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People walk near the Google offices on July 04, 2022 in New York City.

John Smith | View Press | Getty Images

Google‘s parent company Alphabet has stacked its legal team with former Department of Justice employees as it fights two separate antitrust lawsuits from the agency, public profiles show.

Former DOJ employees make up both its in-house team and members of outside counsel firms it employs. The company has hired three former DOJ officials into regulatory roles since May 2022, and one before that in 2021, according to public information including social media profiles. Google also uses four different outside counsel firms loaded with nearly 20 former DOJ officials, many of whom worked in the Antitrust Division at various times.

Such hiring to its internal regulatory team is a reflection of the intense scrutiny Google is facing from governments around the world. It can be a signal that a company anticipates dealing with regulatory challenges in years to come, even if it doesn’t know exactly what form it’ll take yet, according to two former government officials.

“When companies find themselves under intense scrutiny from regulatory authorities, antitrust law or otherwise, they make moves like this,” said Bill Kovacic, a former Federal Trade Commission chair who now teaches antitrust law at George Washington University.

Google now faces two antitrust challenges from the DOJ, both to its search and ad tech businesses, and additional challenges from a slew of state attorneys general. Regulators around the world, including in Europe and Australia, have also presented policy and enforcement hurdles.

Google’s hiring is not surprising for a company under such a microscope, according to Doug Melamed, a former acting assistant attorney general at the DOJ Antitrust Division who’s now a scholar-in-residence at Stanford Law School.

The company had already been fighting one complex antitrust case that would likely require a team of 10 to 15 lawyers alone, according to Melamed, when the Department brought its second antitrust challenge against the company earlier this year.

“They don’t have the capacity to handle a case like that just sitting idle,” Melamed said. “They’ve got to now think about well, what outside lawyers are available that have to have the time and expertise to handle this case? And then, do I have the in-house capability to support it and supervise it?”

The added threat of new legislation targeting Google’s business, and that of other tech firms, looms. In the near term, it appears that a massive lobbying campaign by the industry has successfully delayed the most disruptive reforms. But the possibility of renewed energy around that legislation still hangs over the industry, and a company like Google “can take nothing for granted now,” Kovacic said, adding that’s likely a reason for the company to build out its regulatory forces.

“New entrants and new innovations are driving competition and delivering value for America’s consumers, publishers, and merchants,” a Google spokesperson said in a statement for this story. “We’re proud of our services and we look forward to making our case in court.”

Revolving door hiring

Alphabet now has at least five former DOJ staffers on its legal team, including Google’s director of competition Kevin Yingling, who’s been with the company for more than a decade and worked as a trial attorney at the Department of Justice from 2000 to 2005, according to his LinkedIn.

The company hired Kate Smith as counsel for Alphabet’s regulatory response, investigations and strategy unit in February 2021, according to LinkedIn. Smith was a trial attorney in the DOJ’s Civil Frauds division from September 2015 until January 2021.

In May 2022, according to LinkedIn, Alphabet hired Mike Kass, a former trial attorney in the DOJ’s Civil Fraud section, as its regulatory and litigation counsel for products.

A month later, the company hired Seema Mittal Roper as counsel on its regulatory response team. Mittal Roper worked as an assistant U.S. attorney for the DOJ in Maryland from 2013 to 2018, according to LinkedIn.

Most recently, the company hired Jack Mellyn as strategy counsel on its regulatory team. Mellyn was previously an attorney advisor and then acting assistant chief in the DOJ’s competition policy and advocacy section, according to a previously available social media profile.

It’s not clear which employees are working on the specific matters before the DOJ and Kass’ role appears focused outside of antitrust. It’s likely these employees never worked on Google-related matters they’re dealing with now during their time in government, given their dates and areas of previous employment, as well as federal ethics rules that bar certain conflicts.

But experts say this kind of hiring, which is common among businesses faced with regulatory scrutiny, can still be beneficial to a company because of the unique insight, touch or credibility that an ex-government attorney might hold when it comes to their former colleagues.

