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Six years ago, Amazon kicked off a sweepstakes-style contest in search of where to build a second headquarters. The competition drew bids from 238 states, provinces and cities vying to be the next anchor for the nation’s dominant online retailer and second-largest private employer.

This week, Amazon formally opened the doors of the first part of its new East Coast headquarters, dubbed HQ2, in northern Virginia. The first phase, called Metropolitan Park, includes two 22-story office towers, which can accommodate 14,000 of the 25,000 employees Amazon plans to bring on in Arlington. About 2,900 employees have already moved in, and Met Park will be occupied by 8,000 employees in the fall.

Amazon built its headquarters in Seattle in 1994 partly because of the area’s deep pool of tech talent and the presence of Microsoft in nearby Redmond, Washington. The company’s Seattle campus now spans tens of millions of square feet across more than 40 office buildings, and the greater Puget Sound area has 65,000 corporate and technical Amazon employees.

It raises the question why Amazon, with its sprawling campus in Seattle and a growing real estate footprint globally, needed to build a second headquarters.

Around 2005, as Amazon’s business grew and its campus ballooned in Seattle, founder and then-CEO Jeff Bezos began to consider where the company should expand next.

At all-hands meetings, employees would ask Bezos “if we would ever be in one location at one time,” said John Schoettler, Amazon’s real estate chief, in an interview.

“I think that there was a romantic notion that we as a company would only be so big that we’d all fit inside one building,” Schoettler said. “[Bezos] had said, well, we have long-term leases and when those leases come up, I’ll work with John and the real estate team and we’ll figure out what to do next.”

John Schoettler, Amazon’s vice president of global real estate and facilities, walks Virginia Gov. Glenn Youngkin through HQ2.

Tasha Dooley

Originally, Bezos suggested Amazon stay around the Puget Sound area, but the conversation then shifted to recreating the “neighborhood” feel of its Seattle campus elsewhere, Schoettler said.

“We could have gone out to the suburbs and we could have taken some farmland and knocked some trees down, and we would’ve built a campus that would have been very inward-looking,” he said. “They generally have a north or south entrance and exit east or west. When you put yourself in the middle of the urban fabric and create a walkable neighborhood, an 18-hour district, you become very outward, and you become very part of the community, and that’s what we wanted.”

Holly Sullivan, Amazon’s vice president of economic development, said it would have been harder for Amazon to create that kind of environment had it “sprinkled these employees around 15 other tech hubs or 17 other tech hubs around North America.”

“So what HQ2 has provided is the opportunity for that more in-depth collaboration and being part of a neighborhood,” Sullivan said.

‘I don’t see us getting bigger in Seattle whatsoever’

Amazon’s highly publicized search for a second headquarters has faced some challenges. In 2018, Amazon announced it would split HQ2 between New York’s Long Island City neighborhood, and the Crystal City area of Arlington, Virginia. But after public and political outcry, Amazon canceled its plans to build a corporate campus in Long Island City.

The company’s arrival in Arlington has generated concerns of rising housing costs and displacement. The company said it has committed more than $1 billion to build and preserve affordable homes in the region.

Schoettler said Amazon intends to focus much of its future growth in Arlington and in Nashville, Tennessee, where the company’s logistics hub is based. It also plans to hire as many as 12,000 people in the Seattle suburb of Bellevue, he added.

“I don’t see us getting bigger in Seattle whatsoever,” Schoettler said. “I think that we’re pretty much tapped out there.”

HQ2 has some of the same quirks as Amazon’s Seattle campus. There’s a community banana stand staffed by “banistas” and white boards on the walls of building elevators. Amazon has a dog-friendly vibe at its Seattle office, which carried over to Metropolitan Park, where there’s a public dog park, and a gallery wall of the dogs of Amazon employees. The towers feature plant-filled terraces and a rooftop urban farm that echoes the feel of the “Spheres,” botanical gardenlike workspaces that anchor Amazon’s Seattle office.

Metropolitan Park is the first phase of Amazon’s new Arlington headquarters, called HQ2.

