Connect with us

Published

on

This article was featured in One Story to Read Today, a newsletter in which our editors recommend a single must-read from The Atlantic, Monday through Friday. Sign up for it here.

For more than half a century, I have been studying the shifting relations between white and Black Americans. My first journal article, published in 1972, when I was a graduate student at the University of Chicago, was about Black political power in the industrial Midwest after the riots of the late 1960s. My own experience of race relations in America is even longer. I was born in the Mississippi Delta during World War II, in a cabin on what used to be a plantation, and then moved as a young boy to northern Indiana, where as a Black person in the early 1950s, I was constantly reminded of my place, and of the penalties for overstepping it. Seeing the image of Emmett Tills dead body in Jet magazine in 1955 brought home vividly for my generation of Black kids that the consequences of failing to navigate carefully among white people could even be lethal.Explore the November 2023 Issue

Check out more from this issue and find your next story to read.View More

For the past 16 years, I have been on the faculty of the sociology department at Yale, and in 2018 I was granted a Sterling Professorship, the highest academic rank the university bestows. I say this not to boast, but to illustrate that I have made my way from the bottom of American society to the top, from a sharecroppers cabin to the pinnacle of the ivory tower. One might think that, as a decorated professor at an Ivy League university, I would have escaped the various indignities that being Black in traditionally white spaces exposes you to. And to be sure, I enjoy many of the privileges my white professional-class peers do. But the Black ghettoa destitute and fearsome place in the popular imagination, though in reality it is home to legions of decent, hardworking familiesremains so powerful that it attaches to all Black Americans, no matter where and how they live. Regardless of their wealth or professional status or years of law-abiding bourgeois decency, Black people simply cannot escape what I call the iconic ghetto.

I know I havent. Some years ago, I spent two weeks in Wellfleet, Massachusetts, a pleasant Cape Cod town full of upper-middle-class white vacationers and working-class white year-rounders. On my daily jog one morning, a white man in a pickup truck stopped in the middle of the road, yelling and gesticulating. Go home! he shouted.

Who was this man? Did he assume, because of my Black skin, that I was from the ghetto? Is that where he wanted me to go home to?

From the May 1994 issue: Elijah Anderson on the code of the streets

This was not an isolated incident. When I jog through upscale white neighborhoods near my home in Connecticut, white people tense upunless I wear my Yale or University of Pennsylvania sweatshirts. When my jogging outfit associates me with an Ivy League university, it identifies me as a certain kind of Black person: a less scary one who has passed inspection under the white gaze. Strangers with dark skin are suspect until they can prove their trustworthiness, which is hard to do in fleeting public interactions. For this reason, Black students attending universities near inner cities know to wear college apparel, in hopes of avoiding racial profiling by the police or others.

I once accidentally ran a small social experiment about this. When I joined the Yale faculty in 2007, I bought about 20 university baseball caps to give to the young people at my family reunion that year. Later, my nieces and nephews reported to me that wearing the Yale insignia had transformed their casual interactions with white strangers: White people would now approach them to engage in friendly small talk.When I jog through upscale white neighborhoods near my home, white people tense upunless I wear my Yale or Penn sweatshirt.

But sometimes these signifiers of professional status and educated-class propriety are not enough. This can be true even in the most rarefied spaces. When I was hired at Yale, the chair of the sociology department invited me for dinner at the Yale Club of New York City. Clad in a blue blazer, I got to the club early and decided to go up to the fourth-floor library to read The New York Times. When the elevator arrived, a crush of people was waiting to get on it, so I entered and moved to the back to make room for others. Everyone except me was white.

As the car filled up, I politely asked a man of about 35, standing by the controls, to push the button for the library floor. He looked at me andemboldened, I have to imagine, by drinks in the bar downstairssaid, You can read? The car fell silent. After a few tense moments, another man, seeking to defuse the tension, blurted, Ive never met a Yalie who couldnt read. All eyes turned to me. The car reached the fourth floor. I stepped off, held the door open, and turned back to the people in the elevator. Im not a Yalie, I said. Im a new Yale professor. And I went into the library to read the paper.

