Technology

Elon Musk calls U.S. media and schools ‘racist against whites & Asians’

Published

2 years ago

February 27, 2023

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Tesla Chief Executive Office Elon Musk speaks at his company’s factory in Fremont, California.

Noah Berger | Reuters

Elon Musk, the CEO of SpaceX, Tesla and Twitter, accused “the media” and “elite colleges and high schools” of being “racist” against white and Asian people, espousing his views without providing evidence on Sunday.

Musk posted his comments on Twitter, where he has nearly 130 million followers, in response to news that media organizations around the country decided to cut the comic strip “Dilbert” from syndication after its creator, Scott Adams, delivered a racist tirade in a video on his YouTube channel last week.

In the video, Adams discussed a poll conducted by right-leaning Rasmussen Reports that said 26% of Black respondents disagreed with the statement “It’s OK to be white.” The phrase referenced in their poll has been labeled a “hate slogan” by the Anti-Defamation League. In his video, Adams called Black people who rejected that phrase as a “hate group.”

Adams also said that he personally chose to live in a community where few or no Black people lived, and then advised his white viewers to “get the hell away from Black people,” saying he didn’t “want to have anything to do with them.”

Adams’ video was published during Black History Month in the U.S., which was established in 1976 by President Gerald Ford as a period during which to honor the struggles and contributions of Black Americans.

Among the news outlets that dropped “Dilbert” were the Los Angeles Times, The Oregonian, The Cleveland Plain Dealer, The Washington Post and USA Today.

Musk’s track record

Brian Levin, a civil rights attorney and director of the Center for the Study of Hate and Extremism at California State University said, in response to Musk’s tweets:

“Systemic racism requires not only widespread bigotry to be held within a group but also a structural component that allows discrimination and oppression to be imposed on a minority because of an advantage of access and power. A white billionaire from South Africa who recently lost a high profile racial discrimination case may not be in the best position to offer counsel.”

As CNBC previously reported, a San Francisco federal court ruled that Tesla must pay a former worker, Owen Diaz, for damages after he endured a hostile work environment and racist abuse at the company’s factory where he previously worked as an elevator operator.

Additionally, the EEOC, a federal agency responsible for enforcing civil rights laws against workplace discrimination, has issued a cause finding against Tesla, according to a financial filing from the company last year.

Prior to the EEOC finding, the California Civil Rights Department, formerly known as the Department of Fair Employment and Housing, sued Tesla after a three-year investigation, alleging widespread racist discrimination at Tesla factories and facilities across the state.

The CRD alleged that Tesla has kept Black workers in lower-level roles at the company even when they have the skills and experience to be promoted to more senior roles; assigned Black workers more demanding, dangerous and dirty work in their facilities; and retaliated against Black workers who complained formally about what they endured, including racist slurs used by managers.

Tesla called the CRD’s lawsuit “misguided,” and later countersued the agency.

The data on racism

Musk made his claims about “the media” and some higher educational institutions and high schools in the U.S. without presenting any evidence.

Specifically, he wrote, “The media is racist.” He then added, “For a *very* long time, US media was racist against non-white people, now they’re racist against whites & Asians. Same thing happened with elite colleges & high schools in America. Maybe they can try not being racist.”

According to Pew Research, newsroom employees are much more likely to be white (and male) than U.S. workers overall. In film and TV, according to McKinsey research, “Black talent is underrepresented across the industry, particularly off-screen.” Less than 6% of the writers, directors and producers of U.S.-produced films are Black, McKinsey found.

According to the most recently available U.S. Census Bureau data, about 29% of non-Hispanic white people in the U.S. have attained a bachelor’s degree or higher levels of education, about 18.4% of Black people in the U.S. have attained that level of education, and about 51.3% of Asian people have done so.

Despite Asian American educational attainment, Asians are underrepresented in leadership roles in U.S. academic libraries and higher education, according to research by Mihoko Hosoi, published in the Journal of Library Administration in 2022.