Tasha Dooley

Amazon is opening HQ2 at an uncertain time for the company and the broader tech sector. Many of the biggest companies in the industry, including Amazon, have eliminated thousands of jobs and reined in spending following periods of slowing revenue growth and fears of a recession ahead.

Companies have also been confronting questions about what work looks like in a post-pandemic environment. Many employees have grown accustomed to working from home and have been reluctant to return to the office. Amazon last month began requiring corporate employees to work from the office at least three days a week, which generated pushback from some workers who prefer greater flexibility.

Amazon tweaked the design of HQ2 around the expectation that employees wouldn’t be coming into the office every day.

Communal work spaces are more common, and there’s less assigned seating, Schoettler said. Employees may only be at a desk 30% of the day, with the rest of their time spent in conference rooms, or having casual coffee meetings with coworkers, he said.

“If we don’t come in that day, no one else will utilize the space,” Schoettler said. “And so that way, you can come in, the desk is open and it’s not been personalized with family photos and that type of thing. You can sit down and absolutely utilize the space, and then go off about your day.”

Amazon’s HQ2 features some of the same quirks as its Seattle headquarters, like a community banana stand.

Tasha Dooley

The shift to a hybrid working environment has also influenced the further development of HQ2. Amazon in March said it had pushed out the groundbreaking of PenPlace, the second phase of its Arlington campus. PenPlace is expected to include three 22-story office buildings, more than 100,000 square feet of retail space and a 350-foot-tall tower, called “The Helix,” that features outdoor walkways and inside meeting areas for employees surrounded by vegetation.

Amazon will observe how employees work in the two new Metropolitan Park buildings to inform how it designs the offices at PenPlace, Schoettler said.

Amazon didn’t say when it expects to begin development of PenPlace, but it is continuing to move forward with the permitting and preconstruction process, Schoettler said.

“We just want to be really mindful, since we’re just opening these buildings, to make sure we’re doing it right,” Sullivan said. “These are large investments for us. We own these buildings, and we want to give them a long shelf life.”

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Tesla robotaxi incidents caught on camera in Austin draw regulators’ attention

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Tesla robotaxi incidents caught on camera in Austin draw regulators' attention

A Tesla robotaxi drives on the street along South Congress Avenue in Austin, Texas, on June 22, 2025

Joel Angel Juarez | Reuters

Tesla was contacted by the National Highway Traffic Safety Administration on Monday after videos posted on social media showed the company’s robotaxis driving in a chaotic manner on public roads in Austin, Texas.

Elon Musk’s electric vehicle maker debuted autonomous trips in Austin on Sunday, opening the service to a limited number of riders by invitation only.

In the videos shared widely online, one Tesla robotaxi was spotted traveling the wrong way down a road, and another was shown braking hard in the middle of traffic, responding to “stationary police vehicles outside its driving path,” among several other examples.

A spokesperson for NHTSA said in an e-mail that the agency “is aware of the referenced incidents and is in contact with the manufacturer to gather additional information.”

Tesla Vice President of Vehicle Engineering Lars Moravy, and regulatory counsel Casey Blaine didn’t immediately respond to a request for comment.

The federal safety regulator says it doesn’t “pre-approve new technologies or vehicle systems.” Instead, automakers certify that each vehicle model they make meets federal motor vehicle safety standards. The agency says it will investigate “incidents involving potential safety defects,” and take “necessary actions to protect road safety,” after assessing a wide array of reports and information.

NHTSA previously initiated an investigation into possible safety defects with Tesla’s FSD-Supervised technology, or FSD Beta systems, following injurious and fatal accidents. That probe is ongoing.

The Tesla robotaxis in Austin are Model Y SUVs equipped with the company’s latest FSD Unsupervised software and hardware. The pilot robotaxi service, involving fewer than two-dozen vehicles, operates during daylight hours and only in good weather, with a human safety supervisor in the front passenger seat.

The service is now limited to invited users, who agree to the terms of Tesla’s “early access program.” Those who have received invites are mostly promoters of Tesla’s products, stock and CEO.

While the rollout sent Tesla shares up 8% on Monday, the launch fell shy of fulfilling Musk’s many driverless promises over the past decade.

