Business
L.A.’s defense industry is booming. Federal funding crunch could change that
When former Space X engineer Josh Giegel launched his North Hollywood tech company Gambit in 2023, he had a vision for the battlefield of the future, one with fewer soldiers and more AI-driven assets.
His software would allow unmanned tanks and swarms of armed drones to communicate and adapt in real time — without human intervention.
The company now employs more than a dozen people and has contracts with the military, which is testing his software. But its growth has been clouded because of a funding dispute on Capitol Hill over the Small Business Innovation Research (SBIR) program, which provides companies seed capital to develop new technology that can assist the government. Funding for it and related programs expired in September.
The seed fund has been vital to many local tech startups. Gambit received $3.3 million from the program early on and was hoping to get another $5 million of the Small Business Administration money, which is allocated by the military.
Workers at K2 Space in Torrance, where the startup is building high-capacity satellites for Medium Earth Orbit. (K2 Space)
(K2 Space)
“That funding really helps companies like ours that are putting tech into warfighters’ hands,” Giegel said. “Losing that money becomes more leg work to find other sources.”
Gambit’s predicament is widely shared across Southern California, which has experienced a proliferation of tech startups launched by SpaceX alumni and other entrepreneurs with the support of SBA money.
In 2024, 124 contracts worth $173 million were awarded to 71 California companies through SpaceWERX, an El Segundo-based arm of the Space Force that distributes SBA funding to innovative defense startups.
The money also is disbursed by other branches of the military and departments of the government, which do not take stakes in the companies. Gambit received funds through the Air Force.
Other local recipients of SBA funding include Costa Mesa autonomous weapons maker Anduril Industries, now valued at more than $30 billion; and satellite platform manufacturers K2 Space in Torrance and Apex Space in Los Angeles.
The funds are allocated in phases, with initial feasibility awards up to about $300,000 and as much as $2 million for the development of prototypes. A maximum of $15 million is available through a companion SBA-funded program if the companies can bring in other funding.
“I don’t know if I can name a single company that I work with, or that I know of, that did not start with SBIR” funding, said Maggie Gray, a partner at Silicon Valley venture capital firm Shield Capital, which invested in Apex. “We see SBIR as a crucial part of the defense-tech ecosystem. It’s kind of the way to get your initial foot in the door with the government.”
Established in 1982, the SBA program provides more than $4 billion to government departments, with the military receiving the lion’s share. But SBA funding ran out on Sept. 30 as lawmakers clashed over proposed reforms.
Sen. Joni Ernst (R-Iowa), who chairs the Senate Committee on Small Business and Entrepreneurship, introduced a bill that would set a $75-million lifetime cap on funds for individual companies and establish performance benchmarks. The bill also would beef up due diligence to prevent new technology falling into the hands of foreign adversaries and end diversity, equity and inclusion preferences in funds distribution.
The legislation, however, has faced stiff opposition from Massachusetts Sen. Ed Markey, the ranking Democrat on the committee, who contends the reforms go overboard and would crimp innovation. A bipartisan House bill that would have reauthorized SBA funding for a year failed in the Senate amid opposition by Ernst, who is leaving Congress in a year.
While negotiations have restarted on Capitol Hill, there is no guarantee SBA financing will be restored, though the military and other government agencies could fund startups through their own budgets.
The SpaceWERX program, which has played a critical role in Southern California’s resurgent space economy, was established in 2020, just one year after the Space Force was founded.
Director Arthur Grijalva said the program distributes several hundred million dollars in SBA funding annually across the nation and has not had an issue with foreign influence or companies receiving repeat awards without much to show for it.
“Even though it might be small [funding] for a really big company, it’s really impactful for these small companies, these startups, where if they don’t have this funding, they might have to do layoffs, they might have to go into debt, or they might ultimately not be successful,” Grijalva said.
Since September, $94 million in larger contracts has been held up for more than 25 companies, which follow funding for feasibility studies and prototypes, according to SpaceWERX.
