Business
Trump’s ‘Gold Card’ Set Off Panic in an Unexpected Place: Real Estate
President Trump’s plan to sell green cards for $5 million each, a program he is calling a “gold card,” has largely been met with a shrug. It’s not clear exactly how the program would work, if it’s legal or how many potential immigrants would really pay $5 million for a path to U.S. citizenship.
But in a niche area of dealmaking, alarm bells are blaring.
Howard Lutnick, the commerce secretary, said on Tuesday that the plan to effectively sell green cards would replace the EB-5 investor visa, a favorite source of funding for major real estate projects.
Massive developments — from New York’s Hudson Yards to the San Francisco Shipyard to, yes, Trump Plaza in Jersey City — have been financed in part by overseas investors applying to the EB-5 program, which grants permanent U.S. residence. Such investors are motivated by a green card, not by maximizing returns, and so for developers their capital tends to be less expensive than borrowing money from a typical commercial lender.
The real estate company owned by the family of Trump’s son-in-law, Kushner Capital, drew scrutiny for its use of EB-5 funding during the first Trump administration.
Overall, the EB-5 program does not bring in a lot of money — about $4 billion last year in the context of the $28 trillion U.S. economy — but it represents a huge profit bump for a small but powerful political contingency: major real estate developers. They are not likely to see EB-5 killed without a fight.
“Cheap capital is the crack cocaine to the real estate industry and probably every other industry,” said Matt Gordon, the C.E.O. of E3iG, which advises both foreign investment-based visa applicants and U.S. companies seeking funding.
“They and their rather large political donations are going to be very motivated.”
Some background: EB-5 visas were established in 1990 to encourage investment in rural and economically depressed areas. Foreigners who invest either $800,000 or $1.05 million, creating at least 10 jobs, are eligible. Initially, that meant directly creating 10 jobs. Now most companies meet the requirement by showing the overall economy will gain 10 jobs as a result of each investor’s funding.
All sorts of companies can seek EB-5 investment — DealBook heard about pharmacies, hospitals, day care centers and manufacturing plants that raised money through the program — but the vast majority are real estate deals.
News of Trump’s gold card plan sent this ecosystem reeling. “Naturally the whole world is panicking,” said Ishaan Khanna, the president of the American Immigrant Investor Alliance, a group that lobbies on behalf of EB-5 investors. “As India and China woke up, my phone blew up.”
“Everybody I’m hearing from is like ‘rush’ — get in as much as you can, because who knows how long” the program will last in its current form, Gordon said, “On both the sponsor side and on the immigrant side.”
Developers who qualify for the program win big savings. For example: One project Gordon is working on, a $100 million 19-story apartment building, qualifies for about $35 million of EB-5 funding. Traditional mezzanine debt financing for such a project might come with an interest rate of 10 or 12 percent, Gordon said, but the developer will pay 5 to 7 percent for EB-5 funding. “You’re really cutting, you know, 30 to 50 percent of your cost of capital, on a rather significant portion of your capital,” he added.
On top of saving money, developers say the program has been crucial during periods like the financial crisis when other funding sources become prohibitively expensive or scarce.
Unsurprisingly, the real estate industry has been one of the EB-5 program’s most ardent defenders. The National Association of Realators and the U.S. Chamber of Commerce lobbied against a bill introduced in 2017 that would have terminated the program.
Such programs aren’t unusual. Seventy countries exchange permanent residency or citizenship for investments or donations, according to Kristin Surak, an associate professor at the London School of Economics who studies so-called golden visa and passport programs worldwide. In some countries, including Malta and Cyprus, the programs represent a significant part of the economy.
Proponents point to the jobs created. Critics say the EB-5 program falls short of its goal to stimulate investment in rural and distressed urban areas. Previous iterations allowed developers to gerrymander maps so that even densely populated and highly employed districts like Hudson Yards qualified for preferable terms. A 2022 law ended that practice and added new incentives to build in rural areas.
Would selling visas work better? Lutnick said on Wednesday that EB-5 projects “were often suspect, they didn’t really work out, there wasn’t any oversight of it.” It’s true that there have been horror stories: Two investors who raised $350 million from foreign investors for a massive development in Vermont, for example, were accused in 2016 of perpetrating the biggest fraud in the state’s history.
But according to a report from the Government Accountability Office that looked at pending petitions in 2021, less than 1 percent were found to be fraudulent or posed national security risks (about 3 percent were investigated). Additional safeguards were added in the 2022 law.
