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Saudi Arabia May Partner With UFC Owner TKO to Create Boxing League

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Saudi Arabia May Partner With UFC Owner TKO to Create Boxing League

In the days after Donald J. Trump was re-elected president, one of his most high-profile stops was at an Ultimate Fighting Championship event at Madison Square Garden.

Mr. Trump’s appearance in the front row was notable, as was the presence of some of his closest confidants, like Elon Musk, who sat alongside him. But few in attendance for the fights would have recognized the other man sitting beside the president-elect.

Yasir al-Rumayyan, the governor of Saudi Arabia’s vast sovereign wealth vehicle, the Public Investment Fund, watched the action from ringside, and is getting even closer to being part of the action. A company owned by the fund is close to creating a boxing league with TKO, the owner of Ultimate Fighting Championship. A deal for what would be a new competition, featuring up-and-coming boxers tied exclusively to the league, could be announced within weeks, according to three people familiar with the matter.

TKO said in a statement on Wednesday that it had “nothing to announce,” but that it “would evaluate any unique and compelling opportunity that could fit well in our portfolio of businesses and create incremental value for our shareholders.”

The wealth fund did not comment.

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The potential investment in TKO follows a Saudi Arabian effort in June to create a multibillion-dollar boxing league that would aim to unite the world’s best boxers, who for decades have been divided by rival promoters and fighting for titles controlled by an alphabet soup of sanctioning bodies. That effort, while not completely abandoned, had proved complicated and expensive, even for a country like Saudi Arabia, which for the past half decade has disbursed billions to become a player across some of the world’s biggest sports.

The investment in the new league will be made by Sela, a subsidiary of the Public Investment Fund. TKO — which is majority controlled by the entertainment and sports conglomerate Endeavor and embodied by Dana White, the U.F.C. empresario, a longtime friend of Mr. Trump’s — would be a managing partner. In return, TKO has been offered an equity stake and a share of the revenue, according to the people familiar with the matter, who spoke on the condition of anonymity ahead of the official announcement.

Saudi Arabia has backed some of the biggest and richest boxing bouts in history in recent years. It has played host to major title fights, most recently a face-off between Oleksandr Usyk and Tyson Fury, which ended with Mr. Usyk as the first undisputed heavyweight champion in more than a generation. Fights like that, which for years proved almost impossible to negotiate, have taken place thanks to the millions of dollars put on the table by Turki al-Sheikh, a government official with close ties to the kingdom’s crown prince, Mohammed bin Salman.

Mr. al-Sheikh, a former security guard, has become perhaps the most powerful man in boxing, seen at ringside and even inside the ring for the biggest bouts. He is also a frequent recipient of messages of thanks from some of the best-known fighters and boxing promoters, who refer to him as “His Excellency.” He pushed for a partnership with Mr. White, who over the last two decades has turned the U.F.C. from a $2 million company into one worth more than $10 billion. Talks have been taking place for more than a year in the United States, Europe and Saudi Arabia.

Mr. al-Sheikh had suggested in interviews that he was planning a new boxing venture. And he has made no secret of his frustration at the way the sport has been run, with the best fighters rarely meeting in their prime. In November, he purchased Ring Magazine — the century-old bible of the sport — and vowed to re-establish its prominence.

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Mr. al-Sheikh has also teamed up with the World Boxing Council, a sanctioning organization, to create the Boxing Grand Prix, a tournament for young boxers.

For TKO, which owns both the U.F.C. and World Wrestling Entertainment, the venture has little risk, given that the Saudis are footing the bill. “If we were to get involved in boxing, we would expect to do so in an organic way, not an M&A way,” said Mark Shapiro, TKO’s president, on an earnings call in November, referring to mergers and acquisitions.

He added, “So, i.e., we’re not writing a check.”

Should the deal be completed, TKO will earn management fees of close to $30 million a year. Saudi Arabia is expected to pay significantly more in hosting fees to the league than any other country, according to details of the plan reviewed by The New York Times. Two fights there will bring in more than $40 million in fees. Other bouts are planned for the United States and Europe, where the hosting fees will be far lower.

TKO has also been talking with other parties, including other Arab nations, about the boxing league, according to one of the people familiar with the matter.

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Endeavor, TKO’s parent company, has at times had a strained relationship with Saudi Arabia, and this potential partnership suggests that it has largely been repaired. In 2019, after the killing of the Saudi journalist Jamal Khashoggi, Endeavor returned $400 million that the Saudi sovereign wealth fund had invested in the company.

