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SACRAMENTO, Calif. A federal judge has found top California prison officials in civil contempt for failing to hire enough mental health professionals to adequately treat tens of thousands of incarcerated people with serious mental disorders.

Chief U.S. District Judge Kimberly Mueller on June 25 ordered the state to pay $112 million in fines at a time when the state is trying to close a multibillion-dollar budget deficit. The fines have been accumulating since April 2023, after Mueller said she was fed up with the state prison systems inadequate staffing despite years of court orders demanding that the state address the issue. Use Our Content

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The sanctions imposed here are necessary to sharpen that focus and magnify defendants sense of urgency to finally achieve a lasting remedy for chronic mental health understaffing in the states prison system, Mueller said in her order in the long-running class-action lawsuit.

The ongoing harm caused by these high vacancy rates is as clear today as it was thirty years ago and the harm persists despite multiple court orders requiring defendants to reduce those rates, she added.

Mueller ordered the state to pay the fines within 30 days and said they will be used exclusively for steps necessary to come into compliance with the courts staffing orders. She ordered California to keep paying additional fines for each month the state remains in violation of court orders.

The ruling was unwelcome news for Gov. Gavin Newsom, who is struggling with a budget deficit thats forcing reductions in numerous state programs. Email Sign-Up

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The contempt finding is deeply flawed, and it does not reflect reality, said Diana Crofts-Pelayo, a Newsom spokesperson. Amid a nationwide shortage of mental health therapists, the administration has led massive and unprecedented efforts to expand care and recruit and retain mental health care professionals.

California Department of Corrections and Rehabilitation spokesperson Terri Hardy said the state will appeal Muellers order. Prisoners often have greater access to mental health care in custody than what presently exists for people outside because of the states extraordinary steps to expand access to mental health care, Hardy said.

Muellers contempt finding comes as Newsom, a Democrat, has prioritized improving mental health treatment statewide, partly to combat Californias seemingly intractable homelessness crisis. His administration has argued that Mueller is setting impossible standards for improving treatment for about 34,000 imprisoned people with serious mental illnesses more than a third of Californias prison population.

Attorneys representing prisoners with mental illness vehemently disagree.

“It’s very unfortunate that the state officials have allowed this situation to get so bad and to stay so bad for so long, said Ernest Galvan, one of the prisoners attorneys in the long-running litigation. And I hope that this order, which the judge reserved as an absolute last resort, refocuses officials’ attention where it needs to be: bringing lifesaving care into the prisons, where it’s urgently needed.”

As part of her tentative contempt ruling in March, Mueller ordered Newsom personally, along with five of his top state officials, to read testimony by prison mental health employees describing the ongoing problem during a trial last fall.  

The other five were the directors of his departments of Corrections and Rehabilitation, State Hospitals, and Finance; the corrections departments undersecretary for health care services; and the deputy director in charge of its statewide mental health program.

Mueller limited her formal contempt finding to Corrections Secretary Jeff Macomber and two aides, Undersecretary Diana Toche and Deputy Director Amar Mehta.

Fundamentally, the overall record reflects defendants are following a business as usual approach to hiring, recruitment and retention that does very little if anything to transform the bureaucracy within which the hiring practices are carried out, Mueller wrote.

Mueller had ordered state officials to calculate each month what they owe in fines for each unfilled position exceeding a 10% vacancy rate among required prison mental health professionals. The fines are calculated based on the maximum annual salary for each job, including some that approach or exceed $300,000.

The 10% vacancy limit dates to a court order by Muellers predecessor more than 20 years ago, in 2002, in the class-action case filed in 1990 over poor treatment of prisoners with mental disorders.

The $112 million in pending fines for understaffing is one of three sets of fines Mueller imposed.

She imposed $1,000-a-day fines in 2017 for a backlog in sending imprisoned people to state mental health facilities. But that money, which now tops $4.2 million, has never been collected, and Mueller postponed a planned hearing on the fines after prisoners attorneys said the state was making improvements.

In April 2023, Mueller also began assessing $1,000-a-day fines for the states failure to implement court-ordered suicide prevention measures. A court-appointed expert said his latest inspection of prisons showed the state was still not in full compliance.

This article was produced by KFF Health News, which publishes California Healthline, an editorially independent service of the California Health Care Foundation. Related Topics California Courts Mental Health Public Health States Prison Health Care Contact Us Submit a Story Tip

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Alibaba posts profit beat as China looks to prop up tepid consumer spend

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Alibaba posts profit beat as China looks to prop up tepid consumer spend

Alibaba Offices In Beijing

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Chinese e-commerce behemoth Alibaba on Friday beat profit expectations in its September quarter, but sales fell short as sluggishness in the world’s second-largest economy hit consumer spending.