The gold card may have a different problem: A dearth of applicants. Participants in the EB-5 program expect to get their $1 million investment back at some point, whereas Trump’s plan requires a $5 million donation that isn’t returned.
The EB-5 program drew about 7,000 investments between April 1, 2022 to July 31, 2024, according to data compiled by the American Immigrant Investor Alliance. Even if the gold card comes with a tax benefit, why would a substantially larger group of foreigners — Trump said “maybe a million” — be willing to pay the much higher cost?
Many in the industry see Trump’s plan as unworkable. Trump would need congressional approval both to abolish a visa program that was created by law and to allocate visas for a new one. “This is unpredictable,” Khanna said. “No one truly knows where this is going.”
More than Trump’s recent announcement, which lacked specifics, many of the big players in the ecosystem — including the companies that put together the funds, the developers and the lawyers — are focused on what will happen in 2027, when the EB-5 program expires and needs to be renewed by Congress.
They’re betting on compromise. The players in such investments are hoping the gold card becomes an addition rather than a replacement.
The idea may already be breaking through: By Wednesday, Lutnick had changed how he described the gold card plan, saying it would “modify” the EB-5 program, but it was unclear what specifically would change.
— Sarah Kessler
In Case You Missed It
President Trump’s meeting with President Zelensky of Ukraine turned into an explosive shouting match on live television, a moment unlike anything we’ve ever seen at the White House. At an Oval Office appearance Friday the Ukrainian president met with Trump to sign a mineral rights deal, when Trump accused Zelensky of being ungrateful and “gambling with World War III.” Zelensky had questioned whether Trump would be able to get President Putin of Russia to honor a peace agreement without security guarantees, saying the Russian leader had broken cease-fire accords in the past. Vice President Vance, sitting on a nearby couch, chastised Zelensky for not showing more appreciation for Trump’s efforts. The U.S. president then issued an ultimatum: “You’re either going to make a deal or we’re out.” The fiery exchange (here’s the video) revealed Trump’s nakedly combative approach to dealmaking. Zelensky left without signing the mineral agreement. Elon Musk, whose Starlink satellite internet service has been vital to Ukraine’s military defenses, seemed to praise Trump on X after the exchange.
Shari Redstone urged her board to find a resolution with President Trump. Redstone, who is trying to sell Paramount, her family business, to David Ellison’s Skydance, directed her board to find a way to resolve Trump’s lawsuit against the company’s CBS News division, DealBook was first to report. The president sued the company last year for $20 billion, accusing the network of deceptively editing an interview with Vice President Kamala Harris to cast her in a more favorable light. Even though legal experts say Trump has a weak case, some Paramount executives feel a settlement would smooth the way with the Trump administration toward greenlighting the company’s Skydance merger.
Apple’s Tim Cook gave a lesson in the art of dealmaking with President Trump. The Apple leader drew praise from Trump for his commitment to invest $500 billion in the United States and create 20,000 more jobs over the next four years. The stakes are high for Apple because its iPhones are primarily made in China, which faces an additional 10 percent tariff on exports. But Cook appeared to take a page out of his playbook from Trump’s first term, when he pledged more U.S. investment and won tariff exemptions. By the way, that $500 billion commitment was probably already earmarked. Expect similarly framed corporate announcements to follow.
The S.E.C. said memecoins aren’t like stocks and bonds. That means you and I can trade them at our own risk and the novelty crypto tokens — including those tied to President Trump and the first lady, Melania Trump — won’t be subject to regulatory oversight. Trump, whose presidential campaign was backed by top crypto executives, has promised less regulation for the industry. Even so, the price of Bitcoin has plunged in recent days, stoking concern about crypto volatility.
Weighing a return to Russia
President Trump and President Putin of Russia marked the third anniversary of the Kremlin’s full-scale invasion of Ukraine this week with a similar message: Russia will soon be open for business. Never mind that Russia and the United States remain far apart on the fundamental terms of a peace negotiation, or that Russia is under heavy sanctions by Western countries, or that uncertainty over the region’s future has only grown after yesterday’s Oval Office blow-up.
DealBook spoke with Charles Hecker, a former reporter for The Moscow Times and a geopolitical risk consultant who for decades advised Western companies on expanding their business in Russia, about the prospect of business leaders taking Trump and Putin up on the pitch. (A reminder: most, but hardly all, Western companies left Russia shortly after war in Ukraine broke out.)
Hecker is the author of the book “Zero Sum: The Arc of International Business in Russia,” which is set for publication in the United States next week. This interview has been edited for brevity.