In 2015, Musk told shareholders Tesla cars would achieve “full autonomy” within three years. In 2016, he said a Tesla EV would be able to make a cross-country drive without needing any human intervention before the end of 2017. And in 2019, on a call with institutional investors that helped him raise more than $2 billion, Musk said Tesla would have 1 million robotaxi-ready vehicles on the road in 2020, able to complete 100 hours of driving work per week each, making money for their owners.

None of that has happened.

Meanwhile, Alphabet-owned Waymo says it has surpassed 10 million paid trips last month. Competitors in China, including Baidu’s Apollo Go, WeRide and Pony.ai, are also operating commercial robotaxi fleets.

WATCH: Tesla launches robotaxis in Austin as robotaxi race heats up

Tesla launches robotaxis in Austin as robotaxi race heats up

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Meta approached AI startup Runway about a takeover bid before Scale deal

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Meta approached AI startup Runway about a takeover bid before Scale deal

Mustafa Hatipoglu | Anadolu | Getty Images

Meta spoke with artificial intelligence startup Runway about a potential takeover ahead of its multibillion-dollar investment in Scale AI, CNBC confirmed Monday.

Runway is best known for its AI video-generation tools and earned a spot on CNBC’s Disruptor 50 list earlier this month.

The deal talks between Meta and Runway did not progress far and dissolved, according to a person familiar with the matter who asked not to be named due to the confidential nature of the discussions.

Bloomberg earlier reported the talks. Meta declined to comment.

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Meta CEO Mark Zuckerberg has been aggressively pushing to bolster his company’s AI efforts in recent months. The social media giant invested $14.3 billion into Scale AI in June, and it has also approached the startups Safe Superintelligence and Perplexity AI about potential acquisitions this year.

Meta agreed to a 49% stake in Scale AI and hired away founder Alexandr Wang along with a few other employees from the company.

While Meta was unsuccessful in its efforts to buy Superintelligence outright, Daniel Gross, the company’s CEO, and former GitHub CEO Nat Friedman are joining Meta’s AI efforts, where they will work on products under Wang.

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Meta approached Perplexity before massive Scale AI deal

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U.S. House tells staffers not to use Meta’s WhatsApp

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U.S. House tells staffers not to use Meta’s WhatsApp

A woman walks past a logo of WhatsApp during a Meta event in Mumbai, India, on Sept. 20, 2023.

Niharika Kulkarni | Nurphoto | Getty Images

Meta is pushing back against a ban on WhatsApp from government devices.

The chief administrative officer, or CAO, of the U.S. House of Representatives told staffers on Monday that they are not allowed to use Meta’s popular messaging app. The CAO cited a lack of transparency about WhatsApp’s data privacy and security practices as the reason for the ban, according to a report by Axios that cited an internal email from the government office.

The CAO told House staff members in the email that they are not allowed to download WhatsApp on their government devices or access the app on their smartphones or desktop computers, the report said. Staff members must remove WhatsApp from their devices if they have the app installed on their devices, the report said.

“Protecting the People’s House is our topmost priority, and we are always monitoring and analyzing for potential cybersecurity risks that could endanger the data of House Members and staff,” U.S. House Chief Administrative Officer Catherine Szpindor told CNBC in a written statement.

Meta spokesperson Andy Stone on Monday responded to the report via a post on X, saying the company disagrees “with the House Chief Administrative Officer’s characterization in the strongest possible terms.”

“We know members and their staffs regularly use WhatsApp and we look forward to ensuring members of the House can join their Senate counterparts in doing so officially,” Stone said.

In a separate X post, Stone said WhatsApp’s encrypted nature provides a “higher level of security than most of the apps on the CAO’s approved list that do not offer that protection.”

Some of the messaging apps the CAO said are acceptable alternatives to WhatsApp include Microsoft Teams, Signal and Apple’s iMessage, the Axios report said.

Meta is currently embroiled in an antitrust case with the Federal Trade Commission over the social media company’s acquisitions of WhatsApp and Instagram.

Last week, Meta debuted ads in WhatsApp in an effort to monetize the app that CEO Mark Zuckerberg has deemed “the next chapter” for his company’s history.

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Watch CNBC's full interview with Meta CTO Andrew Bosworth

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