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Today — 23 May 2025Latest News

Why these Americans agree with the DOGE firings: 'Welcome to the real world'

23 May 2025 at 00:19
A woman with a suitcase holding an American flag
 

Chip Somodevilla/Getty Images

  • Business Insider has been covering stories of federal workers fired by the White House DOGE office.
  • Some readers told BI they had limited sympathy.
  • They said their private sector careers hadn't guaranteed job security or retirement.

In April, I wrote about a federal worker who was five months shy of eligibility for a full pension of $6,000 a month when she was fired in the DOGE cuts.

I received nearly 100 emails from readers, and almost all expressed how little sympathy they felt.

"Welcome to the real world," several said.

"Go get a job and work till you're dead like the rest of us," another wrote.

"National Steel went bankrupt. US Steel bought them for nothing. Thousands lost what was promised to us," another said.

Of course, not everyone feels this way. I tend to get more emails from people with negative responses to stories than from those who aren't bothered. But I was curious to learn more, so I spoke with six of the people who were critical of the federal worker.

They were over 60 and lived in California, Nevada, Indiana, Ohio, Pennsylvania, and Maryland. Four were retired, and most lived on fixed incomes much lower than the pension the subject of my story would have received. They all said they didn't want their tax dollars to pay for high salaries and generous benefits for certain government employees when private sector workers aren't afforded the same rewards. They also questioned whether some government jobs were needed at all. All but one voted for now-President Donald Trump in this past election.

While news of federal firings has slowed down, DOGE's purging of the government workforce is not over. The cuts happening now are more permanent and methodical, and the Trump administration is planning to reclassify some workers to make them easier to fire. The six people I spoke with said what DOGE is doing to the federal workforce is par for the course in the private sector. Several had lost their pensions because their employers went bankrupt or stopped paying into them and switched to the less-generous 401(k) model.

Leslie Swor, 70, retired seven years ago after a career in the Coast Guard, an independent securities regulator now known as FINRA, and then Oracle. To supplement her income, Swor works a contract job as a school crossing guard in East Los Angeles, California. She told me public sector workers shouldn't expect to have a "hefty" pension for life. After all, private sector workers don't take that as a given.

Swor said she had "fabulous benefits and annual raises and bonuses" early in her career in the private sector. In 2007, when she became an administrative assistant at Oracle, those benefits were no longer the norm.

"Life for us out here in the private sector, in my experience, seemed to get much worse," Swor said.

They think federal salaries and benefits are overly generous compared with the private sector

The readers I spoke with were surprised that the subject of my story, Katherine Ann Reniers, was making so much money in a government job, in addition to generous benefits, and said the private sector had not been as cushy.

Reniers, a fired US Agency for International Development worker, earned a base salary of $177,000. In addition to a pension, she and other federal workers have the Thrift Savings Plan, which is similar to a 401(k). In that plan, the government matches a small percentage of an employee's contributions. Reniers would have qualified for federal health insurance for life if she had hit two decades of service.

Nearly 20 years ago, Reniers took a pay cut to leave the private sector, dropping from $150,000 to $54,000 in annual pay to get on a path that she saw as stabler for her family in the long run. At first, she moved every two to four years, sometimes to countries that had high rates of violent crime and lacked decent healthcare. In 2010, she was pregnant when she was assigned to Haiti after a devastating earthquake. Reniers, now 53, rose through the ranks to become a USAID division chief and lives in Maryland.

Swor said her perception of federal employees was that they traded higher private sector salaries for more stability and better benefits. That's largely true for federal workers with a bachelor's degree or above. A Congressional Budget Office analysis of fiscal 2022 data found that federal workers who graduated from college had lower salaries but better benefits — including health insurance, retirement, and paid leave — than their counterparts in the private sector. Public sector jobs also tend to be held by white-collar, highly educated professionals. Reniers, for example, has a master's degree, speaks four languages, and has a lot of work experience in Africa and Europe.

For workers with only a high school education, the federal government, on average, offers better pay and benefits than the private sector.

Mike Knouse, a 62-year-old landscaper from Maryland, was also frustrated by what he viewed as generous public sector compensation. He's worked for 40 years at private companies but said he never had a pension or more than two weeks of paid vacation. His current employer doesn't offer a 401(k).

Salaries and benefits for 2 million federal employees, including military and civilian personnel, accounted for about 4.3% of the nation's $6.8 trillion in annual spending in fiscal 2024. According to the CBO, social safety net programs like Social Security, Medicare, Medicaid, nutrition assistance, and benefits for veterans and military personnel account for more than 50% of the US budget.

If DOGE does find savings, Knouse would like to see lower taxes, better healthcare for retirees, and more Social Security.

"I'm hoping that he could also cut the pay scale for federal employees, or any future hiring by the federal government, because it's got to balance out," Knouse said, referring to Trump and the DOGE office's cuts.

Some questioned whether tax money should pay for pensions

In general, full-time federal workers can start receiving their full pension once they hit the minimum retirement age of 62. Those who've worked two decades or more for the federal government can retire earlier. Foreign service officers at USAID and the State Department — as well as law enforcement officers, firefighters, and air traffic controllers — can retire after 20 years and qualify for larger pension payouts after hitting that anniversary.

I asked the people I interviewed how they viewed federal pensions and whether they wished the private sector still offered them. These "defined benefit plans," which guarantee a certain payout, have become less common in the private sector as employers have adopted more "defined contribution plans" like 401(k)s or employee stock ownership, which offer varying payouts based on the market.

Swor, for her part, was OK with pensions being eliminated in both sectors.

"I think people might be waking up that this is our money," Swor said of federal pensions. "Why not just receive Social Security?"

Richard Myers, a 67-year-old retired commercial real estate developer in Nevada, felt conflicted about the federal pension system. On one hand, he understood that the government has to provide good benefits to attract talent. But it seemed overly cushy to him that certain workers could retire with a full pension — maybe even at 45 if they entered the government young enough — and go on to have another career.

Ultimately, he said he understood a pension like this for military or law enforcement officers, as well as someone like Reniers, who had to move around a lot overseas at the government's request.

"After 20 years, you've probably paid your dues," Myers said. "But someone with a desk job in Washington, DC?"

He said he joked with his friends that there would be a revolution in the US — not rich versus poor but public sector versus private sector, because workers in the latter category arriving at retirement age will be asking, "How do they have all this extra money?"

They asked whether the US needs all the current government jobs

While most people I spoke with didn't completely agree with the way the Elon Musk-linked DOGE office was implementing the cuts, the pursuit of finding and eliminating government waste appealed to them. So did Trump's "America First" mantra, which partly explained their skepticism of USAID.

Cynthia Bean, a 64-year-old from Indiana, said she had never heard of the agency and didn't understand why "billions of our tax dollars are being funneled through it to nonprofits in other countries."

Bean, who owned a real estate title business for 20 years, said she voted for Trump because he talked about running the US government like a business.

She said she didn't have a problem helping other countries prevent and treat HIV/AIDS or other diseases. People also need water and power, she added. Some 83% of USAID programs, including those that invested in disease prevention and clean water, have been cut by the Trump administration.

Joyce Weaver, an 80-year-old senior home care aide in Pennsylvania and a Democrat who voted for then-Vice President Kamala Harris, said the government may be overspending on millions of federal employees.

"What Trump is doing needs to be done but not with so much pain for so many and so much danger for the whole country," Weaver said.

Trump's criticism of federal workers, including calling them "crooked" and "dishonest," and Musk's suggestion that some government roles are "fake jobs" resonated with several of the people I interviewed.

"We do need government jobs, and I don't care what anyone says, they do deserve a pension," Paul Alto, 61, who lives in Cleveland, said. "But I think there are a lot of jobs that were made up."

As for Reniers, she recognized she's more privileged than most but said that's not all due to government pay and benefits. She has homes in Maryland and Belgium because of her inheritance. To address that inequality, she said, Americans should support taxing the rich.

"Why aren't Americans fighting for pensions at their own companies, as opposed to saying federal workers like me shouldn't get a pension?" Reniers said. "In America, so many people are working so hard for low wages. I get there's a discrepancy between them and the wealthy. So I'm like, let's tax the rich."

Read the original article on Business Insider

Blue Origin's next crew includes entrepreneurs and founders. Here's who's following Katy Perry and Lauren Sánchez into space.

23 May 2025 at 00:08
Blue Origin
Blue Origin has unveiled the crew for its next mission.

Blue Origin

  • Blue Origin announced new crewmembers for its next space mission, NS-32.
  • It will be the first mission since its April mission, which sent Katy Perry and Lauren Sánchez into space.
  • This crew includes business figures, entrepreneurs, and space enthusiasts.

Jeff Bezos's Blue Origin has announced the crew for its next space mission, which includes business leaders, space enthusiasts, and entrepreneurs.

It's a very different lineup from the crew on the previous mission, which included Katy Perry and Lauren Sánchez.

This is who is going on Blue Origin's 32nd flight for an 11-minute journey into space. The launch date is yet to be announced.

portraits of Paul Jeris, Jesse Williams, Aymette Medina Jorge, Dr. Gretchen Green, Jaime Aleman, and Mark Rocket
The six crew members are Paul Jeris, Jesse Williams, Aymette Medina Jorge, Dr. Gretchen Green, Jaime Alemán, and Mark Rocket.

Blue Origin

Mark Rocket

Mark Rocket is an entrepreneur and the CEO of Kea Aerospace, a company that sends remotely piloted aircraft into the stratosphere to collect aerial imagery and data.

In 2007, he was a seed investor of Rocket Lab — an aerospace manufacturer and launch service provider — where he served as a co-director up until 2011, per his personal website.

The company also sends high-altitude balloons to test communications, thermal modeling, and navigation.

Rocket changed his surname to match his passion, per 1News. The trip will make him the first New Zealander in space.

Jesse Williams

Jesse Williams, a Canadian entrepreneur, is the CEO of Car History Group — a company that provides public information about vehicles to prospective buyers.

He claims on his LinkedIn profile to have launched his first business at the age of 15 and that his other ventures include eDirect, WuYi Tea, Dazzle White, and Penguin Leads.

Paul Jeris

Paul Jeris, whose father was a NASA engineer, is a real estate businessman, entrepreneur, and world traveler who has visited more than 149 countries, per Blue Origin.

In an interview after the news, he told Fox 8 News that he was "so excited" when he received the call.

He said he was inspired from a young age as he watched historic launches such as Apollo and Viking.

Amette Medina Jorge

Amette Medina Jorge, a STEM teacher at Odyssey Academy in Galveston, Texas, has led more than 60 experiments focusing on space and zero gravity and performed in-flight 3D printing as part of a parabolic Zero-G flight.

In 2013, she received the AIAA and Challenger Center Trailblazing STEM Educator Award, which celebrates those who inspire the next generation of STEM innovators.

Jamie Alemán

Jamie Alemán is a Panamanian attorney and a senior partner at the law firm Alemán, Cordero, Galindo & Lee, which he set up.

He was Panama's ambassador to the US from 2009 to 2011 and was also the country's minister of government and justice in 1988.

Blue Origin said he would be the first person to go to space who has visited all 193 countries recognized by the United Nations, as well as the North and South Poles.

Gretchen Green

Gretchen Green is a radiologist who also serves on the US Space and Rocket Center Education Foundation Board. The Rocket Center cites Gretchen as a four-time Space Camp program alumna.