The impasse comes at an inopportune time for the Trump administration, which has been overhauling weapons procurement as China modernizes and builds up its military.
Secretary of Defense Pete Hegseth announced in November a policy to speed up weapons development by first finding capabilities in the commercial market before the government attempts to develop new systems. This month he visited several L.A.-area defense companies, including Torrance startup Castelion, a manufacture of hypersonic missiles that received SBIR funding.
Kirsten Bartok Touw, managing partner of New Vista Capital, which invested in Castelion, agreed the program may have flaws but said it plays an invaluable role in attracting venture capital to companies that have drawn the funding.
“That is an important signal to the market, which says, ‘You should invest in more of these, because this is a technology we want and need,’” she said.
A report this month by the National Academies of Sciences, Engineering and Medicine found that one dollar of the funding distributed by the military attracts more than four dollars of venture capital or other third-party investment.
Markey’s office said last week he submitted a proposal to Ernst that includes making the SBIR program permanent, increased allocations, a performance metric, foreign due diligence standards and fellowships for underserved small businesses, among other provisions.
“This bill is [his] second attempt at breaking the logjam and restarting these critical programs to ensure America’s most nimble allies — small businesses — are not decimated,” a Markey spokesperson said.
A spokesperson for Ernst said last week that the senator “remains focused on ensuring taxpayer investments in R&D do not benefit China and actually deliver cutting-edge technology for our warfighters.”
Giegel said that while he is optimistic future SBA funding might come through for Gambit, he is not counting on it. He now assumes he will have to look for other sources of money to grow the company, which already attracted undisclosed venture capital.
“We’re trying to find operational relevance faster,” he said.
Business
Commentary: Are dodos and mammoths coming back from extinction? Don’t count on it
Colossal Biosciences claims to be on the road to reviving another extinct species. They’re not even close
My inbox started filling up with the supposedly groundbreaking news early Tuesday, breathless news articles about a biological breakthrough that will allow a long-extinct giant bird to walk the Earth in modern times.
My reaction was this: “Not this same old yarn again.”
The company promoting its supposed breakthrough is Colossal Biosciences. That’s the Dallas business that created a PR-fueled frenzy last year with an announcement that it had brought the dire wolf back from extinction.
The de-extinction breathlessness potentially endangers real animals for the sake of hypothetical future de-extincted ones.
— Biologist Paul Knoepfler, UC Davis
Its announcement caught fire because the dire wolf was a species depicted in the TV series “Game of Thrones” — indeed, part of the company’s publicity campaign featured a shot of George R.R. Martin, the author of the Game of Thrones books, cradling a fluffy wolf-like pup in his arms.
Colossal’s latest announcement was that it has hatched 26 chickens in an “artificial egg” — a “foundational step,” it said, “toward resurrecting extinct bird species” such as the New Zealand giant moa and the dodo.
The announcement resembled Colossal’s rollout of the “dire wolf” pups: Publications that had received guided tours of its lab produced breathless articles taking Colossal’s claims at face value, generally lacking skeptical commentary by unaffiliated biologists.
The company’s latest announcement is connected with its larger campaign to “de-extinct” long-disappeared animals and restore them to their ancient habitats.
Its “landmark” project in this respect is “the resurrection of the woolly mammoth … It will walk like a woolly mammoth, look like one, sound like one, but most importantly it will be able to inhabit the same ecosystem previously abandoned by the mammoth’s extinction.” (Colossal specifies that it’s talking about “a cold-resistant elephant with all of the core biological traits of the woolly mammoth.”
Colossal says it’s considering Asian or African elephants as surrogate parents for its mammoths. Thus far, however, this effort has yielded only a few dozen genetically modified long-haired mice, which evokes the Aesopian adage about the mountain that labored and brought forth a mouse.
To unaffiliated scientists, Colossal’s talk of de-extincting long-gone species is hyperbole: hopelessly premature and consistently oversold. The focus of its latest announcement is not so much an egg as an artificial eggshell — though the company defends its labeling the technology as an “artificial egg” as legitimate. The 26 hatched chicks were grown from fertilized tissue transferred from hen’s eggs into the new container, which functioned essentially as an incubator.