“There are lots of lawyers out there. But only alumni of an office really understand how that office works,” said Jeff Hauser, executive director of the Revolving Door Project, which tracks the business ties of executive branch officials. “That means its strengths and weaknesses, that means the tendencies of people in that office. And they can therefore give much more concrete intelligence and better-informed advice to their client.”

Hauser said this may mean the lawyers could advise a client or employer to flood the agency with information rather than comply with a certain document request, knowing that the enforcers don’t have the capacity to deal with it. Or, they might suggest strategies to approach a deposition, knowing the government staffer conducting it.

A lawyer who’s had experience in the government doesn’t bring information about the specific matters of the companies involved, but rather brings a general perspective about how the agency is approaching these kinds of problems,” Melamed said.

Enforcement agencies also often have to trust whether they believe the target of an investigation has complied with its requests. Hauser said the agencies may be more inclined to take the word of their former colleagues, compared to a more removed attorney.

A recent event shows what can happen when that trust is broken. The DOJ last month accused Google of destroying chat messages it should have kept under a litigation hold related to the investigation. The DOJ made the accusation in a legal filing after Epic Games raised the concern in its own antitrust litigation against Google.

A Google spokesperson said in a statement at the time of the DOJ’s filing that they “strongly refute the DOJ’s claims.”

Google also works with outside counsel firms on its antitrust cases, including Axinn, Freshfields, Ropes & Gray and Wilson Sonsini, based on reports, statements and legal filings. Those firms collectively have around 20 former DOJ employees on their staff, many of them working in antitrust. Though these attorneys may not all work on Google matters, the firms themselves often tout the benefit of former government officials in bringing a helpful perspective to clients.

For example, Freshfields says on its website that its “deep bench of former DOJ and FTC trial attorneys gives us unique insight into how the enforcement agencies approach enforcement in general and litigation in particular.”

Kovacic said agency experience is something companies look for in hiring outside firms.

“In deciding who to retain, what law firm to retain or what economic consultancy to retain, they would place a lot of weight on how many former government officials are in those firms,” Kovacic said.

Freshfields attorneys Julie Elmer and Eric Mahr have led Google’s defense against an advertising technology monopolization case brought by a group of states led by Texas, The New York Times reported in 2021. And Bloomberg Law reported this year that Mahr will also lead its defense in the ad tech case brought by the DOJ.

Mahr was director of litigation for the DOJ Antitrust Division from 2015 to 2017, according to the Freshfields site, and Elmer worked as a trial attorney in the Antitrust Division from 2015 to 2020, according to her LinkedIn profile.

Revolving door hiring goes both ways between the public and private sectors, with government officials often working for previous employers or clients who become relevant in their work. For example, DOJ antitrust chief Jonathan Kanter previously worked for clients including Microsoft and Yelp which have complained of Google’s allegedly anticompetitive behavior.

Ultimately, however, Kanter was cleared to work on cases and investigations involving Google, despite the company’s suggestion that his past work should cast doubt on his ability to be fair in such matters.

The DOJ and Wilson Sonsini declined to comment. The three other firms mentioned did not immediately provide a comment for this story.

Limits for former government employees

There are limits on what former government officials can work on under federal ethics and Bar rules.

For example, the DOJ’s website says that former employees can’t represent someone before the government on an issue involving parties they “personally and substantially” worked on during their time in government. For two years after leaving the Department, a former employee also cannot represent anyone before the government in a matter involving parties they know “was pending under his official responsibility for the last year of government service and in which the U.S. is a party or has a substantial interest.”

And for one year after leaving the agency, former senior employees cannot represent someone before the agency “with the intent to influence” the DOJ on a pending matter or one in which it has an interest.

Personal and substantial work on a matter within government doesn’t depend on the length of time devoted to it, but the role a person played in potentially influencing the outcome or direction, according to Virginia Canter, the chief ethics counsel at Citizens for Responsibility and Ethics in Washington (CREW) who previously advised government officials on ethics at agencies including the Securities and Exchange Commission and the Treasury Department.