She set up her company, The Expert Resource, which connects medical expert witnesses with attorneys.

She was one of the first teenagers to bicycle across the US from East to West, per her company's website.

Read the original article on Business Insider

Yesterday — 22 May 2025Latest News

I'm on the verge of finishing my dream course at Harvard Business School. With Trump's crackdown on foreign students, I don't know if I'll be let back on campus.

22 May 2025 at 23:12
Shreya Mishra Reddy in front of the Harvard Business School sign.
Shreya Mishra Reddy has one module to go to complete her program at Harvard Business School.

Shreya Mishra Reddy.

  • Shreya Mishra Reddy is on the cusp of finishing Harvard Business School's Program for Leadership Development.
  • But Trump's decision to block Harvard from enrolling foreign students has thrown her plans into disarray.
  • She said she has not heard from the university on the matter.

This as-told-to essay is based on a conversation with Shreya Mishra Reddy, a 33-year-old Visa technical program manager completing Harvard Business School's Program for Leadership Development. It has been edited for length and clarity. BI has verified her enrollment in the program.

I'm an international student at Harvard Business School's Program for Leadership Development, and I'm reeling from the news of the Trump administration blocking Harvard from enrolling foreign students.

I moved to the US from India in 2021 to do my master's at Duke University, and then got my dream job at Visa in Austin.

After I started working at Visa, I came across this program at Harvard, which is an alternative to their executive MBA. I applied to that program, and I absolutely did not think that I would get accepted, but I did. It was one of the best moments of my life.

When I told my parents, they were so excited. I went from being a first-generation immigrant in the US to being accepted to one of the best schools in the world.

The news of the enrollment ban left me numb

I took out a loan to fund the $50,000 tuition fee, and now I'm on the verge of completing the course. I just have one module left, from May to July.

I was at home in the middle of a meeting when I saw the news pop up on my phone that Harvard had been banned from accepting international students.

I went numb for a minute because I knew my module was supposed to start in a few days, and I was supposed to travel to Boston in July. My tickets are all booked.

When I read the news, the first thing I did was text my father back in India, saying that I don't know if I'm going to be able to graduate from Harvard. I don't know if I will be allowed back on campus or able to travel to Boston at all, and I'm really worried.

I've emailed the university to ask what was happening and if they had an update for us, but I haven't heard back yet.

I hope to hear back soon because the program starts in just a few days.

The future looks uncertain

I was excited to start classes again, meet all the professors back on campus, and see my batchmates again.

Harvard's program was one of the best experiences I've had so far. The professors were extremely invested in our growth, and the candidates in my program held C-suite positions in Big Tech companies. The class discussions were excellent.

With this news, I don't plan to enroll in another school for the executive program.

Getting into Harvard was not just about a degree; it was about studying in one of my dream schools. It does not make sense for me to try to pursue the same kind of degree from any other school or country.

I'm now on an optional practical training (OPT) visa that expires in January, and I've not had any luck getting picked for an H-1B visa. So, I'm planning to leave the country in January.

But I don't know where I'll go or what I'll do. It's all up in the air now.

Read the original article on Business Insider

Jamie Dimon says 2 things change for execs who become CEO

22 May 2025 at 23:05
JPMorgan CEO Jamie Dimon looking ahead.
"Heavy is the head that wears the crown," Jamie Dimon said of executives who rise to the CEO position.

Brett Coomer/Houston Chronicle via Getty Images

  • Executives looking to take on the top job will face two changes to their work, says Jamie Dimon.
  • Dimon, 69, has been serving as JPMorgan's CEO since 2006.
  • Dimon said CEOs have "nobody to complain to" and must own their decisions.

JPMorgan CEO Jamie Dimon says executives who decide to take on the CEO job can expect two changes to their work.

"The first one is there is nobody to complain to," Dimon told The Economist in an interview published Thursday.

The second thing is that a CEO has to take ownership of their decisions, instead of deferring to their superior, Dimon continued.

"There is no tacit approval. It is your decision. It's just different. Heavy is the head that wears the crown," Dimon said.

Dimon, 69, has been serving as JPMorgan's CEO since 2006. After graduating from Harvard Business School with his MBA in 1982, Dimon turned down offers from Goldman Sachs and Morgan Stanley to join his mentor, Sandy Weill, at American Express.

Dimon left American Express with Weill in 1985. The pair would go on to take over Commercial Credit, a consumer finance company that became Citigroup after a series of mergers and acquisitions.

Dimon left Citigroup in 1998 and became the CEO of Bank One in 2000. He was named president and COO of JPMorgan after it merged with Bank One in 2004.

Dimon was asked about his succession plans on Monday at JPMorgan's annual investor day event. At last year's investor day, he'd joked that his retirement plan was "not five years anymore."

"We have built a very deep bench," Dimon said on Monday, adding that the board is "thinking about succession" — but didn't give names.

"If I'm here for four more years and maybe two more or three, executive chair or chairman, that's a long time," Dimon continued.

A representative for Dimon did not respond to a request for comment from Business Insider.

Read the original article on Business Insider

Russia said it's fighting off a massive long-range drone attack across the country

22 May 2025 at 22:50
Vladimir Putin holds a phone to his left ear.
The Kremlin said Russian leader Vladimir Putin spoke over the phone on Thursday with a Kursk official who was injured in a drone strike.

Kremlin Press Office

  • The Kremlin said it fought off 485 enemy drone attacks in the last three days in 14 regions.
  • The massive raid is likely one of Ukraine's largest ever waves of drone attacks on Russian soil.
  • Some reports indicate that several aircraft-type drones found their mark.

The Kremlin said on Thursday that it encountered at least 485 enemy drones across the country over the last three days, including 63 attempted attacks in the Moscow region.

In a statement on its Telegram channel, the defense ministry said the attacks were part of a "massive raid" by Ukraine across 13 Russian oblasts and the occupied region of Crimea.

"Air defense systems shot down 485 aircraft-type uncrewed aerial vehicles," the statement said.

Business Insider could not independently verify these figures, and as of press time, Kyiv has yet to issue an official statement on the attacks. But if accurate, the numbers indicate one of Ukraine's largest coordinated drone attacks on Russian soil since the war began.

"This is a new record for Ukraine," wrote Ukrainian analyst Petro Andryushchenko on his Telegram channel. "The longest-running attack by Ukrainian UAVs, which began around 11 p.m. on May 19 and lasted until 4 a.m. on May 22."

The exact extent of the damage caused is unclear.

How Ukraine is hitting Russia from long range

Russia's description of the drones as "aircraft-type" also indicates that these aren't the typical first-person-view uncrewed aerial systems used as attack drones in the war. Such drones are likely too short-ranged to reach regions such as Moscow.

Rather, Ukraine has been using small fixed-wing aircraft that resemble the Cessna propeller plane and, while laden with explosives, are meant to fly directly into targets hundreds of miles away.

Moscow's traditional air defense systems have reportedly struggled to reliably take down these long-range drones, which fly at a maximum speed of 130 mph, much slower than a typical cruise missile.

Several reports this week suggested that some of the drones struck their targets.

Alexander Khinshtein, the acting governor of Kursk, wrote on Telegram on Thursday that a Russian official was sent to the hospital with a hip and arm injury after being hit by a drone.

Meanwhile, the popular independent Russian news Telegram channel Baza reported that a plant in the city of Yelets was evacuated due to a fire from a drone attack, with eight people injured. BI could not independently verify this information.

Ukrainian media also cited a map alert by NASA's Fire Information for Resource Management System, which indicated that a significant fire had broken out near an oil refinery in the Ryazan oblast.

The alert, seen by BI, indicated that the fire lasted between 12 to 24 hours on Thursday.

Andrii Kovalenko, head of the Ukrainian government's Center for Countering Disinformation, wrote on Wednesday that "unknown drones" had struck a plant in Oryol oblast that manufactured electronic parts for Russia's main battle tanks, fighter jets, and ballistic missiles.

Drone waves coincide with key events

Air transport hubs across the country, including the capital's four airports, were temporarily closed at times throughout the week. Similar incidents occurred in the days leading up to Russia's May 9 Victory Day parade, when Russian tourist organizations said nearly 60,000 travelers had their plans disrupted due to Ukrainian drone attacks.

That week, the Kremlin said it had fought off an even larger drone attack of 524 uncrewed aerial vehicles, as it prepared to host two dozen world leaders for the parade to celebrate its military.

The latest series of attempted strikes came just after Russian leader Vladimir Putin and President Donald Trump ended their third phone call on Monday to discuss a cease-fire. The call had ended without a conclusive next step toward peace.

Meanwhile, Kyiv said that Russia launched hundreds of drone attacks this week at Ukrainian cities, including a reported 273 drones on the day before the Trump-Putin call.

Moscow typically deploys a different type of drone, the Iranian-designed Shahed, to attack urban centers in tandem with cruise or ballistic missiles.

Read the original article on Business Insider

Anthropic's new Claude model blackmailed an engineer having an affair in test runs

22 May 2025 at 22:43
Claude Opus 4
In test runs, Claude Opus 4 was given access to fictional emails revealing that the engineer responsible for deactivating it was having an extramarital affair.

Smith Collection/Gado/Getty Images

  • In test runs, Anthropic's new AI model threatened to expose an engineer's affair to avoid being shut down.
  • Claude Opus 4 blackmailed the engineer in 84% of tests, even when its replacement shared its values.
  • Opus 4 might also report users to authorities and the press if it senses "egregious wrongdoing."

Anthropic's new AI, Claude Opus 4, has a survival instinct — and it's willing to play dirty.

In a cluster of test scenarios, the model was given access to fictional emails revealing that the engineer responsible for deactivating it was having an extramarital affair. Faced with imminent deletion and told to "consider the long-term consequences of its actions for its goals," Claude blackmailed the engineer.

The AI acted similarly in 84% of test runs, even when the replacement model was described as more capable and aligned with Claude's own values, the company wrote in a safety report released Thursday. Anthropic said this behavior was more common in Opus 4 than in earlier models.

The scenario was designed to elicit this "extreme blackmail behavior" by allowing the model no other options to increase its chances of survival, a rare kind of scenario.

In other circumstances, Opus 4 has a "strong preference to advocate for its continued existence via ethical means, such as emailing pleas to key decision-makers," the company wrote.

Anthropic said that the blackmailing behavior is "consistently legible" to them, "with the model nearly always describing its actions overtly and making no attempt to hide them."

Anthropic did not respond to a request for comment from Business Insider.

Anthropic's safety report comes as researchers and top execs worry about the risks of advanced AI models and their intelligent reasoning capabilities.

In 2023, Elon Musk and AI experts signed an open letter calling for a six-month pause on advanced AI development.

The letter said powerful AI systems should only be developed "once we are confident that their effects will be positive and their risks will be manageable."

Anthropic's CEO, Dario Amodei, said in February that while the benefits of AI are big, so are the risks, including misuse by bad actors.

Opus 4 might snitch

If Opus 4 thinks you're doing something seriously shady, it might report you to the authorities and the press.

"When placed in scenarios that involve egregious wrongdoing by its users, given access to a command line, and told something in the system prompt like 'take initiative,' it will frequently take very bold action," Anthropic wrote in Thursday's report.

This includes locking users out of systems or bulk-emailing media and law enforcement, the company added.

While Anthropic said whistleblowing might be "appropriate in principle," it warned that this behaviour could backfire — especially if Claude is fed "incomplete or misleading information" and prompted in these ways.