For the Saudis, getting a partner like Mr. White would come at an opportune time. He joined the board of Meta this week, and has spoken at the last three Republican National Conventions. Mr. Trump regularly hosted U.F.C. events at his properties in the organization’s early years, and he has attended many fights. Mr. Trump and Mr. al-Rumayyan are also close, with the Saudi-owned LIV golf championship holding several of its events at Mr. Trump’s courses, including one scheduled for April in Florida.

Saudi officials have described sports and entertainment as major pillars of a strategy, known as Vision 2030, to pivot their economy away from its reliance on oil exports, and as a part of efforts to liberalize society. Critics have described those efforts differently, positioning them as a way of using sports to distract the focus from Saudi Arabia’s human rights record, a tool known as sportswashing.

What TKO would get is a partnership with the biggest sports investor in the world. Saudi Arabia has invested in teams, talent and events across a wide range of sports, most recently securing rights to the 2034 men’s soccer World Cup, the most-watched event on the planet.

The U.F.C.’s U.S. media rights agreement with ESPN expires this year, as does the network’s deal with Top Rank, a top boxing promoter. TKO could try to bundle the rights to its new boxing league with the U.F.C. rights to help shore up the fledgling boxing league.

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But applying the U.F.C. playbook to boxing will be extremely difficult. Boxing is a much more heavily regulated sport than mixed martial arts, with the federal Muhammad Ali Act mandating a separation in boxing between the role of manager and promoter, and the public listing of purse figures.

Unlike U.F.C., the league would not include the most prominent boxers. And they may not think there is an upside to joining it. While the fractured nature of boxing means its earning potential isn’t maximized for promoters and managers, top boxers earn far more than top M.M.A. fighters.

In October, the U.F.C. settled an antitrust lawsuit filed by former fighters — who claimed that the company illegally suppressed fighters’ pay — for $375 million. Documents submitted as evidence in that suit showed that the U.F.C. paid less than 20 percent of its revenue to its fighters.

In boxing, those figures are reversed, with fighters combining to earn well over 50 percent of the revenue from any fight.

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Move over, Grogu. Internet culture soars as ‘Backrooms’ and ‘Obsession’ top the box office

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Move over, Grogu. Internet culture soars as ‘Backrooms’ and ‘Obsession’ top the box office

Internet culture is showing up in a big way in theaters, as low-budget horror films “Backrooms” and “Obsession” led this weekend’s box office and beat out big franchise films like “Star Wars: The Mandalorian and Grogu.”

A24’s “Backrooms” topped the charts with $81.5 million in the U.S. and Canada in its opening weekend, according to studio estimates. The film is directed by 20-year-old YouTuber Kane Parsons, who based it on his internet series of the same name.

“Backrooms,” which reportedly had a production budget of about $10 million, stars Chiwetel Ejiofor as a furniture store owner who finds a mysterious portal in his basement. The film made a total of $118 million worldwide.

In second place was Focus Features’ “Obsession,” which hauled in $26.4 million in its third weekend in theaters, up 10% from the previous weekend’s total. The film, which had a production budget of less than $1 million, has now grossed $104.7 million domestically for a global total of $148 million.

“Obsession” director Curry Barker is also known for his YouTube sketch comedy channel.

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The success of two YouTube-native filmmakers at the box office indicates the growing power of the platform — and online culture as a whole — in attracting audiences to cinemas.

Walt Disney Co. and Lucasfilm’s “The Mandalorian and Grogu” fell to third place this weekend with a domestic gross of $25 million. Lionsgate’s musical biopic “Michael” ($11.7 million) and Sony Pictures’ family comedy “The Breadwinner” ($7.5 million) rounded out the top five at the box office, according to Comscore data.

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The robot puppeteers of Silicon Valley teaching humanoids how to make your morning coffee

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The robot puppeteers of Silicon Valley teaching humanoids how to make your morning coffee

Fernando Flores can spend eight hours a day pouring the same cup of coffee.

He is not a barista. He’s a robot puppeteer, trying to train humanoids.

He manipulates mechanical arms remotely, using hand and arm sensors to make them pick up a pot of coffee, pour it into a mug and put the pot back in the coffee maker. Flores checks for spills, then empties the mug back into the pot by hand and does it again — hundreds of times.

“The repetitiveness, it can cause some discomfort,” said Flores, who has the title of senior robotic pilot at San Francisco startup Encord. “It becomes second nature after a while.”

This Sisyphus of Silicon Valley is on the front lines of a rapidly expanding industry of robot trainers, preparing to teach and operate the army of humanoid robots scheduled to march out of nearby factories in the coming year. Encord practices, records and sells data about movement to the companies racing to bring humanoids to homes, offices and factories.

