Good morning. Linda Yaccarino has stepped down after two years as CEO of X.
She was hired by Elon Musk with the goal of revitalizing the platform’s advertising business. Her most crucial responsibility turned out to be something else: a clean-up crew for Musk.
A global team of BI reporters has broken down how she went from Musk’s fixer to out of a job in two years.
In today’s big story, a Sequoia Capital partner’s tirade against Zohran Mamdani signals venture capital’s extreme new “fame game.”
What’s on deck:
Markets: Nvidia just made it into the stock market hall of fame. Test your knowledge of the market’s hottest company.
Tech: Big Tech is hiring contractors to train its AI chatbots not to lecture you.
Business: Federal workers react to the Supreme Court allowing DOGE cuts.
But first, they’re getting louder …
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The big story
Venture capital’s extreme fame game
Do you hear that? The clatter of keyboards. The clash of opinions. The clamor of social media posts going viral.
It’s the sound of tech investors becoming very loud online.
One of those investors is Sequoia Capital’s Shaun Maguire. In a July 4 post, Maguire wrote that New York City mayoral hopeful Zohran Mamdani “comes from a culture that lies about everything” and sought to advance “his Islamist agenda.”
Maguire’s post racked up more than 5 million views, became national news, and prompted an open letter demanding that Sequoia make a public apology, signed by self-identified employees of Microsoft, Google, and Apple.
Maguire’s response to the outrage heralds a new era: He doubled down.
A second open letter followed the first, this time offering support to Maguire, signed by the likes of Josh Wolfe and David Marcus.
In a market where the demand for capital outweighs the supply, investors can afford to ruffle feathers. It may even benefit them.
Venture capital is largely “a fame game,” says a VC at a multistage firm. “We all sell the same money. So brand awareness matters a lot, both in seeing and in winning deals.”
The situation is also precarious for founders who disagree with Maguire. Speaking out risks severing a critical relationship with Sequoia.
For early-stage VCs, that relationship can mean the difference between a modest outcome and a breakout win, especially when Sequoia leads a later round and drives up the valuation.
Elite VCs have learned they can be loud, bold, and polarizing, and still secure deals, BI’s Melia Russell writes.
3 things in markets
1. Nvidia makes market history — to the tune of $4 trillion. The chipmaker added a new achievement, becoming the first-ever company to hit a $4 trillion market cap on Wednesday morning. (Test your knowledge of the company and its milestones with BI’s Nvidia Trivia.)
2. Three things could spoil the market’s “Goldilocks” setup. The market is in an ideal place where economic growth isn’t too hot or too cold, but there are still significant risks, Goldman Sachs said. Stagflation, interest rate shock, and further dollar declines could all upend a coming rally.
3. Trump Media wants to launch a crypto ETF. The Truth Social parent company submitted an S-1 filing with the SEC on Tuesday to launch the Truth Social Crypto ETF. The new fund would hold mostly bitcoin alongside other top tokens. It’s the latest move by Trump and his companies to deepen ties to crypto.
3 things in tech
1. Is your AI chatbot judging you? Tech companies, like Google and Meta, are using contractors to crack down on “preachy” chatbot responses, training documents exclusively obtained by BI reveal. AI and human researchers told BI that “preachiness” is among the most important aspects for model companies to tackle because it can instantly put users off.
2. We’ve answered the question you’re too afraid to ask. As xAI’s chatbot makes headlines for controversial rants, you may be wondering, what actually is Grok? From the instructions Grok’s “tutors” are given to help train the chatbot to the AI’s latest update, here’s everything we know about the chabot (which is actually two different things).
3. Law firms’ new competition isn’t a law firm. “Law Firm 2.0” is a small, fast, and inexpensive business that uses AI to handle routine legal matters. It was launched by LegalTech Lab, an accelerator that’s looking to boost more companies rethinking how legal services are delivered.
3 things in business
1. The Supreme Court is allowing DOGE cuts. What happens now? The mood among federal workers is bleak — they’re scared for their own security and worried about the future of public service. Agencies could fire en masse or offer buyouts. Here’s how further cuts could play out.
2. Can you spell T-Mobile without DEI? The carrier thinks so. In a letter to the Federal Communications Commission, it said it’s ending diversity policies “not just in name, but in substance.” T-Mobile has been waiting for FCC approval on two separate deals, each reportedly valued at over $4 billion.
3. Prepping for ICE. Companies have plans for extreme weather and workplace violence, and now some are planning for immigration raids — even if they believe everyone on their payroll is legally permitted to work in the US. Human resources, crisis management, and legal professionals say having a plan ensures workers and customers stay extra safe.
In other news
What’s happening today
- Delta Air Lines reports earnings.
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OPEC launches annual World Oil Outlook.
Hallam Bullock, senior editor, in London. Akin Oyedele, deputy editor, in New York. Grace Lett, editor, in New York. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Dan DeFrancesco, deputy editor and anchor, in New York (on parental leave).
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