Connect with us

News

Elon Musk and Marco Rubio Share Awkward Social Media Embrace After White House Confrontation

Published

on

Elon Musk and Marco Rubio Share Awkward Social Media Embrace After White House Confrontation

Secretary of State Marco Rubio and Elon Musk, the tech billionaire deputized by President Trump to slash federal spending, sought to smooth over their ugly confrontation in the White House last week with an awkward social media embrace on Monday, as Mr. Rubio formalized deep cuts to foreign aid that Mr. Musk had demanded.

Mr. Rubio and Mr. Musk clashed during a meeting in the Cabinet Room of the White House last Thursday, in which the world’s richest man jeered the secretary of state for failing to make more sweeping staffing cuts to the agencies under his purview. In the same meeting, Mr. Rubio bristled at how Mr. Musk had undercut his leadership to flatten the U.S. Agency for International Development, the government’s lead agency for distributing foreign aid.

On Monday, Mr. Rubio thanked Mr. Musk’s team at the Department of Government Efficiency for aiding in making the drastic cuts he had resisted, and announced that the agency’s remaining work would be subsumed under the State Department.

Mr. Rubio wrote on his personal account on X, the social media platform owned by Mr. Musk, that 83 percent of U.S.A.I.D.’s programs were being cut. “The 5200 contracts that are now cancelled spent tens of billions of dollars in ways that did not serve, (and in some cases even harmed), the core national interests of the United States,” he added.

Mr. Musk replied: “Tough, but necessary. Good working with you.”

Advertisement

During the meeting last week, Mr. Trump defended Mr. Rubio for doing a “great job” and decreed that Mr. Musk’s team would be merely advising Cabinet secretaries about future cuts. But Mr. Rubio’s apparent embrace of Mr. Musk’s objectives revealed the extent to which the billionaire Trump supporter wields power in the administration.

Mr. Rubio’s announcement appeared to be the official culmination of the process of culling foreign aid that had been underway for weeks, as Mr. Musk led the charge to greatly reduce the footprint of U.S.A.I.D., which manages about $42.5 billion in global assistance programs that represent less than 1 percent of the annual federal budget. The moves, which included canceling contracts, turning off payment systems, and laying off or forcing the vast majority of staff onto administrative leave, crippled the agency and left the global humanitarian aid industry that relied on the agency’s funding in limbo.

Mr. Trump had announced in an executive order on the first day of his presidency that he was instituting a 90-day pause on foreign aid, pending a review, to bring the United States’ foreign aid programs in line with his administration’s interests. But the cuts to U.S.A.I.D. prompted a series of lawsuits from the unions representing agency staff members and the organizations that were stiffed by the cuts.

One of those cases rose to the Supreme Court, which ruled last week that the administration had to comply with a lower court’s ruling to release the frozen funds — even though the Supreme Court did not specify exactly how much of the nearly $2 billion in contracts in question had to be restored.

The plaintiffs in several lawsuits, as well as other critics of the Trump administration’s maneuvers, have derided the moves as illegal, arguing that the law that created U.S.A.I.D. means that only Congress can significantly reduce its budget.

Advertisement

They have also argued that the cuts are shortsighted, and will lead to widespread human suffering and ultimately hurt U.S. national security.

Among the affected projects are those that deal with food security and famine warnings, agricultural efficiency, women’s health, L.G.B.T.Q. communities, and civil society and energy in war-torn Ukraine, according to a list of the canceled contracts shared with members of Congress last week, copies of which were obtained by The New York Times.

In recent days, some health-related groups — many of which help distribute H.I.V. medication — have had their funding restored.

The Trump administration has said in court filings that its review of programs was complete, but several organizations recently received questionnaires asking them to justify how their contracts lined up with U.S. interests. Deadlines for responding were as late as March 17.

Robert Jimison and Stephanie Nolen contributed reporting.

Advertisement

News

Amazon accused of listing products from independent shops without permission

Published

on

Amazon accused of listing products from independent shops without permission

Unlock the Editor’s Digest for free

Amazon has been accused of listing products from independent retailers without their consent, even as the ecommerce giant sues start-up Perplexity over its AI software shopping without permission.

The $2.5tn online retailer has listed some independent shops’ full inventory on its platform without seeking permission, four business owners told the Financial Times, enabling customers to shop through Amazon rather than buy directly.

Two independent retailers told the FT that they had also received orders for products that were either out of stock or were mispriced and mislabelled by Amazon leading to customer complaints.

Advertisement

“Nobody opted into this,” said Angie Chua, owner of Bobo Design Studio, a stationery store based in Los Angeles.

Tech companies are experimenting with artificial intelligence “agents” that can perform tasks like shopping autonomously based on user instructions.

Amazon has blocked agents from Anthropic, Google, OpenAI and a host of other AI start-ups from its website.

It filed a lawsuit in November against Perplexity, whose Comet browser was making purchases on Amazon on behalf of users, alleging that the company’s actions risked undermining user privacy and violated its terms of service.

In its complaint, Amazon said Perplexity had taken steps “without prior notice to Amazon and without authorisation” and that it degraded a customer shopping experience it had invested in over several decades.