But even if a former government official can’t work on a specific matter they were privy to during their earlier employment, their insight might still be useful to a company.

“You can read about it, but when you’re actually part of dealing with these cases, you know that there are certain factors that are going to either act as mitigating or … that are going to more favorably incline you to bring a case,” Canter said. “It’s just your general knowledge and experience.”

When companies hire former government officials, they may also have the idea that those employees will be viewed more favorably by the current regime.

“Maybe there’s just this general impression that they’re trying to surround themselves with what will be perceived by their former colleagues as the good guys,” Canter hypothesized.

Some might argue that experience could be beneficial to the government in some cases, Canter noted. A former government employee might have a deeper understanding of the importance of compliance or providing certain information to officials, for example, having seen up close what could be at stake if they don’t.

Hauser said it’s unlikely DOJ leadership, especially Kanter, who has made a point to bring more aggressive cases in the tech space and overall, would be overly swayed to view things Google’s way in ongoing matters. But, he said, the impact of former DOJ staff employed by Google could be more influential in an emerging issue, where there’s an opportunity to leave a first impression on senior leadership about it.

The degree of this kind of influence may be relatively small on the level of an individual case, Hauser said, but for a company under such a high degree of regulatory scrutiny, it could add up.

“You’re talking about billions and billions of dollars of potential implications for Google’s net worth,” Hauser said. “Relatively small changes in the scope of the investigation, the timeframe of the investigation, can be very big, even if they don’t go to the overall question of will there be any lawsuits by the Justice Department against Google.”

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Musk-Altman AI rivalry is complicating Trump’s dealmaking in Middle East

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Musk-Altman AI rivalry is complicating Trump's dealmaking in Middle East

Sam Altman, CEO of OpenAI, is seen through glass during an event on the sidelines of the Artificial Intelligence Action Summit in Paris, Feb. 11, 2025.

Aurelien Morissard | Via Reuters

Elon Musk tried to derail a major artificial intelligence infrastructure deal in the Middle East after learning that his startup, xAI, would be excluded from the initiative, CNBC has confirmed.

Earlier this month, OpenAI, OracleNvidiaCisco and Emirati firm G42 announced plans to build a sweeping Stargate AI campus in the United Arab Emirates. Musk was frustrated that OpenAI, led by personal rival Sam Altman, was tapped for the deal, and he intervened in an effort to get xAI involved, said a person familiar with the matter who asked not to be named in order to speak freely.

Musk argued that President Donald Trump would not approve the deal, the person said. The announcement was delayed by several days as stakeholders, including the White House, dealt with blowback from Musk, who has been engaged in a public and legal spat with Altman and OpenAI.

The Wall Street Journal first reported that Musk attempted to block the deal.

In a statement to CNBC, White House press secretary Karoline Leavitt didn’t mention the dustup.

“The United States and the UAE signed a groundbreaking framework agreement establishing the first AI acceleration partnership,” Leavitt said. “The framework advances the buildout of AI infrastructure in the United States and the UAE. This was another great deal for the American people, thanks to President Trump and his exceptional team.” 

Musk wasn’t in the UAE when the deal was signed, but was with the president in Saudi Arabia during an earlier part of the Middle East trip, according to a senior White House official. The official said Musk has relayed his concerns about the government fairly treating all AI companies.

OpenAI declined to comment. Musk didn’t respond to CNBC’s request for comment.

Musk, who is also CEO of Tesla and SpaceX, is a complicating character in Trump’s effort to solidify U.S. leadership in AI. Musk spent close to $300 million to send President Trump back to the White House, and has since been leading the Department of Government Efficiency (DOGE), slashing the size of the federal workforce. His time as a special government employee is coming to an end this month.

When it comes to AI, Musk has in recent years been a vocal critic of Altman, a former friend and colleague. The pair helped form OpenAI as a research lab in 2015, but Musk later had a public break with the project and has consistently criticized its structure and close alliance with Microsoft.

While xAI has been building its commercial efforts, acquiring Musk’s social media company X in March and this week partnering with Telegram to roll out its Grok chatbot, Musk has been trying to thwart OpenAI’s effort to convert into a for-profit entity.