Alibaba said net income rose 58% year on year to 43.9 billion yuan ($6.07 billion) in the company’s quarter ended Sept. 30, on the back of the performance of its equity investments. This compares with an LSEG forecast of 25.83 billion yuan.

“The year-over-year increases were primarily attributable to the mark-to-market changes from our equity investments, decrease in impairment of our investments and increase in income from operations,” the company said of the annual profit jump in its earnings statement.

Revenue, meanwhile, came in at 236.5 billion yuan, 5% higher year on year but below an analyst forecast of 238.9 billion yuan, according to LSEG data.

The company’s New York-listed shares have gained ground this year to date, up more than 13%. The stock fell more than 2% in morning trading on Friday, after the release of the quarterly earnings.

Sales sentiment

Investors are closely watching the performance of Alibaba’s main business units, Taobao and Tmall Group, which reported a 1% annual uptick in revenue to 98.99 billion yuan in the September quarter.

The results come at a tricky time for Chinese commerce businesses, given a tepid retail environment in the country. Chinese e-commerce group JD.com also missed revenue expectations on Thursday, according to Reuters.

Markets are now watching whether a slew of recent stimulus measures from Beijing, including a five-year 1.4 trillion yuan package announced last week, will help resuscitate the country’s growth and curtail a long-lived real estate market slump.

The impact on the retail space looks promising so far, with sales rising by a better-than-expected 4.8% year on year in October, while China’s recent Singles’ Day shopping holiday — widely seen as a barometer for national consumer sentiment — regained some of its luster.

Alibaba touted “robust growth” in gross merchandise volume — an industry measure of sales over time that does not equate to the company’s revenue — for its Taobao and Tmall Group businesses during the festival, along with a “record number of active buyers.”

“Alibaba’s outlook remains closely aligned with the trajectory of the Chinese economy and evolving regulatory policies,” ING analysts said Thursday, noting that the company’s Friday report will shed light on the Chinese economy’s growth momentum.

The e-commerce giant’s overseas online shopping businesses, such as Lazada and Aliexpress, meanwhile posted a 29% year-on-year hike in sales to 31.67 billion yuan.  

Cloud business accelerates

Alibaba’s Cloud Intelligence Group reported year-on-year sales growth of 7% to 29.6 billion yuan in the September quarter, compared with a 6% annual hike in the three-month period ended in June. The slight acceleration comes amid ongoing efforts by the company to leverage its cloud infrastructure and reposition itself as a leader in the booming artificial intelligence space.

“Growth in our Cloud business accelerated from prior quarters, with revenues from public cloud products growing in double digits and AI-related product revenue delivering triple-digit growth. We are more confident in our core businesses than ever and will continue to invest in supporting long-term growth,” Alibaba CEO Eddie Wu said in a statement Friday.

Stymied by Beijing’s sweeping 2022 crackdown on large internet and tech companies, Alibaba last year overhauled the division’s leadership and has been shaping it as a future growth driver, stepping up competition with rivals including Baidu and Huawei domestically, and Microsoft and OpenAI in the U.S.

Alibaba, which rolled out its own ChatGPT-style product Tongyi Qianwen last year, this week unveiled its own AI-powered search tool for small businesses in Europe and the Americas, and clinched a key five-year partnership to supply cloud services to Indonesian tech giant GoTo in September.

Speaking at the Apsara Conference in September, Alibaba’s Wu said the company’s cloud unit is investing “with unprecedented intensity, in the research and development of AI technology and the building of its global infrastructure,” noting that the future of AI is “only beginning.”

Correction: This article has been updated to reflect that Alibaba’s Cloud Intelligence Group reported quarterly revenue of 29.6 billion yuan in the September quarter.

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Elon Musk’s xAI raising up to $6 billion to purchase 100,000 Nvidia chips for Memphis data center

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Elon Musk's xAI raising up to  billion to purchase 100,000 Nvidia chips for Memphis data center

Elon Musk listens as US President-elect Donald Trump speaks during a House Republicans Conference meeting at the Hyatt Regency on Capitol Hill on November 13, 2024 in Washington, DC. 

Allison Robbert | Getty Images

Elon Musk’s artificial intelligence company xAI is raising up to $6 billion at a $50 billion valuation, according to CNBC’s David Faber.

Sources told Faber that the funding, which should close early next week, is a combination of $5 billion expected from sovereign funds in the Middle East and $1 billion from other investors, some of whom may want to re-up their investments.