I tell these stories and Ive told them beforenot to fault any particular institution (Ive treasured my time at Yale), but to illustrate my personal experience of a recurring cultural phenomenon: Throughout American history, every moment of significant Black advancement has been met by a white backlash. After the Civil War, under the aegis of Reconstruction, Black people for a time became professionals and congressmen. But when federal troops left the former Confederate states in 1877, white politicians in the South tried to reconstitute slavery with the long rule of Jim Crow. Even the Black people who migrated north to escape this new servitude found themselves relegated to shantytowns on the edges of cities, precursors to the modern Black ghetto.

All of this reinforced what slavery had originally established: the Black bodys place at the bottom of the social order. This racist positioning became institutionalized in innumerable ways, and it persists today.

I want to emphasize that across the decades, many white Americans have encouraged racial equality, albeit sometimes under duress. In response to the riots of the 1960s, the federal governmentled by the former segregationist Lyndon B. Johnsonpassed far-reaching legislation that finally extended the full rights of citizenship to Black people, while targeting segregation. These legislative reformsand, especially, affirmative action, which was implemented via LBJs executive order in 1965combined with years of economic expansion to produce a long period of what I call racial incorporation, which substantially elevated the income of many Black people and brought them into previously white spaces. Yes, a lot of affirmative-action efforts stopped at mere tokenism. Even so, many of these tokens managed to succeed, and the result is the largest Black middle class in American history.To survive in white workplaces, Black newcomers must perform an elaborate dance in which they demonstrate their distance from the ghetto.

Over the past 50 years, according to a study by the Pew Research Center, the proportion of Black people who are low-income (less than $52,000 a year for a household of three) has fallen seven points, from 48 to 41 percent. The proportion who are middle-income ($52,000 to $156,000 a year) has risen by one point, to 47 percent. The proportion who are high-income (more than $156,000 a year) has risen the most dramatically, from 5 to 12 percent. Overall, Black poverty remains egregiously disproportionate to that of white and Asian Americans. But fewer Black Americans are poor than 50 years ago, and more than twice as many are rich. Substantial numbers now attend the best schools, pursue professions of their choosing, and occupy positions of power and prestige. Affirmative action worked.

But that very success has inflamed the inevitable white backlash. Notably, the only racial group more likely to be low-income now than 50 years ago is whitesand the only group less likely to be low-income is Black.

Read: Five decades of white backlash

For some white people displaced from their jobs by globalization and deindustrialization, the successful Black person with a good job is the embodiment of whats wrong with America. The spectacle of Black doctors, CEOs, and college professors out of their place creates an uncomfortable dissonance, which white people deal with by mentally relegating successful Black people to the ghetto. That Black man who drives a new Lexus and sends his children to private schoolhe must be a drug kingpin, right?

In predominantly white professional spaces, this racial anxiety appears in subtler ways. Black people are all too familiar with a particular kind of interaction, in the guise of a casual watercooler conversation, the gist of which is a sort of interrogation: Where did you come from?; How did you get here?; and Are you qualified to be here? (The presumptive answer to the last question is clearly no; Black skin, evoking for white people the iconic ghetto, confers an automatic deficit of credibility.)

Black newcomers must signal quickly and clearly that they belong. Sometimes this requires something as simple as showing a company ID that white people are not asked for. Other times, a more elaborate dance is required, a performance in which the worker must demonstrate their propriety, their distance from the ghetto. This can involve dressing more formally than the job requires, speaking in a self-consciously educated way, and evincing a placid demeanor, especially in moments of disagreement.

