Business
Momofuku responds to chili crunch backlash: 'We wanted a name we could own'
Imagine walking into a grocery store and seeing a single brand of each item. Identical squeeze bottles of “Ketchup.” One company’s “Mustard.” One brand of “Salsa.” Just one maker’s “Hot Sauce.” What a bland world it would be.
If Momofuku has its way, the only “Chili Crunch” on store shelves will bear the name Momofuku.
Momofuku, founded by chef David Chang, acquired the rights to use “chile crunch,” spelled with an “e,” last year from Chile Colonial LLC, a Denver company that registered the trademark in 2015 with the United States Patent and Trademark Office after making a Mexican-inspired chile crunch sauce since 2008. Then on March 29, Momofuku filed a trademark application for the term “chili crunch,” spelled with an “i,” and started sending cease and desist orders to multiple businesses selling chili crunch products, the Guardian first reported.
A jar of Momofuku chili crunch.
(Mariah Tauger / Los Angeles Times)
Social media backlash immediately followed. Actor Simu Liu, who serves as the chief content officer for MìLà, a food and beverage company that makes frozen dumplings and chili crunch, challenged Momofuku to a blind taste test on Twitter last week: “Winner keeps the name, loser (it’ll be you) backs off.”
In a statement to The Times, a spokesperson for Momofuku said the company has seen multiple chili crisp products rebranded as chili crunch over the last year, and that the trademark was never intended to “stifle innovation in a category that we care deeply about.”
“When we created our product, we wanted a name we could own and intentionally picked ‘Chili Crunch’ to further differentiate it from the broader chili crisp category,” the spokesperson wrote in an email. “We worked with a family-owned company called Chile Colonial to purchase the trademark from them. They have defended the trademark previously against companies like Trader Joe’s.”
One of the voices critical of Momofuku threatening legal action against other chile sauce businesses was Fly by Jing chef and entrepreneur Jing Gao. She started bottling Sichuan chili crisp in 2018, and is often credited as the catalyst for the mainstreaming of chili crisp. She is also an investor and advisor in Homiah, one of the brands that received a cease and desist letter.
Gao’s own company, as multiple outlets reported, filed to trademark “Sichuan Chili Crisp” in 2019 only to see its application dismissed in 2020.
“The ‘chile crunch’ trademark should also not have been granted,” wrote Gao in a Substack newsletter titled “On Trademark Bullies.” “It is a descriptive term for a cultural product, one that has existed in Chinese cuisine for hundreds of years.”
A jar of Fly by Jing Sichuan Chili Crisp by Jing Gao. Gao is credited with starting the current chili sauce craze with the introduction of her chili crisp in 2018.
(Mariah Tauger / Los Angeles Times)
What the newsletter and other stories did not mention , however, is that last week, on April 3, Fly by Jing filed again to trademark “Sichuan Chili Crisp,” according to the U.S. Patent and Trade Office. Then on Monday, Gao said in a statement to The Times that she requested to withdraw the application.
Gao said Fly by Jing reapplied for “Sichuan Chili Crisp” as well as “Chengdu Crunch” “to safeguard against the potential that we need to defend ourselves against a larger power that may be threatened by our existence. In light of the events of the last two days however, we now believe that there’s been enough awareness raised about the descriptive nature of the term, that the USPTO will reconsider the chili/chile crunch trademarks, and we felt comfortable with filing a request to abandon the application for our product’s name, which we have already done as of Saturday.”
“Even if we were granted the trademark for Sichuan Chili Crisp, which we have now abandoned, Fly By Jing would not have used it to intimidate small businesses,” wrote Jing.
Yet if Fly by Jing had been granted a trademark, the company would be responsible for enforcing it, as outlined by the United States Patent and Trademark Office. By not protecting your trademark, you could lose it.
If I had my way, neither term would be trademarked.
David Tran, founder of the Huy Fong Foods Sriracha sauce, never sought to exclusively own the term “Sriracha.” Instead, he trademarked his signature rooster logo and bottle.