The assumption is that Western, and especially American companies, will not return to Russia any time soon. How do you see it playing out?
Inside a number of companies, conversations are already taking place about whether and how to go back to Russia. And those conversations probably preceded this flurry of diplomatic activity between Moscow and Washington. There are also companies that have decided already, resolutely, that they are not going back. What this speaks to is risk appetite. There are clearly companies that have cast iron stomachs and bottomless appetites for risk. Those are the companies that are probably considering going back to Russia most actively.
Who might they be?
These are companies in the energy sector, and more broadly, in the natural resources sector. These are companies that are thoroughly accustomed to doing business in very-high-risk jurisdictions.
For companies with a higher appetite for risk, what kind of negotiated resolutions between the West and Russia would they view as a kind of all-clear?
One of the red lines is sanctions. If part of the resolution of the war on Ukraine is sanctions relief, then there will be companies that see that, essentially, as a signal to go back.
What kind of Russia is waiting for them?
Over the past three years there have been some changes that have taken place that will be very, very difficult to reverse. We all know of the famous headline-grabbing nationalizations and reallocations that took place, like Danone and Carlsberg — really high profile expropriations. There is a new business elite in Russia that is one level below the individuals who have been sanctioned who serve largely at the pleasure of the Kremlin. This new business elite has possession of a great number of very shiny new toys that were previously Western companies. It’s a valid question to ask about whether these new owners are going to want to give their shiny new toys back. And if they do, whether under political pressure or otherwise, what would the cost be?
Thanks for reading! We’ll see you Monday.
We’d like your feedback. Please email thoughts and suggestions to dealbook@nytimes.com.
Business
Podcast industry is divided as AI bots flood the airways with thousands of programs
Chatty bots are sharing their hot takes through hundreds of thousands of AI-generated podcasts. And the invasion has just begun.
Though their banter can be a bit banal, the AI podcasters’ confidence and research are now arguably better than most people’s.
“We’ve just begun to cross the threshold of voice AI being pretty much indistinguishable from human,” said Alan Cowen, chief executive of Hume AI, a startup specializing in voice technology. “We’re seeing creators use it in all kinds of ways.”
AI can make podcasts sound better and cost less, industry insiders say, but the growing swarm of new competitors entering an already crowded market is disrupting the industry.
Some podcasters are pushing back, requesting restrictions. Others are already cloning their voices and handing over their podcasts to AI bots.
Popular podcast host Steven Bartlett has used an AI clone to launch a new kind of content aimed at the 13 million followers of his podcast “Diary of a CEO.” On YouTube, his clone narrates “100 CEOs With Steven Bartlett,” which adds AI-generated animation to Bartlett’s cloned voice to tell the life stories of entrepreneurs such as Steve Jobs and Richard Branson.
Erica Mandy, the Redondo Beach-based host of the daily news podcast called “The Newsworthy,” let an AI voice fill in for her earlier this year after she lost her voice from laryngitis and her backup host bailed out.
She fed her script into a text-to-speech model and selected a female AI voice from ElevenLabs to speak for her.
“I still recorded the show with my very hoarse voice, but then put the AI voice over that, telling the audience from the very beginning, I’m sick,” Mandy said.
Mandy had previously used ElevenLabs for its voice isolation feature, which uses AI to remove ambient noise from interviews.
Her chatbot host elicited mixed responses from listeners. Some asked if she was OK. One fan said she should never do it again. Most weren’t sure what to think.
“A lot of people were like, ‘That was weird,’” Mandy said.
In podcasting, many listeners feel strong bonds to hosts they listen to regularly. The slow encroachment of AI voices for one-off episodes, canned ad reads, sentence replacement in postproduction or translation into multiple languages has sparked anger as well as curiosity from both creators and consumers of the content.
Augmenting or replacing host reads with AI is perceived by many as a breach of trust and as trivializing the human connection listeners have with hosts, said Megan Lazovick, vice president of Edison Research, a podcast research company.
Jason Saldanha of PRX, a podcast network that represents human creators such as Ezra Klein, said the tsunami of AI podcasts won’t attract premium ad rates.
“Adding more podcasts in a tyranny of choice environment is not great,” he said. “I’m not interested in devaluing premium.”
Still, platforms such as YouTube and Spotify have introduced features for creators to clone their voice and translate their content into multiple languages to increase reach and revenue. A new generation of voice cloning companies, many with operations in California, offers better emotion, tone, pacing and overall voice quality.
