🚀 It's NVIDIA's world....

Plus, TikTok launches Shopping!

Justine & Olivia Moore

May 28

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📉 Meta takes a loss on Giphy. Meta announced it’s selling GIF platform Giphy to Shutterstock for $53M. This is a meaningful drop from the ~$315M that Meta paid for Giphy in late 2021. So why sell? The Competition and Markets Authority (CMA), a UK regulator, ordered Meta to divest due to antitrust concerns. Shutterstock’s CEO noted that Giphy will help the company expand from pro marketing / advertising use cases to become a broader creative platform for everyday consumers.

🧠 Neuralink preps for human trials. Brain implant company Neuralink, which was co-founded by Elon Musk, announced that it has received FDA approval to conduct its first in-human clinical study. The company’s implant aims to help people with paralysis control technology with their minds (e.g. typing on a keyboard, clicking a mouse). Eventually, it will expand to other use cases like treating brain injuries or memory loss. Until now, the device has only been tested in animals.

💸 Nvidia crushes earnings. Nvidia stock hit an all-time high this week after a strong Q1 earnings report, beating expectations for both revenue and earnings per share. The company designs and manufactures graphics processing units (GPUs) that power more intensive workloads on your computer - like gaming, editing video, or… training machine learning models (hello, AI boom!). This last application is unsurprisingly driving significant demand for Nvidia’s products.

🖌️ Photoshop gets an AI upgrade. Adobe unveiled a cool new Photoshop feature this week - Generative Fill, which enables users to edit or extend their images using text prompts. The feature is currently available in the beta version of the Photoshop app, but you can see demo videos on Twitter to get a sense of the capabilities. It feels like a potential game-changer for many creative workflows!

what we’re following 👀

The continuing battle between iMessage and Snapchat for dominance among teens.

JP Morgan is building a ChatGPT-like service to recommend securities to customers.

YouTube becomes the latest social platform to shut down its Stories product.

How much is Temu spending to challenge Amazon in the e-comm game?

Over the last few weeks, TikTok has been quietly rolling out beta testing for what could be two new features: (1) in-app storefronts, where merchants list products that consumers can buy; and (2) creator affiliate commerce.

Brands can now set up stores within TikTok where users browse items, see reviews, and fully complete checkout and payment without leaving the app. And creators can make a commission through recommending products in their videos! These features have been live in the UK and Indonesia for months (and are a staple of Douyin, the Chinese version of TikTok) - but are now making their way to the U.S..

Why does this matter? TikTok videos have been a major driver of sales for many products and brands, but until now, TikTok hasn’t captured this value - and neither have creators. Users see a viral video, Google the product, and buy it elsewhere (we certainly are guilty of this). Now, TikTok is bringing this “commerce loop” fully in-house, with end to end tools from discovery to purchase. And, they’re also providing tools for creators and brands to find each other and work together.

This move isn’t entirely unprecedented for a social platform. Instagram launched storefronts in 2020, and affiliate marketing in 2021 - but discontinued the affiliate program in 2022 based on “feedback from brands and creators.” The product was rumored to be too challenging/inflexible for creators to use, and wasn’t driving significant enough sales to be a priority. Instagram decided to re-focus instead on their Creator Marketplace, which helps match creators and brands for broader deals.

Our take? In-app shopping feels like it has a better shot on TikTok than Instagram, and not just because Instagram has been losing steam among younger users. Video is a much more compelling medium for showcasing a product (perhaps Instagram’s affiliate program would have succeeded on Reels 🤔). And, the fact that TikTok creators have been increasingly “pushed” into niches is actually a positive for their ability to credibly recommend products in their area(s) of expertise.

TikTok’s new shopping features are still in beta, so the next few weeks and months will be crucial in determining whether the company is able to capitalize on this commerce vision. TikTok does seem to be heavily pushing new storefronts, both in terms of “boosting” videos with products tagged on the FYP, and in aggressive discounting that TikTok pays for (e.g. 30% off your first purchase, no minimum).

We signed up for access to the TikTok Shop seller portal - a few unique features we’ve noticed:

Sample tracking - brands can send samples to creators via TikTok, and then automatically track whether or not they actually made a video about it 👀
Custom commissions - brands can allow any creator to earn a set commission for advertising an item, or assign a unique commission for each creator
Easy returns - similar to Amazon, consumers will be able to return items purchased via TikTok without a box (just a QR code) at UPS locations!

🚨 Venture studio Science, which is behind companies like Liquid Death, Dollar Shave Club, and Famebit, is hosting an “Impact Week” for aspiring college entrepreneurs from August 7 - 11 in Santa Monica. Learn more and apply here.