Business
Q&A: David Simon isn't a starry-eyed dreamer, but he's all in on Hollywood
David Simon is so bullish on Hollywood he’s building a new movie studio there from the ground up and renovating another one that dates to the days of silent films.
They’re the largest of 10 projects the real estate developer has going in Hollywood at a time when many other Los Angeles builders have paused work in the face of high interest rates and construction costs that make it harder to build profitably.
Simon is banking on the lasting stamina of the entertainment industry even as it goes through structural changes in the age of streaming, and the enduring appeal of Hollywood as the place to make movies and television shows.
Through his company BARDAS Investment Group, Simon recently launched construction of Echelon Studios, a $450-million complex on Santa Monica Boulevard west of the 101 Freeway on a site formerly occupied by a Sears store. It will include five soundstages and support facilities, including offices and space to keep trucks, production equipment and actors’ trailers.
Simon recently launched construction of the $450-million Echelon Studios complex, shown in a rendering, on Santa Monica Boulevard on the site previously occupied by a Sears store.
( Bob Hale / Rios)
Less than a mile away on Romaine Street, Simon is preparing to launch a $600-million renovation and expansion of Echelon at Television Center, which was once home to Technicolor’s film manufacturing laboratory and Metro Pictures Corp., which became part of Metro-Goldwyn-Mayer in the 1920s. Among Metro’s stars were Rudolph Valentino, Lillian Gish, Ramon Novarro and Buster Keaton.
Before he founded his own company in 2018, he oversaw two large-scale Hollywood projects for Kilroy Realty: the $420-million office, residential and retail redevelopment of the former CBS headquarters in Hollywood now known as Columbia Square and the $450-million office and residential redevelopment of the former Academy of Motion Picture Arts and Sciences headquarters site now known as On Vine.
The Times spoke with Simon to discuss his Hollywood projects, as well as his predictions about the future of the neighborhood and the local entertainment industry. The interview has been edited for brevity and clarity.
The historic Art Deco Echelon Television Center studio complex in Hollywood, which will undergo a $600-million makeover.
(Luis Sinco / Los Angeles Times)
You chose a long time ago to focus your efforts on Hollywood. What made you think it had a leg up on other real estate markets?
I always knew Hollywood is the biggest brand in the world. Everybody knows what Hollywood is — films, television, celebrity — and that is just a great brand to have while you’re developing. It was surprising that there was not a lot of institutional investment there for many years. What really got me going was the CNN building.
What happened with that building? Larry King used to broadcast his shows there.
We had the opportunity to buy the building in the early 2000s when I was with Broadreach Capital Partners and we didn’t want to lose its high-profile tenant, CNN. They had a deal on the table to move to the Sherman Oaks Galleria.
I remember asking the question, “If we bought the building, would you be interested in staying if we built you a new studio? And the answer was, “Yes,” and we did a 20-year lease with them. That really said to me that there’s a market in Hollywood and there’s really no focus from an institutional landlord mindset, no investment dollars coming in, because there hadn’t been new studios or soundstages built for decades.
You continued to work for other developers until six years ago when you formed your own company. What made you think it was time to take the leap?
We said, “This industry is really growing. There seems to be strong demand for content, streamers are growing and a lot of production is happening.” We thought there was a need to create new and inspiring environments in the entertainment capital of the world for media and content creators.
What’s your company doing now?
We’ve got about 1.6 million square feet in development. All entitlements are in place with the exception of Television Center, which is still going through city approvals. This is all about creating a portfolio of assets that caters to this entertainment user base. Between our two studios we’ll have about 10 soundstages and a nice critical mass.
A lot of other developers are on the sidelines waiting for conditions to improve. Why are you plowing ahead?
My partners at Bain Capital Real Estate and I are not naive to where the world is today, where interest rates are and the cost of debt and construction costs and everything that’s going on in the world. But we’re of the mind that our locations are great. They’re infill locations in the heart of Hollywood.
The demand for media and content is having its ups and downs like any growing industry does. There will be consolidations and things like that, but at the end of the day, that demand is going to continue to be there. And for that demand to be there, quality product, what I call the manufacturing facilities, needs to be put in place and it needs to be state of the art.
Would that slow down the trend of movie and television production leaving L.A. for other cities?