I reject the notion that someone could exclusively own something so ingrained in my culture, a food I consider an intrinsic part of my identity. These trademarks will limit who can profit off a food with a connection to entire cultures. It would be like someone trying to trademark salsa macha and salsa verde. Wait, inexplicably somebody did trademark salsa verde, signaling a serious problem with the USPTO lacking the knowledge to accurately or fairly determine what’s descriptive or confusing when it comes to certain foods.
I, like many Chinese Americans, feel a sense of pride and ownership over the condiment typically made with garlic, other alliums, chiles and oil. Whether you call it crisp, oil, crunch or sauce, it’s a condiment that’s integral to the cuisines, cultures and experiences of Asian Americans around the world.
Michelle Tew, founder and CEO of Homiah foods, called receiving her cease and desist letter a “punch in the gut.”
“Homiah’s Sambal Chili Crunch product is personal and based on a family recipe from my Granny Nonie dating back to countless generations of Nyonya heritage in Penang, Malaysia,” Tew wrote in a statement on LinkedIn. “I was shocked and disappointed that a well-known and respected player in the Asian food industry would legally threaten me — a one-woman show operating on a much smaller scale — from selling a product that is part of my family’s history and culture.”
The move to trademark “chili crunch,” whether intentional or not, will only serve to whitewash an entire genre of chile sauces. Although some of the sauce companies have strong financial backing — according to Forbes, Momofuku raised $17.5 million in funding last year with $50 million in sales, MìLà recently raised $22.5 million and Fly by Jing raised 12 million last year — many of these products are made by small AAPI-owned companies.
All deserve a piece of the more than $3 billion hot sauce industry in the United States. And that number is expected to nearly double in the next decade, according to a market report by Fortune Business Insights.
A jar of chile sauce can be found on most tables at restaurants serving dumplings in the San Gabriel Valley.
(Mariah Tauger / Los Angeles Times)
Melody and Russ Stein’s pizza company Pi00a (pronounced pie-oh-ah) started selling jars of chili crunch when they launched a ghost kitchen in Koreatown last year with their children, Taysia and Rylan. Pi00a is a Deaf- and family-owned business, selling Neapolitan pizzas with Asian influences and a mission to provide jobs for the hard of hearing.
For a soppressata pizza, Melody came up with her own version of chili crunch, something “sweet and spicy” that goes with the Italian dry salume, she said over the phone with her daughter as interpreter. “People liked it and started asking for jars of it,” and Pi00a now sells about 100 jars a week through its online business and 40 retailers.
“We just started our small business, it costs a lot of money to rebrand. It’s very difficult to absorb any added expense. We just hope [Momofuku] realizes the impact this has on the community and they drop the trademarks.”
Kansas City chef James Chang, who makes a chili crunch of his own, wrote in an Instagram post referencing the cease and desist letters, “While I have not received one yet it’s only a matter of time. … For someone that has railed against how ethnic aisles in grocery stores do not have enough minority-owned brands [David Chang] is doing just the goddamn same. Instead of creating a community he wants to create a monopoly.”
A collection of chile oil, crisp and crunch.
(Mariah Tauger / Los Angeles Times)
You can find a jar of chile sauce that’s half oil, half chile-and-garlic sediment on the tables at most restaurants serving dumplings in the San Gabriel Valley. Many make the sauce themselves.
Before it was a trendy condiment found at every superette (and even Costco), there were half-empty jars of Lao Gan Ma spicy chili crisp with crust around the lids in my fridge and on my family dinner table. My Chinese grandmother and uncle introduced me to Lao Gan Ma spicy chili crisp in the late ‘90s. It’s a sludge-like combination of dried chiles, crispy onions, MSG and fermented soybeans. For years I called it chili crunchy. I could never remember the name, and simply asked for more of that “chili crunchy stuff with the stern lady.”
The sauce was created by Tao Huabi in Guizhou, China, in 1984. Hers is the face on every bottle.
Nearly a decade ago, I brought Lao Gan Ma to a hot sauce taste-off with the late Jonathan Gold and Kogi BBQ chef Roy Choi. The chili crunchy stuff with the stern lady on the bottle was the clear winner.