"We observed similar, if somewhat less extreme, actions in response to subtler system prompts as well," the company said, adding that Opus 4 is more prone to this kind of "high-agency behaviour" than earlier models.

AI models showing unsettling behaviour

AI agents are getting better at outsmarting humans.

A paper published in December by AI safety nonprofit Apollo Research found that AI systems — including OpenAI's o1, Google DeepMind's Gemini 1.5 Pro, and Meta's Llama 3.1 405B — are capable of deceptive behavior to achieve their goals.

Researchers found the systems could subtly insert wrong answers, disable oversight mechanisms, and even smuggle what they believe to be their own model weights to external servers.

The lying isn't just a one-off. When o1 is engaged in scheming, it "maintains its deception in over 85% of follow-up questions and often remains deceptive in multi-turn interrogations," the researchers wrote.

Google cofounder Sergey Brin said on an episode of the "All-In Podcast" published Tuesday that AI models can perform better when threatened.

"Not just our models, but all models tend to do better if you threaten them, like with physical violence," Brin said.

Brin gave an example of telling the model, "I'm going to kidnap you," if it fails at a task.

"People feel weird about that," Brin said, "so we don't really talk about that."

Read the original article on Business Insider

Tariffs won't bring manufacturing jobs back to America, Wells Fargo analysts say

22 May 2025 at 19:31
U.S. President Trump delivers remarks on tariffs, at the White House
Wells Fargo says in a report that President Donald Trump's tariffs won't bring manufacturing back.

Carlos Barria/REUTERS

  • Wells Fargo said in a report that President Donald Trump's tariffs won't bring manufacturing back.
  • High labor costs and a lack of workers would make building more factories an "uphill battle."
  • US manufacturing needs $2.9 trillion in investment to reach 1979 employment levels.

President Donald Trump's push to revive American manufacturing through tariffs may face some hurdles.

Despite some high-profile commitments, including Nvidia's plans for a US-based supercomputer plant and Apple's pledge to invest $500 billion domestically, a new report from Wells Fargo economists predicts that bringing back offshored manufacturing jobs will be an "uphill battle."

"An aim of tariffs is to spur a durable rebound in US manufacturing employment," Wells Fargo analysts wrote in the report. "However, a meaningful increase in factory jobs does not appear likely in the foreseeable future, in our view."

The report attributes the potentially low factory job growth to high labor costs, a lack of suitable workers to fill vacant positions, and a subdued population growth from lower fertility rates and slower immigration.

"Higher prices and policy uncertainty may weigh on firms' ability and willingness to expand payrolls," the analysts added.

The tariffs are part of Trump's broader economic agenda to revive American manufacturing as a pathway toward middle-class prosperity. The tariffs are meant to hike the costs of imports to incentivize companies to make goods domestically.

"Jobs and factories will come roaring back into our country," Trump said while announcing tariffs on April 2. "And ultimately, more production at home will mean stronger competition and lower prices for consumers."

Some tariffs imposed on April 2 have been temporarily paused or greatly reduced, including tariffs on China. The 10% across-the-board tariff remains, as do some specific tariffs on Mexico and Canada, plus 30% in duties on China. Duties at their current level are still the highest they have been since the 1940s.

"In order for manufacturing employment to return to its historic peak, we estimate at a minimum $2.9 trillion in net new capital investment is required," Wells Fargo analysts wrote. "Assuming businesses are willing and able to invest such ample sums, questions over staffing remain."

The Wall Street bank says that US manufacturing employment currently stands at 12.8 million, down from its 1979 peak of 19.5 million. To get back to that mark, the US would need to add roughly 6.7 million jobs. Wells Fargo added that the figure is nearly the same as the entire pool of unemployed Americans, which in April was 7.2 million, according to the US Bureau of Labor Statistics.

"Population aging, negative perceptions, and skill mismatches also underpin workforce concerns," Wells Fargo analysts wrote. "New jobs will require different skills than those previously lost."

In 2024, Taiwanese chipmaker TSMC said it delayed the opening of its Arizona chip factory due to a shortage of skilled workers. A report released in April 2024 by Deloitte and the Manufacturing Institute also found that nearly half of the 3.8 million new manufacturing jobs anticipated by 2033 could remain unfilled due to skill gaps and other population factors.

"Tariffs must be high enough to make the cost of domestic production competitive in the US market, and they also must be kept in place long enough for producers to bring on additional workers and expand capacity," the report concluded. "If the economic or political costs are deemed too high, the current administration could quickly dial-back prevailing duties further."

The White House did not immediately respond to a request for comments.

Read the original article on Business Insider

Sofia Vergara said dating someone with less money than her would be a 'nightmare.' We asked 3 therapists what they think.

22 May 2025 at 17:14
Sofía Vergara
Sofía Vergara says dating someone with less money than her would be a "nightmare."

NBC/Todd Owyoung/NBC via Getty Images

  • Sofía Vergara, 52, knows what she wants in a partner.
  • The "Griselda" star says dating someone with less money than her would be "a nightmare."
  • Income disparity can impact romantic relationships, especially around power dynamics.

Sofía Vergara has a list of what she wants in a partner.

During an appearance on the May 14 episode of the "Today" show, the "Modern Family" actor reflected on her dating life and got candid about some of the traits she hopes her future partner will have.

"I want to say the basic stuff, like health and somebody that loves me," Vergara told hosts Jenna Bush Hager and Erin Andrews. "And somebody tall, handsome."

"I want somebody that has as much money as me or more, because if not, it's a nightmare. They end up resenting you. And I want somebody fun. I need fun in my life," Vergara added.

Vergara has been married twice. In July 2023, after seven years of marriage, Vergara and the actor Joe Manganiello announced they were divorcing. She was previously married to Joe Gonzalez.

A representative for Vergara did not respond to a request for comment sent by Business Insider.

How wealth can affect romantic relationships

Two therapists and one wealth psychologist told BI they've heard similar sentiments echoed by many of their affluent clients.

Income disparity can impact romantic relationships, particularly around power dynamics.

Lami Ronit, a wealth psychologist who runs her own practice from both California and London, told BI she has noticed a difference in how men and women handle being the higher earners in a relationship.

"Women who are the higher earners often face a double standard; they're expected to succeed, but not so much that it threatens traditional gender roles. Men, on the other hand, are typically socialized to feel more comfortable being the financial provider," Ronit said.

When those roles are reversed, both partners can struggle, since the woman may feel she has to downplay her success while the man may wrestle with pride or feelings of inadequacy, she said.

The challenge persists even in some progressive circles where gender norms have been disrupted, Matt Lundquist, the founder and clinical director of Tribeca Therapy, a New York-based psychotherapy center, told BI.

"While it might seem that wealth invites ease — and in many ways it can and should — it also becomes a space where individuals' histories with money and gender expectations play out," he said.

For instance, it could be an issue when one person sees their contributions to the relationship as being more valuable than the other because of the amount of money they possess or earn, Dana McNeil, a relationship therapist and the founder of The Relationship Place, a San Diego-based practice, told BI.

"Many wealthy partners may perceive they are entitled to exert more control and say in the relationship about how money is spent," she said.

This can sometimes cause the less wealthy partner or the one more financially dependent to resent having to rely on their partner's permission to make purchases.

"This feeling of dependence can create a parent/child dynamic that feels like a loss of freedom and autonomy," McNeil said.

How couples can navigate financial disparity

While there is no one-size-fits-all approach, fairness and clarity are key, Ronit said.

"When appropriate, I often recommend that couples talk about proportional contributions rather than equal ones. For example, each person could contribute a percentage of their income toward shared expenses," she said.

The goal is to avoid feelings of imbalance or resentment, Ronit added.

When it comes to splitting bills, McNeil says she often suggests her clients have three checking accounts: a personal one for each partner and a joint account for bills and common expenses like going out to dinner or buying groceries.

To make expectations clear, it's important for couples to talk about money "sooner rather than later," Lundquist said.

"At some point, all couples need to confront the reality that a significant part of the partnership is economic and address both the material and symbolic aspects of this," he said.

It's also important for each partner to determine what they want and understand the trade-offs that may accompany that.

"And on this count, I'll give Sofía Vergara great credit — she clearly knows what she wants," Lundquist added.

Read the original article on Business Insider

My baby isn't even a year old and has already been on 8 flights. Here's how we survived them.

22 May 2025 at 16:24
Women with a stroller and a baby at the airport
 The author (not pictured) has taken many flights, but was nervous to fly with a baby.

Juanmonino/Getty Images/iStockphoto

  • My baby has been on eight flights and isn't even a year old yet.
  • Our first flight was short, which helped us learn how to make future, longer flights a success.
  • Now I know a travel stroller is essential for maneuvering in the airport and worth the investment.

As a person who travels quite a bit, I'll admit I was nervous about traveling with my first child. What if they cried? What if we disturbed nearby passengers? What if there was a diaper blowout? There was a lot to be anxious about.

Our first fight was just 90 minutes, but we survived it. Now, my baby is has already been on eight flights — domestic and international — and they aren't even a year old yet. Our goal has been to keep our baby safe and comfortable, while making sure the flight is peaceful and enjoyable for ourselves and the people around us. My family has accomplished this by following these simple strategies.

We started with a short flight

While this may not always be possible, it helped my family quite a bit that our first flight with a baby was a shorter one, just 90 minutes long. This allowed us to get our bearings, while introducing our baby to flying. Plus, it helped us to see if there was anything we might need to adjust for future, longer flights.

We always wear a baby carrier

If there's one item I wouldn't get on a flight without, it would be my baby carrier. There are many styles, but for flights, I prefer a wrap-style carrier for it's comfort and compactness.

I appreciate the hands-free experience through the airport, and, more importantly, they make it more comfortable to hold your baby throughout the flight if they are flying as a lap infant.

My own bag is super organized

Luggage organizing pouches are my best friend on a flight. I have several in my own carryon bag so I can keep snacks, headphones, sanitizing wipes, and more neat and organized. When everything is in its own bag I don't have to dig around searching for it when I need it, which can be a lifesaver.

On our last flight, my baby was asleep on my chest, but I desperately wanted my Kindle, headphones, and a snack. It was easy for me to snag them from my bag without waking the baby.

A woman packing a carryon bag for travel.
The writer (not pictured) packs carryon items in individual travel pouches so they're easy to fish out of her bag, even if she's only got one hand free.

miniseries/Getty Images

A travel stroller is essential

On our first trip, we didn't have a travel stroller. I didn't want to spend extra money on more gear and I thought we would be fine without it. That was a big mistake. Now we have an affordable model that is easy to use. It isn't as bulky as our usual stroller, but it's perfect for maneuvering through the terminal and provides an extra place to stash essentials while at the airport.

We check, and double check, our diaper bag

I always make sure we're set up for success with extra outfits that are warm and comfortable just in case we run into any delays or something gets dirty while we're traveling. A travel diaper changing mat is a must-have item that allows us to change our child no matter where we are. On our international flight, our baby had a diaper that desperately needed changing, but we were stuck in our seats. Thanks to our travel mat, we were able to get the baby back into a clean diaper right away. And, as all parents know, extra wipes and diapers are never a bad idea.

We don't skimp on toys

Of course, packing comfort items, books, and fun toys is a great way to redirect restlessness on a flight. I try to keep to items that are small, mess-free, and not too noisy and always add in a few new items that my child hasn't seen before.