The money will be used to acquire 100,000 Nvidia chips, per sources familiar with the situation. Tesla‘s Full Self Driving is expected to rely on the new Memphis supercomputer.

Musk’s AI startup, which he announced in July 2023, seeks to “understand the true nature of the universe,” according to its website. Last November, X.AI released a chatbot called Grok, which the company said was modeled after “The Hitchhiker’s Guide to the Galaxy.” The chatbot debuted with two months of training and had real-time knowledge of the internet, the company claimed at the time.

With Grok, X.AI aims to directly compete with companies including ChatGPT creator OpenAI, which Musk helped start before a conflict with co-founder Sam Altman led him to depart the project in 2018. It will also be vying with Google’s Bard technology and Anthropic’s Claude chatbot.

Now that Donald Trump is President-elect, Elon Musk is beginning to actively work with the new administration on its approach to AI and tech more broadly, as part of Trump’s inner circle in recent weeks.

Trump plans to repeal President Biden’s executive order on AI, according to his campaign platform, stating that it “hinders AI Innovation, and imposes Radical Leftwing ideas on the development of this technology” and that “in its place, Republicans support AI Development rooted in Free Speech and Human Flourishing.”

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Baidu- and Geely-backed JiYue brand unveils ROBO X EV that goes 0-100 km/h in under 1.9 sec

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Baidu- and Geely-backed JiYue brand unveils ROBO X EV that goes 0-100 km/h in under 1.9 sec

JiYue, a Chinese EV brand focused on delivering all-electric “robocars” to the masses, has unveiled its latest model, and it’s quite a deviation from its previous EVs—but in the best way. Earlier today, JiYue launched the ROBO X supercar, designed for high-speed racing. By high speed, we mean 0-100 km/h acceleration in under 1.9 seconds. My mouth is watering.

JiYue has only existed since 2021, when parent tech company Baidu announced it was expanding from software development into physical EV production, joining forces with multinational automotive manufacturer Geely.

The new “robotic EV” marque initially launched as JIDU with $300 million in startup capital before garnering an additional $400 million in Series A funding, led by Baidu, in January 2022.

In August 2023, Geely took on a larger role in JIDU alongside a greater financial stake as the brand reimagined itself as JiYue, inheriting the JIDU logo and its flagship model, the 01 ROBOCAR.

In December 2023, Baidu and Geely unveiled a second model called the JiYue 07. It was born from JIDU’s ROBO-02 concept, which debuted in 2023 and was designed to compete against the Tesla Model 3 in China.

The 07 finally launched in China earlier this year with 545 miles of range. With an all-electric SUV and sedan on the market, JiYue has unveiled an exciting new entry in the form of a performance supercar called the ROBO X. Check it out:

JiYue’s new ROBO X EV is available for pre-order now

JiYue showcased its new ROBO X hypercar in front of the crowd at the 2024 Guangzhou Auto Show earlier today. Similar to previous models but with a unique spin, JiYue described the ROBO X as an AI smart-driving supercar that, for the first time, blends artificial intelligence and autonomous driving into a high-performance, race-ready EV.

When we say “high performance,” we mean a quad motor liquid-cooled drive system that can propel the ROBO X from 0 to 100 km/h (0 to 62 mph) in under 1.9 seconds. JiYue called the new ROBO X a “performance beast” with “the perfect balance of excellent aerodynamic performance and high downforce.” JiYue CEO Joe Xia was even bolder in his statements about the ROBO X:

For the next 20 years, the design of supercars will bear the shadow of Robo X. This is the best design in the history of Chinese automobiles today, and it is a landmark presence.

Fighter-style airflow ducts bolster the EV’s aerodynamics, efficiency, and overall posture. Per JiYue, the two-seater ROBO X is expected to deliver a maximum range of over 650 km (404 miles).

The new supercar features falcon-wing doors, a carbon fiber integrated frame, and a professional racing HALO safety system offering 360° of support. The interior features an AI smart cockpit with SIMO real-time feedback to give drivers an immersive racing experience.

Furthermore, JiYue said the vehicle will utilize parent company Baidu’s Apollo self-driving technology, which could make it the first electric supercar to apply pure-vision ADAS technology that enables track-level autonomous driving.

Following today’s unveiling of the ROBO X, JiYue has officially opened up pre-orders in China for RMB 49,999 ($6,915). That said, reservation holders will need to be patient as JiYue shared that it doesn’t expect to begin mass production of the ROBO X until 2027.

What do you think? Will people be talking about the ROBO X for the next 20 years?

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