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Microsoft walks away from some CoreWeave commitments ahead of $35bn IPO

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Microsoft walks away from some CoreWeave commitments ahead of bn IPO

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Microsoft has walked away from some of its commitments with cloud computing provider CoreWeave in a significant blow to a company seeking to launch a blockbuster $35bn initial public offering next month.

CoreWeave provides Microsoft with computing capacity from data centres, which the tech giant uses to scale up powerful AI models such as OpenAI’s ChatGPT. The partnership is worth billions of dollars to CoreWeave.

However, Microsoft has withdrawn from some of its agreements over delivery issues and missed deadlines, according to people with knowledge of the matter.

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While those people declined to discuss specific details about the abandoned services, one of them said the issues had an impact on Microsoft’s confidence in CoreWeave. They added that Microsoft retained a number of ongoing contracts with CoreWeave and it remained an important partner.

A shift in the relationship would be major hit to the New Jersey-based company, as Microsoft is its biggest customer by far. Earlier this week, CoreWeave filed for a New York IPO seeking to raise $4bn and expected to value the group at more than $35bn, in what could be the biggest stock market debut for a tech company this year.

In its IPO filings, CoreWeave warned that “any negative changes in demand from Microsoft, in Microsoft’s ability or willingness to perform under its contracts with us, in laws or regulations applicable to Microsoft or the regions in which it operates, or in our broader strategic relationship with Microsoft would adversely affect our business, operating results, financial condition, and future prospects.”

Microsoft has agreed to spend more than $10bn on CoreWeave services by 2030 under five contracts between the two companies. Deals with Microsoft represented 62 per cent of CoreWeave’s total revenues last year, according to public disclosures.

A former cryptocurrency mining operation, CoreWeave pivoted to providing cloud computing services for technology companies to build and train AI models using Nvidia’s high-performing graphics processing units (GPUs).

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The group has amassed more than 250,000 of Nvidia’s AI GPUs, making it among the chipmaker’s biggest customers. Nvidia is also an investor in CoreWeave, owning more than 5 per cent of the company.

CoreWeave said it “has a consistent track record of delivering complex AI infrastructure at scale to some of the world’s leading AI labs and enterprises. Doing so has allowed us to earn and maintain the confidence of our customers.”

Microsoft and Nvidia declined to comment.

As part of its IPO filings, CoreWeave also pointed to the risk of “asymmetry” and “delays” in its supply chain related to its concentrated exposure to Nvidia, which supplies all of its chips.

The company said it had reduced control over costs and delays in its supply chain “such as the recent delays associated with Nvidia’s Blackwell GPUs”. In October, Nvidia chief Jensen Huang admitted that its new Blackwell chips had “design flaws” which had led to delays in shipping to customers.

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Public filings as part of the IPO process show that CoreWeave has grown rapidly while accumulating large amounts of debt. It made $1.9bn of revenue in 2024, up from $229mn a year earlier and $16mn in 2022. However, the company also posted net losses of $863mn in 2024, $594mn in 2023 and $31mn in 2022.

CoreWeave has raised $14.5bn in debt and equity across 12 financings, including about $11bn of loans. It has become the pioneer of a flurry of asset-backed lending by Wall Street to technology companies with large volumes of AI chips.

Its largest investors are private equity firm Blackstone, which has loaned it about $5bn, hedge fund Magnetar Capital, which owns about 20 per cent of the company, and Fidelity, which manages funds that own about 8 per cent.

CoreWeave was founded under the name Atlantic Crypto by commodities traders Mike Intrator, Brian Venturo and Brannin McBee to mine the cryptocurrency ethereum, before pivoting to AI in 2019.

The three founders have each sold at least $150mn worth of their stock in the company since December 2023, according to the IPO filings. CoreWeave’s 10 directors and executives, including the three co-founders, collectively own about 30 per cent of the company but have more than 80 per cent of the voting rights.

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Industry observers have said Microsoft’s data centre strategy has shifted this year after it ended an exclusivity deal with OpenAI on leasing its computing power.

TD Cowen analysts published a note last month saying Microsoft had withdrawn from two data centre leasing agreements, citing inquiries with supply chain providers.

In response to the Cowen report, Microsoft said its infrastructure spending plans remained on track. But Microsoft chief executive Satya Nadella said in a recent interview that there had been an “overbuild” of AI infrastructure.