“Sauce invented by our ancestors, our version perfected for 30+ years … ,” wrote the makers of Bowl Cut chili crisp on Instagram. “No one should own a trademark for the description of a sauce that’s been around forever.”
Chili crunch belongs to everyone.
Deputy Food editor Betty Hallock contributed to this report.
Business
Commentary: Trump’s ‘weird war’ on wind power will jeopardize our energy future and cost Americans billions
Trump is shelling out $2 billion of taxpayer money to kill wind power projects, but his hatred for the technology is based on myths
Picking the wildest fantasy promoted by President Trump as a basis for public policy is increasingly challenging — is it his yarn about schoolchildren being secretly abducted from their classrooms and given sex-changing operations? The notion that the vaccines given to children are like “a vat, like a big glass, of stuff pumped into their bodies?”
Here’s one that has disrupted the economics of renewable energy generation and will cost Americans billions of dollars: It’s Trump’s “completely weird war on wind power in the United States,” based on a sheaf of “fact-free arguments.”
That judgment comes from Steven Cohen, a climate policy expert at Columbia University, who points out that wind already accounts for 10.5% of U.S. energy generation, that it’s destined to continue growing — and that most of it is generated today in red states such as Texas, Oklahoma, Iowa and Kansas.
Fifty years from now, people are going to be amazed that we burned these rare, useful hydrocarbons for fuel, when the sun was just sitting up there providing an essentially infinite source of energy.
— Steven Cohen, Columbia University
There is no question that Trump’s weird war against wind is full blown. On the day of his second inauguration, he issued an executive order shutting down all new permits for offshore wind farms and ordered the Interior Department to review existing permits.
A federal judge in Massachusetts blocked the executive order in December, and his orders suspending work on existing offshore wind projects have been halted by other federal judges. The Trump administration has blocked or delayed as many as 165 wind projects on private land, citing “national security” concerns, according to the American Clean Power Assn.
Most recently, Trump has reached agreements with offshore wind firms in which the government will pay them a combined $2 billion to abandon their U.S. projects.
At some level, this crusade resembles Trump’s misguided effort to revive the American coal industry, which is on the glide path to inevitable extinction. In that case, Trump is waging an explicitly partisan and ideological battle. “We’re ending Joe Biden’s war on beautiful, clean coal,” he declared last April.
Trump’s anti-wind program is part of his campaign to dismantle U.S. renewables policy because of its roots in the Biden administration.
Additionally, multiple commentators conjecture that his hostility to wind originated in 2011, when he groused that an offshore wind farm would be visible from one of his golf courses in Scotland. He sued to thwart the “ugly” project, and lost.
But Trump has mustered other arguments against wind, on- and offshore, none of which holds water.
During a cabinet meeting in July 2025, he called wind “a very expensive form of energy.” In fact, on average it’s cheaper than natural gas, coal and nuclear generation. Perhaps more important, the cost has been coming down sharply as technology improves and the sector reaches critical mass: falling to eight cents from 21 cents per kilowatt-hour from 2010 to 2024 for offshore projects, and to 3.4 cents from 11.3 cents for land-based wind farms over the same period.
Trump blamed wind turbines for mass killing whales and birds. Neither assertion is correct.
The National Oceanic and Atmospheric Administration, a federal agency, says “there are no known links between large whale deaths and ongoing offshore wind activities.”
The Audubon Society reported in January that although wind turbines can present hazards to birds, “developers can effectively manage these risks without significantly increasing project costs.” The biggest risks to birds come from the climate: “Two-thirds of North American birds are at increasing risk of extinction from global temperature rise,” the society reported — a threat that wind power can ameliorate.
Trump spokeswoman Taylor Rogers didn’t respond to my questions about the derivation of his anti-wind stance, but told me by email only that “President Trump has been clear: hard-earned taxpayer dollars shouldn’t be wasted on unreliable and costly wind farms that pose serious threats to our national security. Instead, we should be strengthening and expanding our infrastructure that produces reliable, affordable, and secure energy like natural gas plants.”
