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A woman tests Vueling’s new biometric recognition system at El Prat airport, January 19, 2023, in El Prat de Llobregat, Barcelona, Catalonia, Spain. 

David Zorrakino | Europa Press | Getty Images

As end-of-summer travel lines back up at TSA airport checkpoints in the U.S., one overseas airport is going all-in on a biometric passenger experience. The Smart Travel Project at Zayed International Airport in Abu Dhabi will involve biometric sensors at every airport identification checkpoint by 2025.

Airport security and travel experts have generally cheered the move.

“They are boldly moving forward in adopting facial recognition as the means to let travelers into their system, and I commend them for doing it,” said Sheldon Jacobson, an engineering and computer science professor at the University of Illinois. Jacobson has been studying airport security since the 1990s and helped the TSA develop its pre-screening program, which allows some travelers in the U.S. to skip the checkpoints. “Facial recognition is the future, and we will start to get intelligent with airport security and focus on the traveler rather than the items they bring. By doing that, you create a different paradigm,” Jacobson said. “What they are doing in Abu Dhabi is just the beginning, but it has to start somewhere.”

Going completely paperless from the parking garage to your seat-back tray table is unnerving to some who wonder if a Crowdstrike-type outage could bring down fully electronic boarding systems and grind travel to a halt. But Jacobson says those are very rare events, and even if the system completely shut down because of an outage, the net benefits of a biometric travel experience over time will outweigh the costs.

Zayed International Airport’s program relies on a partnership with the government. The UAE’s Federal Authority for Identity, Citizenship, Customs & Port Security collects biometrics from any traveler arriving in the UAE for the first time. The airport then uses this database to verify passengers passing checkpoints. The airport did not respond to a request for comment on its plans. Saeed Saif Al Khaili, General Director at the United Arab Emirate’s Federal Authority for Identity, Citizenship, Customs, and Port Security, said in a recent press release that the Biometric Smart Travel project “aims to enhance the travel experience at Zayed International Airport from curb to gate, ensuring high levels of security and safety.”

Jacobson says the TSA tends to move more slowly and incrementally on changes, and that the UAE’s political system allows for faster implementation of programs, so this all-encompassing collection of biometric data likely wouldn’t fly in the U.S., at least not now. Whenever new biometric programs are introduced, he said, there is “tremendous pushback.”

Still, the U.S. public appears to be getting more comfortable with usage of biometrics at airports.

According to data analytics firm J.D. Power and Associates, a majority (53%) of those surveyed at major U.S. airports say biometrics in airports are a good idea or they are willing to use a biometric security check. An additional 12% say they are a good idea but have privacy concerns.

Among the concerns expressed are what type of data someone would need to give during the biometric enrollment process, and whether biometric security processes will be used to track movements throughout the airport, or if biometric data will be used outside the airport.

“To make the technology more widespread and allow airports and travelers to take advantage of it, airports should establish clear guidelines and processes and make travelers aware of potential uses. Buy-in from travelers is essential,” says Mike Taylor, J.D. Power’s senior managing director of travel, hospitality, and retail.

Shawn DuBravac, futurist and author of “Digital Destiny: How the New Age of Data Will Transform the Way We Work, Live, and Communicate,” said he believes biometrics will transform travel. “While we’ve seen growing use of biometric sensors to streamline travel, the vision of a fully paperless experience by next year is incredibly ambitious,” he said.

Singapore launches passport-free immigration processing at Changi Airport

Travel veterans generally agree that some aspects of biometrics will be involved in future airport visits if they aren’t already. DuBravac sees biometrics at airports in the U.S. used as a tool to make the human element more responsive.

“Instead of managing mundane tasks like document verification, personnel can provide higher levels of customer service, assist travelers with special needs, and ensure that the overall passenger experience is efficient and welcoming. Automating routine processes will empower a more human experience,” he said.

Billionaire Elon Musk lauded Zayed’s innovation, commenting on X in response to a video that showed a traveler breezing through check-in at the Abu Dhabi airport that the U.S. needs to “catch up.”

“Musk’s comments are close to wishful thinking,” said Irina Tsukerman, a national security lawyer and fellow at the Arabian Peninsula Institute. She noted that privacy concerns and costs would likely prevent the implementation of a whole biometric airport experience in the U.S.

“This worked in Abu Dhabi because UAE is a small, wealthy monarchy with a high degree of population trust in the government and sufficient resources to devote to technical innovation,”  Tsukerman said. The same ingredients aren’t in place in the U.S. “Transition to full automation for all eligible travelers will be time-consuming, onerous, expensive, and meet resistance from airport worker unions,” she said.

Despite Musk dinging U.S. airports, it isn’t like there isn’t a biometric presence in the United States.

In 2018, LAX became one of the first airports in the United States to pilot biometric boarding, and today, it is used as an option for qualifying passengers.

“At LAX, we use biometrics to support our airline partners and federal authorities to speed up the process of boarding international departing flights,” said Ian Law, chief digital transformation officer, Los Angeles World Airports, which includes LAX. There are up to four biometric lanes at each international departure gate and facial recognition technology can be used to do touchless, paperless traveler verification.

“Airlines are able to significantly reduce the time needed to board a flight, cutting the time travelers stand in line,” Law said.

While no U.S. airports are close to Abu Dhabi’s goal of a completely biometric airport, plenty of airports in the United States at least use some biometrics. According to the TSA, its PreCheck option is currently available at more than 200 airports with over 90 participating airlines nationwide and has a voluntary facial recognition component. To be approved for PreCheck, participants fill out an online form, pay a fee, undergo a background check, an in-person interview, and can opt-in for a facial recognition scan.

Clear, a publicly trading company, has also made inroads into more than 55 U.S. airports, allowing those who pay a fee and undergo prescreening to skip the lines and board biometrically. The service has made some lawmakers balk at creating a tiered system of travelers, and in California a group of lawmakers tried – but failed — earlier this year to restrict Clear.

Travel technology provider Amadeus is not involved in the Abu Dhabi airport’s biometric program but has them at other airports, such as Dubai, Vancouver, Perth, and London’s Heathrow airport. Chris Keller, vice president of airport and airline operations at Amadeus, says that for the foreseeable future, airports will be able to implement paper backups if there is a technological issue. “We expect increasing numbers of passengers to use biometrics, but there will always be a group, perhaps those that need special assistance or premium passengers, who will choose an agent-assisted experience and prefer a paper document,” Keller said.

Jacobson says that would-be criminals will be thwarted by the fact that their faces will be known in a biometric airport system. “Once the person is known this has a deterrence effect and drives down the risk,” he said. But he also indicated that Musk’s comments lack proper context. “It is not that we are behind, this is an incremental process of growth and development,” he said. “We won’t get there this week. It takes a certain amount of will and proof of concept.”

For example, when PreCheck in was rolled out in 2011 it had taken eight years from proposal to implementation.

“People are uncomfortable with change, anytime you make changes we have to do it more efficiently, more securely and less intrusively,” Jacobson said.

In the U.S., it’ll probably be awhile until getting from terminal check-in to airplane seat involves just showing your face.

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

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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

Chime is reportedly delaying its IPO

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

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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.

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

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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

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