Hume AI, which is based in New York but has a big research team in California, raised $50 million last year and has tens of thousands of creators using its software to generate audiobooks, podcasts, films, voice-overs for videos and dialogue generation in video games.
“We focus our platform on being able to edit content so that you can take in postproduction an existing podcast and regenerate a sentence in the same voice, with the same prosody or emotional intonation using instant cloning,” said company CEO Cowen.
Some are using the tech to carpet-bomb the market with content.
Los Angeles podcasting studio Inception Point AI has produced its 200,000 podcast episodes, accounting for 1% of all podcasts published on the internet, according to CEO Jeanine Wright.
The podcasts are so cheap to make that they can focus on tiny topics, like local weather, small sports teams, gardening and other niche subjects.
Instead of a studio searching for a specific “hit” podcast idea, it takes just $1 to produce an episode so that they can be profitable with just 25 people listening.
“That means most of the stuff that we make, we have really an unlimited amount of experimentation and creative freedom for what we want to do,” Wright said.
One of its popular synthetic hosts is Vivian Steele, an AI celebrity gossip columnist with a sassy voice and a sharp tongue. “I am indeed AI-powered — which means I’ve got receipts older than your grandmother’s jewelry box, and a memory sharper than a stiletto heel on marble. No forgetting, no forgiving, and definitely no filter,” the AI discloses itself at the start of the podcast.
“We’ve kind of molded her more towards what the audience wants,” said Katie Brown, chief content officer at Inception Point, who helps design the personalities of the AI podcasters.
Inception Point has built a roster of more than 100 AI personalities whose characteristics, voices and likenesses are crafted for podcast audiences. Its AI hosts include Clare Delish, a cooking guidance expert, and garden enthusiast Nigel Thistledown.
The technology also makes it easy to get podcasts up quickly. Inception has found some success with flash biographies posted promptly in connection to people in the news. It uses AI software to spot a trending personality and create two episodes, complete with promo art and a trailer.
When Charlie Kirk was shot, its AI immediately created two shows called “Charlie Kirk Death” and “Charlie Kirk Manhunt” as a part of the biography series.
“We were able to create all of that content, each with different angles, pulling from different news sources, and we were able to get that content up within an hour,” Wright said.
Speed is key when it comes to breaking news, so its AI podcasts reached the top of some charts.
“Our content was coming up, really dominating the list of what people were searching for,” she said.
Across Apple and Spotify, Inception Point podcasts have now garnered 400,000 subscribers.
Business
L.A. County sues oil companies over unplugged oil wells in Inglewood
Los Angeles County is suing four oil and gas companies for allegedly failing to plug idle oil wells in the large Inglewood Oil Field near Baldwin Hills.
The lawsuit filed Wednesday in Los Angeles Superior Court charges Sentinel Peak Resources California, Freeport-McMoran Oil & Gas, Plains Resources and Chevron U.S.A. with failing to properly clean up at least 227 idle and exhausted wells in the oil field. The wells “continue to leak toxic pollutants into the air, land, and water and present unacceptable dangers to human health, safety, and the environment,” the complaint says.
The lawsuit aims to force the operators to address dangers posed by the unplugged wells. More than a million people live within five miles of the Inglewood oil field.
“We are making it clear to these oil companies that Los Angeles County is done waiting and that we remain unwavering in our commitment to protect residents from the harmful impacts of oil drilling,” said Supervisor Holly Mitchell, whose district includes the oil field, in a statement. “Plugging idle oil and gas wells — so they no longer emit toxins into communities that have been on the front lines of environmental injustice for generations — is not only the right thing to do, it’s the law.”
Sentinel is the oil field’s current operator, while Freeport-McMoran Oil & Gas, Plains Resources and Chevron U.S.A. were past operators. Energy companies often temporarily stop pumping from a well and leave it idle waiting for market conditions to improve.
In a statement, a representative for Sentinel Peak said the company is aware of the lawsuit and that the “claims are entirely without merit.”
“This suit appears to be an attempt to generate sensationalized publicity rather than adjudicate a legitimate legal matter,” general counsel Erin Gleaton said in an email. “We have full confidence in our position, supported by the facts and our record of regulatory compliance.”
Chevron said it does not comment on pending legal matters. The others did not immediately respond to a request for comment.
State regulations define “idle wells” as wells that have not produced oil or natural gas for 24 consecutive months, and “exhausted wells” as those that yield an average daily production of two barrels of oil or less. California is home to thousands of such wells, according to the California Department of Conservation.
