The tech world is thrown into chaos as Silicon Valley loses faith in its go-to bank (2024)

"Be BORING!" "Get an ice cream cone. Just don't use Twitter." That's what billionaire Tesla investor Ron Baron emailed Elon Musk. At the time of the email, Musk was battling a cave rescue diver who was suing him for defamation.

The email was revealed during a lawsuit against Tesla and Musk over yet another tweet. (Here's everything you need to know about the "funding secured" lawsuit, by the way)

I'm Diamond Naga Siu, and I want to experience receiving an email with such interesting instructions. Sure, I'm not a billionaire investor. Nor do I lead a car company. But it's a pretty spicy thing to find in your inbox.

Before grabbing some ice cream — I'll probably get cookies and cream — let's dive into today's tech.

If this was forwarded to you, sign up here. Download Insider's app here.

1. The tech world was thrown into chaos as Silicon Valley lost faith in its go-to bank, SVB Financial. Shares in the bank — which was a key lender to technology start-ups — tumbled as much as 60% Thursday, sparking contagion among other financial stocks.

• The meltdown came after SVB completed a sale of its $21 billion bond portfolio, which resulted in a loss of $1.8 billion and drove the bank to launch a stock sale to raise cash.

• Why are investors so worried? Because SVB lends money to startups and keeps their cash deposits to fund staff and other expenses. If startups are worried the bank can't give them all their money back, then they might pull their accounts. In essence, it could spark a bank run — Silicon Valley-style

• Some SVB rivals are smelling blood in the water and have sought to convince SVB customers to move their funds.
• Meanwhile, others in the industry have called for calm. In the words of one top tech banker: "We can't afford for them to fail. For the tech ecosystem, they are the ecosystem."

Go inside the crisis here.

In other news:

2. Behind Florida's big rebrand. It's the fastest growing state. And it transformed from being a retiree paradise to being a hot tech and entrepreneur hub. Dive into how the Sunshine State is booming.

3. The backlash against Amazon's return-to-office mandate has entered a new phase. Almost 30,000 Amazon employees have signed an internal petition opposing the mandate. That's close to 10% of the company's total corporate workforce. Read the full copy of the petition here.

4. Instagram and Facebook are stopping Reels payouts. The two Meta-owned companies are pulling the plug on their program that paid people based on how many views they got on their short-form Reels videos. Check out their pivot to ad-based payouts instead.

5. Salesforce's sprint to slash 10% of its headcount continues. Hundreds of employees — mainly impacting sales and marketing — have been cut, Insider learned. People in New York, Atlanta, and other major hubs were impacted by the latest layoff round. More on the jobs cuts here.

6. Apple die-hard shares why he's lost the faith.This former Apple exec used to bring his iPad everywhere. It even replaced his laptop. But the tablet now symbolizes a confluence of the company's failure amid ongoing success. He breaks down why Apple fans like himself are frustrated.

7. Companies like Apple, Amazon, and Google spend millions on CEO security. Elon Musk is said to go to the restroom at Twitter with at least two bodyguards. See what major companies spend to protect their leaders.

8. Startups bringing AI to Netflix, Marvel, and other Hollywood studios. Investors are sinking millions into startups like MARZ and Runway to bring AI tech to film and TV. These are the eight AI disruptors you need to know.

Odds and ends:

9. Ex-Tesla duo creates first-ever electric RV company. Lightship is the first company to make electric RVs a reality. These vehicle add-ons even save your EV's battery range (or gas vehicle's MPG) during road trips. Hop in for the full tour of it here.

10. Rent the Airbnb CEO's 'fairytale dream cottage' near LA. The private cottage goes for $2,500 per night. It features a tree house, hot tub, and even has farm animals in its lush backyard. Check it out here.

The latest people moves in tech:

• James Loduca, Twitter's former head of diversity, is headed to Nike as its next chief diversity, equity, and inclusion officer. He fills the shoes of Jarvis Sam, who bounced in November.

Curated by Diamond Naga Siu in New York. (Feedback or tips? Email dsiu@businessinsider.com or tweet @diamondnagasiu) Edited by Matt Weinberger (tweet @gamoid) in San Francisco and Hallam Bullock (tweet @hallam_bullock) in London.