Musk has sued OpenAI for breach of contract and to try and stop the conversion, and a Musk-led investor group made an unsuccessful bid to buy control of the startup for $97.4 billion in February. 

It’s also not the first time Musk has been critical of Stargate.

In January, Trump unveiled the Stargate project, with OpenAIOracle and Softbank committing an initial $100 billion, and up to $500 billion, of investment in AI infrastructure in the U.S. over four years. Musk was quick to cast doubt on the financing behind the project.

“They don’t actually have the money,” Musk wrote in response to an OpenAI post on his social platform X. He later added that SoftBank had “well under” $10 billion secured.

Two months later, SoftBank led a $40 billion investment in OpenAI at a $300 billion valuation.

— CNBC’s Eamon Javers contributed to this report.

WATCH: Elon Musk tried to block Sam Altman’s big AI deal in the UAE

Elon Musk tried to block Sam Altman's big AI deal in the UAE

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Dell shares climb after company raises full-year profit outlook on AI demand

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Dell shares climb after company raises full-year profit outlook on AI demand

A Dell Technologies sign is seen in Round Rock, Texas, on June 2, 2023.

Brandon Bell | Getty Images

Shares of Dell Technologies rose on Thursday in extended trading after the company raised its full-year earnings forecast and issued a stronger-than-expected forecast for the current quarter.

However, Dell’s adjusted earnings per share came up short versus LSEG estimates on in-line revenue.

Here’s how the computer maker did versus LSEG consensus estimates:

  • Earnings per share: $1.55 adjusted vs. $1.69 estimated
  • Revenue: $23.38 billion vs. $23.14 billion estimated

Dell said it expects $2.25 in adjusted earnings per share for the current quarter, with between $28.5 billion and $29.5 billion in revenue. That was significantly higher than LSEG expectations.

Company officials attributed the strong guidance to $7 billion in artificial intelligence systems that are expected to ship during the quarter, which are higher-margin than other Dell systems.

For the full year, Dell still expects about $103 billion in revenue, in line with LSEG expectations, but it raised its forecast for full-year adjusted earnings to $9.40, which was a 10 cent increase from the company’s prior outlook.

Dell is one of Nvidia’s primary vendors that builds systems around the chipmaker’s AI graphics processing units. Dell said on Thursday that it was seeing “unprecedented demand” for AI systems, especially for second-tier cloud providers, such as Coreweave.

Texas-based Dell said that it has $14.4 billion in confirmed orders for AI systems in its backlog that will ship in the coming quarters. It recorded $12.1 billion in confirmed AI orders during the first quarter, the company said. These numbers will turn into recorded revenue when Dell ships the system to its clients. In February, Dell said it expected $15 billion in AI server sales during its fiscal 2026, up from $10 billion last year.

Overall, Dell’s revenue grew 5% on an annual basis. It said it expects revenue to grow 8% during the fiscal year.

Dell’s server business is reported as part of its Infrastructure Solutions Group, which had $10.3 billion in sales during the quarter, a 12% rise. Of that, $6.3 billion was sales for servers and networking, and $4 billion was for computers that store data.

The company’s laptop and PC business, its Client Solutions Group, recorded $12.5 billion in sales as the global PC market is expected to recover this year after several slumping years.

The computer maker also said it significantly stepped up its shareholder capital return during the quarter, spending $2.4 billion on share repurchases and dividends during the period. It spent $2.58 billion on share repurchases for all of its fiscal 2025, which ended in January.

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Musk’s SpaceX town in Texas warns residents they may lose right to ‘continue using’ their property

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Musk's SpaceX town in Texas warns residents they may lose right to 'continue using' their property

The neighborhood once known as Boca Chica Village is seen near the SpaceX facilities where they build rockets in Brownsville, Texas, on May 3, 2025.

Gabriel Cardenas | AFP | Getty Images

Starbase, Texas, has notified some residents that they might “lose the right to continue using” their property as they do today, according to a memo obtained by CNBC.