To be fair, the company appears to have successfully developed a membrane that can provide oxygen to the growing embryos better than existing technologies that have allowed chicks to grow outside the shell. But outside scientists suggest it’s a stretch to see that as a major step toward resurrecting the moa, a giant flightless bird that disappeared from its New Zealand habitat in the 1400s.
Colossal co-founder and CEO Ben Lamm acknowledged that a long road will have to be traversed to move from hatching baby chickens to resurrecting the moa by email. He conceded that “gestation is just one step of many steps in the process.”
Lamm portrayed Colossal’s de-extinction efforts as something of a public service. “Bringing back extinct species allows us to design a long-term system model for endangered species production while also developing novel technologies applicable to conservation today … and in some cases undo the sins humanity has committed,” he said.
Many scientists express concerns about the “de-extinction” idea itself. One is that it’s impossible to resurrect a species that has been gone for so long that no biological material that could provide original DNA exists any longer.
Even if it could be done, whether it should be done is doubtful.
“The environment in which they lived has been evolving since their absence,” says evolutionary biologist Vincent J. Lynch of the University at Buffalo. “To put them back into that environment is introducing an invasive species into an environment in which it hasn’t lived before.” That could produce difficulties for the cloned animals and for modern life, including the possible revival of prehistoric pathogens for which humankind has no defense.
“The de-extinction breathlessness,” says biologist Paul Knoepfler of UC Davis, “potentially endangers real animals for the sake of hypothetical future de-extincted ones.” Colossal boasts about conservation programs it has helped to fund; those “could do some good,” Knoepfler says, “but it would be far better if more of the capital they raised just went directly to helping protect living but endangered animals rather than trying to bring back extinct ones.”
(Knoepfler gave Colossal his annual science hype award last year for its dire wolf claim. “I’m not convinced that a single animal that they ever ‘de-extinct’ will be the real deal,” he told me.)
Colossal’s de-extinction palaver has been exploited by conservatives to justify attacks on the federal Endangered Species Act and other conservation initiatives. That was the subtext of a tweet Interior Secretary Doug Burgum posted after the dire wolf announcement, proclaiming that “the revival of the Dire Wolf” would allow the Trump administration to “fundamentally change how we think about species conservation.”
None of this is to dispute that the company has been successful in seizing the attention of people with capital to spare. Privately held Colossal raised $200 million early last year on terms that gave it a putative valuation of $10.2 billion. Its “cultural advisory board” boasts influencers such as Martin, Tom Brady and filmmaker Peter Jackson.
The company defends its PR-heavy campaigning as a necessity in the modern world. “We’re competing with the Kardashians,” co-founder Ben Lamm told Rolling Stone. “We are in the attention economy. … If we want people to care about things like genome engineering and CRISPR and conservation, it has to be as thoughtful, as interesting, as what they’re going to see on MTV or Bravo.”
Lamm told me he was hoping for even more press coverage than the 26 hatchlings received: “I don’t think everyone understood and articulated the incredible challenges overcome in this achievement. I am disappointed more people didn’t cover the news and the significance for developmental biology, science overall and conservation.”
What’s alarming about the credulous coverage that Colossal receives from the press is that it points to a decline in responsible reporting on science. This is what keeps experienced pseudoscience debunkers on their toes.
It’s what has enabled political partisans to sully news columns and the airwaves with unsupported claims that the COVID-19 pandemic originated in a Chinese lab and that anti-pandemic measures — including the COVID vaccines — were worse than letting the infection spread.
In recent weeks, the press has been filled with what the veteran debunker David Gorski labeled a “credulous take” on acupuncture, ostensibly explaining how acupuncture works — never mind that there is no solid evidence that acupuncture does work.