From the November 2018 issue: The personal cost of Black success

As part of my ethnographic research, I once embedded in a major financial-services corporation in Philadelphia, where I spent six months observing and interviewing workers. One Black employee I spoke with, a senior vice president, said that people of color who wanted to climb the management ladder must wear the right uniform and work hard to perform respectability. Theyre never going to envision you as being a white male, he told me, but if you can dress the same and look a certain way and drive a conservative car and whatever else, theyll say, This guy has a similar attitude, similar values [to we white people]. Hes a team player. If you dont dress with the uniform, obviously youre on the wrong team.

This need to constantly perform respectability for white people is a psychological drain, leaving Black people spent and demoralized. They typically keep this demoralization hidden from their white co-workers because they feel that they need to show they are not whiners. Having to pay a Black tax as they move through white areas deepens this demoralization. This tax is levied on people of color in nice restaurants and other public places, or simply while driving, when the fear of a lethal encounter with the police must always be in mind. The existential danger this kind of encounter poses is what necessitates The Talk that Black parentsfearful every time their kids go out the door that they might not come back alivegive to their children. The psychological effects of all of this accumulate gradually, sapping the spirit and engendering cynicism.

Even the most exalted members of the Black elite must live in two worlds. They understand the white elites mores and values, and embody them to a substantial extentbut they typically remain keenly conscious of their Blackness. They socialize with both white and Black people of their own professional standing, but also members of the Black middle and working classes with whom they feel more kinship, meeting them at the barbershop, in church, or at gatherings of long-standing friendship groups. The two worlds seldom overlap. This calls to mind W. E. B. Du Bois double consciousnessa term he used for the first time in this publication, in 1897referring to the dual cultural mindsets that successful African Americans must simultaneously inhabit.

From the August 1897 issue: W. E. B. Du Bois Strivings of the Negro People

For middle-class Black people, a certain fluidityabetted by family connectionsenables them to feel a connection with those at the lower reaches of society. But that connection comes with a risk of contagion; they fear that, meritocratic status notwithstanding, they may be dragged down by their association with the hood.

When I worked at the University of Pennsylvania, some friends of mine and I mentored at-risk youth in West Philadelphia.

One of these kids, Kevin Robinson, who goes by KAYR (pronounced K.R.), grew up with six siblings in a single-parent household on public assistance. Two of his sisters got pregnant as teenagers, and for a while the whole family was homeless. But he did well in high school and was accepted to Bowdoin College, where he was one of five African Americans in a class of 440. He was then accepted to Dartmouths Tuck School of Business, where he was one of 10 or so African Americans in an M.B.A. class of roughly 180. He got into the analyst-training program at Goldman Sachs, where his cohort of 300 had five African Americans. And from there he ended up at a hedge fund, where he was the lone Black employee.

Whats striking about Robinsons accomplishments is not just the steepness of his rise or the scantness of Black peers as he climbed, but the extent of cultural assimilation he felt he needed to achieve in order to fit in. He trimmed his Afro. He did a pre-college program before starting Bowdoin, where he had sushi for the first time and learned how to play tennis and golf. Let me look at how these people live; let me see how they operate, he recalls saying to himself. He decided to start reading The New Yorker and Time magazine, as they did, and to watch 60 Minutes. I wanted people to see me more as their peer versus someone from the hood. I wanted them to see me as, like, Hey, look, hes just another middle-class Black kid.? When he was about to start at Goldman Sachs, a Latina woman who was mentoring him there told him not to wear a silver watch or prominent jewelry: ?KAYR, go get a Timex with a black leather band. Keep it very simple Fit in.? My friends and I had given him similar advice earlier on.

All of this worked; he thrived professionally. Yet even as he occupied elite precincts of wealth and achievement, he was continually getting pulled back to support family in the ghetto, where he felt the need to code-switch, speaking and eating the ways his family did so as not to insult them.

