Connect with us

Published

on

As thousands of homes started to burn across Los Angeles on Jan. 7, fire hydrants stopped working. The rapid spread of flames in winds up to 100 miles per hour was happening too quickly for water pumps to keep up. It shocked the system and those fleeing the flames.

“This area is known for having fire issues, so you would think that they would be prepared for this,” said Joan Zoloth, 70, who said she first moved to the area when she was 6 years old.

Zoloth’s childhood home burned down in the Palisades Fire. Her own home around the corner and her son’s home nearby were also lost. 

“My mother was a teacher,” Zoloth said. “What people don’t realize is how much Malibu is filled with those types of people — not just movie stars.”

The remains of Joan Zoloth’s childhood home in Malibu, California, shown on Jan. 21, 2025, after it burned down in the Palisades Fire.

Andrew Evers

CNBC went to the wreckage of the Palisades Fire to ask officials what happened to the water system in LA, and what other cities can do to be better prepared. As many as 1 in 6 Americans now live in areas with significant wildfire risk. 

“A firefight at this size, such an urban conflagration, any system is going to have its challenges in maintaining water pressure,” said State Fire Marshall Daniel Berlant, of the California Department of Forestry and Fire Protection, known as Cal Fire.

Water pressure was the primary problem, rather than a lack of supply, fire officials and water experts told CNBC. 

Much of the water in the Palisades is provided by three 1 million gallon tanks that sit up in the hills, using gravity to maintain water pressure in the hydrants and homes they supply below.

Pumps forcibly move water from main lines and surrounding reservoirs to those tanks. The tanks were full when the fires started, but the pumps couldn’t replenish water in the tanks as quickly as firefighters were using it below. As the tanks depleted, so did the water pressure, until some 20% of hydrants ran dry.

“The hydrants would have run dry anywhere in the world with a fire event like this in the topography where this occurred,” said Greg Pierce, director of the UCLA Human Right to Water Lab.

Joan Zoloth lost three family homes in Malibu during the Palisades fire. She’s shown here at a family friend’s house where she’s staying in Venice, California, on January 21, 2025.

Andrew Evers

The closure of a 117 million gallon reservoir nearby complicated matters. Earlier this month, California Gov. Gavin Newsom and LA city council members called for investigations into why the Santa Ynez Reservoir hadn’t yet reopened after being drained almost a year ago to repair a tear in its cover.

“That would have made a difference,” Pierce said. “But even, by all accounts, if that reservoir was full, it wouldn’t have stopped the fire.”

Typically, fires are also fought by aircraft dropping water and fire retardant from above, but high winds kept them grounded for several hours on the first night of the fire.

Firefighters adapted with three tactics. They shuttled water through multiple engines connected to functional hydrants, drove it to locations in large water tenders, and pumped water directly from backyard swimming pools.

The LA Department of Water and Power said it quadrupled the water flow to the area and summoned 15 water tankers to directly refill fire trucks. It wasn’t enough.

The blame game

As immediate danger calmed, misinformation ran wild. The Federal Emergency Management Agency, or FEMA, reactivated its rumor response site, and the LA Fire Department directly responded to inaccurate social media posts.

President Donald Trump, for instance, claimed that water ran out in LA because of policies meant to protect a small endangered fish called the Delta smelt.

“It’s just simply false. It’s nonsense,” said Peter Gleick, co-founder of the Pacific Institute, a global water think tank. Gleick has been researching water issues for four decades.

On his first day back in office, Trump signed an executive order titled “Putting People Over Fish: Stopping Radical Environmentalism to Provide Water to Southern California.” After visiting with Newsom in LA, Trump signed another executive order directing federal officials to find ways to override “disastrous” California water policies. 

“There’s lots of conversations about California water policy and how we allocate water to protect fish or ecosystems versus deliver water to different kinds of users, but that had no role whatsoever to play in water availability for firefighting,” Gleick said.

Southern California reservoirs are at above-average levels for this time of year because of two plentiful rainy seasons, he added.

“Misinformation about how if we just had more water from Northern California in Southern California, that would have made the difference, that’s not true,” UCLA’s Pierce said. “Even if you have water stored fairly close by in the region, you can’t just move it quickly up to an area like the Palisades.”

That’s why billionaires Lynda and Stewart Resnick are also not to blame for the Palisades Fire, the water experts who spoke with CNBC said. 

The Resnicks own the Wonderful Company, which includes brands such as Pom and Fiji Water, and have sprawling farmlands in the San Joaquin Valley that grow pistachios, oranges and pomegranates. They’ve been the subject of attacks on social media, some of which are antisemitic, that blame them for the water pressure problems in LA because of their investment in a public-private water bank that’s 100 miles north of LA and that has no ability to impact water pressure in the Palisades.

“There’s absolutely no connection between the two. This is a localized problem,” said Felicia Marcus, former chair of the California State Water Resources Control Board.

The fires also resurfaced criticism around state and local water decisions, from taking down dams to not building enough reservoirs.

