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    Trump’s Call to Scrap ‘Horrible’ Chip Program Spreads Panic

    The president’s attack on the key tenet of the Biden administration’s industrial policy has set off concerns that he may claw back its funding.As President Trump addressed Congress last week, he veered off script to attack a sensitive topic, the CHIPS Act, a bipartisan law aimed at making the United States less reliant on Asia for semiconductors.Republican lawmakers had sought and received reassurances over the past few months that the Trump administration would support the program Congress created. But halfway through Mr. Trump’s remarks, he called the law a “horrible, horrible thing.”“You should get rid of the CHIP Act,” he told Speaker Mike Johnson as some lawmakers applauded.The CHIPS program was one of the few things to unite much of Washington in recent years, as lawmakers on both sides of the aisle worked with private companies to draft a bill that would funnel $50 billion to rebuild the U.S. semiconductor industry, which makes the foundational technology used to power cars, computers and coffee makers. After President Joseph R. Biden, Jr. signed it into law in 2022, companies found sites in Arizona, New York and Ohio to construct new factories. The Commerce Department vetted those plans and began to dole out billions of dollars in grants.Now, Mr. Trump is threatening to upend years of work. Chip company executives, worried that funding could be clawed back, are calling lawyers to ask what wiggle room the administration has to terminate signed contracts, said eight people familiar with the requests.After the speech, Senator Todd Young, the Indiana Republican who championed CHIPS, said he reached out to the White House to seek clarity about Mr. Trump’s attack because the criticism was “in tension” with the administration’s previous support.Senator Todd Young, the Indiana Republican who championed CHIPS, said he reached out to the White House to seek clarity about Mr. Trump’s attack, which he said was “in tension” with the administration’s previous support.Eric Lee/The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Federal Grant Program Opens Door to Elon Musk’s Starlink

    The Trump administration said on Wednesday that it would overhaul a $42 billion federal grant program aimed at expanding high-speed internet to the nation, including easing some rules that could benefit Elon Musk’s satellite internet service, Starlink.The program will be revamped to “take a tech-neutral approach” in its distribution of funds to states, Commerce Secretary Howard Lutnick said in a statement. The program’s rules, which were created during the Biden administration, previously favored broadband lines made of fiber-optic cables attached to homes.“The department is ripping out the Biden administration’s pointless requirements,” Mr. Lutnick said. The Commerce Department will also remove regulatory and other barriers that slow down construction and connection to households, he added.Congress created the Broadband Equity, Access and Deployment Program in 2021 to extend broadband to the most remote areas of the nation. The Commerce Department came up with standards and rules for states and territories applying for the funds — including the preference for fiber-optic broadband, which provides the fastest internet service speeds.Mr. Musk, who is a close adviser to President Trump and helping to lead a government efficiency initiative, is chief executive of SpaceX, the rocket company that makes Starlink. Starlink uses low-altitude satellites to beam internet service to dishes anywhere on the planet and then to devices. It serves nearly five million subscribers worldwide and was used by emergency responders late last year in North Carolina when communications networks shut down after a hurricane.The Commerce Department’s internet program has not yet disbursed any funds, and Republicans have used it as an example of a program that was slowed down by red tape.Some have accused the Biden administration of unfairly blocking Starlink from the grants and say the satellite service can immediately serve some of the most remote areas of the nation.In 2023, the Federal Communications Commission rejected Starlink’s application for almost $900 million in subsidies in a separate rural broadband program, saying the company failed to show it could meet service requirements for the funding.Brendan Carr, then a Republican F.C.C. commissioner and now chairman of the agency, opposed that decision and said the action had put the F.C.C. on a “growing list of administrative agencies that are taking action against Elon Musk’s businesses.”Mr. Musk’s business interests — which also include the electric-car maker Tesla and the social media company X — have prompted concerns about potential conflicts of interest as he makes important decisions in Washington.On Wednesday, some public interest groups expressed concern that Mr. Lutnick’s plans to change the broadband program could directly benefit Mr. Musk.“Fiber broadband is widely understood to be better than other internet options — like Starlink’s satellites — because it delivers significantly faster speeds,” said Drew Garner, a director of policy engagement for the nonprofit Benton Institute for Broadband & Society.The Commerce Department did not immediately respond to requests for details on the plan. Mr. Musk did not respond to a request for comment. More

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    Apple to Invest $500 Billion in U.S. as Trump Tariffs Loom