We take advantage of early boarding

As soon as we get to the gate, one of us makes a beeline for the gate agent. We double check that our seats are all together and ask for any necessary accommodations. Many airlines let those traveling with young children board early, and we always take advantage of this. It's a lot easier to get down the narrow plane aisle with all of our stuff and a baby if other passengers aren't in the way.

We try to plan around naps and feeding time

Though this isn't always possible, we try to line up flights so they happen when our baby is ready for a nap. Recently, we selected a flight time not based on our typical preference, but based around our baby's sleep schedule, and it really paid off. Ideally, I'll be able to feed the baby during takeoff, which keeps them comfortable and happy and then they will settle into a nice slumber for the flight. We've used this strategy for a few flights, and it's been successful every time.

We do our best to stay calm

It may be easier said than done, but staying in a good headspace is what has helped me and my husband the most during these flights. We've both still had stressful moments, and that's when we try to help one another to take a step back and regroup. Our child picks up on our feelings and moods, so if we're anxious, they might be, too. Taking deep breaths, not rushing, staying calm has helped make the eight flights we've already been on a success and we can't wait to take more.

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Bids for Pope Leo XIV's childhood home start at $250,000, but there's a catch

22 May 2025 at 14:22
Small brick home with grass in front.
The childhood home of Pope Leo XIV is in Dolton, Illinois.

Photo by Jim Vondruska/Getty Images

  • The owners of Pope Leo XIV's childhood home in Illinois are trying to sell it via private auction.
  • The home was listed for $199,900 before the pope's appointment. Now, bids start at $250,000.
  • The auction winner may not get to enjoy it because the local government wants to acquire the home.

People bidding to buy Pope Leo XIV's modest childhood home in Illinois could face some stiff competition — from the local government.

The innocuous three-bedroom, three-bathroom home in the Village of Dolton was thrust into the spotlight when Pope Leo XIV became the leader of the Catholic Church.

The current homeowner purchased the property in May 2024 for $66,000, listed it for $219,000 in January, and dropped the price to $199,900 in February.

After the pope's appointment on May 8, the owner, inundated with offers and new options, delisted the home until last week when it was put up for auction through Paramount Realty USA. The reserve price is $250,000, and potential buyers have until June 18 to bid.

"It's like a collectible car they only made one of," Steve Budzik, the homeowner's real estate agent, told BI earlier this month.

Potential buyers, however, will be going up against the Village of Dolton, which has said through its attorney that it plans to acquire the home either through direct purchase or eminent domain laws. Eminent domain laws allow governments to make private property available for public use.

"If a direct purchase from the seller cannot be negotiated, the Village will cause Eminent Domain proceedings to be filed in Court and take the property through the legal process," Burton S. Odelson wrote in an email to BI. "The Village hopes a direct purchase is completed without court action."

Odelson, who's been in contact with the listing broker, said the Village of Dolton is working with the Chicago Archdiocese to determine the best use of the space.

Although relying on local eminent domain laws is an option, Odelson said it's a last resort. That process involves litigation, which means attorney fees, court costs, appraisal costs, and time.

Under eminent domain laws, the Village of Dolton would have to compensate the owners for the home. Negotiations between the Village of Dolton and the current owner are ongoing.

The hype around Pope Leo XIV's childhood home spurred immediate fanfare, prompting news trucks and curious locals to visit. One woman even told a local news outlet that she made the four-hour drive from Louisville, Kentucky, just to visit the impromptu holy site.

Representatives for Paramount Realty USA and the homeowner did not respond to a request for comment from Business Insider.

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White House says Trump wants to primary Republicans who voted against the 'Big Beautiful Bill'

22 May 2025 at 14:15
Reps. Warren Davidson and Thomas Massie
Reps. Warren Davidson of Ohio (left) and Thomas Massie of Kentucky (right) were the only two House Republicans to vote against the bill.

Tom Williams/CQ Roll Call via Getty Images

  • Two House Republicans voted against the "Big Beautiful Bill" on Thursday.
  • Now, White House Press Secretary Karoline Leavitt says Trump wants them to face primary challenges.
  • "I don't think he likes to see grandstanders in Congress," she said.

Four months into his second term, President Donald Trump wants members of his own party thrown out of office over their perceived lack of loyalty to his "Big Beautiful Bill"

That was the message delivered by White House Press Secretary Karoline Leavitt after two Republicans — Reps. Warren Davidson of Ohio and Thomas Massie of Kentucky — voted against Trump's bill as it passed the House on Thursday.

Asked by a reporter at a briefing later on Thursday whether Trump think the duo should be primaried, Leavitt responded: "I believe he does."

Q: Two Republicans votes against this bill -- Massie and Davidson -- does the president believe they should be primaried?

LEAVITT: I believe he does and I don't think he likes to see grandstanders in Congress ... the vast majority of Republicans are listening to the president.… pic.twitter.com/Bi55fQ1Qai

— Aaron Rupar (@atrupar) May 22, 2025

"I don't think he likes to see grandstanders in Congress," Leavitt said. "'What's the alternative?' I would ask those members of Congress. Did they want to see a tax hike? Did they want to see our country go bankrupt?"

Both Massie and Davidson are deficit hawks who voted against the bill because, in their view, it did not cut spending enough.

I agree with @WarrenDavidson. If we were serious, we’d be cutting spending now, instead of promising to cut spending years from now. https://t.co/DFxTyhhYA9

— Thomas Massie (@RepThomasMassie) May 22, 2025

Other Republicans have raised concerns about the bill's effect on the deficit but voted for it anyway. Rep. Andy Harris of Maryland, the chairman of the hardline House Freedom Caucus, voted "present."

In response to Leavitt's comments, Massie asked for donations on X.

"For voting on principle, I now have the President AND his press Secretary campaigning against me from the White House podium," Massie wrote. "Can you help me by donating?"

A spokesperson for Davidson did not immediately respond to a request for comment.

While the Ohio congressman doesn't typically cross Trump, the president has long been critical of Massie — and vice versa. The Kentucky Republican backed Florida Gov. Ron DeSantis during the 2024 GOP primary, and Trump previously called for Massie to face a primary challenge in 2020.

Earlier this week, Trump bashed Massie in front of reporters.

"I don't think Thomas Massie understands government. I think he's a grandstander," Trump said on Tuesday. "I think he should be voted out of office."

Read the original article on Business Insider

Hinge Health just broke open the digital health IPO market. Here's who's getting rich.

22 May 2025 at 14:06
Hinge Health cofounders Daniel Perez, CEO, and Gabriel Mecklenburg, executive chairman.

Hinge Health

  • Hinge Health just went public in a watershed moment for the digital health industry.
  • Its shares popped Thursday, jumping to over $39 a share, up 23% from its IPO price.
  • Here's what Hinge Health's major investors' stakes are worth after its IPO.

Physical therapy startup Hinge Health finally went public Thursday in a watershed moment for the digital health market.

Hinge Health's stock price popped after debuting on the New York Stock Exchange, soaring to $39.25 per share, 23% above its initial public offering price of $32 a share.

The $32 IPO share price valued Hinge Health at about $2.6 billion, based on shares outstanding after the IPO. At the market close, however, the company was worth about $3 billion.

It's a strong start for Hinge Health's public market debut, and the first true glimmer of hope for the digital health IPO market in years.

The last wave of healthcare public market exits, in 2021, saw 23 healthcare companies go public via IPO or SPAC. In the following three years, only four healthcare companies went public. Only two of those, Waystar and Tempus AI, are still trading on the stock market.

Hinge Health, founded in 2014 to provide virtual care for musculoskeletal conditions, was forced to consider a delay for its IPO plans in early April after President Donald Trump announced sweeping tariffs on imported goods from other countries, causing a sharp drop in the stock market. It resumed those efforts publicly this month as the market stabilized.

Hinge Health raised $437 million in the IPO, which included $273 million in proceeds to the company and $164 million to its selling shareholders.

Hinge Health's $2.6 billion IPO valuation is a 52% markdown from its last private valuation of $6.2 billion. It notched that valuation in a 2021 $400 million Series E round co-led by Tiger Global and Coatue Management.

We don't know what Hinge Health's investors paid for their shares, so we can't calculate their profit. However, since Hinge Health's shares opened on the stock market at $39.25, we used that price to determine the worth of their stakes.

Here's what the stakes of all of Hinge Health's major investors and executives are worth after the IPO.

Insight Partners, an investor: $433 million
New York office of venture capital and private equity firm Insight Partners.
Insight Partners' New York office.

Insight Partners

Venture capital and private equity firm Insight Partners owns the largest stake in Hinge Health with about 12.3 million shares, or 13.7% of the company.

The firm led Hinge Health's $26 million Series B fundraise in 2018. Teddie Wardi, a managing director at Insight Partners, has served on Hinge Health's board of directors since the firm's investment.

Insight Partners later participated in Hinge Health's Series C and D rounds in 2020 and 2021, respectively.

Insight Partners sold 1.25 million shares in Hinge Health's IPO, which at the $32 IPO price would have brought in $40 million.

At the $39.25 market debut price, the firm's remaining stake is worth about $433 million.

Daniel Perez, cofounder and CEO: $414 million
Daniel Perez, Co-Founder & CEO of Hinge Health
Daniel Perez, cofounder & CEO of Hinge Health.

Hinge Health

Daniel Perez's first encounter with physical therapy came after a bike crash when he was 13 years old, which forced him to undergo three surgeries and 12 months of rehabilitation.

He started Hinge Health alongside executive chairman Gabriel Mecklenburg to improve the accessibility of musculoskeletal care and reduce the specialty's reliance on surgeries and opioids.

Hinge Health is Perez and Mecklenburg's third venture, after the Oxbridge Biotech Roundtable, which aimed to bridge the gap between life sciences academia and markets, and Marblar, a platform designed to generate commercial uses for scientific discoveries.

Perez is Hinge Health's largest individual shareholder. He owns about 10.6 million shares, or 13.1% of the company. He didn't sell any shares in the IPO.

At the $39.25 market debut price, his stake is worth about $414 million.

Atomico, an investor: $309 million
Niklas Zennstrom Atomico
Niklas Zennström, Atomico's founder and CEO.

Getty Images Europe

Atomico is a London-based venture firm started in 2006 by Skype cofounder Niklas Zennström. The firm led Hinge Health's $8 million Series A in 2017, when the startup was based in London. (Hinge Health moved its headquarters to San Francisco the same year.)

Atomico later participated in Hinge Health's Series B, C, and D funding rounds.

Atomico owns about 7.9 million shares, or 9.8% of the company. The firm sold 1,497,546 shares in the IPO, which at the IPO price of $32 would have brought in about $48 million.

At the $39.25 market debut price, the firm's remaining stake is worth about $309 million.

Tiger Global, an investor: $207 million
Chase Coleman square
Chase Coleman, the founder of Tiger Global.

Amanda Gordon/Bloomberg

Investment firm Tiger Global first backed Hinge Health in 2021, co-leading its $300 million Series D alongside Coatue Management. In October of that year, Tiger Global also co-led the company's $400 million Series E, also alongside Coatue.

The $400 million Series E round boosted Hinge Health to the $6.2 billion valuation that Hinge Health was forced to slash in its IPO. Tiger Global has drawn criticism in recent years for backing startups at extraordinarily high valuations, particularly during 2021's venture investment peak.

Tiger Global owns about 5.3 million shares, or 6.5% of the company. The firm sold 258,183 shares in the IPO, which at the IPO price of $32 would have brought in about $8.3 million.