Microsoft’s decision to walk away from some business with CoreWeave is unrelated to a broader shift in its own data centre plans, according to one of the people close to the matter. In January, the company said it would spend roughly $80bn in this fiscal year ending on June 30, seeking to build out the infrastructure necessary to train AI models and deploy applications.

On Wednesday, CoreWeave announced it had reached an agreement to acquire Weights and Biases, an AI developer platform start-up valued at $1.25bn in 2023.

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Video: Investigators Say Doorbell Camera Was Disconnected Before Nancy Guthrie’s Kidnapping

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Video: Investigators Say Doorbell Camera Was Disconnected Before Nancy Guthrie’s Kidnapping

new video loaded: Investigators Say Doorbell Camera Was Disconnected Before Nancy Guthrie’s Kidnapping

More details and a timeline were released on the kidnapping of Nancy Guthrie, the mother of the NBC anchor Savannah Guthrie.

By McKinnon de Kuyper

February 5, 2026

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Republicans pan Democrats’ demands for ICE reform in DHS funding, with little time to reach deal

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Republicans pan Democrats’ demands for ICE reform in DHS funding, with little time to reach deal

Washington — Senate Republicans criticized Democrats’ list of demands to rein in Immigration and Customs Enforcement on Thursday, further reducing the odds of reaching a deal to keep the Department of Homeland Security funded beyond next week’s deadline.

“As of right now, we aren’t anywhere close to having any sort of an agreement that would enable us to fund the Department of Homeland Security,” Senate Majority Leader John Thune said on the Senate floor Thursday.

Senate Minority Leader Chuck Schumer and House Minority Leader Hakeem Jeffries released a list of policies to impose “guardrails” on DHS on Wednesday night, including by restricting immigration agents from wearing masks and requiring them to display an ID and use body cameras. The Democrats also demanded agents be banned from entering private property without judicial warrants, along with requiring agents to verify that someone is not a U.S. citizen before holding them in immigration detention, among other things.

“The American people rightfully expect their elected representatives to take action to rein in ICE and ensure no more lives are lost. It is critical that we come together to impose common sense reforms and accountability measures that the American people are demanding,” Schumer and Jeffries wrote. 

The Democrats also said there are steps the administration can take immediately to “show good faith,” including removing DHS Secretary Kristi Noem from her position and fully ramping down the immigration operation in Minneapolis. 

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Thune, a South Dakota Republican, called Democrats’ demands “unrealistic and unserious,” while saying they aren’t “even willing to engage in a negotiation and discussion to try and reach a result.”

“This is not a blank-check situation where Republicans just agree to a list of Democrat demands,” Thune said. 

Senate Majority Leader John Thune of South Dakota at the Capitol in Washington, D.C., on Feb. 5, 2026.

Anna Moneymaker / Getty Images

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Off the Senate floor, Thune told reporters that there are a number of things on Democrats’ list of demands that appear to be designed as “messaging” priorities, but he acknowledged that “there’s some room there.”

“There’s some things that could get done,” Thune said. “But, you know, you have to have people at the table to do that.”

Sen. Katie Britt of Alabama, who’s leading the negotiations for Senate Republicans, quickly responded to Democrats’ demands on X Wednesday night. She called the proposal a “ridiculous Christmas list of demands for the press.”

“This is NOT negotiating in good faith, and it’s NOT what the American people want,” Britt said. “They continue to play politics to their radical base at the expense of the safety of Americans. DHS, FEMA, Secret Service, and the Coast Guard run out of money in 9 days. Democrats don’t seem to care one bit.”

Earlier in the day Wednesday, Schumer and Jeffries held a news conference where they outlined some of the demands. They encouraged Republicans to “get serious” about negotiations on reforming the nation’s immigration enforcement operation. 

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“This is turning America inside out in a way we haven’t seen in a very long time,” Schumer said. 

The back and forth comes after the House voted to fund the bulk of the government earlier this week, following a four-day partial shutdown. The package extended funding for the Department of Homeland Security, which oversees ICE and Customs and Border Protection, through Feb. 13. The move was meant to give lawmakers time to negotiate long-term funding and reforms to ICE and CBP. 

Thune pointed to the tight timeline Thursday. He noted that Democrats insisted that DHS only be funded for two weeks. 

“We have one week and one day left to pass the Department of Homeland Security appropriations bill,” Thune said. “The onus is on Democrats to negotiate in good faith and reach an agreement quickly.”