Musk also replied to one Twitter account that said unarmed white people affected by police violence only get a fraction of the media attention paid to Black people injured or killed by police. Musk claimed that the media coverage is “Very disproportionate to promote a false narrative.”

According to research by Brookings Institute, “Black people are 3.5 times more likely than white people to be killed by police when Blacks are not attacking or do not have a weapon,” and “Black teenagers are 21 times more likely than white teenagers to be killed by police.”

Hate speech on Twitter

Imran Ahmed, the CEO and founder of the Center for Countering Digital Hate, said in response to Musk’s tweets, “Elon Musk seeks to portray himself as some weird, bizarro champion of anti-racism whereas in reality when he took over Twitter, he made a series of disturbing decisions to change its rules to welcome racist hate back onto the platform and, as our research has shown, to profit from the controversy and attention hate generates.”

Ahmed also called on remaining advertisers to reevaluate whether they want to spend their budgets on Twitter, given Musk’s beliefs and changes he has made to the Twitter platform.

Since leading a $44 billion leveraged buyout of Twitter late last year and appointing himself “Chief Twit,” or CEO, Musk has stirred controversy and lost money at the social media business.

Under Musk’s watch, Twitter has restored the accounts of some previously banned and divisive figures, including neo-Nazi website founder Andrew Anglin. His moves led to an unprecedented rise in hate speech on the platform, the Center for Countering Digital Hate found, and drew an immediate outcry from civil rights leaders.

Hundreds of Twitter’s top advertisers have since halted or pulled back on ad spending there. One firm estimated that Twitter’s ad revenue declined as much as 70% in December from the previous year, Reuters reported. Musk acknowledged in a November tweet that the company suffered a “massive drop in revenue” after advertisers paused spending on the social media platform.

Musk and representatives at Twitter, SpaceX and Tesla did not immediately respond to requests for comment.

Technology

Silicon Valley’s early return on Trump investment: Plunging valuations, delayed IPOs

Published

10 hours ago

April 5, 2025

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Silicon Valley's early return on Trump investment: Plunging valuations, delayed IPOs

The Nasdaq MarketSite in New York, June 9, 2023.

Michael Nagle | Bloomberg | Getty Images

Silicon Valley executives and financiers publicly opened their wallets in support of President Donald Trump’s 2024 presidential run. The early returns in 2025 aren’t great, to say the least.

Following Trump’s sweeping tariff plan announced Wednesday, the Nasdaq suffered steep consecutive daily drops to finish 10% lower for the week, the index’s worst performance since the beginning of the Covid pandemic in 2020.

The tech industry’s leading CEO’s rushed to contribute to Trump’s inauguration in January and paraded to Washington, D.C., for the event. Since then, it’s been a slog.

The market can always turn around, but economists and investors aren’t optimistic, and concerns are building of a potential recession. The seven most valuable U.S. tech companies lost a combined $1.8 trillion in market cap in two days.

Apple slid 14% for the week, its biggest drop in more than five years. Tesla, led by top Trump adviser Elon Musk, plunged 9.2% and is now down more than 40% for the year. Musk contributed close to $300 million to help propel Trump back to the White House.

Nvidia, Meta and Amazon all suffered double-digit drops for the week. For Amazon, a ninth straight weekly decline marks its longest such losing streak since 2008.

With Wall Street selling out of risky assets on concern that widespread tariff hikes will punish the U.S. and global economy, the fallout has drifted down to the IPO market. Online lender Klarna and ticketing marketplace StubHub delayed their IPOs due to market turbulence, just weeks after filing with the Securities and Exchange Commission, and fintech company Chime is also reportedly delaying its listing.

CoreWeave, a provider of artificial intelligence infrastructure, last week became the first venture-backed company to raise more than $1 billion in a U.S. IPO since 2021. But the company slashed its offering, and trading has been very volatile in its opening days on the market. The stock plunged 12% on Friday, leaving it 17% above its offer price but below the bottom of its initial range.

