Tesla CEO Elon Musk and his staff met Wednesday with California Governor Gavin Newsom to tour Tesla’s new engineering headquarters.
Sources close to the governor told CNBC the meeting at Tesla’s engineering office in Palo Alto, California focused on the company’s efforts to create jobs and expand in the state.
The expansion will focus on hiring engineers proficient in research development and artificial intelligence. Tesla is taking over the lease for the office space, previously occupied by Hewlett-Packard. The plans will help accelerate efforts to produce autonomous driving and robot technology.
“This was HP’s original headquarters, and so I think it’s a poetic transition from the founders of Silicon Valley to Tesla and we’re very excited to make this our global engineering headquarters,” Musk told CNBC. “And we’re a California-Texas company.”
Tesla initiated the meeting after several previous attempts to set up talks between the state’s most well-known politician and the most outspoken billionaire failed to materialize.
Musk said the new facility is “effectively a headquarters of Tesla” and that it’s “kind of a dual-headquartered company.” Tesla’s main headquarters is in Austin, Texas.
It comes as Tesla faces regulatory scrutiny in the state. The California Department of Motor Vehicles has formally accused Tesla of engaging in deceptive marketing and advertising practices where its driver assistance programs, brand-named Autopilot and Full Self-Diving, are concerned. And the state’s civil rights agency has sued Tesla alleging racist harassment of, and discrimination against, Black workers that has persisted for years at the company’s car assembly plant and other facilities in California.
Meanwhile, according to Tesla’s most recent annual financial filing with the SEC, district attorneys in different California counties are “conducting an investigation into Tesla’s waste segregation practices,” for hazardous waste-related code violations.
Tesla did not immediately respond to a request for comment.
California and its strong climate initiatives have been integral to Tesla’s success. California leads the nation’s zero-emission vehicle market with nearly 1.4 million ZEVs sold and it’s home to 55 ZEV-related manufacturing companies.
But Musk’s views on California have not been so friendly when it comes to his business.
As the pandemic hit in March 2020, Musk and state officials clashed over reopening the Tesla plant in Fremont, California. At the time, Musk was pushing for his employees to return to work while covid was affecting businesses across the country. Musk mischaracterized California’s health-related covid restrictions as “fascist.”
In 2021, following repeated threats to leave the state, Musk moved Tesla’s headquarters to Austin, Texas. The company owns and operates two Megafactories in Fremont and Lathrop, Texas.
Musk talked with CNBC about his current thoughts on California.
“I think California should be cautious about taxes and over regulations going too far,” he said. “Objectively, Tesla has done nothing but increase its footprint in California. Both in terms of manufacturing and engineering and personnel. Every year we’ve grown our headcount in California without exception.”
Since then, Musk has made his political stance clear, characterizing California as a one-party state that is burdened with overregulation and high taxes. Despite those comments, Governor Newsom has praised Musk in multiple interviews with CNBC, calling him “one of the greatest innovators of our time.”
Musk, meanwhile, has emphasized that Tesla is still a major employer in the state and is expanding its operations. In the fourth quarter of 2022, for example, Tesla boasted about a new Megapack factory in Lathrop, California.
“I’m not anti-California,” he told CNBC. “One has to strike a balance and say there’s a lot of good things about California and there are some challenges. California could make it easier to do manufacturing but we encourage legislators to consider their actions long-term.”
Tesla said it had 47,000 employees in California in 2022, according to a January 2023 blog post. As of Dec. 31, 2022, the company and its subsidiaries had 127,855 employees worldwide. The company said its wages resulted in $16.6 billion in economic activity for the state “or $44.4 million injected into California’s economy each day.”
Brad Smith, president of Microsoft Corp., at the Web Summit conference in Vancouver, British Columbia, Canada, on Wednesday, May 28, 2025. The annual conference gathers key industry figures in technology.
James MacDonald | Bloomberg | Getty Images
Microsoft asked police to remove people who improperly entered a building at its headquarters in protest of the Israeli military’s alleged use of the company’s software as part of the invasion of Gaza.