The year he entered Bowdoin, one of his younger brothers was sent to prison for attempted murder, and a sister who had four children was shot in the face and died. Over the years he would pay for school supplies for his nieces and nephews, and for multiple family funeralsall while keeping his family background a secret from his professional colleagues. Even so, he would get subjected to the standard indignitiesbeing asked to show ID when his white peers were not; enduring the (sometimes obliviously) racist comments from colleagues (You dont act like a regular Black). He would report egregious offenses to HR but would usually just let things go, for fear that developing a reputation as a race guy would restrict his professional advancement.

Robinsons is a remarkable success story. He is 40 now; he owns a property-management company and is a multimillionaire. But his experience makes clear that no matter what professional or financial heights you ascend to, if you are Black, you can never escape the iconic ghetto, and sometimes not even the actual one.

The most egregious intrusion of a Black person into white space was the election (and reelection) of Barack Obama as president. A Black man in the White House! For some white people, this was intolerable. Birthers, led by Donald Trump, said he was ineligible for the presidency, claiming falsely that he had been born in Kenya. The white backlash intensified; Republicans opposed Obama with more than the standard amount of partisan vigor. In 2013, at the beginning of Obamas second term, the Supreme Court gutted the Voting Rights Act, which ad protected the franchise for 50 years. Encouraged by this opening, Alabama, Mississippi, North Carolina, and Texas moved forward with voter-suppression laws, setting a course that other states are now following. And this year, the Supreme Court outlawed affirmative action in college admissions. I want to tell a story that illustrates the social gains this puts at risk.

Many years ago, when I was a professor at Penn, my father came to visit me. Walking around campus, we bumped into various colleagues and students of mine, most of them white, who greeted us warmly. He watched me interact with my secretary and other department administrators. Afterward, Dad and I went back to my house to drink beer and listen to Muddy Waters.

So youre teaching at that white school? he said.

Yeah.

You work with white people. And you teach white students.

Yeah, but they actually come in all colors, I responded. I got his point, though.

Well, let me ask you one thing, he said, furrowing his brow.

Whats that, Dad?

Do they respect you?

After thinking about his question a bit, I said, Well, some do. And some dont. But you know, Dad, it is hard to tell which is which sometimes.

Oh, I see, he said.

He didnt disbelieve me; it was just that what hed witnessed on campus was at odds with his experience of the typical Black-white interaction, where the subordinate status of the Black person was automatically assumed by the white one. Growing up in the South, my dad understood that white people simply did not respect Black people. Observing the respectful treatment I received from my students and colleagues, my father had a hard time believing his own eyes. Could race relations have changed so much, so fast?

Read: A 1999 interview with Elijah Anderson on his book Code of the Street

They hadin large part because of what affirmative action, and the general processes of racial incorporation and Black economic improvement, had wrought. In the 1960s, the only Black people at the financial-services firm I studied would have been janitors, night watchmen, elevator operators, or secretaries; 30 years later, affirmative action had helped populate the firm with Black executives. Each beneficiary of affirmative action, each member of the growing Black middle class, helped normalize the presence of Black people in professional and other historically white spaces. All of this diminished, in some incremental way, the power of the symbolic ghetto to hold back people of color.

Too many people forget, if ever they knew it, what a profound cultural shift affirmative action effected. And they overlook affirmative actions crucial role in forestalling social unrest.

Some years ago, I was invited to the College of the Atlantic, a small school in Maine, to give the commencement address. As I stood at the sink in the mens room before the event, checking the mirror to make sure all my academic regalia was properly arrayed, an older white man came up to me and said, with no preamble, What do you think of affirmative action?

I think its a form of reparations, I said.

Well, I think they need to be educated first, he said, and then walked out.

I was so provoked by this that I scrambled back to my hotel room and rewrote my speech. Id already been planning to talk about the benefits of affirmative action, but I sharpened and expanded my case, explaining that it not only had lifted many Black people out of the ghetto, but had been a weapon in the Cold War, when unaligned countries and former colonies were trying to decide which superpower to follow. Back then, Democrats and some Republicans were united in believing that affirmative action, by demonstrating the countrys commitment to racial justice and equality, helped project American greatness to the world.