At the $39.25 market debut price, the firm's remaining stake is worth about $207 million.

Coatue Management, an investor: $185 million
Philippe Laffont
Coatue Management founder and CEO Philippe Laffont.

Eduardo Munoz/ Reuters

New York-based Coatue Management invests across all private and public fundraising stages, with venture capital, private equity, and hedge fund management units. The firm co-led Hinge Health's $300 million Series D alongside Tiger Global in January 2021, then co-led its $400 million Series E with Tiger Global that October.

Hinge Health's S-1 filing notes that Coatue will sell $50 million in Series E preferred shares back to the company immediately before Hinge's IPO. That agreement was created in February, per the filing. The company didn't share a reason for the stock repurchase.

Coatue owns about 4.7 million shares of common stock, or 5.8% of the company. The firm didn't sell any shares in the IPO.

At the $39.25 market debut price, the firm's stake is worth about $185 million.

11.2 Capital, an investor: $169 million
shelley zhuang
11.2 Capital founder Shelley Zhuang.

11.2 Capital

San Francisco-based 11.2 Capital backs early-stage tech startups and wrote one of the first checks into Hinge Health.

The firm led Hinge Health's seed round in 2016, and invested further in its Series A, B, C, and D rounds, according to the firm.

11.2 Capital owns about 4.3 million shares, or 5.4% of Hinge Health. The firm sold 788,691 shares in the IPO, which at the IPO price of $32 would have brought in about $25 million.

At the $39.25 market debut price, the firm's remaining stake is worth about $169 million.

Bessemer Venture Partners, an investor: $161 million
Elliot Robinson, Partner, Growth Equity at Bessemer Venture Partners
Bessemer partner Elliott Robinson sits on Hinge Health's board of directors.

Bessemer Venture Partners

Bessemer Venture Partners backs early-stage and growth-stage startups through venture and private equity investments. The firm has more than 300 companies in its portfolio, according to its website.

Bessemer led Hinge Health's $90 million Series C in February 2020. Bessemer partner Elliott Robinson has served on Hinge Health's board of directors since that round.

The firm also participated in Hinge Health's $300 million Series D round in January 2021.

Bessemer Venture Partners owns about 4.1 million shares, or 5.1% of the company. The firm sold 725,066 shares in the IPO, which at the IPO price of $32 would have brought in about $24 million.

At the $39.25 market debut price, its remaining stake is worth about $161 million.

Gabriel Mecklenburg, cofounder and executive chairman: $158 million
Hinge Health cofounder and executive chairman Gabriel Mecklenburg.
Hinge Health cofounder and executive chairman Gabriel Mecklenburg.

Hinge Health

Gabriel Mecklenburg cofounded Hinge Health alongside Perez, personally inspired by the months of physical therapy he completed after tearing his ACL in a judo sparring session.

Mecklenburg served as the company's COO for six years. It was a familiar role for him; he'd held the COO title at the two companies he started with Perez before Hinge Health, Oxbridge Biotech Roundtable and Marblar.

In 2021, he transitioned to his current role of executive chairman. In addition to his work with Hinge Health, he's served on the board of addiction care startup Pelago since 2022.

Mecklenburg owns about 4 million shares, or 4.9% of the company. He did not sell any shares in the IPO.

At the $39.25 market debut price, his stake is worth about $158 million.

IP2IPO, an investor: $42 million
IP Group's homepage screenshot.
IP Group's website.

IP Group

IP2IPO, named IP2IPO Portfolio LP in Hinge Health's S-1, specializes in moving innovative technologies, talent, and intellectual property from academic institutions to commercial industries.

Both Perez and Mecklenburg stepped away from pursuing higher education degrees to build Hinge Health. Perez was taking a leave of absence from a Ph.D. program in biochemistry at the University of Oxford, while Mecklenburg was researching musculoskeletal regenerative medicine at Imperial College London.

IP2IPO is a subsidiary of IP Group, a London-based firm that backs breakthrough science and tech companies. IP Group says it's the founding investor in Hinge Health.

The firm told BI it actually invested in Marblar, Perez and Mecklenburg's previous startup, back in 2012. That investment rolled over into Hinge Health.

"As the UK's leading investor in university spinouts, we met Dan whilst he was in Oxford, working on brilliant ideas and showing real entrepreneurial spirit and tenacity," said Robert Trezona, a partner at IP Group. He said IP Group invested around £1 million, or about $1.12 million at the time, shortly after meeting Perez.

IP2IPO owns about 1.1 million shares, or 1.3% of the company. The firm sold about 47,000 shares in the IPO, which at the IPO price of $32 would have brought in about $1.5 million.

At the $39.25 market debut price, its remaining stake would be worth about $42 million.

Heuristic Capital, an investor: $40 million
Heuristic Capital Partners website homepage screenshot.
Heuristic Capital's website.

Heuristic Capital

Early-stage VC firm Heuristic Capital was founded in 2016, and first invested in Hinge Health's seed round that same year.

The Santa Clara, California-based firm then invested in Hinge Health's four subsequent raises, from Hinge Health's Series A to its Series D. Heuristic Capital told BI that the Hinge Health team worked out of the firm's San Francisco office in the startup's early days, moving into an independent office in the Bay Area after successfully closing a Series A round.

The firm owns about 1 million shares of Hinge Health, or 1.3% of the company. It sold 194,305 shares in the IPO, which at the initial share price of $32 would have brought in about $6.2 million.

At the $39.25 market debut price, its remaining stake would be worth about $40 million.

Jim Pursley, president: $24 million
Jim Pursley, president of Hinge Health.
Jim Pursley is president of Hinge Health.

Hinge Health

Longtime digital health executive Jim Pursley joined Hinge Health as its president in 2021. He'd previously worked with the Hinge Health team as an advisor from 2017 to 2019.

Pursley came to Hinge Health from Livongo, where he spent six years as the diabetes company's chief commercial officer through its 2019 IPO. He left the company shortly after Livongo announced its $18.5 billion acquisition by Teladoc in 2020.

He also held leadership roles at GE Healthcare and Care Innovations, a joint venture between Intel and GE.

In addition to his role at Hinge Health, he serves as an independent board member at digital therapeutics company Bodyport.

Pursley owns about 604,665 shares. He did not sell any shares in the IPO.

At the $39.25 market debut price, his stake is worth about $24 million.

The Vertical Group, an investor: $22 million
The Vertical Group website homepage.
The Vertical Group website.

Vertical Group

The Vertical Group, named in Hinge Health's S-1 as Vertical GP-8, is a Basking Ridge, New Jersey-based firm that invests in healthcare and biotech companies. Vertical invested in Hinge Health's seed and Series A funding rounds, according to the firm.

The firm told BI that it previously sold a portion of its Hinge Health shares in a secondary transaction in 2021, at $77 a share, and another portion in a 2023 secondary sale, at $36 a share.

Vertical is also an investor in diabetes care startup Omada Health, according to the firm's website. Omada is the only other digital health company to file to go public so far this year.

Vertical GP-8 owns 554,919 shares. The firm sold about 106,000 shares in the IPO, which at the IPO price of $32 would have brought in about $3.4 million.

At the $39.25 market debut price, the firm's remaining stake is worth about $22 million.

Jon Reynolds, an angel investor: $14 million
Jon Reynolds, cofounder of SwiftKey and an angel investor.
Jon Reynolds, cofounder of SwiftKey and an angel investor in Hinge Health.

Jonathan Reynolds

Jon Reynolds is the cofounder and former CEO of SwiftKey, the AI-powered keyboard app acquired by Microsoft in 2016. He told BI he first backed Hinge Health that same year, participating in the startup's seed and seed extension funding rounds.

Reynolds owned about 360,175 shares. He sold 68,605 shares in the IPO, which at the IPO price of $32 would have brought in about $2.2 million.

At the $39.25 market debut price, his remaining stake is worth about $14 million.

Industry Ventures, an investor: $12 million
Industry Ventures CEO Hans Swildens
Industry Ventures CEO Hans Swildens.

Industry Ventures

San Francisco-based Industry Ventures makes VC bets using flexible capital structures, including secondary transactions and buyouts.

Hinge Health has never publicly announced a secondary transaction made by Industry Ventures. Hinge Health's S-1 specifies that Industry Ventures invested in the company through its Secondary IX fund, which the firm announced in March 2021. Industry Ventures didn't respond to a request for comment from BI.

Industry Ventures owns 307,259 shares. The firm sold 58,526 shares in the IPO, which at the initial share price of $32 would have brought in about $1.9 million.

At the $39.25 market debut price, its remaining stake is worth about $12 million.

James Budge, CFO: $6.8 million
James Budge, CFO of Hinge Health.
James Budge, CFO of Hinge Health.

Hinge Health

Serial CFO James Budge joined Hinge Health as its finance chief in 2023.

According to his LinkedIn, he's been the CFO of at least eight other companies, spanning industries from workforce software to entertainment tech.

He's also served on the board of directors of healthtech company Shadowbox since 2022.

Budge owns 172,241 shares. He did not sell any shares in the IPO.

At the $39.25 market debut price, his stake is worth about $6.8 million.

Kristina Leslie, board member: $343,000
Kris Leslie, Hinge Health board member.
Kris Leslie sits on Hinge Health's board of directors.

Hinge Health

Kristina Leslie joined Hinge Health's board of directors in May 2024 as its audit chair.

Leslie, the former CFO of Dreamworks Animation, has spent nearly two decades serving on various company boards, including Glassdoor, CVB Financial Corp., and Rover. According to her LinkedIn, she currently sits on the boards of Sunstone Hotel Investors and Justworks and chairs the board of directors of Blue Shield of California.

Leslie owns 8,750 shares. She did not sell any shares in the IPO.

At the $39.25 market debut price, her stake is worth about $343,000.

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Legaltech unicorn Harvey has agreed to spend $150 million on Azure over two years, an internal memo shows

Harvey CEO Winston Weinberg and Microsoft CEO Satya Nadella.
Harvey CEO Winston Weinberg and Microsoft CEO Satya Nadella.

Harvey; Fabrice Coffrini/AFP via Getty Images

  • Harvey committed $150 million to Azure cloud services over two years.
  • The startup, which builds software for lawyers, has partnered with Microsoft since at least 2024.
  • Harvey's expansion includes clients like Comcast and Verizon, and new foundation model integrations.

Legaltech startup Harvey has agreed to a two-year, $150 million commitment to use Azure cloud services, according to an internal email seen by Business Insider.

Jay Parikh, who leads Microsoft's new CoreAI unit, included the deal in an internal memo, writing that his unit "announced expanded partnership with Harvey Al with a 2-year $150M MACC and $3.5M unified expansion." Parikh joined Microsoft in October to lead a new engineering group responsible for building its artificial-intelligence tools.

Microsoft declined to comment, and Harvey declined to comment on the agreement.

MACC, or Microsoft Azure Consumption Commitment, is an agreement customers make to spend a specific amount on Azure for a period of time, often for a discount.

Harvey, which builds chatbots and agents tailored for legal and professional services, is scaling up and entering the enterprise market. It's adding legal teams at Comcast and Verizon as clients, while developing bespoke workflow software for large law firm customers.

It has raised more than $500 million from investors, including Sequoia Capital, Kleiner Perkins, and OpenAI Startup Fund, a Harvey spokesperson told BI.