Idle and exhausted wells can continue to emit hazardous air pollutants such as benzene, as well as a methane, a planet-warming greenhouse gas. Unplugged wells can also leak oil, benzene, chloride, heavy metals and arsenic into groundwater.
Plugging idle and exhausted wells includes removing surface valves and piping, pumping large amounts of cement down the hole and reclaiming the surrounding ground. The process can be expensive, averaging an estimated $923,200 per well in Los Angeles County, according to the California Geologic Energy Management Division, which notes that the costs could fall to taxpayers if the defendants do not take action. This 2023 estimate from CalGEM is about three times higher than other parts of the state due to the complexity of sealing wells and remediating the surface in densely populated urban areas.
The suit seeks a court order requiring the wells to be properly plugged, as well as abatement for the harms caused by their pollution. It seeks civil penalties of up to $2,500 per day for each well that is in violation of the law.
Residents living near oil fields have long reported adverse health impacts such as respiratory, reproductive and cardiovascular issues. In Los Angeles, many of these risks disproportionately affect low-income communities and communities of color.
“The goal of this lawsuit is to force these oil companies to clean up their mess and stop business practices that disproportionately impact people of color living near these oil wells,” County Counsel Dawyn Harrison said in a statement. “My office is determined to achieve environmental justice for communities impacted by these oil wells and to prevent taxpayers from being stuck with a huge cleanup bill.”
The lawsuit is part of L.A. County’s larger effort to phase out oil drilling, including a high-profile ordinance that sought to ban new oil wells and even require existing ones to stop production within 20 years. Oil companies successfully challenged it and it was blocked in 2024.
Rita Kampalath, the county’s chief sustainability officer, said the county remains “dedicated to moving toward a fossil fuel-free L.A. County.”
“This lawsuit demonstrates the County’s commitment to realizing our sustainability goals by addressing the impacts of the fossil fuel industry on front line communities and the environment,” Kampalath said.
Business
Instacart is charging different prices to different customers in a dangerous AI experiment, report says
The grocery delivery service Instacart is using artificial intelligence to experiment with prices and charge some shoppers more than others for the same items, a new study found.
The study from nonprofits Groundwork Collaborative and Consumer Reports followed more than 400 shoppers in four cities and found that Instacart sometimes offered as many as five different sales prices for the exact same item, at the same store and on the same day.
The average difference between the highest price and lowest price on the same item was 13%, but some participants in the study saw prices that were 23% higher than those offered to other shoppers.
The varying prices are unfair to consumers and exacerbate a grocery affordability crisis that regular Americans are already struggling to cope with, said Lindsey Owens, executive director of Groundwork Collaborative.
“In my own view, Instacart should close the lab,” Owens said. “American grocery shoppers aren’t guinea pigs, and they should be able to expect a fair price when they’re shopping.”
The study found that an individual shopper on Instacart could theoretically spend as much as $1,200 more on groceries in one year if they had to deal with the kind of price differences observed in the pricing experiments.
At a Safeway supermarket in Washington, D.C., a dozen Lucerne eggs sold for $3.99, $4.28, $4.59, $4.69, and $4.79 on Instacart, depending on the shopper, the study showed.
At a Safeway in Seattle, a box of 10 Clif Chocolate Chip Energy bars sold for $19.43, $19.99, and $21.99 on Instacart.
Instacart likely began experimenting with prices in 2022, when the platform acquired the artificial intelligence company Eversight. Instacart now advertises Eversight’s pricing software to its retail partners, claiming that the price experimentation is negligible to consumers but could increase store revenue by up to 3%.
“These limited, short-term, and randomized tests help retail partners learn what matters most to consumers and how to keep essential items affordable,” an Instacart spokesperson said in a statement to The Times. “The tests are never based on personal or behavioral characteristics.”
Instacart said the price changes are not the result of dynamic pricing, like that used for airline tickets and ride-hailing, because the prices never change in real time.
But the Groundwork Collaborative study found that nearly three-quarters of grocery items bought at the same time and from the same store had varying price tags.
The artificial intelligence software helps Instacart and grocers “determine exactly how much you’re willing to pay, adding up to a lot more profits for them and a much higher annual grocery bill for you,” Owens said.
The study focused on 437 shoppers in-store and online in North Canton, Ohio; Saint Paul, Minn.; Washington, D.C., and Seattle.
Instacart shares were down more than 5% in midday trading on Wednesday and have risen 1% this year.
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