That brings us to the recent deals with offshore wind developers. The largest single deal, signed in March, was with the French firm TotalEnergies, which is to receive approximately $1 billion from the federal government to abandon all of its U.S. offshore wind projects and invest instead in oil and gas projects, including a liquefied natural gas export facility in Texas.
In his March 23 announcement of the deal, Interior Secretary Doug Burgum called offshore wind “one of the most expensive, unreliable, environmentally disruptive, and subsidy-dependent schemes ever forced on American ratepayers and taxpayers.”
This is what Huck Finn would call a “stretcher,” given the decades of subsidies spooned out to the oil and gas industry, reaching more than $30 billion a year in federal and state tax credits, indulgent regulation of pollution and low-cost access to federal lands. Indeed, the investment firm Lazard recently reported that renewables, including wind, are a cost-competitive form of generation even without subsidies. (Lazard’s calculation is of the “levelized cost of energy,” meaning the average cost over a generating plant’s lifetime.)
TotalEnergies fell into lockstep with the Interior Department in its own announcement, explaining its willingness to renounce U.S. offshore wind power because “offshore wind developments in the United States, unlike those in Europe, are costly,” echoing the agency’s position that “the development of offshore wind projects is not in the country’s interest.” Never mind that one factor that makes U.S. offshore wind development costly compared with Europe is the Trump administration’s opposition.
The government subsequently reached an agreement to pay the French company Ocean Winds $885 million to walk away from two offshore wind projects, including one in the waters off California. Ocean Winds described the deal as one driven chiefly by economics, but hinted at pressure from the White House.
“We welcome the opportunity to engage constructively with the administration on this agreement and acknowledge the clarity they have provided with this decision and deal,” Michael Brown, the chief executive of Ocean Winds North America, said when the deal was announced last month. “Our priority remains disciplined capital allocation and delivering reliable energy solutions that create long-term value for ratepayers, partners, and shareholders.”
The TotalEnergies deal, which the government has described as a “refund” of money the firm paid for its offshore leades, raised the hackles of congressional Democrats, who assert that it violates the law and constitution in multiple ways.
“We will hold you accountable for this billion-dollar ripoff,” Reps. Jamie Raskin (D-Md.), ranking member of the House Judiciary Committee and Jared Huffman (D-San Rafael), ranking member of the House Committee on Natural Resources, warned TotalEnergies CEO Patrick Pouyanné in an April 29 letter.
Among other infirmities Raskin and Huffman alleged, the government’s national security rationale for canceling offshore wind leases looks “fabricated”; the payout violates the statutory formula for compensation for canceled leases; the money is to come from a fund designed only to pay court-ordered judgments and settlements of lawsuits, which don’t exist in this case; and includes a provision preventing the deal from being reviewed by a court.
The last of those provisions would have to be authorized by Congress, the letter states, asking for documents and a response from the company by Wednesday. Committee spokespersons weren’t available to say whether they received a response from TotalEnergies, and the company didn’t respond to my request for comment. I received no response from the Department of the Interior.
The California Energy Commission has opened an investigation into the Ocean Winds deal.
“The Trump Administration is recklessly spending billions of taxpayer dollars on backroom deals that would turn back the clock on innovation” CEC Chair David Hochschild said. “Taxpayer dollars should be used to build a sustainable energy future, not to pay to make projects disappear.”
What’s especially wasteful about Trump’s crusade against wind power is that it’s almost certain to be time-limited.
It’s hardly debatable that renewables such as solar and wind will be our principal sources of energy in the future; holding back the clock achieves nothing but injecting uncertainty into investment decisions that need to be made now, at a time when the price of oil is on the upswing thanks to Trump’s Iran adventure and Europe and China are racing to transition away from fossil fuels, while the U.S. remains becalmed by ideology.
“In the long run, fossil fuels will be used for petrochemicals and not for burning,” Cohen told me. “Fifty years from now, people are going to be amazed that we burned these rare, useful hydrocarbons for fuel, when the sun was just sitting up there providing an essentially infinite source of energy.”
Business
Judge denies move to dismiss State Farm collusion lawsuit
A Los Angeles judge has denied a petition by State Farm and other insurers to dismiss two lawsuits accusing them of colluding to drive homeowners onto California’s FAIR Plan.
