech sector is still trying to find its footing after a boom in hiring during the coronavirus pandemic and finding ways to preserve dizzying stock gains.About 100 companies have cut 25,000 positions this year, according to Layoffs.fyi. By comparison, more than 1,000 companies eliminated about 260,000 last year.So far this month: Microsoft announced 1,900 cuts in its video game division, including at its recently acquired Activision Blizzard; Google laid off hundreds of employees, including in its engineering ranks and its hardware division; and Amazon said it was laying off hundreds, including 35 percent of the work force at its Twitch unit.Not all layoffs are the same, The Times notes:For big tech companies, job cuts have been a way to reduce spending on noncore operations and extract the kind of cost savings that Wall Street loves. Now, those cuts are more targeted: In the case of Meta, that means reducing the number of middle managers at Instagram.For smaller tech businesses, it’s more a matter of survival. Start-ups have been finding it harder to raise capital as risk-averse venture capitalists keep their wallets closed. In the words of Nabeel Hyatt, a general partner at Spark Capital, these fledgling companies “are just trying to gain runway to survive.”The cuts will probably continue so long as investors love them. Wall Street has rewarded tech companies that laid off thousands with higher stock prices. Meta’s shares have soared since it embarked on a self-described “year of efficiency” last year that has made it a third slimmer employee-wise. Those cost savings, coupled with a redoubled bet on A.I., has helped push the tech giant’s market value to over $1 trillion.And venture capitalists have told DealBook that they’re ready to invest in start-ups — but that it helps if those companies have made themselves leaner. That, the investors say, will enable them to operate better in potentially difficult times.In other layoff news: Some tech workers are filming their layoffs and posting them on social media, in the name of catharsis and transparency.HERE’S WHAT’S HAPPENING Boeing withdraws efforts to expedite safety approval for a version of its 737 Max jet. The aircraft manufacturer revoked an application it made last year seeking an exemption from a safety standard for a version of its 737 Max 7. Separately, Boeing received some good news amid its latest crisis: The European airline Ryanair, one of its biggest customers, said it would buy more planes if U.S. carriers dropped their orders.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More