Beyond that, I said to this almost entirely white audience, affirmative action had helped keep the racial unrest of the 60s from flaring up again. When the kinthe mothers, fathers, cousins, nephews, sons, daughters, baby mamas, uncles, auntsof ghetto residents secure middle-class livelihoods, those ghetto relatives hear about it. This gives the young people who live there a modicum of hope that they might do the same. Hope takes the edge off distress and desperation; it lessens the incentives for people to loot and burn. What opponents of affirmative action fail to understand is that without a ladder of upward mobility for Black Americans, and a general sense that justice will prevail, a powerful nurturer of social concord gets lost.

Yes, continuing to expand the Black professional and middle classes will lead to more instances of the dance, and the loaded interrogations, and the other awkward moments and indignities that people of color experience in white spaces. But the greater the number of affluent, successful Black people in such places, the faster this awkwardness will diminish, and the less power the recurrent waves of white reaction will have to set people of color back. I would like to believe that future generations of Black Americans will someday find themselves as pleasantly surprised as my dad once was by the new levels of racial respect and equality they discover.

This article appears in the November 2023 print edition with the headline Black Success, White Backlash.

Continue Reading

US

‘It’s a war’: Meet the volunteers leading the fight against Trump’s ICE raids

Published

on

By

'It's a war': Meet the volunteers leading the fight against Trump's ICE raids

It’s 5.30am, but the car park outside a laundrette in south central Los Angeles is already bustling.

A woman is setting up a stand selling tacos on the pavement and the sun is beginning to rise behind the palm trees.

A group of seven women and two men are gathered in a circle, most wearing khaki green t-shirts.

The leader, a man named Francisco “Chavo” Romero, begins by asking how everyone is feeling. “Angry,” a few of them respond. “Proud of the community for pushing back,” says another.

Ron, a high school history teacher, issues a rallying cry. “This is like Vietnam,” he says. “We’re taking losses, but in the end we’re going to win. It’s a war.”

Francisco “Chavo” Romero, Union del Barrio, a volunteer group, attempting to spot immigration officials
Image:
Francisco ‘Chavo’ Romero leads a volunteer group, attempting to warn people ahead of ICE raids

This is what the resistance against Donald Trump’s immigration policy looks like here. In the past month, immigration and customs enforcement agents – known as ICE – have intensified their raids on homes and workplaces across Los Angeles.

Since the beginning of June, nearly 2,800 undocumented immigrants have been arrested in the city, according to the Department of Homeland Security. The previous monthly high was just over 850 arrests in May this year.

Federal immigration agents toss tear gas at protesters during a raid in the agriculture area of Camarillo, Calif
Image:
Police use tear gas against protesters, angry at a recent immigration raid at a farm in Camarillo, California. Pic: AP

Videos have circulated online of people being tackled to the ground in the car park of DIY shops, in car washes and outside homes. The videos have prompted outrage, protests and a fightback.

“Chavo” and Ron belong to a group of organised volunteers called Union del Barrio. Every morning, a group of them meet, mostly in areas which have high immigrant populations.

The day I meet them, they’re in an area of LA which is heavily Latino. Armed with walkie talkies to communicate with each other, megaphones to warn the community and leaflets to raise awareness they set out in cars in different directions.

Ron, a high school history teacher, driving in LA trying to spot ICE officials
Image:
A volunteer from Union del Barrio shows Sky’s Martha Kelner how they try to stay one step ahead of ICE agents

They’re looking for cars used by ICE agents to monitor “targets”.

“That vehicle looks a little suspicious,” says Ron, pointing out a white SUV with blacked-out windows, “but there’s nobody in it”.

An elderly Latino man is standing on a street corner, cutting fruit to sell at his stall. “He’s the exact target that they’re looking for,” Ron says. “That’s what they’re doing now. The low-hanging fruit, the easy victim. And so that is proving to be more successful for their quotas.”