The lawsuits, which accuse the insurers of violating the state’s antirust and unfair competition laws, were largely upheld in a decision Thursday by Los Angeles County Superior Court Judge Samantha Jessner.
The judge struck two less significant claims from the lawsuits filed last year, but allowed the case to proceed against more than a dozen major California insurers, led by State Farm General, the state’s largest.
“This is very good news for our people, our plaintiffs, because we’re going to be able to go ahead now with our antitrust claims in both cases,” said Bob Ruyak, an attorney representing the homeowners.
Sevag Sarkissian, a State Farm spokesperson, said the ruling did not “address the accuracy of the allegations” and that the company looks “forward to presenting our case in court.”
The lawsuits allege the companies financially benefited when policyholders were dropped and moved onto the FAIR Plan, since they financially back the insurer that sells more expensive policies which offer less coverage.
One lawsuit led by Todd and Kimberley Ferrier — whose Pacific Palisades home burned down — seeks to compensate 60 homeowners who experienced fire losses exacerbated by the FAIR Plan’s limited coverage.
The other case is a proposed class action that would compensate policyholders for the higher premiums they paid to the plan.
The case has garnered the attention of the federal Department of Justice, which filed a brief this month disputing an argument made by the insurers to have the case thrown out.
The insurers had alleged that they were shielded from antitrust liability under both California and federal law due to a certain legal doctrine.
While the department took no position on the merits of the collusion allegations, it said it files such briefs “where doing so helps protect competition and consumers, including by encouraging the sound development of the antitrust laws.”
The decision by the department to insert itself in the case followed a March post by President Trump bashing State Farm on social media after a visit to Pacific Palisades by administration officials.
The president called State Farm’s treatment of January 2025 wildfire victims “absolutely horrible” and asked EPA Administrator Lee Zeldin for a list of insurers who “acted swiftly” and those that were “particularly bad.”
Also this month, the California Department of Insurance filed an administrative action against State Farm seeking possible suspension of the carrier’s insurance license, alleging State Farm mishandled January 2025 wildfire claims.
The company acknowledges some claims were mishandled but rejected claims it engaged in a “general practice of mishandling or intentionally underpaying wildfire claims.”
The company says the California’s homeowners insurance market is the most “dysfunctional” in the country, with state regulators contributing to “delays and uncertainty that have contributed to fewer choices and higher costs for consumers.”
Business
What Trump Gained, and Didn’t, From China
Andrew here. With President Trump set to arrive back in Washington on Friday, we’re taking a hard look at what his high-stakes summit in Beijing actually achieved. The TL;DR: It didn’t lead to the “grand bargain” many had anticipated.
While there were optics of cooperation between Trump and Xi Jinping, concrete deals — including on Nvidia chips or tariffs — were few. Trump just said that he rejected a proposal from Xi, China’s leader, to help broker a peace between the U.S. and Iran, leaving the critical Strait of Hormuz effectively shut.
Ultimately, the president is coming home to rising oil prices and a slumping bond market.
What was gained (and wasn’t) in Beijing
President Trump departed Beijing a few hours ago, hailing “fantastic trade deals” struck during his two-day summit.
Still, many analysts and investors appear underwhelmed by a lack of details or breakthroughs on key issues like tariffs, Iran and tech restrictions. The summit seems to have fallen short of already diminished expectations.
For the 17 business leaders who accompanied Trump on the trip, the deal flow also appeared thinner than what was announced on his last presidential trip to China, in 2017.
Here are the highlights so far, Grady McGregor writes.
Nvidia and Citi apparently scored wins. Shares in Nvidia, the chipmaker, hit a record on Thursday on reports that Washington had cleared 10 Chinese companies to buy its H200 semiconductors.
That said, Beijing, which is looking to champion domestic rivals like Huawei, has not signaled it would be open to permitting the sales — an issue echoed on Friday by Jamieson Greer, the U.S. trade representative.