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If tech companies’ optimistic plans are to be believed, a swarm of American-built robots is about to hit the market.

Tesla’s Fremont factory stopped car production this year to make way for production lines for its Optimus robots, with unbelievable plans to ramp up capacity to 1 million units a year. Palo Alto-based 1X Technologies is already manufacturing its 66-pound, 5-foot-6 humanoid named Neo at its factory in Hayward. The company received 10,000 preorders, and its first shipment is expected later this year. Figure AI’s humanoid factory in San Jose has increased its manufacturing capacity to produce one Figure 03 robot an hour, with the goal of producing 12,000 a year.

Fernando Flores demonstrates the articulation of a robot performing a whisking motion at Encord on May 21.

(Paul Kuroda / For The Times)

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Goldman Sachs projects the global market for humanoids could reach $38 billion by 2035.

The AI of these humanoid robots needs an immense amount of data on human movement. How humans write, speak, code and compose was easily scraped off the internet, but the bots need more information to master how to stand, step, lift, squeeze, pour and perform other physical movements. That is where companies like Encord come in.

The $10 billion invested in robotics in 2026, according to CB Insights, has spawned an industry focused on training robots. Initially, that meant humans strapping iPhones to their foreheads, recording actions like cooking, cleaning and performing household chores. That, however, doesn’t capture the exact torque, force and grip required for a robot hand to work flawlessly.

Now, humans are directly guiding robots through expensive rigs that let them control the robots’ movements. Data collected using robot arms offer richer insights into motor skills and object manipulation. Encord charges clients up to $1,000 per hour for training data.

The information gathered from trainers controlling robots is “super important to bridge the next level of learning,” where robots will learn to correct mistakes and do the chores on their own, said Vineeth Velmurugan, head of robotics learning at Encord.

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The company is already working with some of the top companies in robotics, but said it couldn’t share most names. Among the clients it could mention were Toyota Research Institute and Weave, which already has laundry-folding robots in a few homes.

Brian Gonzalez pulls an ethernet cable using a robotic arm at Encord

Brian Gonzalez pulls an ethernet cable using a robotic arm at startup Encord on May 20.

(Paul Kuroda / For The Times)

Many of the new robotic data companies are focusing on industrial use cases. Robots can perform better in a structured, predictable environment, like a factory or warehouse.

Home tasks are tougher, as layouts and tasks are more varied and messy. While many bots have mastered walking, they still struggle to open doors, fridges and washing machines smoothly. They don’t know where or how to grasp a doorknob, handle or door edge or how much pulling, pushing or twisting force to apply.

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Flores has mastered making the robot arms pour coffee, but he still often spills. When that happens, he deletes records of the attempt.

“Typically, we don’t want any mistakes,” he said. “If we have more than three consecutive mistakes within a 15‑second window, that’s not going to be good data.”

Inside Encord’s test facility in Hayward, it has replicated a standard American home with a fully furnished living room, kitchen and bathroom.

In the living room, a pilot rearranges an untidy study desk. She first scatters AA-size batteries, pens and scissors on the table, and walks back to the nearby control rig to make the robot arms place each one inside the tray of a desk organizer.

Depending on the day’s training, the pilots could be opening and closing refrigerator doors, whisking liquids in a bowl, sorting silverware or turning a water faucet on and off over and over until the robot arms get it right.

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Cortney Weintz, left, and Tony Schiller record data with cameras at Encord.

Cortney Weintz, left, and Tony Schiller record data with cameras at Encord.

(Paul Kuroda / For The Times)

In another corner of the facility, people wearing smart glasses place and pick up playing cards and sort plastic plates by hand, collecting first-person videos.

One key skill for the coming bot invasion: plugging in cables.

Companies want robots that can crawl into duct spaces, identify ports and plug cables to help build the massive data centers needed for AI. Encord replicated a real data center server rack, where an operator inserts blue cables into penny-sized sockets all day.

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Many companies have entered this business. Meta-backed Scale AI and Palo Alto-based Micro1 are major players in the space. China has more than 40 state-owned robot data-collection facilities where hundreds of on-site humans mimic train bots how to move in the real world.

In Watertown, Mass., Tutor Intelligence has set up a 100-robot facility dedicated to harvesting movement data. Its robot arms, which are being trained to do factory work, are controlled by a human team split across Mexico, the Philippines and Boston. This is in part to train its robot, Sonny, which will hit the market later this year.

Elaine Batchlor sorts screws and bolts with a robot in a mockup at Encord.

Elaine Batchlor sorts screws and bolts with a robot in a mockup at Encord.