    The company pledged the multibillion-dollar investment over the next four years and said it would create 20,000 jobs. The Texas facility is set to open in 2026.Days after Apple’s chief executive met with President Trump, the company said on Monday that it planned to spend $500 billion and hire 20,000 people in the United States over the next four years and open a factory in Texas to make the machines that power the company’s push into artificial intelligence.“We are bullish on the future of American innovation, and we’re proud to build on our longstanding U.S. investments,” Tim Cook, Apple’s chief executive, said in a statement. The company made similar, smaller pledges during the Biden administration and President Trump’s first term. It hasn’t fulfilled all its previous promises.Mr. Cook met with Mr. Trump last week. After that meeting, Mr. Trump said that the company would shift production to the United States: “They’re going to build here instead because they don’t want to pay the tariffs,” Mr. Trump said in a speech to a gathering of governors.Most iPhones are manufactured in China by the Taiwanese electronics giant Foxconn, which will be involved in Apple’s new Houston facility. Earlier this month, U.S. tariffs of 10 percent on all Chinese products took effect. Levies on imports from Canada, Mexico and other major trading partners could be imposed in the coming weeks.Foxconn has spent millions of dollars over the past two years building up its operations outside of China, including in Texas, and in Mexico, where the company already assembles A.I. servers. The company’s chairman previously said that this expanded footprint would help insulate Foxconn against U.S. tariffs.Last year, Foxconn purchased a tract of land north of Houston, next to one of its warehouses, which it said would be used for its artificial intelligence business.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    A.I. Is Changing How Silicon Valley Builds Start-Ups

    Tech start-ups typically raised huge sums to hire armies of workers and grow fast. Now artificial intelligence tools are making workers more productive and spurring tales of “tiny team” success.Almost every day, Grant Lee, a Silicon Valley entrepreneur, hears from investors who try to persuade him to take their money. Some have even sent him and his co-founders personalized gift baskets.Mr. Lee, 41, would normally be flattered. In the past, a fast-growing start-up like Gamma, the artificial intelligence start-up he helped establish in 2020, would have constantly looked out for more funding.But like many young start-ups in Silicon Valley today, Gamma is pursuing a different strategy. It is using artificial intelligence tools to increase its employees’ productivity in everything from customer service and marketing to coding and customer research.That means Gamma, which makes software that lets people create presentations and websites, has no need for more cash, Mr. Lee said. His company has hired only 28 people to get “tens of millions” in annual recurring revenue and nearly 50 million users. Gamma is also profitable.“If we were from the generation before, we would easily be at 200 employees,” Mr. Lee said. “We get a chance to rethink that, basically rewrite the playbook.”The old Silicon Valley model dictated that start-ups should raise a huge sum of money from venture capital investors and spend it hiring an army of employees to scale up fast. Profits would come much later. Until then, head count and fund-raising were badges of honor among founders, who philosophized that bigger was better.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    A.I. Is Prompting an Evolution, Not an Extinction, for Coders

    A.I. tools from Microsoft and other companies are helping write code, placing software engineers at the forefront of the technology’s potential to disrupt the work force.John Giorgi uses artificial intelligence to make artificial intelligence.The 29-year-old computer scientist creates software for a health care start-up that records and summarizes patient visits for doctors, freeing them from hours spent typing up clinical notes.To do so, Mr. Giorgi has his own timesaving helper: an A.I. coding assistant. He taps a few keys and the software tool suggests the rest of the line of code. It can also recommend changes, fetch data, identify bugs and run basic tests. Even though the A.I. makes some mistakes, it saves him up to an hour many days.“I can’t imagine working without it now,” Mr. Giorgi said.That sentiment is increasingly common among software developers, who are at the forefront of adopting A.I. agents, assistant programs tailored to help employees do their jobs in fields including customer service and manufacturing. The rapid improvement of the technology has been accompanied by dire warnings that A.I. could soon automate away millions of jobs — and software developers have been singled out as prime targets.But the outlook for software developers is more likely evolution than extinction, according to experienced software engineers, industry analysts and academics. For decades, better tools have automated some coding tasks, but the demand for software and the people who make it has only increased.A.I., they say, will accelerate that trend and level up the art and craft of software design.“The skills software developers need will change significantly, but A.I. will not eliminate the need for them,” said Arnal Dayaratna, an analyst at IDC, a technology research firm. “Not anytime soon anyway.”The outlook for software engineers offers a window into the impact that generative A.I. — the kind behind chatbots like OpenAI’s ChatGPT — is likely to have on knowledge workers across the economy, from doctors and lawyers to marketing managers and financial analysts. Predictions about the technology’s consequences vary widely, from wiping out whole swaths of the work force to hyper-charging productivity as an elixir for economic growth.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    HP to Buy Humane, Maker of the Ai Pin, for $116 Million