On Tuesday, current and former Microsoft employees affiliated with the group No Azure for Apartheid started protesting inside a building on Microsoft’s campus in Redmond, Washington, and gained entry into the office of Brad Smith, the company’s president. The protesters delivered a court summons notice at his office, according to a statement from the group.
“Obviously, when seven folks do as they did today — storm a building, occupy an office, block other people out of the office, plant listening devices, even in crude form, in the form of telephones, cell phones hidden under couches and behind books — that’s not OK,” Smith told reporters during a briefing.
“When they’re asked to leave and they refuse, that’s not OK. That’s why for those seven folks, the Redmond police literally had to take them out of the building.”
Smith said that out of the seven people who entered his office, two were employees.
While the company doesn’t retaliate against employees who express their views, Smith said, it’s different if they make threats. Microsoft will look at whether to discipline the employees who participated in the protest, Smith said.
Once inside Microsoft’s building 34, the No Azure For Apartheid protesters demanded that the company cut its ties with Israel and ask for an end to the country’s alleged genocide.
Tech’s megacap companies are doing more work with defense agencies, particularly as demand increases for advanced artificial intelligence technologies. Many of those activities were already controversial, but the issue has gotten more intense as Israel has escalated its military offensive in Gaza.
Last year Google fired 28 employees after some trespassed at the company’s facilities. Some employees gained access to the office of Thomas Kurian, CEO of Google’s cloud unit, which had a contract with Israel’s government.
No Azure for Apartheid has held a series of actions this year, including at Microsoft’s Build developer conference and at a celebration of the company’s 50th anniversary. A Microsoft director reached out to the Federal Bureau of Investigation as the protests continued, Bloomberg reported earlier on Tuesday.
Last week, No Azure For Apartheid mounted protests around the company’s campus, leading to 20 arrests in one day. Of the 20, 16 have never worked at Microsoft, Smith said.
The Guardian reported earlier this month that Israel’s military used Microsoft’s Azure cloud infrastructure to store Palestinians’ phone calls, leading the company to authorize a third-party investigation into whether Israel has drawn on the company’s technology for surveillance.
“I think the responsible step from us is clear in this kind of situation: to go investigate and get to the truth of how our services are being used,” Smith said on Tuesday.
Most of Microsoft’s work with the Israeli Defense Force involves cybersecurity for Israel, he said. He added that the company cares “deeply” about the people in Israel who died from the terrorist attack by Hamas on Oct. 7, 2023, and the hostages who were taken, as well as the tens of thousands of civilians in Gaza who have died since from the war.
Microsoft intends to provide technology in an ethical way, Smith said.
OpenAI CEO Sam Altman speaks during the Federal Reserve’s Integrated Review of the Capital Framework for Large Banks Conference in Washington, D.C., U.S., July 22, 2025.
Ken Cedeno | Reuters
OpenAI is detailing its plans to address ChatGPT’s shortcomings when handling “sensitive situations” following a lawsuit from a family who blamed the chatbot for their teenage son’s death by suicide.
“We will keep improving, guided by experts and grounded in responsibility to the people who use our tools — and we hope others will join us in helping make sure this technology protects people at their most vulnerable,” OpenAI wrote on Tuesday, in a blog post titled, “Helping people when they need it most.”
Earlier on Tuesday, the parents of Adam Raine filed a product liability and wrongful death suit against OpenAI after their son died by suicide at age 16, NBC News reported. In the lawsuit, the family said that “ChatGPT actively helped Adam explore suicide methods.”
The company did not mention the Raine family or lawsuit in its blog post.
OpenAI said that although ChatGPT is trained to direct people to seek help when expressing suicidal intent, the chatbot tends to offer answers that go against the company’s safeguards after many messages over an extended period of time.
The company said it’s also working on an update to its GPT-5 model released earlier this month that will cause the chatbot to deescalate conversations, and that it’s exploring how to “connect people to certified therapists before they are in an acute crisis,” including possibly building a network of licensed professionals that users could reach directly through ChatGPT.
Additionally, OpenAI said it’s looking into how to connect users with “those closest to them,” like friends and family members.