“You couldn’t create a worse market and macro environment to go public,” said Phil Haslett, co-founder of EquityZen, a platform for investing in private companies. “Way too much turbulence. All flights are grounded until further notice.”

CoreWeave investor Mark Klein of SuRo Capital previously told CNBC that the company could be the first in an “IPO parade.” Now he’s backtracking.

“It appears that the IPO parade has been temporarily halted,” Klein told CNBC by email on Friday. “The current tariff situation has prompted these companies to pause and assess its impact.”

Tech will see an 'economic armageddon' if these tariffs stay, says Wedbush's Dan Ives

‘Cave rapidly’

During last year’s presidential campaign, prominent venture capitalists like Marc Andreessen backed Trump, expecting that his administration would usher in a boom and eliminate some of the hurdles to startup growth set up by the Biden administration. Andreessen and his partner, Ben Horowitz, said in July that their financial support of the Trump campaign was due to what they called a better “little tech agenda.”

A spokesperson for Andreessen Horowitz declined to comment.

Some techies who supported Trump in the campaign have taken to social media to defend their positions.

Venture capitalist Keith Rabois, a managing director at Khosla Ventures, posted on X on Thursday that “Trump Derangement Syndrome has morphed into Tariff Derangement Syndrome.” He said tariffs aren’t inflationary, are effective at reducing fentanyl imports, and he expects that “most other countries will cave and cave rapidly.”

That was before China’s Finance Ministry said on Friday that it will impose a 34% tariff on all goods imported from the U.S. starting on April 10.

At Sequoia Capital, which is the biggest investor in Klarna, outspoken Trump supporter Shaun Maguire, wrote on X, “The first long-term thinking President of my lifetime,” and said in a separate post that, “The price of stocks says almost nothing about the long term health of an economy.”

However, Allianz Chief Economic Advisor Mohamed El-Erian warned on Friday that Trump’s extensive raft of import tariffs are putting the U.S. economy at risk of recession.

“You’ve had a major repricing of growth prospects, with a recession in the U.S. going up to 50% probability, you’ve seen an increase in inflation expectations, up to 3.5%,” he told CNBC’s Silvia Amaro on the sidelines of the Ambrosetti Forum in Cernobbio, Italy.

Former Microsoft CEOs Bill Gates, left, and Steve Ballmer, center, pose for photos with CEO Satya Nadella during an event celebrating the 50th Anniversary of Microsoft on April 4, 2025 in Redmond, Washington.

Stephen Brashear | Getty Images

Meanwhile, executives at tech’s megacap companies were largely silent this week, and their public relations representatives declined to provide comments about their thinking.

Microsoft CEO Satya Nadella was in the awkward position on Friday of celebrating his company’s 50th anniversary at corporate headquarters in Redmond, Washington. Alongside Microsoft’s prior two CEOs, Bill Gates and Steve Ballmer, Nadella sat down with CNBC’s Andrew Ross Sorkin for a televised interview that was planned well before Trump’s tariff announcement.

When asked about the tariffs at the top of the interview, Nadella effectively dodged the question and avoided expressing his views about whether the new policies will hamper Microsoft’s business.

Ballmer, who was succeeded by Nadella in 2014, acknowledged to Sorkin that “disruption is very hard on people” and that, “as a Microsoft shareholder, this kind of thing is not good.” Ballmer and Gates are two of the 12 wealthiest people in the world thanks to their Microsoft fortunes.

C-suites may not be able to stay quiet for long, especially if the recent turmoil spills into next week.

Lise Buyer, who previously helped guide Google through its IPO and now works as an adviser to companies going public, said there’s no appetite for risk in the market under these conditions. But there is risk that staffers get jittery, and they’ll surely look to their leaders for some reassurance.

“Until markets settle out and we have the opportunity to access valuation levels, public company CEOs should work to calm potentially distressed employees,” Buyer said in an email. “And private company managements should refine plans to get by on dollars already in the treasury.”