    Humane, which marketed its Ai Pin as the next big thing after smartphones, had raised $240 million from investors, including OpenAI’s Sam Altman. The pin will be discontinued.Humane, the ambitious start-up behind the Ai Pin device that aimed to one day replace smartphones, agreed to sell parts of its business to HP for $116 million, the companies said on Tuesday.HP said it planned to acquire Humane’s “A.I. capabilities,” including its software platform, intellectual property, patents and some employees. The Ai Pin will be shut down, Humane said in a message to customers.The deal caps a downfall for the high-flying start-up, which heavily promoted the $699 pin with ads, a TED Talk and at Paris Fashion Week with supermodels. Humane raised $240 million in funding from high-profile investors, including Marc Benioff, the chief executive of Salesforce, and his counterpart at OpenAI, Sam Altman, valuing the company at $850 million before it released a product.Humane was created by Imran Chaudhri and Bethany Bongiorno, husband-and-wife founders who previously worked at Apple. The pair envisioned a wearable device that people would clip to their clothes and interact with using voice commands and a laser display projected onto their hand. The idea was to cut down on time spent staring at smartphone screens.Bethany Bongiorno and Imran Chaudhri at Humane’s office in San Francisco in 2023.Kelsey McClellan for The New York TimesBut the Ai Pin, which began shipping to customers last spring, was a flop.Reviewers criticized the product, with the A.I. software often giving wrong answers or taking a long time to respond, while the pin’s batteries sometimes overheated. Humane had hoped to sell 100,000 pins in its first year but got only around 10,000 orders. At one point, the company told customers to stop using their charging cases because of the fire risk.Last year, Humane hired an investment bank to sell itself, while also seeking new funding. The start-up sought a sale price of more than $1 billion.On Tuesday, a letter posted to Humane’s website said that the pins would no longer work at the end of this month and that customer data would be deleted. “Our business priorities have shifted,” the letter said.HP, which sells an estimated 53 million PCs a year, has said it wants to add A.I. capabilities to its laptops to make them more useful. Last year, HP worked with Microsoft to develop a line of A.I. computers called Copilot+ PCs.In its announcement, HP said it would use Humane’s technology to become a more “experience-led company.” Humane’s workers will be part of a new innovation lab called HP IQ, which will focus on “building an intelligent ecosystem across HP’s products and services.” Mr. Chaudhri and Ms. Bongiorno will join the company, as will the majority of the start-up’s employees, an HP spokeswoman said.“We are investing and innovating aggressively in new A.I.-powered capabilities and software,” said Enrique Lores, president and chief executive of HP, during a call with analysts in November. “We will focus on delivering a cutting-edge A.I.-powered tech.” More

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    They’ve Been Waiting Years to Go Public. They’re Still Waiting.

    Some tech companies are delaying or pulling their listing plans as the Trump administration’s tariff announcements and other changes cause market volatility and uncertainty.Turo, a car rental start-up in San Francisco, has been trying to go public since 2021. But a volatile stock market in early 2022 delayed its listing. Since then, the company has waited for the right moment.Last week, Turo pulled its listing entirely. “Now is not the right time,” Andre Haddad, the company’s chief executive, said in a statement.For months, investors have eagerly anticipated a wave of initial public offerings, spurred by President Trump’s new administration. Since his election victory in November, which ended a tumultuous campaign season, Corporate America and Wall Street have heralded the start of a pro-business, anti-regulation period. The stock market soared ahead of an expected bonanza of deal making.But the administration’s tariff announcements and rapid-fire regulatory changes have created uncertainty and volatility. Worsening inflation has set off market jitters. And the emergence of the Chinese artificial intelligence app DeepSeek last month caused investors to question their optimistic bets on U.S. tech, leading to a drastic sell-off among A.I.-related stocks.All that has affected initial public offerings. “The calendar just went from fully booked to being wide open in a span of like three weeks,” said Phil Haslett, a founder of EquityZen, a site that helps private companies and their employees sell their stock.So far this year, the pace of public offerings is ahead of last year’s, with companies raising $6.6 billion from listings, up 14 percent compared with this time last year, according to Renaissance Capital, which manages I.P.O.-focused exchange traded funds.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    With Trump’s Help, Intel Could Hand Control of Chip Plants to TSMC

    The Silicon Valley giant is trying to cut a deal it hopes would help it pull out of a yearslong slump.Intel, a fallen Silicon Valley icon trying to restore its reputation as America’s most prominent semiconductor company, is working with the Trump administration on a plan to turn over the operation of its chip-making plants to a giant Taiwanese rival.Over the past few months, Frank Yeary, the interim executive chairman of Intel, has spoken with administration officials and leaders of Taiwan Semiconductor Manufacturing Company about a deal that would separate Intel’s ailing manufacturing business from its semiconductor design and product business, according to four people with knowledge of the plan, who spoke on the condition of anonymity.TSMC, which produces an estimated 90 percent of the world’s most advanced semiconductors, would assume control of Intel’s manufacturing business and take a majority stake in the business alongside a consortium of investors that could include private equity firms and other tech companies, the four people said.The Trump administration has encouraged TSMC to do the deal. Howard Lutnick, President Trump’s nominee for commerce secretary, has been involved in the conversations and considers them one of the most consequential challenges of his new job, two of the people familiar with the discussions said.Intel is the only American-owned maker of advanced logic chips and has been at the forefront of U.S. efforts to rev up domestic manufacturing of semiconductors, which are a foundational technology. But Intel has struggled to compete against TSMC. Most of that company’s production is done in Taiwan, which is a strategic risk for the United States because of growing threats from the government of mainland China.Howard Lutnick has been involved in the talks as President Trump’s pick to lead the Commerce Department.Eric Lee/The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More