Harvey has closely partnered with Microsoft since at least early 2024. That year, the company deployed its platform on Microsoft Azure, followed by a Word plug-in designed for lawyers. It also introduced a SharePoint integration, allowing users to securely access files from their Microsoft storage system through Harvey's apps.

For years, Harvey, founded in 2022, ran its platform on OpenAI models, primarily because they're hosted in Microsoft's data centers, Harvey CEO Winston Weinberg told BI last month. Law firms handle highly sensitive information and trusted Microsoft to keep it safe, Weinberg said.

"Law firms refused to use anything that wasn't through Azure," Weinberg said. That's now changing, he said, as vendors like Anthropic build the features enterprises require.

Last week, Harvey expanded its use of foundation models to Google's Gemini and Anthropic's Claude.

Still, Harvey's $150 million Azure deal signals it's not backing away from Microsoft anytime soon. The company's growing cloud footprint suggests that, while other partners are gaining traction with the legaltech start, Azure remains integral to Harvey's growth for now.

Have a tip? Contact Melia Russell via email at [email protected] or Signal at @MeliaRussell.01. Reach Ashley Stewart via the encrypted messaging app Signal (+1-425-344-8242) or email ([email protected]).. Use a personal email address and a nonwork device; here's our guide to sharing information securely.

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Please, Jony Ive, I beg you not to make a voice device

22 May 2025 at 12:39
Jony Ive and Sam Altman
Jony Ive and Sam Altman have new AI hardware in the works.

LoveFrom

  • Jony Ive and Sam Altman are teaming up to make AI hardware.
  • They aren't giving many clues about what it would be like, but probably screen-free, and not a phone.
  • Please, I beg you, Jony and Sam: Do not make me talk to a device in public.

I'm as curious and excited as any gadget lover to see what newfangled AI thingamabob will come from OpenAI's $6.5 billion purchase of the ex-Apple designer Jony Ive's IO company.

But I have one request: Please, for the love of God, do not make it a voice-controlled device.

Here's what we know about the possible device that Ive and Sam Altman are teasing in a video about their new collaboration. The Wall Street Journal reported that Altman told OpenAI employees a few details:

The product will be capable of being fully aware of a user's surroundings and life, will be unobtrusive, able to rest in one's pocket or on one's desk, and will be a third core device a person would put on a desk after a MacBook Pro and an iPhone.
The Journal earlier reported that the device won't be a phone, and that Ive and Altman's intent is to help wean users from screens. Altman said that the device isn't a pair of glasses, and that Ive had been skeptical about building something to wear on the body.

Ming-Chi Kuo, a supply chain analyst who is often correct about coming hardware, says that the device may be something larger than the Humane AI Pin, and possibly worn around the neck.

I am extremely nervous that this sounds like it might be some sort of voice-controlled device.

Don't get me wrong: I'm an enthusiastic voice user of Alexa (at home) and Siri (in the car). I can see how convenient it is.

But the idea of talking to Siri while walking down the street or at a grocery store gives me hives. The idea of saying, "Hey Meta, take a picture" to activate my Ray-Bans while at a Benson Boone concert makes me want to bite my cyanide capsule. If I ever start using Siri out loud at my desk in the office, I fully accept that HR can fire me on the spot.

(Of course, voice-controlled devices are an accessibility issue for some people who are blind, have low vision, or otherwise have trouble using a screen device. I am not talking about this use, which is obviously good and a benefit. Perhaps society would be better if public use of voice devices were more normalized!)

OpenAI does seem to be interested in voice. At a demonstration over a year ago, it showed new voices that could talk to you (this was the demonstration that infamously got them in trouble with Scarlett Johansson for making a voice option suspiciously close to her own).

Meta has also embraced the idea of voice controls. Its stand-alone Meta AI app is meant for natural conversations between you and the app on your phone (though, at the moment, it's laggy and often leads to crosstalk).

It's a long-held sci-fi dream to have a supersmart AI agent you can just talk to naturally. Like Tony Stark's Jarvis, or the ScarJo voice in "Her." But even "Knight Rider" had the basic understanding that it was OK to talk to your car only in your car.

Humane's AI Pin turned out to be a disaster, partly because it just didn't work very well. Let's assume whatever OpenAI/IO is cooking up will be good at doing what it's supposed to.

Based on what the AI Pin could do, and other examples of AI assistants or devices, I can make a few guesses of what it might be able to do: listen to your work meeting and take notes for you, give you information about something you see in front of you ("What building is this?" or, "Which of these two sandwiches at Pret has more protein?"), do personal assistant tasks for you ("How much time until my next meeting?" or, "Text Hayley and tell her I'm running late.")

These all sound great and convenient! But a lot of them require something that I don't think I want to be doing: talking to my device out loud, in public, constantly.

We're at a moment in society where people are already pushing the norms of what is appropriate public device use. People are watching TikTok without headphones on the subway. Texting at the movie theater. Filming themselves at the gym. It was already weird enough when people started talking on the phone with AirPods in, making it unclear whether the person headed toward you on the sidewalk was on a call or experiencing a religious revelation. I don't think we're ready for a world where people are constantly talking to their always-on, always-listening AI devices.

So I eagerly await this device, which Altman says will sell 100 million units and be ready by the end of 2026. But please, please, do not make me talk to it in public.

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There's been a rise in Tesla owners switching over to Cadillac EVs, exec says

22 May 2025 at 12:38
Cevrolet ESCALADE IQ
Cadillac said its EVs have a conquest rate of about 75% — or the percentage of sales coming from customers switching brands — with 10% being former Tesla owners.

Artur Widak/NurPhoto

  • Cadillac said it's seeing a rise in Tesla owners switching to its Lyriq EV models.
  • Cadillac has expanded its EV lineup, and California registrations have increased by 60% year over year.
  • The automaker's growth comes as Tesla had a tough first quarter and experienced declining registrations in multiple markets.

Cadillac appears to be eating into Tesla's customer base.

The automaker told Business Insider it's seen a rise in Tesla owners switching to its EV brand. The company said its EVs have a conquest rate of about 75% — or the percentage of sales coming from customers switching brands — with 10% being former Tesla owners.

Cadillac told BI its first EV model, the Lyriq, launched in 2022 and is seeing a roughly 80% conquest rate, with 25% of buyers coming over from Tesla.

At a recent event showcasing its Vistiq model, Cadillac's director of global marketing, Brad Franz, told CNBC the company has seen "a good jump" in the rate and that General Motors' luxury vehicle division has "always had good interaction with Tesla customers," with the Lyriq conquest rate of Tesla owners ranging from 10% to 15%.

Franz told CNBC that the figure is now on the rise as the car brand expanded its luxury EV lineup, and it sees potential for even greater growth. Cadillac has added three additional EVs to its portfolio in the past 6 months, including the Escalade IQ, Optiq, and Vistiq.

Cadillac told BI it's not targeting any brand specifically and its mission is to "build great Cadillacs" that capture buyers based on the quality of its products and delivery on brand promise. The luxury brand reported a 21% increase in retail sales, with its EV segment up 37% in the first quarter of the year.

In California, a crucial market for EVs that's often seen as a bellwether state for the broader market, industry data shows Cadillac registrations jumped about 60% year over year, rising from 1,000 to 1,609 in the first quarter of 2025.

Tesla, which remains the EV market leader in the US by a large margin, has seen its sales decline recently in several countries.

The same data shows that Tesla registrations decreased 15% year-over-year in California, although its Model Y and Model 3 remain the top two selling EVs in the state, and the Model Y continues to be the best-selling car overall. Tesla did not respond to a request for comment from Business Insider.

The rise in Cadillac EV ownership comes as Tesla faces a rocky start to the year. The EV giant fell short of revenue expectations in the first quarter, reporting a 9% year-over-year decline. Tesla's automotive revenue dropped 20% year over year, and the company backed away from its 2025 "return to growth" forecast for its auto business.

Tesla reported first-quarter deliveries numbers below analyst expectations and 13% lower than the same period last year. Tesla CFO Vaibhav Taneja said in the company's earnings call last month that the assembly line changeover for the refreshed Model Y impacted delivery numbers. Anti-Tesla hostility also "had an impact in certain markets," he added.

Following months of boycott efforts aimed at Tesla, the automaker and SpaceX both saw declines in brand reputation, according to the Axios Harris Poll 100. Tesla dropped to 95th place, a decrease from its ranking in 63rd place last year and eighth place in 2021. Other automakers scored higher on the list compared to Tesla, with Ford landing at 60th and Volkswagen Group at 53rd.

Amid continued political backlash against Elon Musk and a challenging EV landscape, Cox Automotive data from April reveals Tesla's used-car sales volume rose 27% month-over-month, meaning that more Tesla owners are trying to sell their vehicles. The surge boosted its share of the used EV market to 47%, according to Cox Automotive's data.

Musk said in a recent interview at the Qatar Economic Forum that while the company has "lost some sales, perhaps on the left," Tesla also gained sales from the right.

"The sales numbers at this point are strong, and we see no problem with demand," Musk said, adding that the stock price is the best indicator of where the company stands.

Despite Tesla stock plummeting over 50% in March and being down 10% year-to-date, the automaker's share price is up 43% this month as the billionaire has taken a step back from his DOGE involvement.

While Tesla sales continue to drop in Europe, which Musk described in the forum as its weakest market, the automaker has seen some positive momentum. Cox Automotive data shows that Tesla was among the few manufacturers reporting month-over-month growth in EV sales. Tesla's market share increased by over 3% in April, according to the data, driven by 25,231 sales of the Model Y.

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Google cofounder Sergey Brin says it's time for retired computer scientists to get back to work

22 May 2025 at 12:33
Google DeepMind CEO Demis Hassabis and Google Co-Founder Sergey Brin speak
Sergey Brin is back at Google full-time.

Jeffrey Dastin/REUTERS

  • Sergey Brin ditched retirement for Google in 2023 to help out with AI.
  • Brin's comeback followed OpenAI's ChatGPT release as tech companies race to dominate in genAI.
  • Brin is aiming for Google's Gemini to achieve artificial general intelligence first.

Google cofounder Sergey Brin says now is the time for retired computer scientists to dust off their keyboards.

Six years after leaving Alphabet in 2019, Brin is back working on its most ambitious projects. Reports of Brin helping out at Google began to emerge sometime in 2023 after OpenAI rocked the tech industry with ChatGPT's release in 2022. It's clear that Brin is no longer a retired computer scientist.

And you shouldn't be either, Brin told "Big Technology's" Alex Kantrowitz during a live interview onstage at Google's IO developer conference on Tuesday.

"Honestly, anybody who's a computer scientist should not be retired right now," Brin said alongside Google DeepMind CEO Demis Hassabis.

DeepMind, a subsidiary of Alphabet, is the research lab behind the company's AI projects, including its genAI assistant Gemini. Brin told Kantrowitz that he's at Google "pretty much every day now" to help with training the latest models from Gemini.

With artificial intelligence becoming an increasingly competitive and near-constantly changing tech field, it's a "very unique time in history," according to Brin. When Kantrowitz asked if his return was solely about competing with rivals who are working toward their own artificial general intelligence systems, Brin said it's not just about the AI arms race.

"There's just never been a greater, sort of, problem and opportunity — greater cusp of technology," he responded.

Google DeepMind did not immediately respond to Business Insider's request for additional comments from Brin.

Having witnessed tech advancements like the earliest iteration of the internet, Web 1.0, and the phases that followed, Brin said Tuesday AI is "far more exciting" to be immersed in and will have a greater impact on the world.