The real culprit is extremely dry conditions, experts told CNBC. Before the fires, LA saw close to zero rain since May, and 2024 was the hottest year on record for the planet, Gleick said.

“Higher temperatures means more demand for water by soils and vegetation and people and agriculture,” he said. “Climate change is in many ways a water problem. It’s being manifested by drought and floods and wildfires.”

More resilient water systems

This is not the first time hydrants ran dry in a major firefight. They’re designed to handle one or two structure fires, not hundreds burning at the same time.

Similar water pressure problems plagued the 1991 Oakland Hills Fire, which destroyed more than 3,000 homes, and two Ventura County fires that each burned more than 1,000 homes in 2017 and 2018

The problem extends beyond California. Texas saw the largest fire in its history last February. As population booms, more people are moving to areas at high risk of fires between dense developments and wildland. 

California is home to the top six cities at highest wildfire risk in the U.S., but Texas, Colorado and Oregon also have cities in the top 15.

A firefighting helicopter draws water from the first-ever installed Heli-Hydrant to quickly stop the Blue Ridge Fire in Yorba Linda, California, on October 28, 2020.

Yorba Linda Water District

There are three key components to making water systems more resilient, Pierce said: increasing water supply, improving local infrastructure, and bolstering power.

After a 2008 fire that destroyed 280 homes, Yorba Linda Water District in California addressed all three. It added backup generators at water pump stations that had failed during the fire, added a long-planned underground reservoir, and installed a first-of-its-kind water tank called a Heli-Hydrant.

That $70,000 tank can automatically refill itself and is reserved for helicopters to dip from, reducing the length of flight times between water pickups and drops. It was used to quickly stop the Blue Ridge Fire in 2020.

“Cal Fire was able to jump on it and use our Heli-Hydrant, trigger it and keep the fire to five acres,” said John DeCriscio, who was operations manager at the Yorba Linda Water District at the time. “That was a huge success.”

San Francisco implemented a comprehensive solution after the city was almost completely destroyed in the 1906 earthquake and resulting fire, which also caused most hydrants to run dry. 

In 1913, the city developed a unique fire-suppression water system separate from the rest of the city’s water. Seawater enters the system from 52 suction connections along the waterfront, and it’s pumped in from fireboats and two high-pressure pumping stations. There are more than 200 underground cisterns to store backup water. A high-elevation reservoir and two large-capacity tanks use gravity, not pumps, to feed special high-pressure emergency hydrants that can be seen around the city with black, red and blue tops.

There are other solutions that cities can implement.

A company called Rain is working on autonomous, unmanned aircraft for dropping water on fires. In Japan, an autonomous system of water cannons protects a cultural heritage site with 200-year-old thatched roof houses.

Cost is the main reason these solutions haven’t been implemented widely. 

“There’s always this delicate balance of being afraid to go to your customers and raise their rates, but if you don’t raise their rates, you can’t do these extra things,” said Marcus, the former state water board chair. “It’s the kind of thing that keeps you up at night when you manage one of these agencies.”

How firefighting planes and helicopters are battling the LA Fires

Continue Reading

Technology

Navan sets price range for IPO, expects market cap of up to $6.5 billion

Published

on

By

Navan sets price range for IPO, expects market cap of up to .5 billion

FILE PHOTO: Ariel Cohen during a panel at DLD Munich Conference 2020, Europe’s big innovation conference, Alte Kongresshalle, Munich.

Picture Alliance for DLD | Hubert Burda Media | AP

Navan, a developer of corporate travel and expense software, expects its market cap to be as high as $6.5 billion in its IPO, according to an updated regulatory filing on Friday.

The company said it anticipates selling shares at $24 to $26 each. Its valuation in that range would be about $3 billion less than where private investors valued Navan in 2022, when the company announced a $300 million funding round.

CoreWeave, Circle and Figma have led a resurgence in tech IPOs in 2025 after a drought that lasted about three years. Navan filed its original prospectus on Sept. 19, with plans to trade on the Nasdaq under the ticker symbol “NAVN.”

Last week, the U.S. government entered a shutdown that has substantially reduced operations inside of agencies including the SEC. In August, the agency said its electronic filing system, EDGAR, “is operated pursuant to a contract and thus will remain fully functional as long as funding for the contractor remains available through permitted means.”

Cerebras, which makes artificial intelligence chips, withdrew its registration for an IPO days after the shutdown began.

Navan CEO Ariel Cohen and technology chief Ilan Twig started the company under the name TripActions in 2015. It’s based in Palo Alto, California, and had around 3,400 employees at the end of July.

For the July quarter, Navan recorded a $38.6 million net loss on $172 million in revenue, which was up about 29% year over year. Competitors include Expensify, Oracle and SAP. Expensify stock closed at $1.64on Friday, down from its $27 IPO price in 2021.

Navan ranked 39th on CNBC’s 2025 Disruptor 50 list, after also appearing in 2024.

