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Palmer Luckey: Millennial slayer of U.S. defense giants

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Palmer Luckey: Millennial slayer of U.S. defense giants

A red phone sits on Palmer Luckey’s desk at the Costa Mesa headquarters of his military tech company, Anduril Industries.

The phone is a genuine article from the U.S. nuclear command, once connected to the network that led to the bunkers dug into the Rockies west of Colorado Springs that could order up the apocalypse. Luckey owned the red phone before he started Anduril, back when he was only famous for inventing the Oculus virtual reality headset in a trailer in the driveway of his childhood home in Long Beach, then selling that company to Facebook for $2 billion at age 21.

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Back then, the phone was just kitsch, a physical piece of history he could gaze at as he worked on VR for a social media company. But after he donated $10,000 to an anti-Hillary Clinton political group in the fall of 2016, then got fired from Facebook a few months later, the red phone changed from a prop to a proposition. Flush with cash, unemployed and annoyed at Silicon Valley, he decided to become a military mogul — possibly the first whose office uniform is a Hawaiian shirt, cargo shorts and flip-flops.

“That was the dream, to be the guy with the red phone who gets The Call,” Palmer, now 31, said in an interview at Anduril’s headquarters.

He founded his new enterprise with four others. One had worked with Luckey at Oculus, but the remaining three came from Palantir, the intelligence analytics software company founded by Peter Thiel, the billionaire tech investor and right-wing political donor. When Thiel founded Palantir in 2003, he named the firm after the magical seeing-stones from Tolkien’s “Lord of the Rings.” Luckey followed in Thiel’s footsteps. Anduril is the elvish name of the reforged sword of Aragorn, king of men and hero of the forces of good in Tolkien’s epic. Translated into English from Quenya, the name means “Flame of the West.” A replica of the sword from the “Lord of the Rings” films hangs on the wall in Anduril’s office.

“The first page of our first pitch deck said that Anduril is a company that will save Western civilization by saving taxpayers hundreds of billions of dollars a year as we make tens of billions of dollars a year,” Luckey said.

“We’re not making tens of billions of dollars a year yet,” he said, “but we’re getting there.”

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Six years later, Anduril has signed well over $1 billion in public contracts with the U.S. and allied governments and raised more than $2 billion in venture funding. Last year, it brought in around $500 million in revenue, according to investor presentations reported by the Information.

Of those contracts, $250 million are with the U.S. Border Patrol, which is in the process of deploying a network of 189 Anduril sensor towers to form a “virtual border wall” of semiautomatic surveillance across the U.S.-Mexico border. Another $100 million is with the Australian navy, which hired Anduril to build submarine drones. Its biggest deal came in 2022, when the U.S. Special Operations Command awarded a 10-year, billion-dollar contract to Anduril for counter-drone defense systems that combine sensors, AI software and drones like Anduril’s Anvils, which can physically ram enemy drones to knock them out of the sky.

‘We are preemptively being invited to conversations to help solve problems — most companies will just never get that call.’

— Palmer Luckey

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Luckey’s company has also developed a tube-launched drone with a “loitering munition” model (a.k.a. an exploding drone) and bought a rocket engine manufacturer in Mississippi that makes propulsion systems for hypersonic missiles. In late 2023, it unveiled a jet-powered drone that could be flown multiple times for surveillance missions, or equipped with a warhead for suicide missions. In April, Anduril beat out Boeing, Lockheed Martin and Northrop Grumman in an Air Force competition for a new autonomous fighter drone that can fly alongside manned warplanes like robot wingmen.

That red phone on Luckey’s desk isn’t connected to a live line — but he is undoubtedly getting The Call.

“We are preemptively being invited to conversations to help solve problems — most companies will just never get that call,” Luckey said. “It’s the dream come true for someone with my ideological bent.”

Luckey’s bent, at least when it comes to business, runs counter to the last few decades of America’s economic development. When he was working at Facebook and trying to scale up the production of the Oculus headset in Chinese factories, he started to believe that something had gone seriously wrong.

“I felt that we lived in a unique period of U.S. history where we had allowed our technological innovation apparatus to be completely hijacked by a foreign power: China,” Luckey said. “Almost none of the major tech companies in the United States were willing to work with the DoD in a major way, because doing so would get them locked out of China, Chinese capital, Chinese markets, Chinese manufacturing.”

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Palmer Luckey

“Apple could not pivot away from China even in the event of World War III,” Luckey said. “So you get to this weird situation, I realized, where these people who are supposed to be the most powerful people in the country are actually handcuffed and prohibited from saying anything that they might believe,” including criticizing the Chinese government’s mass detention of Muslim minorities. “If you’re the CEO of Apple, you can’t go out and say, ‘I think concentration camps are wrong, no matter where they are.’ I looked at that and said, ‘Oh my God, this is terrifying.’”