Once misinformation or disinformation takes root in the public sphere, it’s almost impossible to eradicate. A couple of examples related to Colossal should suffice. One comes from Rolling Stone, which headlined its article about the chicken hatchlings thusly: “First They Brought Back Dire Wolves. Next Up? Artificial Wombs.”
The problem here is that Colossal did not “bring back dire wolves.” The company’s chief scientist, Beth Shapiro, acknowledged as much a few weeks after its initial announcement, telling New Scientist, “It’s not possible to bring something back that is identical to a species that used to be alive. Our animals are grey wolves with 20 edits that are cloned.”
The Rolling Stone article, which posted Tuesday, was based in part on a tour of its Dallas lab the company granted a reporter in February.
“To enter Colossal’s 55,000-square-foot Dallas headquarters is to find one’s senses fairly assaulted by the Power of Tech,” the publication wrote, describing it as a place where “many wondrous things are happening.”
Discover Magazine’s article about the hatchlings was similarly uncritical, starting with the headline: “Colossal Hatches Healthy Chicks From an Artificial Egg, Setting the Stage for Giant Moa De-Extinction.”
Not everybody has swallowed the Kool-Aid. Standout reporting on Colossal has been done by Michael Le Page of the British journal New Scientist, whose most recent article bristled with skeptical takes about the hatchling announcement from established scientists.
Colossal’s approach to communicating its work with what I termed last year “unsparing razzmatazz” is playing with fire. That’s because the public that has bought into its inflated spiel may end up being let down with a jolt.
“Eventually it’s going to come out that they didn’t de-extinct the dire wolf or the moa,” Lynch says. “When people realize that, it’s going to negatively impact their understanding of science and their belief in scientific claims, at a time when people are already skeptical about what we do.”
Business
New Waterside Getaways for the Summer
It’s that time of year when thoughts turn to sunny, lazy days by the water. Whether you are longing for an ocean beach or a grassy riverbank, here are new properties to consider, including laid-back retreats in the Hamptons; a chic hotel on the harbor in Charleston, S.C.; and luxurious resorts in Portugal and Majorca — just in time to plan a summer getaway.
Montauk, N.Y.
More than 40 years old, the Sunset Montauk, about a 10-minute drive from the Montauk Point Lighthouse, has been reimagined for a new generation. Drawing inspiration from the area’s surf culture, it is now the 29-room-and-suite boutique Hotel Corduroy with a retro, breezy atmosphere. Step into the lobby and you’ll find a Swedish armchair upholstered in a kilim rug, lighting from the 1970s and a large photograph of a surfer.
Rooms are spread across three buildings with 1960s-style furniture, including reeded bamboo bedside tables, and other nods to the past, like vintage cassette players. Choose from tapes in the lobby with music by Willie Nelson, Steely Dan, Neil Young, Dolly Parton and the Cars. Ward + Gray worked on the hotel’s interior design. Outside, the bay is almost at your doorstep.
It’s a short drive to the village of Montauk and to Ditch Plains Beach on the Atlantic; a 10-to-15-minute drive brings you to Montauk Point State Park and Camp Hero State Park. The property offers guests access to a private area on Sunset Beach (from June through mid-September), as well as bikes. You can play cornhole and bocce on the lawn, or laze on a sofa or a lounge chair. Rates from $850 a night in June, and from $995 in July and August. Dog-friendly rooms are available for $75 a night per dog.
Hampton Bays, N.Y.
On the water by Shinnecock Bay in Hampton Bays, this casual 18-room-and-suite hotel was once a 1960s motor inn. Today it’s a hideaway in a residential neighborhood with a pool and dock on Penny Pond that has space for guests who bring boats.
Hop on one of the hotel’s complimentary bikes and ride to Atlantic beaches, where you can surf, soak up the sun and check out restaurants. (Popular spots in Southampton, like Cooper’s Beach, are about a 20-minute drive away.)