Man selling fruit on a street in LA
Image:
This man, selling fruit on a street corner in LA, is a potential target of immigration agents

In the end, it turns out to be a quiet morning in this part of LA, no brewing immigration operations. But elsewhere in the city, dawn raids are happening.

ICE agents are under pressure from the White House to boost their deportation numbers in line with Donald Trump’s campaign promise to crack down on illegal immigration.

Please use Chrome browser for a more accessible video player

In June, tear gas and rubber bullets were fired at protestors demonstrating against immigration raids

Maria’s husband Javier was one of those arrested in LA. He came to the United States from Mexico when he was 19 and is now 58.

The couple have three grown-up children and two grandchildren. But Javier’s work permit expired two years ago, according to Maria and so he was living here illegally.

Maria whose husband Javier was one of those arrested in Los Angeles
Image:
Maria’s husband Javier was arrested after his work permit expired

She shows me a video taken last month when Javier was at work at a car wash in Pomona, an area of LA. He is being handcuffed and arrested by armed and masked ICE agents, forced into a car. He is now being held at a detention centre two hours away.

“I know they’re doing their job,” she says, “but it’s like, ‘you don’t have to do it like that.’ Getting them and, you know, forcing people and pushing them down on the ground. They’re not animals.”

Please use Chrome browser for a more accessible video player

US troops accused of ‘political stunt’ after park raid

Maria wipes away tears as she explains the impact of his absence for the past four weeks. “It’s been so hard without him,” she says. “You feel alone when you get used to somebody and he’s not there any more. We’ve never been apart for as long as this.”

The family have a lawyer and is appealing for him to remain in the US, but Maria fears he will be sent back to Mexico or even a third country.

Maria's husband Javier was one of those arrested in Los Angeles.
Image:
Maria fears her husband, who has lived in the US for nearly 40 years, will be sent back to Mexico

“I don’t know what to say to my grandkids because the oldest one, who is five was very attached to his papas, as he calls him. And he’s asking me, ‘When is papa coming home?’ and I don’t know what to say. He’s not a criminal.”

The fear in immigrant communities can be measured by the empty restaurant booths and streets that are far quieter than usual.

A sign asking people to report sightings of ICE officials in LA
Image:
People in LA are being asked to report sightings of ICE officials so others can be warned

I meet Soledad at the Mexican restaurant she owns in Hollywood. When I arrive, she’s watching the local news on the TV as yet another raid unfolds at a nearby farm.

She’s shaking her head as ICE agents face off with protesters and military helicopters hover overhead. “I am scared. I am very scared,” she says.

All of her eight employees are undocumented, and four of them are too scared to come into work, she says, in case they get arrested. The process to get papers, she says, is too long and too expensive.

Read more from Sky News:
Farmer first to die during ICE raids
Trump warns comic over citizenship

Soledad, who owns a Mexican restaurant in Hollywood
Image:
Soledad, who owns a Mexican restaurant, plans to hide her illegal workers if immigration officials arrive

“They call me and tell me they are too afraid to come in because immigration is around,” she says.

“I have to work double shifts to be able to make up for their hours, and yes, I am very desperate, and sometimes I cry… We have no sales, and no money to pay their wages.”

There is just one woman eating fajitas at a booth, where there would usually be a lunchtime rush. People are chilled by the raids.

Follow The World
Follow The World

Listen to The World with Richard Engel and Yalda Hakim every Wednesday

Tap to follow

Soledad says she plans to hide her illegal workers if immigration officials arrive.

“I’ve told them, get inside the fridge, hide behind the stove, climb up where we have a space to store boxes, do not run because they will hunt you down.”

The White House says they’re protecting the country from criminals. ICE agents have been shot at while carrying out operations, their work becoming more dangerous by the day.