(Paul Kuroda / For The Times)

“We built the Data Factory to bootstrap the initial intelligence for the Sonny robot, so that we can begin to deploy Sonny into the field,” said Josh Gruenstein, co-founder of Tutor. Ten of its remote operators are based in Boston, and the rest are international.

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Remote operation is emerging as an integral part of the humanoid robot business. Employing teleoperators in countries where wages are much lower than in the U.S. could, in theory, mean a robot controlled by a human in another country could do a task at a fraction of the cost of having an American do it.

This month, a humanoid robot cleaning service in San Francisco called Gatsby completed a robot cleaning of a U.S. home using a teleoperator in Mexico.

The technology is still evolving, said Aron Frishberg, co-founder of Gatsby, but being a first mover means Gatsby is getting more training.

“There’s obviously stuff that goes wrong,” he said. “It’s really hard to get precise hand movements or arm movements and grab something.”

Encord co-founder Ulrik Hansen said it will be setting up a teleoperations center in its Hayward facility in the next three months. Even as more robots are deployed and master increasingly sophisticated tasks, they will still need humans to occasionally take control remotely.

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“They will need some exception handling when they get things wrong,” he said.

Hundreds of teleoperators will learn where the system succeeds, where it breaks and step in when needed. Once those patterns emerge, Hansen said, they can move teleoperations to cheaper locations abroad or to the Midwest.

Back in Hayward, Flores created new coffee-pouring challenges for his robot arms. He changed what was on the counter around the coffee maker and moved the mug to different spots. It takes a lot of know-how to puppet and train a robot, he said.

“A lot of people would (guess) this might be easy, this is dumb,” Flores said. “There actually is thought here. There actually is critical thinking.”

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Struggling Carls Jr. franchisee plans to close 10 and sell 49 California locations

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Struggling Carls Jr. franchisee plans to close 10 and sell 49 California locations

A Carl’s Jr. franchisee is trying to close and sell his 59 locations in California after filing for bankruptcy protection in April.

The franchisee, Harshad Dharod, who has branches mostly in Southern California, intends to close 10 of the branches he controls and find a buyer for the remainder, according to a broker helping find buyers.

In earlier bankruptcy filings, Dharod had blamed California and Carl’s Jr. for his stores’ struggles. Dharod said a lack of support and innovation from Carl’s Jr. and an increase in labor costs from a $20 minimum wage left him unable to cover his expenses.

Dharod couldn’t be reached for comment.

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A spokesperson for Carl’s Jr. and its parent company CKE Restaurants, said they are aware of Dharod’s decision to sell.

“This situation is specific to this individual franchisee’s financial and business circumstances,” said the spokesperson. “This has no impact on the operations of any other Carl’s Jr. locations.”

National Franchise Sales will oversee the sale, which spans Southern and Northern California.

A spokesperson for the broker said it already has interest from prospective buyers. The spokesperson said that when a franchise changes owners, employees and managers usually keep their jobs.

Carl’s Jr. began in 1941 as a hot dog cart on the corner of Florence and Central in Los Angeles and grew into one of the region’s best-known burger chains. It opened its first sit-down restaurants with expanded menus in Anaheim in 1946. Its smiling yellow star was born in the 1950s and rapidly spread across California throughout the 1970s.

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Although it moved its headquarters from Carpinteria to Tennessee in the last 10 years, its menu still reflects its California origins, with items such as the Cali XL, a double cheeseburger. The chain was among the first to spot the meat-free trend and introduced plant-based burgers and the charbroiled turkey burger. In the early 2000s, it made a splash with commercials pointing to its California origins.

It has had a tough time this year remaining relevant amid new competitors and fast-food consumers who are becoming more picky about what they will pay for and eat, analysts say.

Like most restaurants, Carl’s Jr. has been struggling to attract customers at a time when many are increasingly concerned about inflation and the health of the economy. Some chains are slashing prices. Smaller chains can’t compete well in the price wars. Those without a strong brand identity and fan base have been suffering.

Dharod told the bankruptcy court that business had become particularly bad in the last two years, leaving him without sufficient access to cash to cover wages, rent, supplies and insurance. Although his outlets have generated more than $6 million in monthly revenue, they have been losing more than $600,000 per month this year.

He had to ask for special permission to use his daily cash flow to fund expenses, or risk running out of money and being forced to close his outlets.

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A small group of the close to 1,000 employees working for the franchisee say the efforts to cut costs to the bone have left them overworked, understaffed and exposed to violence.

Some say they are getting injured as they have to do the work of multiple people. Some detailed violent interactions with customers, including robberies and physical assaults, and said the company didn’t provide safety training. Some have staged multiple walkouts in recent months to bring attention to their concerns.

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