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WSJ Tech News Briefing

The Strategy Behind Temu’s Rapid Rise

WSJ Tech News Briefing

The Wall Street Journal

News, Tech News

4.31.7K Ratings

🗓️ 13 February 2024

⏱️ 11 minutes

🧾️ Download transcript

Summary

If you caught the Super Bowl over the weekend, chances are you saw at least one ad for Temu. Since the China-backed company launched in the U.S. in September 2022, it’s been pouring money into marketing—Temu was the fifth-largest digital advertising spender in the final three months of 2023. It’s trying to become the go-to place for Americans to buy cheap goods online. But can it overcome its more established rivals? WSJ reporter Shen Lu tells host Alex Ossola about Temu’s marketing strategy, and whether it’s paying off. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

Alex met Sam at nursery. They were first loves. They built forts together, shared sandwiches in high school, and were each other's first kiss.

0:11.0

They were the dream couple, Sam got into EDM music.

0:17.0

While Alex enjoyed folk, first loves are kind of like your current account. If they aren't working for you anymore,

0:26.7

maybe it's time to switch with the current account switch service.

0:30.0

Welcome to Tech News Briefing. It's Tuesday, February 13th. I'm Alex Oscela for the Wall Street Journal.

0:40.0

Coming up on today's show, Open AI CEO Sam Altman has an ambitious plan to reshape the global chip industry,

0:47.0

a plan that could require up to $7 trillion.

0:51.0

We'll hear about what it'll take to accomplish it and why raising money could be the easy

0:54.9

part from W.S.J. Semiconductor's reporter Aisa Fitch.

0:59.4

And then Temu is now the second most popular shopping app in the US by monthly users behind Amazon.

1:05.4

To make this happen, the company has been spending heavily on marketing.

1:09.4

W.S.J. reporter Shen Liu tells us more about Temu's strategy and how it's affecting US retailers.

1:19.3

But first, artificial intelligence needs a number of sophisticated chips to power it.

1:24.0

Open AI CEO Sam Altman has often complained that there aren't enough of these kinds of chips to power his company's quest for artificial general intelligence. That's part of the reason behind

1:34.8

his multi trillion dollar plan to reshape the global semiconductor industry. He wants to build

1:40.1

more factories to make more chips, but that won't come without its fair share of obstacles.

1:45.4

W.S.J. Semiconductor's reporter Aisa Fitch is here to tell us more.

1:49.8

Aisa, you reported last week that Sam Altman is seeking trillions of dollars to reshape the chip industry.

1:55.3

Break this down for us. What is the actual goal here?

1:58.4

The actual goal is to relieve some of the problems that are constraining the development of AI, namely the computing power that

2:05.1

AI needs and there's not enough of it.

2:07.6

So there's one company called NVIDIA that produces the lion's share of chips that are used to make systems like chat gPT which is what open AI produces and those things are short supply and so they need a work around and need more of these chips and one way to do that in theory at least is build a bunch of chip factories to produce them.

...

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