When it comes to teens, OpenAI said it will soon introduce controls that will give parents options to gain more insight into how their children use ChatGPT.
Jay Edelson, lead counsel for the Raine family, told CNBC on Tuesday that nobody from OpenAI has reached out to the family directly to offer condolences or discuss any effort to improve the safety of the company’s products.
“If you’re going to use the most powerful consumer tech on the planet — you have to trust that the founders have a moral compass,” Edelson said. “That’s the question for OpenAI right now, how can anyone trust them?”
Raine’s story isn’t isolated.
Writer Laura Reiley earlier this month published an essay in The New York Times detailing how her 29-year-old daughter died by suicide after discussing the idea extensively with ChatGPT. And in a case in Florida, 14-year-old Sewell Setzer III died by suicide last year after discussing it with an AI chatbot on the app Character.AI.
As AI services grow in popularity, a host of concerns are arising around their use for therapy, companionship and other emotional needs.
But regulating the industry may also prove challenging.
On Monday, a coalition of AI companies, venture capitalists and executives, including OpenAI President and co-founder Greg Brockman announced Leading the Future, a political operation that “will oppose policies that stifle innovation” when it comes to AI.
If you are having suicidal thoughts or are in distress, contact the Suicide & Crisis Lifeline at 988 for support and assistance from a trained counselor.
Okta CEO Todd McKinnon appears on CNBC in September 2018.
Anjali Sundaram | CNBC
Okta shares rose 4% in extended trading on Tuesday after the identity software maker reported fiscal results that exceeded Wall Street projections.
Here’s how the company did in comparison with LSEG consensus:
Earnings per share: 91 cents adjusted vs. 84 cents expected
Revenue: $728 million vs. $711.8 million expected
Okta’s revenue grew about 13% year over year in the fiscal second quarter, which ended on July 31, according to a statement. Net income of $67 million, or 37 cents per share, was up from $29 million, or 15 cents per share, in the same quarter last year.
In May, Okta adjusted its guidance to reflect macroeconomic uncertainty. But business has been going well, said Todd McKinnon, Okta’s co-founder and CEO, in an interview with CNBC on Tuesday.
“It was much better than we thought,” McKinnon said. “Yeah, the results speak for themselves.”
U.S. government customers are being more careful about signing up for deals after President Donald Trump launched the Department of Government Efficiency in January.
“But even under that additional review, we did really well,” McKinnon said.
Net retention rate, a metric to show growth with existing customers, came to 106% in the quarter, unchanged from three months ago.
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Companies will need to buy software to manage the identities of artificial intelligence agents working in their environments, which should lead to expansions with customers, McKinnon said. Selling suites of several kinds of Okta software should also boost revenue growth, he said.
Management called for 74 cents to 75 cents in adjusted earnings per share and $728 million to $730 million in revenue for the fiscal third quarter. Analysts surveyed by LSEG had expected earnings of 75 cents per share, with $722.9 million in revenue. Okta expects $2.260 billion to $2.265 billion in current remaining performance obligation, a measurement of subscription backlog to be recognized in the next 12 months, just above StreetAccount’s $2.26 billion consensus.
The company bumped up its fiscal 2026 forecast. It sees $3.33 to $3.38 in full-year adjusted earnings per share, with $2.875 billion to $2.885 billion in revenue. The LSEG consensus showed $3.28 in adjusted earnings per share on $2.86 billion in revenue. Okta’s full fiscal year guidance from May included $3.23 to $3.28 per share and $2.850 billion to $2.860 in revenue.
“Palo Alto is going to be like, ‘You have to buy security from us, and your endpoint from us and your SIEM [security information and event management] from us and your network from us,’ ” McKinnon said. “We just think that’s wrong, because customers need choice. It’s very unlikely they’re going to get every piece of technology or every piece of security from one vendor.”
A Palo Alto spokesperson did not immediately respond to a request for comment.
Earlier on Tuesday, Okta said it had agreed to acquire Israeli startup Axiom Security, which sells software for managing data access. The companies did not disclose terms of the deal.
As of Tuesday’s close, Okta shares were up 16%, while the technology-heavy Nasdaq was up 11%.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.