Thune argued that Democrats have “reopened” negotiations, which means “taking up ideas and priorities from both sides.” He pointed to the need for a “serious discussion” about the “climate of harassment — and worse — that law enforcement has been facing, simply trying to do their jobs.” 

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He said the issue of cooperation between federal and local law enforcement must also be discussed, saying “too many jurisdictions prohibit local law enforcement from cooperating with Immigration and Customs Enforcement,” in an apparent nod to so-called sanctuary city policies that Republicans have widely opposed. 

“I hope my Democrat colleagues are ready to have some conversations with the White House about these and other issues,” Thune said. 

The majority leader argued that “the White House has demonstrated that it’s taking things seriously,” pointing to a recent move to require all agents in Minneapolis to wear body cameras and the administration’s move to withdraw some personnel from the city.

“I want to see my Democrat colleagues take things seriously as well,” he added.

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The Long Goodbye: A California Couple Self-Deports to Mexico

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The Long Goodbye: A California Couple Self-Deports to Mexico

Enrique Castillejos and his wife stopped at a Winchell’s Donut House. It was part of their after-church routine on Friday nights.

That evening’s sermon had been about finding peace in God in turbulent times, and they felt it spoke directly to them. Enrique, 63, and his wife, Maria Elena Hernandez, 55, were undocumented immigrants. Like millions of others in Southern California, they had been looking over their shoulders as federal agents conducted immigration sweeps.

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Freedom, they felt, had become impossible in the land of the free. They had made a decision: Leave America and move back to Mexico.

The process has the sterile, bureaucratic name of self-deportation. For Enrique and Maria Elena, it resembled a long, slow-motion goodbye. It took an emotional, spiritual and logistical toll on everyone around them, including their three children and two grandchildren. They had to decide what to do with their old, beloved dog and their trucking business. They had to suddenly cut ties with their church and their neighbors. Visitors bearing gifts dropped by unannounced.

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Maria Elena had suggested to Enrique that he leave for Mexico first, while she waited for her broken foot to heal. “No,” she recalled Enrique telling her. “Together we came and together we go.”

Their decision to go came long before the Trump administration’s crackdown in Minneapolis, and long before federal operations intensified in their own San Bernardino County neighborhood. Returning to Mexico had always been in the cards. But they had wanted to go on their own terms, retiring there someday. The Trump administration’s crackdown had prompted them to make that “someday” now.

The couple’s departure hit the family hard. They watch the news now with conflicting emotions, as Enrique and Maria Elena start their lives over in Mexico and their adult children struggle to carry on without them. None of the couple’s friends or relatives tried to change their minds, and there were few heated debates over the decision. In their community, the federal immigration raids made such an extreme move seem entirely reasonable.

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“It’s a mixture of all those feelings — being grateful for knowing that they’re safe, and at the same time, hating that this is the way it has to be,” said Lizbeth Castillejos, 29, the couple’s oldest daughter.

Back at the coffee shop, Maria Elena and Enrique could feel the clock tick. It was Aug. 8. They had just two weeks left. Their nearly 30 years in the United States were coming to an end.

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“Ya casi,” Enrique told her: Almost time.

Maria Elena set down her coffee cup. “Ya casi,” she repeated.

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Maria Elena had to squeeze her belongings into just a few suitcases. She insisted on taking a little piece of home with her: her curtains.

Some were thin and delicate, others thick to dampen sound. Gold, red, green — a color for every season. They had rented the house in Bloomington, an unincorporated community some 50 miles east of Los Angeles, for more than 10 years. It was semirural, with dirt sidewalks and residents on horseback. Outside, Enrique kept chickens in the backyard. Inside, Maria Elena had her curtains.

To make room in the luggage for them, Maria Elena took out all the socks. Her younger daughter, Helen, 23, a schoolteacher, told her not to worry because they could get new things in Mexico.

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Eventually, Maria Elena gave up. Leaving America meant leaving her curtains, too.

It was lunchtime. Maria Elena and Enrique had just sat down at the kitchen table, plates of bistec, white rice, black beans and diced cactus spread out before them.

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There was a sudden pounding at the door. For a moment, the conversation grew quiet.

For months, masked immigration agents had seemed to appear everywhere in Southern California, and fear gripped entire communities. Except for doctor’s appointments for her broken foot and strategically timed trips to the market, Maria Elena had stopped leaving the house.

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One day, Enrique had called his daughter Lizbeth, who works for a local immigrant rights group. A white sedan was tailing him. He thought it might be ICE.