Part of Lark (a New Hampshire-based boutique hotel company), the Penny Lane provides free breakfast in its airy lounge area. Rooms have mini-fridges and are decorated in white with touches of green and pale wood. Accommodations include king rooms with porches, and one- and two-bedroom suites. Some have water views. Rates from $349 a night, double occupancy. Pets are an additional $50 a night. The hotel is open April through October.
This new 191-room-and-suite escape named for the Cooper River has a prime spot on Charleston’s harbor. Its polished maritime vibe befits its location, with wide-plank oak floors and shiplap wall paneling by the New York-based interior design studio Champalimaud Design. There’s also a private marina where boats, including a Hinckley yacht, are available for excursions.
Stretch out on a daybed or in a cabana at the rooftop infinity pool and sample cocktails and bites from Bar Marti overlooking the harbor. The chef Nick Dugan of Charleston’s Sorelle is overseeing the Cooper’s restaurants, including the Crossing, a yacht-inspired space designed by the New York City-based architecture and design firm Meyer Davis, with teak floors, lacquered blue ceilings and water views. Linger over hummus and baba ghanouj with pita, wood-fired black bass, and crudo and shellfish from the raw bar. Coming this summer: CurrentBurger will serve nostalgic fare like smash burgers, fries and milkshakes. Or stop in at the hotel’s Cooper Coffee & Wine, which will offer coffee and breakfast during the day and transition to a wine bar in the evening.
After exploring, unwind in the 7,000-square-foot spa and, in case you don’t get all your steps in, there’s a 24-hour fitness center. Rates from $895 a night.
Alentejo region, Portugal
About 80 miles south of Lisbon, on the coast of Portugal’s rugged Alentejo region, Sublime Sand — a village-like enclave featuring 43 villas that opened this month — is set amid sand dunes, rice fields and pine forests.
The villas, which have private pools, make it easy for multigenerational families and groups to stay together. Explore forest trails, go for a bike ride or introduce the youngest members of your party to the kids’ club with its own pool. There’s a spa, fitness areas and tennis and padel courts. A gathering space called Aqua has indoor and outdoor pools, a hammam, a hot tub, an Italian restaurant and a poolside bar. And though the property is about four miles from the shore, because of environmental regulations, Sublime offers access to a private beach that you can visit via buggies.
The family-friendly Sublime Sand is across from Sublime Terracotta, a luxurious adults-only getaway; together they are known as Sublime Comporta. Between them there are nine places to eat and drink, including three new restaurants: the upscale steakhouse Beefbar, which originated in Monte Carlo; Davvero Comporta, an Italian restaurant; and Davvero Blu, a poolside bar. After dark, head to the resort’s nightclub, Ruína. Rates for Sublime Sand start at about $1,400 a night.
Also in Alentejo, Atlantic Club Comporta, a real estate development and community inside the Sado Estuary Nature Reserve, is a new collection of 24 villas created by two of the most celebrated names in design: the French interior designer Jacques Grange, whose clients have included Yves Saint Laurent and Valentino, and the American garden designer Madison Cox, known for gardens around the word such as the Jardin Majorelle in Marrakesh.
Each of the villas has several buildings (for example, a main house and a guesthouse) and their owners can rent out one or more. Set on 35 acres, the villas have courtyards and hotel-like amenities, including housekeeping and concierge services. Weekly rates for a house begin at around $15,000, or about $2,143 a night. Inquiries can be made on the Atlantic Club Comporta’s booking page.
Majorca, Spain
Opening June 1, this sun-drenched escape perched above the Bay of Palma in Calvià has 131 rooms, suites and casitas, some with plunge pools or private rooftop pools.
Designed by the Madrid-based firm BG Arquitectura and the interior designer Laura Gonzalez, the property is a short drive or bike ride to the glamorous Puerto Portals marina. Many of the contemporary rooms have sea views; some have balconies or terraces. Beyond your room, there’s a half a dozen places to eat and drink, including Matsuhisa which will have a sushi counter and an outdoor bar with Nobu-style Japanese cuisine and sushi; Leña, a steakhouse by the Spanish chef Dani Garcia, known for the Michelin-starred Smoked Room restaurant in Madrid; and Jacinta, a Mexican taqueria and cantina.