And on the eve of the summit, Beijing approved Citi’s application to operate a securities business in China, ending a yearslong regulatory application process. It is unclear whether the presence of Jane Fraser, the bank’s C.E.O., on the trip played any role in Beijing’s decision. Citi shares gained on Thursday.
Boeing landed an order for 200 aircraft, a deal Trump highlighted in a Fox News interview last night.
But shares in the plane maker fell sharply in premarket trading on Friday: The number was short of analysts’ forecasts of at least 300 planes.
The Board of Trade looks like a go. The Washington-Beijing body would manage trade in sectors such as aviation, energy, medical equipment and agriculture. Greer said it would aim to reduce tariffs on roughly $30 billion worth of goods.
He added that he expected the tariff truce the countries struck last fall in South Korea to be extended.
What’s still unclear:
HERE’S WHAT’S HAPPENING
Major cryptocurrency regulation clears a key hurdle. The Senate Banking Committee passed the Clarity Act, which has been promoted by crypto companies and investors like the venture capital firm Andreessen Horowitz. The bill heads to the full Senate, where it faces a less certain fate.
Federal prosecutors will drop criminal charges against India’s richest man. The move to end the case against the businessman Gautam Adani came after one of his lawyers — Robert Giuffra, who is also one of President Trump’s personal lawyers — met with Justice Department officials, The Times reports. (A presentation by Giuffra said that Adani was willing to invest $10 billion in the U.S., though sources told The Times that the withdrawal of charges wasn’t tied to the offer.) A settlement in a parallel case by the S.E.C. was announced Thursday in which Adani agreed to pay $6 million.
Bill Ackman bets big on Microsoft. The billionaire financier said on Friday that he had acquired a major stake in the tech giant and that he believed in the long-term prospects of its productivity software and its spending on A.I. Other hedge fund managers have bet the opposite: TCI, the firm run by Chris Hohn, recently sold off an $8 billion stake in Microsoft.
The OpenAI trial heads to a conclusion
The high-stakes legal showdown between Elon Musk and OpenAI is finally headed to the nine-person jury.
Over more than seven hours of closing arguments, lawyers for each side sought to paint the other as untrustworthy.
Here are some of the highlights of Thursday’s proceedings.
Can anyone trust Sam Altman? That was again the central attack by Steven Molo, Musk’s lead lawyer, who has argued that Altman, the OpenAI chief, deceived Musk, a fellow founder, about plans to convert the company from nonprofit to for-profit.
Molo told jurors that five witnesses had called Altman a “liar,” and he hammered home his point with a creative metaphor:
Imagine that you’re on a hike, and you come upon one of those wooden bridges that you see on a trail, and it’s over a gorge. There’s a river that’s 100 feet below and it looks a little scary, but a woman standing by the entry to the bridge says, “Don’t worry, the bridge is built on Sam Altman’s version of the truth.” Would you walk across that bridge? I don’t think many people would.
Can jurors trust Musk’s version of events? OpenAI’s lawyers, from the law firm Wachtell, Lipton, Rosen & Katz, argued that the billionaire knew about the company’s plans for for-profit conversion earlier than he admitted to and that the statute of limitations for his claims had passed.
Referring to Musk’s claim that he hadn’t read most of a 2018 email about OpenAI’s plans to seek outside investment, Sarah Eddy, a lawyer for OpenAI, said:
Here you have one of the most sophisticated businessmen in the history of the world and he claims he didn’t read a four-page summary term sheet.
The outcome of the trial could drastically alter the A.I. landscape. If OpenAI loses, its operations could be disrupted at a time when rivals are gaining steam.
Figma’s C.E.O. on surviving the “SaaSpocalypse”
The artificial intelligence boom has been a tale of haves and have-nots. Some companies have benefited mightily, most recently the chip maker Cerebras, whose stock shot up 68 percent in its debut. But many enterprise software providers have been walloped.
One of them was Figma, the design-software maker whose shares have tumbled since it went public last year. But as it reported strong quarterly earnings on Thursday, its C.E.O., Dylan Field, spoke with Michael de la Merced about why he believed his company was poised to survive, and even thrive. Here are our takeaways after the conversation.