With artificial intelligence, LED screens and other technology [filmmakers] can create scenes inside of a soundstage that feels like you’re in New York or Paris, but you’re really in L.A. The more that content can be created locally, the better for the talent.
Business
A new delivery bot is coming to L.A., built stronger to survive in these streets
The rolling robots that deliver groceries and hot meals across Los Angeles are getting an upgrade.
Coco Robotics, a UCLA-born startup that’s deployed more than 1,000 bots across the country, unveiled its next-generation machines on Thursday.
The new robots are bigger, tougher and better equipped for autonomy than their predecessors. The company will use them to expand into new markets and increase its presence in Los Angeles, where it makes deliveries through a partnership with DoorDash.
Dubbed Coco 2, the next-gen bots have upgraded cameras and front-facing lidar, a laser-based sensor used in self-driving cars. They will use hardware built by Nvidia, the Santa Clara-based artificial intelligence chip giant.
Coco co-founder and chief executive Zach Rash said Coco 2 will be able to make deliveries even in conditions unsafe for human drivers. The robot is fully submersible in case of flooding and is compatible with special snow tires.
Zach Rash, co-founder and CEO of Coco, opens the top of the new Coco 2 (Next-Gen) at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
Early this month, a cute Coco was recorded struggling through flooded roads in L.A.
“She’s doing her best!” said the person recording the video. “She is doing her best, you guys.”
Instagram followers cheered the bot on, with one posting, “Go coco, go,” and others calling for someone to help the robot.
“We want it to have a lot more reliability in the most extreme conditions where it’s either unsafe or uncomfortable for human drivers to be on the road,” Rash said. “Those are the exact times where everyone wants to order.”
The company will ramp up mass production of Coco 2 this summer, Rash said, aiming to produce 1,000 bots each month.
The design is sleek and simple, with a pink-and-white ombré paint job, the company’s name printed in lowercase, and a keypad for loading and unloading the cargo area. The robots have four wheels and a bigger internal compartment for carrying food and goods .
Many of the bots will be used for expansion into new markets across Europe and Asia, but they will also hit the streets in Los Angeles and operate alongside the older Coco bots.
Coco has about 300 bots in Los Angeles already, serving customers from Santa Monica and Venice to Westwood, Mid-City, West Hollywood, Hollywood, Echo Park, Silver Lake, downtown, Koreatown and the USC area.
The new Coco 2 (Next-Gen) drives along the sidewalk at the Coco Robotics headquarters in Venice.
(Kayla Bartkowski/Los Angeles Times)
The company is in discussion with officials in Culver City, Long Beach and Pasadena about bringing autonomous delivery to those communities.
There’s also been demand for the bots in Studio City, Burbank and the San Fernando Valley, according to Rash.
“A lot of the markets that we go into have been telling us they can’t hire enough people to do the deliveries and to continue to grow at the pace that customers want,” Rash said. “There’s quite a lot of area in Los Angeles that we can still cover.”
The bots already operate in Chicago, Miami and Helsinki, Finland. Last month, they arrived in Jersey City, N.J.
Late last year, Coco announced a partnership with DashMart, DoorDash’s delivery-only online store. The partnership allows Coco bots to deliver fresh groceries, electronics and household essentials as well as hot prepared meals.
With the release of Coco 2, the company is eyeing faster deliveries using bike lanes and road shoulders as opposed to just sidewalks, in cities where it’s safe to do so. Coco 2 can adapt more quickly to new environments and physical obstacles, the company said.
Zach Rash, co-founder and CEO of Coco.
(Kayla Bartkowski/Los Angeles Times)
Coco 2 is designed to operate autonomously, but there will still be human oversight in case the robot runs into trouble, Rash said. Damaged sidewalks or unexpected construction can stop a bot in its tracks.
The need for human supervision has created a new field of jobs for Angelenos.
Though there have been reports of pedestrians bullying the robots by knocking them over or blocking their path, Rash said the community response has been overall positive. The bots are meant to inspire affection.
“One of the design principles on the color and the name and a lot of the branding was to feel warm and friendly to people,” Rash said.
Coco plans to add thousands of bots to its fleet this year. The delivery service got its start as a dorm room project in 2020, when Rash was a student at UCLA. He co-founded the company with fellow student Brad Squicciarini.
The Santa Monica-based company has completed more than 500,000 zero-emission deliveries and its bots have collectively traveled around 1 million miles.