The town, home to Elon Musk‘s SpaceX, is considering a new zoning ordinance and city-wide map.

The notice, sent to property owners in a proposed “Mixed Use District,” would allow for “residential, office, retail, and small-scale service uses.”

Starbase plans to host a public hearing on Monday, June 23, 2025, about the proposed new zoning and map for the town. The notice was signed by Kent Myers, a city administrator for Starbase and radiation test specialist at SpaceX according to his LinkedIn profile.

Representatives for Starbase and SpaceX did not respond to requests for further information on Thursday.

A “type-C municipal corporation,” Starbase was officially formed earlier this month after Musk’s aerospace and defense contractor prevailed in a local election. It is now run by officials who are SpaceX employees and former employees.

As of early this year, the population of Starbase stood around 500 people, with around 260 directly employed by SpaceX, the Texas Tribune reported. Most other residents of Starbase are relatives of SpaceX employees.

The company town includes the launch facility where SpaceX conducts test flights of its massive Starship rocket, and company-owned land covering a 1.6 square-mile area.

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Starbase is holding its first city commission meeting on Thursday, two days after SpaceX conducted its ninth test flight of the massive Starship rocket from the Texas coast facility.

The rocket exploded during the test flight, marking a catastrophic loss and a third-consecutive setback for the aerospace and defense contractor. Following the incident, Musk, who also leads Tesla, focused on data and lessons to be learned from the explosions.

The FAA said there had been “no reports of public injury or damage to public property” on Wednesday.

The Starship system was developed to transport people and equipment around Earth, and to the Moon, and Musk envisions the rocket someday being used to colonize Mars.

The SpaceX Starbase industrial complex and rocket launch facility in Boca Chica, Texas, US, on Thursday, April 17, 2025.

Mark Felix | Bloomberg | Getty Images

Musk’s rocket maker has taken in more than $20 billion in government contracts since 2008, and is poised to take in several billion dollars annually for years to come.

Establishing Starbase as a company town helps SpaceX attain nearly unfettered permission to build, test or launch from its industrial complex on the Texas Gulf Coast.

The town is still trying to win the ability to close a main road and beaches for launch activity during the week without seeking municipal or other authority.

Here’s the text of the zoning memo sent to Starbase residents:

May 21, 2025

Dear Starbase Property Owner/Property Occupant,

Notice is hereby given that the City Commission for the City of Starbase will conduct a Public Hearing on Monday, June 23, 2025, at 9:00 a.m., at the City of Starbase temporary city hall located at 39046 LBJ Boulevard, Brownsville, TX 78521, to hear public comments, consider and act upon the adoption of a Comprehensive Zoning Ordinance and city wide Zoning Map.

Our goal is to ensure that the zoning plan reflects the City’s vision for balanced growth, protecting critical economic drivers, ensuring public safety, and preserving green spaces. You are receiving this notice because you own the above listed property that will be located in the “Mixed Use District” and will be impacted if the zoning ordinance is approved. 

The Mixed Use District allows for a blend of residential, office, retail, and small-scale service uses. A proposed zoning map is enclosed with this notice. You may view the draft zoning ordinance on the City’s website 72 hours prior to the above listed public hearing.

The City is required by Texas law to notify you of the following: THE CITY OF STARBASE IS HOLDING A HEARING THAT WILL DETERMINE WHETHER YOU MAY LOSE THE RIGHT TO CONTINUE USING YOUR PROPERTY FOR ITS CURRENT USE, PLEASE READ THIS NOTICE CAREFULLY. The foregoing notice is required by Texas Local Government Code section 211.006(a-1). The proposed zoning ordinance is based on current and existing uses.

Please contact City Administrator Kent Myers [email address redacted] with any questions or written comments. Your written comments must be submitted by 3:00 pm on June 22, 2025. Public comments may also be given at the above listed public hearing.

 

Best Wishes, 

Kent Myers

City Administrator, City of Starbase

[addresses redacted]

cityofstarbase-texas.com

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