— CNBC’s Hayden Field, Jordan Novet, Leslie Picker, Annie Palmer and Samantha Subin contributed to this report.

WATCH: Chime is reportedly delaying its IPO

Technology

Tesla’s June robotaxi deadline looms as political backlash builds over Elon Musk

Published

11 hours ago

April 5, 2025

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Tesla's June robotaxi deadline looms as political backlash builds over Elon Musk

Elon Musk has been promising investors for about a decade that Tesla’s cars are on the verge of turning into robotaxis, capable of driving themselves cross-country, after one big software update.

That hasn’t happened yet.

What Tesla offers is a sophisticated, but only partially automated, driving system that’s marketed in the U.S. as its Full Self-Driving (Supervised) option, though many Tesla fans refer to it as FSD. In China, Tesla recently changed the system’s name to “intelligent assisted driving.”

Full Self-Driving, as it was previously called, relies on cameras and software to enable features like automatic navigation on highways and city streets, or automatic braking and slowing in response to traffic lights and stop signs.

Tesla owner’s manuals warn users that FSD “is a hands-on feature” that requires them to pay attention to the road at all times. “Keep your hands on the steering wheel at all times, be mindful of road conditions and surrounding traffic,” the manuals say.

But many of Tesla’s customers ignore the fine print and use the system hands-free anyway.

Tesla’s partially automated driving systems have been a source of inspiration for its stalwart fans. But they’ve also caused controversy and concern for public safety after reports of injurious and fatal collisions where Tesla’s standard Autopilot or premium FSD systems were known to be in use.

FSD does a lot of things “amazingly well,” said Guy Mangiamele, a professional test driver for automotive consulting firm AMCI Testing, during a recent long drive in Los Angeles. But he added that “the times that it trips up, you could kill somebody or you could hurt yourself.”

The pressure has never been higher on Tesla to elevate the technology and deliver on Musk’s long-delayed promises.

The Tesla CEO is the wealthiest person in the world and was the biggest financial backer of President Donald Trump’s 2024 campaign. Since Trump’s January inauguration, Musk has been leading the administration’s Department of Government Efficiency effort to drastically slash the federal workforce and government spending.

The DOGE team has been connected to more than 280,000 layoff plans for federal workers and contractors impacting 27 agencies over the last two months, according to data tracked by Challenger Gray, the executive outplacement firm.

Musk’s work with DOGE – along with his frequently incendiary political rhetoric and endorsement of Germany’s far-right, anti-immigrant party AfD – has led to a tremendous backlash against Tesla.

Protests, boycotts and even criminal acts of vandalism have targeted the electric vehicle maker in recent months and led many prospective Tesla customers to turn to other brands. Meanwhile, existing Tesla owners have been trading in their EVs at record levels, according to data from Edmunds.

Tesla’s stock dropped 36% through the first three months of 2025, representing its steepest decline since 2022 and third-biggest slide for any quarter since the EV maker went public in June 2010. Tesla also reported 336,681 vehicle deliveries in the first quarter of 2025, a 13% decline from the same period a year ago.

Product unveilings and a “robotaxi launch” expected from Tesla in Austin, Texas, this year could revitalize investors’ sentiment about the company and hopefully lift its share price, Piper Sandler analysts wrote in a note following the worse-than-expected deliveries report.

On Tesla’s last earnings call, Musk promised investors that Tesla will finally start its driverless ride-hailing service in Austin in June.

To see whether the company’s FSD technology is anywhere close to a robotaxi-ready release, CNBC spent months riding along with Tesla owners who use Full Self-Driving (Supervised) and speaking with automotive safety experts about their impressions.

Auto-tech enthusiast and Tesla owner Chris Lee, host of the YouTube channel EverydayChris, told CNBC that Tesla’s system “definitely has a ways to go, but the fact that it’s able to go from where it was three years ago to today, is insane.”