Nothing had come of it, but it was another sign that life as they knew it in the United States was over.

They were afraid of being picked up by agents, not so much because of the threat of deportation but because of the uncertainty of detention. One goal of the Trump administration’s mass deportation campaign is to effectively scare people into self-deporting while dangling financial incentives to leave. Enrique and Maria Elena had decided not to accept the administration’s offer of $1,000 and a flight home to migrants who deport themselves because they did not trust the government to honor the arrangement.

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Ultimately, there had been no dramatic incident that spurred their departure; they had simply grown weary, day after day, of watching their world shrink to fit only the bounds of their home.

“He said he would go after criminals, and we don’t consider ourselves criminals,” Maria Elena said of the president, adding, “We consider ourselves working people. It turns out, for him, we’re all criminals.”

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Although they were living in America illegally, the couple saw no contradiction in that: Undocumented immigrants were part of the fabric of everyday life in Southern California. Over time, it didn’t seem especially risky.

Still, they expressed regret that they had never obtained legal status. In 2006, Maria Elena and her children had joined protests in Los Angeles demanding amnesty for undocumented immigrants. The family had also discussed another pathway: If one of their children joined the military, Maria Elena and Enrique could get the right to stay. Each of their three children had seriously considered signing up when they turned 18. But the couple never wanted their children to set aside their dreams and careers for their parents.

Were immigration agents now at the front door? Responding to the pounding, Enrique and Maria Elena’s son, Joaquin, 26, bolted to open it. It was their close friend, Kiké, dropping by to say hello.

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Everyone was anxious about Rex, the family’s scruffy 14-year-old dog. Maria Elena and Enrique had decided to put Rex down before they left. He was ailing, could hardly walk and was in constant pain.

Rex had seen Joaquin and Helen grow from children to adults. One day, when Joaquin was away in college, he learned his parents were giving the dog to a family friend because Rex had been killing chickens in the backyard. Joaquin raced home. He took Rex in himself.

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This time, Joaquin was not stepping in to save him. Everyone had agreed that Rex was suffering. Still, saying goodbye to the dog was like saying goodbye to a member of the family. Rex was a “constant,” as Helen put it, and those constants were ending as the family prepared for self-deportation.

“It needs to be done soon,” Helen told her dad over dinner as they discussed when to put down Rex. But she didn’t want it done this soon.

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“Right now, there’s too much loss,” she added. “I can’t do both.”

A nervous Enrique stood at the front of the church and clutched the microphone. He was telling the congregation, with Maria Elena standing at his side, that they were leaving for Mexico.

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To Enrique, it wasn’t so much the president’s will, but God’s.

He saw self-deportation as an opportunity to spread the word of God to his family back in his hometown of Mapastepec, near the plot of land in rural Chiapas where they had decided to move. He found comfort in Psalms 37, which says that God does not forsake those who believe.

Every Sunday, Enrique carried a composition book with notes on Scripture and a Bible with his name scrawled on the side. Maria Elena brought a tambourine for the hymns. And in the house, Enrique led prayers before meals.

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For Maria Elena, leaving the United States was a way for her to come clean with God. For years, the couple said, Enrique had been using another person’s identity — a common but illegal way for undocumented immigrants to get the paperwork they need to work in the country. They said that not long after arriving in the United States, a friend had helped Enrique use the identity of a Honduran who had work authorization. Last year, the Trump administration moved to end that type of work authorization, making it harder for Enrique to keep using that identity.

Guilt weighed on Maria Elena. “We got tired of living in a lie,” she said, adding, “We have to be good before God. You can’t be a child of God and lie with two names.”

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She already had a name for the plot of farmland awaiting them in their native Chiapas: Rancho La Promesa de Dios. God’s Promise Ranch.

At the church, a long line formed before them. For half an hour, one by one, congregants gave them tearful hugs.

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Michael, 2, bounced around the living room, his brightly colored toys scattered all over the tiled floor. Olivia, 4, was fixated on a cartoon on the television.

Maria Elena was on grandmother duty.

Grandma and Grandpa’s house was where the little ones learned Spanish, and where Enrique cut up fruit to feed them one piece at a time. It was days like these that the grandparents cherished. It was days like these that made Maria Elena cry.

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“It’s only when I look at my grandchildren and say to myself, ‘Who is going to take care of them?’”