The tension here is ratcheting up. Deportation numbers are rising too. But the order from Donald Trump is to arrest even more people living here illegally.

Continue Reading

Technology

Nvidia CEO downplays U.S. fears that China’s military will use his firm’s chips

Published

on

By

Nvidia CEO downplays U.S. fears that China's military will use his firm's chips

Co-founder and chief executive officer of Nvidia Corp., Jensen Huang attends the 9th edition of the VivaTech trade show in Paris on June 11, 2025.

Chesnot | Getty Images Entertainment | Getty Images

Nvidia CEO Jensen Huang has downplayed U.S. fears that his firm’s chips will aid the Chinese military, days ahead of another trip to the country as he attempts to walk a tightrope between Washington and Beijing. 

In an interview with CNN aired Sunday, Huang said “we don’t have to worry about” China’s military using U.S.-made technology because “they simply can’t rely on it.”

“It could be limited at any time; not to mention, there’s plenty of computing capacity in China already,” Huang said. “They don’t need Nvidia’s chips, certainly, or American tech stacks in order to build their military,” he added.

The comments were made in reference to years of bipartisan U.S. policy that placed restrictions on semiconductor companies, prohibiting them from selling their most advanced artificial intelligence chips to clients in China. 

Huang also repeated past criticisms of the policies, arguing that the tactic of export controls has been counterproductive to the ultimate goal of U.S. tech leadership. 

“We want the American tech stack to be the global standard … in order for us to do that, we have to be in search of all the AI developers in the world,” Huang said, adding that half of the world’s AI developers are in China. 

‘The Nvidia Way’ author Tae Kim: Jensen Huang always positions Nvidia ahead of the next big trend

That means for America to be an AI leader, U.S. technology has to be available to all markets, including China, he added.

Washington’s latest restrictions on Nvidia’s sales to China were implemented in April and are expected to result in billions in losses for the company. In May, Huang said chip restrictions had already cut Nvidia’s China market share nearly in half.

Huang’s CNN interview came just days before he travels to China for his second trip to the country this year, and as Nvidia is reportedly working on another chip that is compliant with the latest export controls.

Last week, the Nvidia CEO met with U.S. President Donald Trump, and was warned by U.S. lawmakers not to meet with companies connected to China’s military or intelligence bodies, or entities named on America’s restricted export list.

According to Daniel Newman, CEO of tech advisory firm The Futurum Group, Huang’s CNN interview exemplifies how Huang has been threading a needle between Washington and Beijing as it tries to maintain maximum market access.

“He needs to walk a proverbial tightrope to make sure that he doesn’t rattle the Trump administration,” Newman said, adding that he also wants to be in a position for China to invest in Nvidia technology if and when the policy provides a better climate to do so.

But that’s not to say that his downplaying of Washington’s concerns is valid, according to Newman. “I think it’s hard to completely accept the idea that China couldn’t use Nvidia’s most advanced technologies for military use.”

He added that he would expect Nvidia’s technology to be at the core of any country’s AI training, including for use in the development of advanced weaponry. 

A U.S. official told Reuters last month that China’s large language model startup DeepSeek — which says it used Nvidia chips to train its models — was supporting China’s military and intelligence operations. 

On Sunday, Huang acknowledged there were concerns about DeepSeek’s open-source R1 reasoning model being trained in China but said that there was no evidence that it presents dangers for that reason alone.

Huang complimented the R1 reasoning model, calling it “revolutionary,” and said its open-source nature has empowered startup companies, new industries, and countries to be able to engage in AI. 

“The fact of the matter is, [China and the U.S.] are competitors, but we are highly interdependent, and to the extent that we can compete and both aspire to win, it is fine to respect our competitors,” he concluded. 

Continue Reading

Environment

Musk will ask Tesla shareholders to vote on bailout for twitter/xAI

Published

on

By

Musk will ask Tesla shareholders to vote on bailout for twitter/xAI

Tesla shareholders will vote on whether to invest into xAI, Tesla CEO Elon Musk’s private company, according to a post by Musk on twitter today.