Many experts, including Telemetry Vice President of Market Research Sam Abuelsamid, remain skeptical. There’s been “no evidence” that FSD is “anywhere close to being ready to be used in an unsupervised form” by June, said Abuelsamid, whose firms specializes in automotive intelligence.

Tesla FSD will “often work really well, particularly in daytime conditions” but then “randomly, in a scenario where it did fine previously, it will fail,” said Abuelsamid, adding that those scenarios can be unpredictable and dangerous.

Watch the video to learn more about the evolution of Tesla’s Full Self-Driving (Supervised) and whether it will be robotaxi-ready this June.

Technology

Microsoft AI chief Suleyman sees advantage in building models ‘3 or 6 months behind’

Published

24 hours ago

April 5, 2025

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Microsoft AI chief Suleyman sees advantage in building models ‘3 or 6 months behind’

Microsoft owns lots of Nvidia graphics processing units, but it isn’t using them to develop state-of-the-art artificial intelligence models.

There are good reasons for that position, Mustafa Suleyman, the company’s CEO of AI, told CNBC’s Steve Kovach in an interview on Friday. Waiting to build models that are “three or six months behind” offers several advantages, including lower costs and the ability to concentrate on specific use cases, Suleyman said.

It’s “cheaper to give a specific answer once you’ve waited for the first three or six months for the frontier to go first. We call that off-frontier,” he said. “That’s actually our strategy, is to really play a very tight second, given the capital-intensiveness of these models.”

Suleyman made a name for himself as a co-founder of DeepMind, the AI lab that Google bought in 2014, reportedly for $400 million to $650 million. Suleyman arrived at Microsoft last year alongside other employees of the startup Inflection, where he had been CEO.

More than ever, Microsoft counts on relationships with other companies to grow.

It gets AI models from San Francisco startup OpenAI and supplemental computing power from newly public CoreWeave in New Jersey. Microsoft has repeatedly enriched Bing, Windows and other products with OpenAI’s latest systems for writing human-like language and generating images.

Microsoft’s Copilot will gain “memory” to retain key facts about people who repeatedly use the assistant, Suleyman said Friday at an event in Microsoft’s Redmond, Washington, headquarters to commemorate the company’s 50th birthday. That feature came first to OpenAI’s ChatGPT, which has 500 million weekly users.

Through ChatGPT, people can access top-flight large language models such as the o1 reasoning model that takes time before spitting out an answer. OpenAI introduced that capability in September — only weeks later did Microsoft bring a similar capability called Think Deeper to Copilot.

Microsoft occasionally releases open-source small-language models that can run on PCs. They don’t require powerful server GPUs, making them different from OpenAI’s o1.

OpenAI and Microsoft have held a tight relationship shortly after the startup launched its ChatGPT chatbot in late 2022, effectively kicking off the generative AI race. In total, Microsoft has invested $13.75 billion in the startup, but more recently, fissures in the relationship between the two companies have begun to show.

Microsoft added OpenAI to its list of competitors in July 2024, and OpenAI in January announced that it was working with rival cloud provider Oracle on the $500 billion Stargate project. That came after years of OpenAI exclusively relying on Microsoft’s Azure cloud. Despite OpenAI partnering with Oracle, Microsoft in a blog post announced that the startup had “recently made a new, large Azure commitment.”

“Look, it’s absolutely mission-critical that long-term, we are able to do AI self-sufficiently at Microsoft,” Suleyman said. “At the same time, I think about these things over five and 10 year periods. You know, until 2030 at least, we are deeply partnered with OpenAI, who have [had an] enormously successful relationship for us.

Microsoft is focused on building its own AI internally, but the company is not pushing itself to build the most cutting-edge models, Suleyman said.

“We have an incredibly strong AI team, huge amounts of compute, and it’s very important to us that, you know, maybe we don’t develop the absolute frontier, the best model in the world first,” he said. “That’s very, very expensive to do and unnecessary to cause that duplication.”

WATCH: Microsoft Copilot beginning of a seismic shift in AI integration, says Microsoft AI CEO Suleyman