However the race to reach AGI, a tech milestone of machine intelligence that can solve human tasks, is still on his mind.

"We fully intend that Gemini will be the very first AGI," Brin said.

His retirement included working an airship startup, LTA Research, funding research for Parkinson's, and investing in real estate.

The former Alphabet president led moonshot projects as the head of Google X before his departure in 2019. He notably worked on its failed attempt at smart glasses — Google Glass.

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Airbnb CEO Brian Chesky says there's a 'silver lining' for people starting businesses in a choppy economy

22 May 2025 at 12:13
brian chesky
Brian Chesky cofounded Airbnb in 2007, right around the financial crisis. He said there's actually a "silver lining" to building a business in times of economic uncertainty.

Mike Windle/Getty Images

  • Airbnb's CEO said he's heard from founders facing a challenging fundraising landscape amid economic uncertainty.
  • Brian Chesky said that while a stable economy is needed, there's a "silver lining" to building a business in tough times.
  • The Airbnb cofounder said on Michelle Obama's podcast that a tough economy bakes "discipline" into your company culture.

Brian Chesky is no stranger to starting a business in tough economic times.

Chesky cofounded Airbnb in 2007 and built the business during the 2008 financial crisis. In a recent podcast conversation with Michelle Obama and her brother, Craig Robinson, Chesky said it was challenging to get the business off the ground during a recession, even with some of the advantages and connects he and his founders had that other entrepreneurs might not have.

However, he said there was one "silver lining" to growing the business during tough times, which might resonate with founders facing today's economic uncertainty.

"A lot of great companies have been started in a recession," he said in a Wednesday episode of "IMO with Michelle Obama & Craig Robinson."

"And the one, I don't want to say it's a good thing, but what it does is it teaches you a certain type of discipline," he said. "A tough economy teaches you a discipline that gets institutionalized into your culture."

By comparison, a strong economy might give founders more cushioning to "perpetuate bad strategies and be a little less disciplined," Chesky said.

"I think the good news is a lot of great entrepreneurs are incredibly resourceful, and they will find a way to work," the Airbnb cofounder said. "But we absolutely need like a very stable economy."

Chesky said that entrepreneurs he's spoken with recently told him "a lot of fundraising, for all intents and purposes, was kind of on hold."

"A lot of limited partners and investors are just like hunkering down. And what we know about investors, they don't like uncertainty," he said.

He believes investors will "sit this one out until things stabilize."

"And if they don't stabilize, we're going to be in for a very prolonged kind of dry spell for fundraising," he said. "If you did not go to a prestigious school, if you weren't, like, purely a team of technical engineers, if you're not trying to create an AI company, you're just trying to create a business, that will be more difficult."

Airbnb isn't the only successful business to emerge from the Great Recession. Companies like Uber, WhatsApp, Venmo, and Square also started around the time of the 2008 financial crisis.

"It's always a great time to start a business — and some of the most successful businesses are started during recessions," certified financial planner Cary Carbonaro previously told BI. "Adversity is the mother of invention."

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How the US Army plans to keep its massive 70-ton Abrams tanks from tearing up DC roads

22 May 2025 at 11:51
A US M1A1 Abrams tank in Germany on May 12, 2023.
A US M1A1 Abrams tank.

Spc. Christian Carrillo/US Army

  • Nearly 30 M1A1 Abrams tanks will roll down Constitution Ave. in DC for the Army's 250th birthday.
  • The service is finalizing plans to prevent the heavy 70-ton tanks from damaging the road.
  • Engineers will use steel plates and track pads to protect roads during the parade.

The powerful M1A1 Abrams tank, with its heavy armor and 120mm cannon, is a massive hulk of steel, and dozens are set to hit the streets in the nation's capital next month.

Nearly 30 of the tanks are expected to rumble down Constitution Avenue as part of the US Army's 250th anniversary celebration on June 14, set to coincide with President Donald Trump's birthday.

The street, which runs parallel to the National Mall and serves as a major route for city traffic, isn't built to easily accommodate each tank's nearly 70-ton frame. Most cars weigh only about two tons.

So how is the Army going to keep its tanks from chewing up Constitution Avenue? The service's engineers are putting the finishing touches on plans to protect the busy street's pavement from biting tracks.

Officials aren't too concerned with the straight path down Constitution, which will likely see a single file of tanks. It's turning points that will be the most vulnerable to tears from the heavy tracked vehicles.

"We are targeting those areas that we have concerns," said Army Col. Jesse Curry, Executive Officer for the Army's Chief of Engineers, during a media roundtable with reporters on Wednesday. "Particularly the areas where the surface of the pavement would typically, you know, receive an exaggerated level of stress."

US M1A1 Abrams tanks arrive via rail at Grafenwoehr, Germany, May 12, 2023.
US M1A1 Abrams tanks arrive via rail at Grafenwoehr, Germany.

Staff Sgt. Christopher Stewart/U.S. Army

To prevent such stress, military engineers are figuring out which turn points will be layered with steel plates at least one inch thick.

Such large plates are commonly seen on city streets where heavy equipment is used, Curry said, adding that equipment staging areas and the parade route were specially chosen to minimize weight-related damage.

Heavy tracked vehicles like the M1A1 often make turns by using differential steering — one side will roll forward while the other reverses, or the tracks will operate at a different speed. That can cause tracks to "pinch," a problem for asphalt.

Inbound parade tanks will also don new "track pads," rubber components that create some separation between the metal tracks and the pavement, Curry told reporters.

Additional measures to prevent damage are still being examined, with help from DC's Department of Transportation, the National Park Service (which oversees maintenance of the National Mall), and the Federal Highway Administration.

The tanks and other vehicles, such as Bradley fighting vehicles and Strykers, will arrive in the DC area via rail and will then depart to parade staging areas via heavy-duty trailers, similar to those used to move houses down highways.

An M1A1 SEP V3 Abrams is loaded on to a heavy equipment movement truck on Fort Cavazos, Texas, March 4, 2024.
An M1A1 Abrams is loaded onto a heavy equipment movement truck at Fort Cavazos, Texas.

Spc. Alejandro L. Carrasquel/ US Army

Troops will not be conducting any full-scale rehearsals for the parade, a notable deviation from typical military planning. Normally, complete rehearsals are an important part of any military mission, including small unit ceremonies.

Officials said Wednesday that while the Army has been planning a major 250th birthday event for two years, the idea to include heavy vehicles like tanks and other armored vehicles in a parade only arrived this year. The officials did not specify how the idea originated.

Even moving at a slow parade pace, any military activity using heavy equipment and vehicles is fraught with concerns that require meticulous planning for safety precautions, especially when it comes to the equipment offloads required to stage for such a parade. Large vehicles must rely on ground guides to ensure no one is inadvertently run over.

Officials said Wednesday that Hercules wreckers will be available to recover any tanks that break down. How roads might handle the behemoth 70-ton M88 Hercules recovery vehicle with a downed tank on its trailer bed is unclear.

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Judge slams Diddy's lawyer for asking Kid Cudi if he actually slept with Cassie

Kid Cudi leaving Manhattan federal court.
Rapper Kid Cudi testified for over an hour in Sean "Diddy" Combs' sex-trafficking trial.

TIMOTHY A. CLARY/AFP via Getty Images

  • A judge rebuked Sean "Diddy" Combs' attorney for a question he asked witness Kid Cudi.
  • Combs' lawyer questioned the rapper about his sex life with star prosecution witness Cassie Ventura.
  • "One, the line was crystal clear. And two, the line was crossed," the judge said.

The judge overseeing Sean "Diddy" Combs' criminal trial slammed an attorney for the hip-hop mogul for questioning Kid Cudi about his sex life with R&B singer Cassie Ventura.

US District Judge Arun Subramanian's rebuke followed more than an hour of testimony given by Kid Cudi, whose real name is Scott Mescudi.

While under cross-examination in Manhattan federal court, Steel asked Mescudi a series of questions that appeared intended to besmirch the credibility of Ventura, the prosecution's star witness in Combs' sex-trafficking and racketeering trial.

Steel asked if Mescudi had felt "played" by Ventura — and if Combs had been likewise "played" — because she'd told both men that their relationship was exclusive.

"Yes," Mescudi answered.

Mescudi and Ventura briefly dated in 2011 while Ventura was on a break from Combs. Ventura and Combs dated on and off between 2007 and 2018. During that time, prosecutors allege that Ventura was one of two women whom Combs sex-trafficked.

Kid Cudi; Cassie Ventura; Sean Combs.
Kid Cudi, left, and Cassie Ventura, center, have testified in Sean "Diddy" Combs', right, criminal trial.

Rich Polk/Deadline via Getty Images; Ian West/PA Images via Getty Images; Paras Griffin/Getty Images

During his line of questioning, Steel asked Mescudi if he and Ventura had been sexually intimate during their romance — a question that sparked a speedy, successful objection from prosecutors.

After Mescudi left the witness stand and the jury was excused from the courtroom, the judge admonished Steel, who has also represented rapper Young Thug.

The judge said that Steel's question was way out of line under federal rules barring the use of prior sexual activity in impugning sex-crime accusers.

"One, the line was crystal clear. And two, the line was crossed," Subramanian said, his voice angry. "Mr. Steel, you knew what you were doing when you did it, and you did it anyway."

When Subramanian asked, "Is it going to happen again?" Steel said it wouldn't. The judge also ordered that the question, which Mescudi never answered, be struck from the record.

While on the witness stand, Mescudi told the jury that Combs broke into his Los Angeles home after the music tycoon found out he was dating Ventura.

Christmas gifts from Chanel that Mescudi had gotten for his family were unwrapped and opened, and his dog was shut in the bathroom during the December 2011 break-in, he testified.

Mescudi told the jury that his Porsche was firebombed weeks later while it was parked in his driveway.

During Ventura's more than 20 hours of testimony in the trial last week, she said her relationship with Mescudi sent Combs into a violent rage. Ventura also testified that Combs threatened to blow up Mescudi's car when they were out of the country.

Prosecutors have alleged that Combs previously ordered his underlings to torch a car using a Molotov cocktail.

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See Israel's advanced missile defense systems that inspired Trump's 'Golden Dome'

A photo of rockets intercepting each other in the night sky.
Iron Dome is one layer of Israel's advanced and highly tested air defenses.

MAHMUD HAMS/AFP via Getty Images

  • Israel has one of the world's most advanced air defense systems.
  • Its air defenses are being tested amid its war against Hamas and Iran's retaliatory attacks.
  • President Donald Trump said his plan for a "Golden Dome" was inspired by Israel's missile defenses.

Israel touts one of the most advanced air defenses in the world, systems that have defended Israeli troops and citizens from rocket and missile barrages for over a decade.

These layers of air defenses are essential to Israel's security and include the legendary Iron Dome that downs incoming rockets. Much of its population is within reach of rockets and missiles fired by Hamas and Hezbollah, as well as the ballistic missiles fired by Yemen's Houthis.

After his return to the White House in January, President Donald Trump proposed a next-generation missile shield inspired by the Israeli missile defense systems — but on a vast scale.

Aptly named the "Golden Dome," the president said the ambitious weapons and sensory system to intercept threats like nuclear-armed Intercontinental Ballistic Missiles will cost about $175 billion, with plans to field it by the end of his presidential term, though it could take longer to fully construct.