Coco chooses neighborhoods to deploy its bots based on density, prioritizing areas with restaurants clustered together and short delivery distances as well as places where parking is difficult.
The robots can relieve congestion by taking cars and motorbikes off the roads. Rash said there is so much demand for delivery services that the company’s bots are not taking jobs from human drivers.
Instead, Coco can fill gaps in the delivery market while saving merchants money and improving the safety of city streets.
“This vehicle is inherently a lot safer for communities than a car,” Rash said. “We believe our vehicles can operate the highest quality of service and we can do it at the lowest price point.”
Business
Trump orders federal agencies to stop using Anthropic’s AI after clash with Pentagon
President Trump on Friday directed federal agencies to stop using technology from San Francisco artificial intelligence company Anthropic, escalating a high-profile clash between the AI startup and the Pentagon over safety.
In a Friday post on the social media site Truth Social, Trump described the company as “radical left” and “woke.”
“We don’t need it, we don’t want it, and will not do business with them again!” Trump said.
The president’s harsh words mark a major escalation in the ongoing battle between some in the Trump administration and several technology companies over the use of artificial intelligence in defense tech.
Anthropic has been sparring with the Pentagon, which had threatened to end its $200-million contract with the company on Friday if it didn’t loosen restrictions on its AI model so it could be used for more military purposes. Anthropic had been asking for more guarantees that its tech wouldn’t be used for surveillance of Americans or autonomous weapons.
The tussle could hobble Anthropic’s business with the government. The Trump administration said the company was added to a sweeping national security blacklist, ordering federal agencies to immediately discontinue use of its products and barring any government contractors from maintaining ties with it.
Defense Secretary Pete Hegseth, who met with Anthropic’s Chief Executive Dario Amodei this week, criticized the tech company after Trump’s Truth Social post.
“Anthropic delivered a master class in arrogance and betrayal as well as a textbook case of how not to do business with the United States Government or the Pentagon,” he wrote Friday on social media site X.
Anthropic didn’t immediately respond to a request for comment.
Anthropic announced a two-year agreement with the Department of Defense in July to “prototype frontier AI capabilities that advance U.S. national security.”
The company has an AI chatbot called Claude, but it also built a custom AI system for U.S. national security customers.
On Thursday, Amodei signaled the company wouldn’t cave to the Department of Defense’s demands to loosen safety restrictions on its AI models.
The government has emphasized in negotiations that it wants to use Anthropic’s technology only for legal purposes, and the safeguards Anthropic wants are already covered by the law.
Still, Amodei was worried about Washington’s commitment.
“We have never raised objections to particular military operations nor attempted to limit use of our technology in an ad hoc manner,” he said in a blog post. “However, in a narrow set of cases, we believe AI can undermine, rather than defend, democratic values.”
Tech workers have backed Anthropic’s stance.
Unions and worker groups representing 700,000 employees at Amazon, Google and Microsoft said this week in a joint statement that they’re urging their employers to reject these demands as well if they have additional contracts with the Pentagon.
“Our employers are already complicit in providing their technologies to power mass atrocities and war crimes; capitulating to the Pentagon’s intimidation will only further implicate our labor in violence and repression,” the statement said.
Anthropic’s standoff with the U.S. government could benefit its competitors, such as Elon Musk’s xAI or OpenAI.
Sam Altman, chief executive of OpenAI, the company behind ChatGPT and one of Anthropic’s biggest competitors, told CNBC in an interview that he trusts Anthropic.
“I think they really do care about safety, and I’ve been happy that they’ve been supporting our war fighters,” he said. “I’m not sure where this is going to go.”
Anthropic has distinguished itself from its rivals by touting its concern about AI safety.
The company, valued at roughly $380 billion, is legally required to balance making money with advancing the company’s public benefit of “responsible development and maintenance of advanced AI for the long-term benefit of humanity.”
Developers, businesses, government agencies and other organizations use Anthropic’s tools. Its chatbot can generate code, write text and perform other tasks. Anthropic also offers an AI assistant for consumers and makes money from paid subscriptions as well as contracts. Unlike OpenAI, which is testing ads in ChatGPT, Anthropic has pledged not to show ads in its chatbot Claude.
The company has roughly 2,000 employees and has revenue equivalent to about $14 billion a year.
Business
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