This line of thinking was considered fringe in the tech industry in 2016, when Luckey left Facebook, but after COVID-19 pandemic supply-chain disruption and wars in Europe and the Middle East, a growing slice of the tech industry has switched to Luckey’s point of view, emphasizing the need to bring manufacturing back to U.S. shores — or at least U.S. allies — and disentangle from the Chinese economy.

Luckey’s enthusiasm for working with the military was unpopular for much of the last decade, but his basic pitch for Anduril is classic Silicon Valley: Use software, venture capital money and a new business model to disrupt an industry full of lumbering incumbents. He and his co-founders thought that they could tap tech talent to bring machine vision and other AI technologies to military operations, and outflank the defense giants of Lockheed Martin, Raytheon, General Dynamics, Boeing and Northrop Grumman — known as the five “primes” in the industry — by pitching the military on a new way to pay. Instead of billing on a cost-plus basis, where the government covers all the costs of development and manufacturing, plus a little profit margin on top, Anduril talks to Department of Defense decision-makers up front, uses its own capital to develop new software and drones, and then sells the finished product to the military.

The company is not profitable, and has no intention of becoming profitable in the next few years. “We should not be profitable” in the near future, Luckey said. “We should be taking all of the money that we’re making and putting it back into growing the company, launching new product lines, trying to become the next major defense prime.”

It was an uphill fight to secure his first round of funding. Investors would tell him, “We love your people, we love your tech. You’re very patriotic, you’re very smart, but we don’t think you can actually get the government to buy your stuff.”

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“I pointed out to people that every defense company that had been founded by a billionaire was a success,” Luckey said, referring to Elon Musk’s SpaceX and Thiel’s Palantir. “I hate that we live in a country where that’s the case, but I realized that I had a unique responsibility as one of the very few people who was willing to work on national security and blessed with the resources to actually make a real go at it.”

Luckey has also used those resources to give millions to Republican political candidates and committees across the country, drawing criticism from a number of his peers in the tech industry, who tend to lean toward Democrats over the GOP.

‘I’m supporting the people who are generally very pro-innovation and national security.’

— Palmer Luckey

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In the 2020 cycle, Luckey and his wife poured nearly $3 million into the coffers of Republican Party committees and congressional candidates in 45 states, and threw in $1.7 million for Donald Trump’s campaign on top. That October, Luckey also hosted a reported $100,000-a-person fundraiser for Trump, with the candidate in attendance, at his waterfront home on the tip of Newport Beach’s Lido Isle.

His political giving has kept up in the years since. In the 2021-22 cycle, federal election records show Luckey donated over $1.4 million to Republican committees and candidates. In 2023, he donated an additional $726,000. His sister, Ginger, is married to Rep. Matt Gaetz (R-Fla.).

“I’m supporting the people who are generally very pro-innovation and national security,” Luckey said. He doesn’t see a contradiction in building weapons for the Ukrainian army and supporting members of a political party that has been wobbly in its support for the war. “They are almost universally very supportive of using Ukraine as an opportunity to show Russia that they are not gonna get away with being an expansionist regime,” he said.

“At the end of the day, I would love it if I could only give money to the politicians who agree with me on everything, and only to the groups that agree with me on everything. Unfortunately, I have not found those groups.”

Earlier this month, Luckey again co-hosted a fundraiser for Trump in Newport Beach. Combined with other events in the region, it was expected to raise about $27.5 million for the presumptive Republican nominee’s campaign committee.

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Besides running a company, Luckey has a growing collection of toys to occupy his time. An 82-foot boat used by the Navy SEALS called the Mark V Special Operations Craft floats at the end of the dock outside his Lido Isle house, visible on Google Maps’ satellite view.

Through a series of LLCs with names such as Luckey Arms, Luckey Air Transport and Luckey Ground Technology, he owns a couple of submarines, a Black Hawk helicopter and a fleet of motorcycles and cars. On the day we met, he drove a Tesla stripped of all paint to the bare aluminum to work. He drove a 1990s Mazdaspeed Autozam converted to electric drive and skinned hot pink with graphics from the anime series “Gun Gale Online” to the annual Anime Expo at the L.A. Convention Center last summer. During his time at Facebook, the Wall Street Journal reported that he would drive a military Humvee to the Menlo Park, Calif., offices, complete with fake guns in its machine-gun mount.

Real guns are also a hobby. “I have a huge number of guns. Massive collection of guns.” His main interest is failed gun designs, stabs at innovation that led to technological dead ends. “I will say I’ve got the extreme machine gene,” Luckey said.

And then there are the nuclear missile silos. “I own a lot of ICBM sites all over the United States.” Corporate filings show that a decommissioned Atlas ICBM silo in rural Saranac, N.Y., is owed by Black Omen LLC, which is in turn managed by Fiendlord’s Keep LLC, whose chief executive is listed as Palmer Luckey.