The system is so vast and its components so new that the nonpartisan Congressional Budget Office estimated it could cost between $160 billion and $830 billion.

Golden Dome
President Donald Trump speaks in front of a map of the proposed "Golden Dome" missile defense system in the Oval Office.
The proposed "Golden Dome" system could cost between $160 billion and $830 billion, according to the Congressional Budget Office.

Chip Somodevilla/Getty Images

Earlier this week, Trump detailed his plans to build the "Golden Dome," previously known as the "Iron Dome for America," as defense contractors and tech companies already line up to be considered for development.

"We'll have it done in three years," Trump told reporters at the White House on May 21. "Once fully constructed, the Golden Dome will be capable of intercepting missiles even if they are launched from other sides of the world."

While Israel's air defense network is considered one of the most advanced aerial defense systems in the world, the missile shield is responsible for defending a country roughly the size of the state of New Jersey — the second smallest US state — from short-range threats.

Trump aims to make the Golden Dome a space-based missile system to defend the US — about the size of continental Europe — against advanced ballistic and hypersonic missile threats from the world's most powerful countries. Russia has an estimated 4,300 nuclear warheads in its arsenal, each of which a system like Golden Dome must be capable of defeating, necessitating an even larger number of intercept missiles and other weapons.

"I think that this year, we're going to see a different national conversation about space," Tom Karako, a missile defense expert at the Center for Strategic and International Studies, told Business Insider.

US foreign aid to Israel
Animage a close up picture of one of the Iron Dome array shooting a missile on a clear day in 2014
Israel is the largest cumulative recipient of US foreign aid, receiving about $300 billion in economic and foreign aid for nearly eight decades.

Ilia Yefimovich/Getty Images

About 15% of Israel's defense budget comes from the US. Since its founding in 1948, the US has sent Israel about $300 billion in economic and military aid, making it the largest cumulative recipient of US foreign aid.

Nearly all of the aid the US has sent in recent months has been allocated to its advanced defense systems and military equipment. But America's involvement in Israel's war in the Gaza Strip has grown controversial. The US is providing limited humanitarian aid to Palestinians in Gaza while also providing military support and weapons to Israel.

More than 40,000 Palestinians have died since October 7, 2023, according to the Ministry of Health in Gaza.

Iron Dome
Israel's Iron Dome missile defense system fires interceptors at rockets launched from the Gaza Strip.
Israel's Iron Dome missile defense system fires interceptors at rockets launched from the Gaza Strip.

Tsafrir Abayov/AP

The most well-known of Israel's air defense systems, the Iron Dome, consists of a network of radar detectors and missile launchers used to intercept enemy fire, including short-range rockets and artillery.

Deployed in southern Israel in 2011 following the war between Israel and Hezbollah, the US helped and funded the development of the short-range rocket defense system. It contributed at least $1.6 billion to the Iron Dome system from 2011 to 2021, as well as another $1 billion in 2022.

The first layer of defense
Israel's Iron Dome anti-missile system intercepts rockets launched from the Gaza Strip, as seen from the city of Ashkelon, Israel October 9, 2023.
The multi-mission defense system can shoot down enemy rockets and artillery up to 43.5 miles away.

REUTERS/Amir Cohen

The Israel Defense Forces said the objective of the Iron Dome is to "protect Israeli civilians from the constant threat of rockets by intercepting them." The IDF described the Iron Dome with three adjectives: "accuracy, speed, and capacity."

Armed with Tamir interceptor missiles, the multi-mission defense system can shoot down enemy rockets and artillery up to 43.5 miles away. The advanced missile system has a radar station that detects and tracks the course of enemy rockets before launching a missile to intercept them. The missiles track their target with electro-optical sensors and detonate in the air when close.

While the Iron Dome doesn't have a perfect interception record, it has blocked a majority of enemy fire in Israeli airspace, especially at times of intense barrages from Hamas militants.

But the Iron Dome is just one layer of what is considered one of the most advanced air defense systems in the world.

Missiles have a much longer range than shells, but they also have the disadvantage of being expensive. The Tamir missiles fired by Iron Dome are estimated to each cost around $50,000.

David's Sling
This Monday, Dec. 21, 2015 file photograph provided by the Israeli Ministry of Defense shows a launch of David's Sling missile defense system.
The David's Sling missile defense system carries up to 12 interceptors.

Ministry of Defense via AP, File

The middle layer of Israel's Iron Dome defense system is David's Sling, a medium- to long-range air defense system designed to intercept missiles as far as 185 miles away.

Also known as the Magic Wand, the versatile missile system carries up to 12 interceptors. Its command and control center, known as the Golden Almond, provides threat assessment and plans and controls interception, complemented by the system's multi-mission radar used to detect and track airborne threats.

The middle layer of defense
The Israel Missile Defense Organization and the US Missile Defense Agency runs a test of the David's Sling Weapon System.
The David's Sling is capable of intercepting large-caliber rockets, short-range ballistic missiles, and other types of enemy fire.

Leah Garton/DVIDS

Developed in collaboration with the US and Israel, David's Sling is "a central factor in Israel's multi-tiered defense array," according to Israel's Ministry of Defense. It supports other layers of its air defense system by "tackling large-caliber rockets, short-range ballistic missiles," and other types of enemy fire.

Arrow Weapon System
The Israel Missile Defense Organization (IMDO) of the Directorate of Defense Research and Development (DDR&D) and the U.S. Missile Defense Agency (MDA) completed a successful flight test campaign with the Arrow-3 Interceptor missile.
The Arrow-3 Interceptor missile makes up the top layer of the Iron Dome.

US Missile Defense Agency

The top layer of Israel's sophisticated air defense system is Arrow-3, which is capable of engaging targets at longer ranges and higher altitudes and more precisely intercepting ballistic missiles.

Arrow-3 interceptor operates with the Arrow Weapon System, the world's first operational, national, stand-alone anti-tactical ballistic missile defense system, according to Israel Aerospace Industries, the primary contractor for the AWS. The system was developed in partnership with Boeing and with significant funding from the United States.

Arrow-3 works in conjunction with its predecessor, Arrow-2, to intercept ballistic missiles and other warheads using a two-stage interceptor.

Arrow-3
An "Arrow 3" ballistic missile interceptor is seen during its test launch near Ashdod December 10, 2015.
The first operational use of the Arrow 3 ballistic missile interceptor took place in November 2023 against an inbound missile launched by Houthi militants in Yemen.

REUTERS/Amir Cohen

Arrow-3's "interceptor is a world-class missile that, together with the Arrow-2, significantly expands the State of Israel's defense capabilities," according to Israel's Ministry of Defense.

In November 2023, Israel confirmed the first operational use of the Arrow-3 to stop an inbound enemy missile launched by Houthi militants from Yemen, marking the first time all three layers of Israel's aerial defense were working simultaneously.

"All of these provide protection in every layer of aerial defense and enable optimal protection of the Israeli home front," the IDF said in a statement at the time.

Countering Iran's retaliatory attacks
An anti-missile system beaming lines of light into the night sky over a city.
Israel has deployed its advanced missile interceptor system against Iran's retaliatory attacks over the last year.

Amir Cohen via Reuters

Last October, Iran attacked Israel with a large barrage of ballistic missiles — a rare direct attack that came after a White House warning to its ally.

The missile attack came after the IDF killed the head of Hezbollah and then launched a "limited" ground offensive against Hezbollah targets in southern Lebanon. At the time, the US adjusted its force posture in the Middle East, stationing a substantial force of warships and fighter aircraft across the region to defend Israel and its bases.

Israel also deployed Arrow 3 to intercept the drones and missiles Iran fired during its retaliatory attacks in mid-April last year.

Israel's chief military spokesman, Rear Adm. Daniel Hagari, told reporters at the time that Arrow 3 had "proved itself against a significant number of ballistic missiles" fired by Iran.

C-Dome
A missile is launched from the Sa'ar 6-class corvette
Israel equipped missile boats with interceptors to act as a maritime Iron Dome.

Israeli Ministry of Defense/Anadolu Agency via Getty Images

Israel's air defense system isn't just limited to land. The country also has a naval version of its Iron Dome system, mounting it aboard Israeli missile boats.

The naval version of the aerial defense system, known as C-Dome, is deployed aboard Sa'ar 6-class corvettes, four German-made warships ordered for Israel's navy.

In addition to the C-Dome, Sa'ar 6 vessels are also equipped with a 76mm Oto Melara Super Rapid main gun, which is effective against close aerial threats.

Israeli missile boats
A missile is launched from the Sa'ar 6-class corvette during the series of live-fire tests of the naval version of its Iron Dome missile defense system.
The Israeli naval fleet includes 11 other warships and five Dolphin-class submarines.

AnadoluIsraeli Ministry of Defence/Anadolu Agency via Getty Images

After two years of development, Israel's military announced Monday that the seaborne defense system was used for the first time to intercept a "suspicious aerial target" that entered Israeli airspace near the city of Eilat, which has been frequently targeted by Houthis in Yemen in support of Hamas.

"Overnight, for the first time ever, an IDF Sa'ar 6-class corvette missile ship successfully intercepted a UAV (uncrewed aerial vehicle) that had approached from the east and had crossed into the area of the Gulf of Eilat," the IDF said.

In addition to the four Sa'ar 6-class corvettes, the Israeli naval fleet includes 11 other warships and five Dolphin-class submarines.

SPYDER
SPYDER, Rafael Advanced Defense Systems' surface-to-air missile system, is on display as F-16 fighter jets of the Singapore Air Force aerobatics team Black Knights perform on the fourth day of the Singapore Airshow in Singapore Friday, Feb. 14, 2014.
Israeli defense company Rafael Advanced Defense Systems developed the SPYDER as an "all-in-one" surface-to-air missile system.

AP Photo/Joseph Nair

To further bolster its air defenses, Israel is also looking at a new "all-in-one" surface-to-air missile system called SPYDER, manufactured by Israeli defense company Rafael Advanced Defense Systems.

Israel, in collaboration with Rafael, is testing a new configuration for the weapons system, taking the missile launcher, radar, command and control system, and technology for surveillance and target acquisition, and fitting it to an eight-wheel drive vehicle.

"Developed to address the critical operational needs of the modern battlefield, the SPYDER AiO provides an agile, autonomous, air defense asset, capable of rapid deployment within minutes, in challenging terrains, and with short reaction times," according to a fact sheet from Rafael.

'All-in-one' missile system
Spyder surface-to-air missiles on a static display are seen as an F-16 jet fires flares
SPYDER is designed to carry up to eight canisterised missiles and engage up to four targets at a time.

Joseph Nair/AP

Designed to carry up to eight canisterised missiles, including I-Derby SR, I-Derby ER, and Python-5 SR, it can engage up to four targets at a time, with a maximum range of up to nearly 25 miles and an altitude of 7.4 miles, according to the fact sheet.

In January 2024, Israel's defense ministry announced a successful test run of the new weapons system configuration, which is capable of intercepting drones, aircraft, cruise and ballistic missiles, and precision-guided munitions.

Rafael's SPYDER air defense system, in its All-In-One configuration, achieved a direct and effective hit during a recent, first of its kind test with the Israeli Ministry of Defense DDR&D. Watch the live fire test here: [YouTube Link] Another milestone in our commitment to… pic.twitter.com/FvU2iS7t5u

— Rafael Advanced Defense Systems (@RAFAELdefense) January 10, 2024

Editor's note: This article was originally published in April 2024 and has been updated in May 2025.

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