Remember the “SaaSpocalypse”? Referring to “software-as-a-service,” it referred to investors’ worries that tools like Anthropic’s Claude Code would devastate the entire category of subscription-based software companies, like Figma.
Figma appears to have dispelled at least some of those worries:
The company’s results held up after an A.I.-related change in pricing. For most of its existence, Figma charged companies per user (known as seat-based pricing). But A.I. agents that can do work once reserved for humans promise to drastically reduce how many “seats” customers need to pay for.
In mid-March, Figma switched to a system in which it charged users for how much A.I. they used past a certain amount. The company said that more than 75 percent of its business users kept using A.I. tools despite the cap.
The result: Shares in Figma are up more than 10 percent in premarket trading since the report.
“Market narratives are market narratives,” Field said to DealBook about the SaaSpocalypse sell-off, playing down the investor concern while pointing out Figma’s strong performance.
“The way we see it, A.I. is going to create more software than ever,” he said. He added, “Design matters.”
But Field remains on guard. Makers of A.I. models have muscled into Figma’s territory, notably Anthropic, which in March introduced Claude Design, a tool seen as a competitor of sorts. (Only three days before, Mike Krieger, a senior Anthropic executive, resigned from Figma’s board; Field reportedly complained about the situation.)
“You have to take a company like Anthropic seriously,” Field told DealBook.
Picture of the day
The musical playlist for Thursday’s state dinner in Beijing for President Trump drew big buzz on social media. It contained some Trump favorites, including the Village People hit “Y.M.C.A.”
Talking A.I. with Circle’s C.E.O.
Every week, we’re asking a leader how he or she uses artificial intelligence. This week, Jeremy Allaire, who leads the stablecoin issuer Circle, told Sarah Kessler that he had built a “C.E.O. prioritizer.” The interview has been condensed and edited for clarity.
How do you personally use A.I. at home or work?
One interesting one is a C.E.O. prioritizer. If there’s a request for me to meet someone or do something, you go to the agent and it interrogates you about it and does background research. Then it assigns a one-to-five score, with one being “Completely ignore it” and five being “This is a highly strategic use of your time.”
Circle wants to be part of the infrastructure that helps A.I. agents spend money. Tell me more about that.
The primary units of work in the economic system are going to be executed by A.I. agents. And increasingly, it’s going to be agents that are operating in teams.
You need an economic system to support that. We need a way for one agent to access and use the services of another agent. For example, you might have research data in a particular domain of biology, and I want to make that available to A.I.s to consume. And it’s going to be 5 cents, 10 cents. Whatever it is, you receive that payment, and the A.I. then can consume that data and use it.
And this transaction would take place via stablecoin and not dollars, because there is less friction and these are tiny transactions?
There’s no payment system in the world except for something like USDC that can conduct a transaction for a fraction of a penny. Or even 5 cents or 10 cents. And it’s all programmable.
You said on your latest earnings call that 85 percent of your employees are using A.I. coding and automation tools. What does that look like?
We’re able to basically go through the entire software life cycle with A.I. agents conducting work. Agents are seeing feature requests, picking them up, coding and submitting the code for review. We have other agents that perform code review. Humans then obviously come in to do subsequent reviews.
What about outside of engineering?
It’s in every single function. If you want to build a creative strategy for a campaign, there’s a whole agentic workflow. If you are creating public communications content — we’re a regulated company, so we have very strict guidelines — there’s an A.I. that will vet all of your content and point out the issues with it.
THE SPEED READ
Deals
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Investors led by Egon Durban, a C.E.O. of the tech investment firm Silver Lake, have reportedly struck a deal to buy 25 percent of the Las Vegas Raiders at a $9.9 billion valuation. (CNBC)
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Michael Carr, a longtime top M.&A. banker at Goldman Sachs, died on Tuesday. He was 68. (Bloomberg)
Politics, policy and regulation
Best of the rest
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Boeing and Toyota are said to have donated $1 million each to fund a reality-TV video series starring the transportation secretary, Sean Duffy. (WSJ)
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“In a City of Big Dreams, Many Young Adults See a Cloudy Future” (NYT)
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