Luckey would not confirm nor deny his ownership of that site, but he did say that he’s in the process of collecting the entire U.S. ground-based nuclear deterrent system. His goal, he says, is to turn it into a vast museum.

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“There are so many air museums, quite a few naval museums and ship museums, and there’s literally only one missile museum in the United States, the Titan II in Tucson, Arizona,” he said. “It’s just kind of weird that one of the three pillars of the nuclear triad has just been completely ignored by all the people that build museums. So I’m collecting those and restoring them.”

Like the red phone, only bigger.

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How We Cover the White House Correspondents’ Dinner

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How We Cover the White House Correspondents’ Dinner

Times Insider explains who we are and what we do, and delivers behind-the-scenes insights into how our journalism comes together.

Politicians in Washington and the reporters who cover them have an often adversarial relationship.

But on the last Saturday in April, they gather for an irreverent celebration of press freedom and the First Amendment at the Washington Hilton Hotel: The White House Correspondents’ Association dinner.

Hosted by the association, an organization that helps ensure access for media outlets covering the presidency, the dinner attracts Hollywood stars; politicians from both parties; and representatives of more than 100 networks, newspapers, magazines and wire services.

While The Times will have two reporters in the ballroom covering the event, the company no longer buys seats at the party, said Richard W. Stevenson, the Washington bureau chief. The decision goes back almost two decades; the last dinner The Times attended as an organization was in 2007.

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“We made a judgment back then that the event had become too celebrity-focused and was undercutting our need to demonstrate to readers that we always seek to maintain a proper distance from the people we cover, many of whom attend as guests,” he said.

It’s a decision, he added, that “we have stuck by through both Republican and Democratic administrations, although we support the work of the White House Correspondents’ Association.”

Susan Wessling, The Times’s Standards editor, said the policy is a product of the organization’s desire to maintain editorial independence.

“We don’t want to leave readers with any questions about our independence and credibility by seeming to be overly friendly with people whose words and actions we need to report on,” she said.

The celebrity mentalist Oz Pearlman is headlining the evening, in lieu of the usual comedy set by the likes of Stephen Colbert and Hasan Minhaj, but all eyes will be on President Trump, who will make his first appearance at the dinner as president.

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Mr. Trump has boycotted the event since 2011, when he was the butt of punchlines delivered by President Barack Obama and the talk show host Seth Meyers mocking his hair, his reality TV show and his preoccupation with the “birther” movement.

Last month, though, Mr. Trump, who has a contentious relationship with the media, announced his intention to attend this year’s dinner, where he will speak to a room full of the same reporters he often derides as “enemies of the people.”

Times reporters will be there to document the highs, the lows and the reactions in the room. A reporter for the Styles desk has also been assigned to cover the robust roster of after-parties around Washington.

Some off-duty reporters from The Times will also be present at this late-night circuit, though everyone remains cognizant of their roles, said Patrick Healy, The Times’s assistant managing editor for Standards and Trust.

“If they’re reporting, there’s a notebook or recorder out as usual,” he said. “If they’re not, they’re pros who know they’re always identifiable as Times journalists.”

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For most of The Times’s reporters and editors, though, the evening will be experienced from home.

“The rest of us will be able to follow the coverage,” Mr. Stevenson said, “without having to don our tuxes or gowns.”

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MrBeast company sued over claims of sexual harassment, firing a new mom

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MrBeast company sued over claims of sexual harassment, firing a new mom

A former female staffer who worked for Beast Industries, the media venture behind the popular YouTube channel MrBeast, is suing the company, alleging she was sexually harassed and fired shortly after she returned from maternity leave.

The employee, Lorrayne Mavromatis, a Brazilian-born social media professional, alleges in a lawsuit she was subjected to sexual harassment by the company’s management and demoted after she complained about her treatment. She said she was urged to join a conference call while in labor and expected to work during her maternity leave in violation of the Family and Medical Leave Act, according to the federal complaint filed Wednesday in the U.S. District Court for the Eastern District of North Carolina.

“This clout-chasing complaint is built on deliberate misrepresentations and categorically false statements, and we have the receipts to prove it. There is extensive evidence — including Slack and WhatsApp messages, company documents, and witness testimony — that unequivocally refutes her claims. We will not submit to opportunistic lawyers looking to manufacture a payday from us,” Gaude Paez, a Beast Industries spokesperson, said in a statement.

Jimmy Donaldson, 27, began MrBeast as a teen gaming channel that soon exploded into a media company worth an estimated $5 billion, with 500 employees and 450 million subscribers who watch its games, stunts and giveaways.

Mavromatis, who was hired in 2022 as its head of Instagram, described a pervasive climate of discrimination and harassment, according to the lawsuit.