Enrique grabbed his belongings from the old turquoise Toyota. His longtime friend who had dropped by to say hello that one day, Kiké, was there to pick it up. For Enrique, it meant the old clunker was one less thing he had to get rid of.

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Kiké and Enrique had much in common, including their names. Kiké is short for Enrique. The two men are from the same town in Mexico, and they ended up here in the same place in America.

Kiké was sad to see them go, but he, too, was contemplating leaving because of the Trump administration’s immigration crackdown.

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“A lot of fellow paisans are wanting to leave,” he said. “It doesn’t look like this thing is going to get resolved. It’s going from bad to worse.”

Each sibling took turns on the mic.

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It was Enrique and Maria Elena’s farewell party, at a nearby property. Earlier that day, the family had said goodbye to Rex before putting him down. At the party, a mariachi belted out Christian ballads. Butterflies — a symbol of migration — decorated a towering fruit spread.

Joaquin said he would miss the little things, like stopping by on his lunch break for his mom’s beans.

Helen, the youngest, talked about how there was always mom and dad. When her older siblings had moved out, she had remained. Now, for the first time, the unit of three — Helen, Maria Elena and Enrique — would be apart.

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Lizbeth tried to focus on the positive.

She said this was a fresh chapter. Their parents’ legacy in America would live on. Three college-educated children with dignified careers. And two grandchildren, one old enough to express her wish to spend every summer in Chiapas.

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On the party invitation cards Lizbeth had sent out weeks earlier, there was nothing that suggested the gravity of self-deportation. The occasion was simply titled “New Beginnings.”

It was Aug. 24. Sixteen days had passed since that stop at the donut shop after church.

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At the house in Bloomington, after instant coffee and pan dulce, the family huddled in the living room and bowed their heads. This was the day Maria Elena and Enrique were self-deporting.

“This morning, our father, we’re grateful to you because you have kept us here in this land, in this country for 29 years,” Enrique said. “And we thank you because you never abandoned us.”

Then they squeezed into the van and set course for the two-hour trip to the border crossing in San Diego.

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In the blink of an eye, as they crossed into Mexico, 29 years reset to zero. This was the couple’s first time returning to Mexico together. It was their home country, but a sense of wonder seemed to overtake Maria Elena and Enrique. They had entered the United States nearly three decades ago, crossing that same border on foot. They had initially intended to stay for a few years, save up money and return to Mexico, but after they had children, their plans changed.

“Saliendo del sueño Americano y ahora entramos al sueño Mexicano,” Maria Elena told her family in the van: Leaving the American dream and now entering the Mexican dream.

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A bright day greeted them in Tijuana as they strolled through downtown. Maria Elena ambled around on a scooter for her broken foot, feeling out of place. Joaquin put his arms around her, trying to cheer her up. They planned to stay at a relative’s house until their flight to Chiapas.

In the months to come, Maria Elena and Enrique would try to adjust to life in Mexico. They would stay with relatives, and make slow progress fixing up a small dwelling on their plot of land. They would find themselves at times overwhelmed and homesick.

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But before all of that, on this first bright day in Tijuana, Enrique pulled out his Mexican I.D. and smiled. It might have felt like any other family trip. The political forces and fears that had forced them to leave went unspoken.

After the siblings had dropped off their parents in Mexico and headed back home in the van, they felt a sense of optimism as they waited in the long line at the port of entry. Vendors selling churros, chips and religious ornaments paced between cars.

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Joaquin lamented that there was no time for a final Dodgers game with his dad or a family trip to the beach.

Lizbeth assured him there would plenty of memories for them to make in Chiapas.

Helen, the schoolteacher, was anxious to get home and prepare her lesson plan for the week. She read aloud a list her mom had given her. It had all of the things she had forgotten to pack but wanted from home the next time she saw them.

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“No. 1,” Helen read aloud in the van, “look for my earrings.”

Hours had passed when a customs agent finally waved them into the United States. Soon, everyone except the driver slipped into a slumber, and the road home was quiet.

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They slowly woke up as the car rolled up to the house in Bloomington.

Olivia, 4, realized she was at Grandma and Grandpa’s house. Then, it dawned on her. Grandma and Grandpa were not there. She cried out for them.

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The siblings embraced in the middle of the driveway. Their parents had once described what it felt like to leave life behind in America. They said it felt like a kind of death.

Lizbeth, surrounded that night with her loved ones on the driveway of her parents’ empty house, felt the same way, too. She called it grief.

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