Silicon Valley is on a knife-edge after the collapse of SVB
Silicon Valley Bank #SiliconValleyBank
Hi, I’m Matt Turner, the editor in chief of business at Insider. Welcome back to Insider Today’s Sunday edition. With the failure of Silicon Valley Bank, we’re witnessing the biggest bank collapse since the 2008 financial crisis. We’re diving into that and much more today.
Sign up here to get this newsletter in your inbox each week.
On the agenda today:
Before we dive in: Insider’s Warehouse Nation series was recognized with a Best in Business Award from the Society for Advancing Business Editing and Writing (SABEW). The judges said: “‘Warehouse Nation’ exhibited explanatory journalism at its highest levels.” Check it out.
And up first today: Alison Brower, Insider’s LA bureau chief, explains whether the Oscars still matter in Hollywood.
This week’s dispatch
It’s not just Chris Rock who’s hurting. The Slap still stings across Hollywood, and Academy Awards organizers are working hard to make sure tonight’s ceremony sparkles, Insider’s Alison Brower writes.
After last year’s TV audience rebounded 58% from a 2021 nadir, Academy brass and ABC are hoping for another surge, thanks to nominations for popular films like “Top Gun: Maverick” and “Black Panther: Wakanda Forever” — though it’s the mind-bending indie “Everything Everywhere All at Once” that’s heavily favored for Best Picture.
But as the film industry reels from the decline of theatrical moviegoing, do these awards really matter? Hells, yeah. An Oscar is still a pinnacle achievement for filmmakers: There’s no better way to boost your profile (not to mention your quote).
And for the tech interlopers like Netflix and Amazon that have upended the industry over the past decade — including with their extravagant awards-campaign spending — a statuette says they’re part of the club.
Our predictions for who will win big at tonight’s show.
Silicon Valley Bank’s implosion
Silicon Valley Bank had been a pillar of the startup ecosystem for four decades. It worked hard to foster cozy relationships with founders and investors, sponsoring lavish events, inviting VCs to its ski chalet, and taking chances on unproven companies.
But a disastrous decision to appease Wall Street and a Twitter-enabled bank run led to the bank being suddenly shut down by regulators. Now, hundreds of startups are facing a crippling cash crunch and an “extinction-level event” if no one buys the bank by tomorrow.
Read the inside story on what happened.
Read more:
The DOJ’s silence on Epstein
On August 10, 2019, Jeffrey Epstein was found unresponsive in his jail cell where he was awaiting trial on sex-trafficking charges. The Justice Department launched an investigation — but more than three years later, the office still hasn’t released its report.
In the information vacuum, conspiracy theories have proliferated about whether Epstein was killed to cover up for his powerful friends, like Bill Clinton and Donald Trump. Epstein’s brother, Mark, told Insider that he remains puzzled by the holdup — but he’s convinced his brother didn’t kill himself. He, as well as Epstein’s own accusers, want answers.
What we know about the Epstein investigation.
Read more:
Tiny homes, big problems
In the bland world of construction technology, Boxabl is a sensation. Valued at $3 billion, the father-son startup has soared to fame for its 375-square-foot micro home — known as the Casita — that retails for just $60,000.
The Las Vegas company has attracted a 157,000-person waiting list, over $4 million of down payments, and endorsements from the likes of Elon Musk. But a lawsuit filed by a former executive, the company’s financial disclosures, and an investigation by Insider raise questions about whether Boxabl is a groundbreaking revolution — or a mirage in the Nevada desert.
Inside Boxabl’s obstacles.
Read more:
How to invest in AI
Ever since ChatGPT made its public debut in November, artificial intelligence has grabbed the spotlight and refused to let go. Hype surrounding AI has soared as companies begin incorporating the tech into their businesses and everyday people find their own uses.
That’s sent some stocks soaring, offering investors the opportunity to capitalize on the hype. Insider has been collecting research notes, interviewing analysts, and investigating which stocks will enjoy the biggest returns from the explosive growth of AI.
Wall Street analysts share their AI investing strategies.
Read more:
This week’s quote:
“You have every right to lay me off. That’s totally fair and fine. But usually people are told when that happens. Maybe with a letter or something.”
More of this week’s top reads:
Curated by Matt Turner. Edited by Dave Smith and Lisa Ryan. Sign up for more Insider newsletters here.