House Democrats say GOP caved to Musk in funding bill, protecting his China interests
Elon Musk walks on Capitol Hill on the day of a meeting with Senate Republican Leader-elect John Thune (R-SD), in Washington, U.S. December 5, 2024.
Benoit Tessier | Reuters
House Democrats Jim McGovern of Massachusetts and Rosa DeLauro of Connecticut say their Republican colleagues in Congress caved to the demands of Elon Musk, sinking a bipartisan government funding bill that would have regulated U.S. investments in China.
Congress passed a separate stopgap funding bill over the weekend, averting a government shutdown.
In a series of posts on X, McGovern said more could have been accomplished. The scrapped provision “would have made it easier to keep cutting-edge AI and quantum computing tech — as well as jobs — in America,” he wrote. “But Elon had a problem.”
Tesla, run by Musk, is the only foreign automaker to operate a factory in China without a local joint venture. Tesla also built a battery plant down the street from its Shanghai car factory this year, and aims to develop and sell self-driving vehicle technology in China.
“His bottom line depends on staying in China’s good graces,” McGovern wrote about Musk. “He wants to build an AI data center there too — which could endanger U.S. security. He’s been bending over backwards to ingratiate himself with Chinese leaders.”
SpaceX, Musk’s aerospace and defense contractor, has reportedly withheld its Starlink satellite internet service over Taiwan at the request of Chinese and Russian leaders. Taiwan is a self-ruling democracy that Beijing claims as its territory. Taiwan’s status is one of the biggest flashpoints in U.S.-China relations.
DeLauro, the top Democrat on the House Appropriations Committee, wrote in a letter to Congress on Friday that Musk needs “Chinese government approvals for his company’s projects in the country.” It’s concerning, that Musk “has ingratiated himself with Chinese Communist Party leadership,” she wrote.
In the letter, DeLauro referred to the Tesla and SpaceX CEO as “President” Musk, alluding to the fact that the world’s richest person began railing against the prior funding bill on Wednesday, before President-elect Donald Trump came out with a statement of his own.
Trump had wanted the GOP to sink the bill, and issue a new one that would raise the debt ceiling so he could avoid that fight during the start of his second term in office. The stopgap funding bill, which President Joe Biden signed on Saturday, did not include the two-year suspension of the U.S. debt limit that Trump was seeking.
Musk responded to DeLauro’s concerns by calling her an “awful creature” in a post on X.
After acquiring Twitter in 2022, Musk rebranded it X and used it to help propel Trump back into the White House, becoming a close adviser and major backer to the incoming president along the way.
Musk contributed $277 million to the Trump campaign and other Republican causes during the 2024 cycle, according to Federal Election Commission filings. Since the election in November, Musk has become a nearly constant presence at Trump’s side, including in meetings with foreign leaders.
Trump appointed Musk to co-lead a group that’s not yet formed, but will be tasked with finding ways to cut regulations, personnel and budgets.
Chris Martin of Coldplay performs live at San Siro Stadium, Milan, Italy, in July 2017.
Mairo Cinquetti | NurPhoto | Getty Images
Astronomer‘s interim CEO said in his first public comment since unexpectedly taking over the role on Saturday that he hopes to move the tech startup past the viral moment that captured national attention last week.
Pete DeJoy was appointed to the top job due to the resignation of CEO Andy Byron, days after he was caught on video in an intimate moment with the company’s head of human resources at a Coldplay concert. Astronomer said over the weekend that it would begin a search for a new CEO.
“The events of the past few days have received a level of media attention that few companies — let alone startups in our small corner of the data and AI world — ever encounter,” DeJoy wrote in a LinkedIn post on Monday. “The spotlight has been unusual and surreal for our team and, while I would never have wished for it to happen like this, Astronomer is now a household name.”
Byron was shown on a big screen at the concert in Boston on Wednesday with his arms around Chief People Officer Kristin Cabot. Byron, who is married with children, immediately hid when the couple was shown on screen. Lead singer Chris Martin said, “Either they’re having an affair or they’re just very shy.” A concert attendee’s video of the affair went viral.
DeJoy helped start Astronomer in 2017, according to his LinkedIn profile, and had been serving as chief product officer since earlier this year.
In May, Astronomer announced a $93 million investment round led by Bain Ventures and other investors, including Salesforce Ventures.
“I’m stepping into this role with a wholehearted commitment to taking care of our people and delivering for our customers,” DeJoy wrote. He added that “our story is very much still being written.”
Astronomer is commercializing the open-source data operations platform Astro. DeJoy wrote that customers “trust us with their most ambitious data & AI projects” and that “we’re here because the mission is bigger than any one moment.”
Dylan Field, co-founder and CEO of Figma Inc., after the morning sessions at the Allen & Co. Media and Technology Conference in Sun Valley, Idaho, on July 11, 2024.
David Paul Morris | Bloomberg | Getty Images
Design software company Figma on Monday published an updated prospectus for its initial public offering.
The company said it expects to sell about 37 million shares at $25 to $28 each. That would generate as much as $1 billion in proceeds, between the company and selling shareholders.
The IPO could value Figma, led by co-founder Dylan Field, a fully diluted valuation of $14.6 billion to $16.4 billion. Field plans to sell 2.35 million shares, which could be worth as much as $65.8 million.
In a 2024 tender offer, investors valued the company at $12.5 billion. In 2022, Adobe had agreed to acquire Figma for $20 billion, but the deal was scrapped after regulators objected.
The flow of technology companies joining U.S. exchanges has slowed since late 2021. Concerns over inflation and a recession made some investors less interested in backing fast-growing but money-losing companies.
But a few technology stocks have become available in recent months. CoreWeave went public in March, and Circle and Chime shares started trading in June.
Figma filed to go public on July 1, announcing plans to trade on the New York Stock Exchange under the symbol “FIG.”
On Monday, it provided preliminary results for the second quarter, showing $9.0 million to $12.0 million in operating income on $247 million to $250 million in revenue. That would imply year-over-year revenue growth of 39% at the low end and 41% at the high end. Growth in the first quarter exceeded 46%.
During the second quarter, Figma added clients and expanded business with existing ones. The company’s operating margin would be ticking up to 4% to 5%, up from 3% in the same quarter a year ago, based on the preliminary results.
Figma said it has authorized the issuance of “blockchain common stock” in the form of “blockchain-based tokens.” So far, though, Figma said it isn’t planning to issue this type of stock. In July, Figma disclosed investments in a stablecoin and a Bitcoin exchange-traded fund.
Mike Krieger, a co-founder of Instagram who is now chief product officer of artificial intelligence model developer Anthropic, has joined the board. Luis von Ahn, co-founder and CEO of Duolingo, is also joining the board, according to the filing.
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