Ditch your phone at the spa with a massage like the Tech Detox. There’s also an indoor pool, two outdoor pools, steam rooms, cold plunges, aromatherapy showers and a fitness center that offers yoga, meditation and circuit-training classes. Stroll the coastline, and hit the clay courts overlooking the Mediterranean for tennis or padel. Rates from $1,839 a night.
Follow New York Times Travel on Instagram and sign up for our Travel Dispatch newsletter to get expert tips on traveling smarter and inspiration for your next vacation. Dreaming up a future getaway or just armchair traveling? Check out our 52 Places to Go in 2026.
Business
Newsom blames Chevron for California’s gas-price problem
The blame game over surging gas prices is heating up as Gov. Gavin Newsom suggested Chevron could be gouging its customers.
California’s governor, who is not shy about promoting his positions with provocative posts, warned Memorial Day travelers on X against pumping gas at Chevron.
“Californians, if you’re hitting the road this holiday weekend, be sure to AVOID Chevron,” he said in the post, which included screen grabs showing Chevron gas prices higher than those at nearby unbranded gas stations. “Unbranded gas comes from the same refineries, storage tanks, and pipelines.”
The governor’s call-out is part of a larger spat between some California politicians and Chevron. The gas company posted signs at some of its California gas stations blaming the state’s high prices on Sacramento policies.
“California politicians are choosing foreign oil and fuels over local jobs and lower costs,” the signs read.
It includes a QR code that directs people to a Chevron webpage asking people to “speak up for affordable, reliable energy.”
A spokesperson for Chevron did not immediately respond to a request for comment.
A Chevron spokesperson told the Associated Press the signs were part of a campaign launched three years ago to educate the public on how California’s policies affect gas prices.
A Chevron refinery in El Segundo on May 4.
(Kyle Grillot/Bloomberg via Getty Images)
Chevron, as well as other top energy companies and experts, has emphasized that higher taxes, fees and standards on gas in California, as well as its restrictions on refining, have bolstered prices at the pump. Gas prices are among the highest in the country, even in the best of times, and recent problems influencing supply from the Middle East have triggered a unique challenge for the state, industry leaders say.
The price of gas has skyrocketed in California and across the country since the United States and Israel attacked Iran in late February. Gas prices have not stabilized since, and California’s average is nearly $1.60 higher than the national average. The state’s average gas price is $6.13 as of Friday, according to the American Automobile Assn.
A number of factors account for California’s higher costs, including a premium blend of gas that limits pollution, environmental program fees, the relative isolation of the state’s fuels market, and state and local taxes, according to the California Energy Commission.
Californians have scaled back holiday travel and cut down on leisure night outs as the prices on the pumps don’t stabilize.
Newsom noted in the X post that big oil companies are making billions of dollars off the Iran war. The price of crude oil has surged since the war started, as the Strait of Hormuz, through which oil typically passes, was effectively shut off.
Chevron is the state’s biggest branded retailer, controlling 19% of California’s gas market with more than 1,600 stations, according to the state’s energy commission.
The commission’s analysis of 2024 gas prices found Chevron had a retail margin of 84 cents. The price difference between the oil company and unbranded gas stations was 48 cents that year.
Tensions between the oil giant and the state rose when Chevron relocated its headquarters to Texas in 2024. The move ended the company’s long history in the state, dating back to its founding 145 years earlier.
The oil company complained then about Sacramento’s energy and climate policies. Companies, particularly in the tech sectors, have fled the state since then, blaming the state’s high operating costs.
California taxes consumers 70 cents per gallon of gas, the highest state tax in the country.
Newsom has been a staunch opponent of big oil companies, but the laws he’s passed have largely stalled. He signed a law in 2023 that would penalize oil companies for excess profits. Regulators voted to hold off plans until 2030 after two major oil refineries threatened to close up shop in the state.
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