Advertisement

Perplexity in a statement at the time said that the lawsuit was a “bully tactic” aimed at scaring “disruptive companies like Perplexity” from improving customers’ experience.

The recent complaints against Amazon relate to its “Buy for Me” function, launched last April, which lets some customers purchase items that are not listed with Amazon but on other retailers’ sites.

Retailers said Amazon did not seek their permission before sending them orders that were placed on the ecommerce site. They do not receive the user’s email address or other information that might be helpful for generating future sales, several sellers told the FT.

“We consciously avoid Amazon because our business is rooted in community and building a relationship with customers,” Chua said. “I don’t know who these customers are.”

Several of the independent retailers said Amazon’s move had led to poor experiences for customers, or hurt their business.

Advertisement

Sarah Hitchcock Burzio, the owner of Hitchcock Paper Co. in Virginia, said that Amazon had mislabelled items leading to a surge in orders as customers believed they were receiving more expensive versions of a product at a much lower price.

“There were no guardrails set up so when there were issues there was nobody I could go to,” she said.

Product returns and complaints for the “Buy for Me” function are handled by sellers rather than Amazon, even when errors are produced by the Seattle-based group.

Amazon enables sellers to opt out of the service by contacting the company on a specific email address.

Amazon said: “Shop Direct and Buy for Me are programmes we’re testing that help customers discover brands and products not currently sold in Amazon’s store, while helping businesses reach new customers and drive incremental sales.

Advertisement

“We have received positive feedback on these programmes. Businesses can opt out at any time.”

Continue Reading

News

Trump says Venezuela will turn over 30 million to 50 million barrels of oil to US | CNN Business

Published

on

Trump says Venezuela will turn over 30 million to 50 million barrels of oil to US | CNN Business

President Donald Trump said Tuesday night that Venezuela will turn over 30 million to 50 million barrels of oil to the United States, to be sold at market value and with the proceeds controlled by the US.

Interim authorities in Venezuela will turn over “sanctioned oil” Trump said on Truth Social.

The US will use the proceeds “to benefit the people of Venezuela and the United States!” he wrote.

Energy Secretary Chris Wright has been directed to “execute this plan, immediately,” and the barrels “will be taken by storage ships, and brought directly to unloading docks in the United States.”

CNN has reached out to the White House for more information.

Advertisement

A senior administration official, speaking under condition of anonymity, told CNN that the oil has already been produced and put in barrels. The majority of it is currently on boats and will now go to US facilities in the Gulf to be refined.

Although 30 to 50 million barrels of oil sounds like a lot, the United States consumed just over 20 million barrels of oil per day over the past month.

That amount may lower oil prices a bit, but it probably won’t lower Americans’ gas prices that much: Former President Joe Biden released about four to six times as much — 180 million barrels of oil — from the US Strategic Petroleum Reserve in 2022, which lowered gas prices by only between 13 cents and 31 cents a gallon over the course of four months, according to a Treasury Department analysis.

US oil fell about $1 a barrel, or just under 2%, to $56, immediately after Trump made his announcement on Truth Social.

Selling up to 50 million barrels could raise quite a bit of revenue: Venezuelan oil is currently trading at $55 per barrel, so if the United States can find buyers willing to pay market price, it could raise between $1.65 billion and $2.75 billion from the sale.

Advertisement

Venezuela has built up significant stockpiles of crude over since the United States began its oil embargo late last year. But handing over that much oil to the United States may deplete Venezuela’s own oil reserves.

The oil is almost certainly coming from both its onshore storage and some of the seized tankers that were transporting oil: The country has about 48 million barrels of storage capacity and was nearly full, according to Phil Flynn, senior market analyst at the Price Futures Group. The tankers were transporting about 15 million to 22 million barrels of oil, according to industry estimates.

It’s unclear over what time period Venezuela will hand over the oil to the United States.

The senior administration official said the transfer would happen quickly because Venezuela’s crude is very heavy, which means it can’t be stored for long.

But crude does not go bad if it is not refined in a certain amount of time, said Andrew Lipow, the president of Lipow Oil Associates, in a note. “It has sat underground for hundreds of millions of years. In fact, much of the oil in the Strategic Petroleum Reserve has been around for decades,” he wrote.

Advertisement
Continue Reading

News

Video: Nvidia Shows Off New A.I. Chip at CES

Published

on

Video: Nvidia Shows Off New A.I. Chip at CES

new video loaded: Nvidia Shows Off New A.I. Chip at CES

transcript

transcript

Nvidia Shows Off New A.I. Chip at CES

At the annual tech conference, CES, Nvidia showed off a new A.I. chip, known as Vera Rubin, which is more efficient and powerful than previous generations of chips.

This is the Vera CPU. This is one CPU. This is groundbreaking work. I would not be surprised if the industry would like us to make this format and this structure an industry standard in the future. Today, we’re announcing Alpamayo, the world’s first thinking, reasoning autonomous vehicle A.I.

Advertisement
At the annual tech conference, CES, Nvidia showed off a new A.I. chip, known as Vera Rubin, which is more efficient and powerful than previous generations of chips.

By Jiawei Wang

January 6, 2026

Continue Reading
Advertisement

Trending