WATCH: Brex CEO on Navan partnership

We developed 'best in class' enterprise travel expense solution, says Brex CEO on Navan partnership

Continue Reading

Technology

Tech megacaps lose $770 billion in value as Nasdaq suffers steepest drop since April

Published

on

By

Tech megacaps lose 0 billion in value as Nasdaq suffers steepest drop since April

Jensen Huang, CEO of Nvidia, speaking with CNBC’s Jim Cramer during a CNBC Investing Club with Jim Cramer event at the New York Stock Exchange on Oct. 7th, 2025.

Kevin Stankiewicz | CNBC

Shares of Amazon, Nvidia and Tesla each dropped around 5% on Friday, as tech’s megacaps lost $770 billion in market cap, following President Donald Trump’s threats for increased tariffs on Chinese goods.

With tech’s trillion-dollar companies occupying an increasingly large slice of the U.S. market, their declines send the Nasdaq down 3.6% and the S&P 500 down 2.7%. For both indexes, it was the worst day since April, when Trump said he would slap “reciprocal” duties on U.S. trading partners.

After market close on Friday, Trump declared in a social media post that the U.S. would impose a 100% tariff on China and on Nov. 1 it would apply export controls “on any and all critical software.”

Amazon, Nvidia and Tesla all slipped about 2% in extended trading following the post.

The president’s latest threats are disrupting, at least briefly, what had been a sustained rally in tech, built on hundreds of billions of dollars in planned spending on artificial intelligence infrastructure.

Read more CNBC tech news

In late September, Nvidia, which makes graphics processing units for training AI models, became the first company to reach a market cap of $4.5 trillion. Nvidia alone saw its market capitalization decline by nearly $229 billion on Friday.

OpenAI counts on Nvidia’s GPUs from a series of cloud suppliers, including Microsoft. OpenAI is only seeing rising demand.

In September it introduced the Sora 2 video creation app, and this week the company said the ChatGPT assistant now boasts over 800 million weekly users. But Microsoft must buy infrastructure to operate its cloud data centers. Microsoft’s market cap dropped by $85 billion on Friday.

The sell-off wiped out Amazon’s gains for the year. That stock is now down 2% so far in 2025. It competes with Microsoft to rent out GPUs from its cloud data centers, but it doesn’t have major business with OpenAI. The online retailer is now worth $121 billion less than it was on Thursday.

“There continues to be a lot of noise about the impact that tariffs will have on retail prices and consumption,” Amazon CEO Andy Jassy told analysts in July. “Much of it thus far has been wrong and misreported. As we said before, it’s impossible to know what will happen.”

Tesla, which introduced lower-priced vehicles on Tuesday, saw its market capitalization sink by $71 billion.

The automaker reports third-quarter results on Oct. 22, with Microsoft earnings scheduled for the following week. Nvidia reports in November.

Google parent Alphabet and Facebook owner Meta fell 2% and almost 4%, respectively.

WATCH: Pres. Trump: Calculating massive increase of tariffs on Chinese products into U.S.

Pres. Trump: Calculating massive increase of tariffs on Chinese products into U.S.

Continue Reading

Technology

Govini, a defense tech startup taking on Palantir, hits $100 million in annual recurring revenue

Published

on

By

Govini, a defense tech startup taking on Palantir, hits 0 million in annual recurring revenue

Govini, a defense tech software startup taking on the likes of Palantir, has blown past $100 million in annual recurring revenue, the company announced Friday.

“We’re growing faster than 100% in a three-year CAGR, and I expect that next year we’ll continue to do the same,” CEO Tara Murphy Dougherty told CNBC’s Morgan Brennan in an interview. With how “big this market is, we can keep growing for a long, long time, and that’s really exciting.”

CAGR stands for compound annual growth rate, a measurement of the rate of return.

The Arlington, Virginia-based company also announced a $150 million growth investment from Bain Capital. It plans to use the money to expand its team and product offering to satisfy growing security demands.

In recent years, venture capitalists have poured more money into defense tech startups like Govini to satisfy heightened national security concerns and modernize the military as global conflict ensues.

The group, which includes unicorns like Palmer Luckey’s Anduril, Shield AI and artificial intelligence beneficiary Palantir, is taking on legacy giants such as Boeing, Lockheed Martin and Northrop Grumman, that have long leaned on contracts from the Pentagon.

Read more CNBC tech news

Dougherty, who previously worked at Palantir, said she hopes the company can seize a “vertical slice” of the defense technology space.

The 14-year-old Govini has already secured a string of big wins in recent years, including an over $900-million U.S. government contract and deals with the Department of War.

Govini is known for its flagship AI software Ark, which it says can help modernize the military’s defense tech supply chain by better managing product lifecycles as military needs grow more sophisticated.

“If the United States can get this acquisition system right, it can actually be a decisive advantage for us,” Dougherty said.

Looking ahead, Dougherty told CNBC that she anticipates some setbacks from the government shutdown.

Navy customers could be particularly hard hit, and that could put the U.S. at a major disadvantage.

While the U.S. is maintaining its AI dominance, China is outpacing its shipbuilding capacity and that needs to be taken “very seriously,” she added.

Continue Reading

Trending