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In her complaint, she alleges the company’s former CEO James Warren made her meet him at his home for one-on-one meetings while he commented on her looks and dismissed her complaints about a male client’s unwanted advances, telling her “she should be honored that the client was hitting on her.”

When Mavromatis asked Warren why MrBeast, Donaldson, would not work with her, she was told that “she is a beautiful woman and her appearance had a certain sexual effect on Jimmy,” and, “Let’s just say that when you’re around and he goes to the restroom, he’s not actually using the restroom.”

Paez refuted the claim.

“That’s ridiculous. This is an allegation fabricated for the sole purpose of sparking headlines,” Paez said.

Mavromatis said she endured a slate of other indignities such as being told by Donaldson that she “would only participate in her video shoot if she brought him a beer.”

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“In this male-centric workplace, Plaintiff, one of the few women in a high-level role, was excluded from otherwise all-male meetings, demeaned in front of colleagues, harassed, and suffered from males be given preferential treatment in employment decisions,” states the complaint.

When Mavromatis raised a question during a staff meeting with her team, she said a male colleague told her to “shut up” or “stop talking.”

At MrBeast headquarters in Greenville, N.C., she said male executives mocked female contestants participating in BeastGames, “who complained they did not have access to feminine hygiene products and clean underwear while participating in the show.”

In November 2023, Mavromatis formally complained about “the sexually inappropriate encounters and harassment, and demeaning and hostile work environment she and other female employees had been living and experiencing working at MrBeast,” to the company’s then head of human resources, Sue Parisher, who is also Donaldson’s mother, according to the suit.

In her complaint, Mavromatis said Beast Industries did not have a method or process for employees to report such issues either anonymously or to a third party, rather employees were expected to follow the company’s handbook, “How to Succeed In MrBeast Production.”

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In it, employees were instructed that, “It’s okay for the boys to be childish,” “if talent wants to draw a dick on the white board in the video or do something stupid, let them” and “No does not mean no,” according to the complaint.

Mavromatis alleges that she was demoted and then fired.

Paez said that Mavromatis’s role was eliminated as part of a reorganization of an underperforming group within Beast Industries and that she was made aware of this.

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Heidi O’Neill, Formerly of Nike, Will Be New Lululemon’s New CEO

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Heidi O’Neill, Formerly of Nike, Will Be New Lululemon’s New CEO

Lululemon, the yoga pants and athletic clothing company, has hired a former executive from a rival, Nike, as its new chief executive.

Heidi O’Neill, who spent more than 25 years at Nike, will take the reins and join Lululemon’s board of directors on Sept. 8, the company announced on Wednesday.

The leadership change is happening during a tumultuous time for Lululemon, which had grown to $11 billion in revenue by persuading shoppers to ditch their jeans and slacks for stretchy leggings. But lately, sales have declined in North America amid intense competition and shifting fashion trends, with consumers favoring looser styles rather than the form-fitting silhouettes for which Lululemon is best known.

“As I step into the C.E.O. role in September, my job will be to build on that foundation — to accelerate product breakthroughs, deepen the brand’s cultural relevance, and unlock growth in markets around the world,” Ms. O’Neill, 61, said in a statement.

Lululemon, based in Vancouver, British Columbia, has also been entangled in a corporate power struggle over the company’s future. Its billionaire founder, Chip Wilson, has feuded with the board, nominated independent directors and criticized executives.

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Lululemon’s previous chief executive, Calvin McDonald, stepped down at the end of January as pressure mounted from Mr. Wilson and some investors. One activist investor, Elliott Investment Management, had pushed its own chief executive candidate, who was not selected.

The interim co-chiefs, Meghan Frank and André Maestrini, will lead the company until Ms. O’Neill’s arrival, when they are expected to return to other senior roles. The pair had outlined a plan to revive sales at Lululemon, promising to invest in stores, save more money and speed up product development.

“We start the year with a real plan, with real strategies,” Mr. Maestrini said in an interview this year. “We make sure decisions are made fast.”

Lululemon said last month that it would add Chip Bergh, the former chief executive of Levi Strauss, to its board to replace David Mussafer, the chairman of the private equity firm Advent International, whom Mr. Wilson had sought to remove.

Ms. O’Neill climbed the organizational chart at Nike for decades, working across divisions including consumer sports, product innovation and brand marketing, and was most recently its president of consumer, product and brand. She left Nike last year amid a shake-up of senior management that led to the elimination of her role.

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Analysts said Ms. O’Neill would be expected to find ways to energize Lululemon’s business and reset the company’s culture in order to improve performance.

“O’Neill is her own person who will come with an agenda of change,” said Neil Saunders, the managing director of GlobalData, a data analytics and consulting company. “The task ahead is a significant one, but it can be undertaken from a position of relative stability.”

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