Elon Musk is not just the CEO of Tesla, the electric car company that you may have heard about from time to time in Electrek’s coverage, but several other companies as well. And, famously, Musk companies often share resources – there has been much talk of incorporating SpaceX technology into Tesla vehicles, and putting xAI/twitter’s “MechaHitler”…. er, I mean, “Grok”…. feature into Tesla cars, among other collaborations that have happened over his various companies’ histories.

And today, Musk made it official that he will seek greater collaboration between three of his companies: Tesla, xAI, and twitter, in the form of an investment into xAI by Tesla.

The situation is a little more complicated than that, though.

Advertisement – scroll for more content

Tesla is a public company, owned by shareholders. Musk is the largest shareholder, but only owns around 12% of the company himself.

This is a different situation than xAI, which is a private company, owned by Musk. While there are other investors, he can exercise much more direct control over the company, and doesn’t have to put big decisions up to a vote.

One of the recent decisions he made with xAI was to purchase twitter in March. You may say, “wait, I thought he bought twitter back in 2022?,” and you’d be correct. Musk purchased twitter for $44 billion in 2022, which was widely agreed to be far too high a price, and then rapidly saw the company’s valuation drop to under $10 billion.

Then, in March 2025, Musk had xAI purchase twitter in an all-stock deal, valuing twitter company at $45 billion – again, far too high of a valuation, but considering he purchased the company from himself, he could set the price at whatever he wanted.

The move was widely considered to be a bailout of twitter, and the numbers involved considered arbitrary, perhaps partially to help save face for Musk after he made one of the worst business deals of all time.

Now the two are the same entity, and it seems clear that he would like to bring Tesla into the fold, in some way or another.

Musk has already improperly used resources from Tesla, a public company, to boost xAI and twitter, his private companies. Last year, he gave up Tesla’s priority position for highly sought-after NVIDIA H100 GPUs, instead shipping those GPUs to xAI and twitter. Tesla could have used these GPUs for training its FSD/Robotaxi systems, which Musk has claimed is the most important thing to Tesla’s future, but instead graciously sent them to his other company that used them to, uh, train a bot to say Nazi stuff apparently.

xAI has also poached talent from Tesla, multiple times, showing how Musk is using Tesla as a farm team for his private company.

So it hasn’t been a secret that Musk would like to use public money to bail out his private companies, as he’s been setting the stage for for a while now.

Musk has previously “discussed” getting Tesla to invest in xAI in the past, but the idea was never made official until today, when Musk said that he will put the idea to a shareholder vote.

In response to one of his superfans asking for the the opportunity to waste money on an overvalued social media app (which would mark the third time it has been overpaid for in as many years), and the backend fueling “MechaHitler,” Musk said this:

Tesla traditionally holds its annual shareholder meeting around the middle of the year, so if it were a normal year, this shareholder vote might be imminent.

But it’s not a normal year, as just last week Tesla announced an exceptionally late shareholder meeting, pushing it back to November, the latest it has ever held the meeting.

This means that Musk will have around four months to campaign for this idea – something that he’ll perhaps have more time to do, now that he’s no longer cosplaying as a government official.

We don’t know what the structure of the deal might look like yet, but Musk has been clear in the past that he wants more shares in Tesla. After selling many of his shares in order to buy twitter, he later complained that he doesn’t feel comfortable having less than 25% of Tesla. Given that his recent xAI/twitter deal was an all-stock deal, Musk could attempt to fund any investment of Tesla into xAI via shares, giving himself more Tesla shares in exchange for the company gaining a portion of xAI. Though to get him to 25% voting shares in Tesla, that would require either an enormous valuation for xAI, a small valuation for Tesla, or purchasing a large percentage of xAI (or, perhaps, all three, given how much higher TSLA’s valuation is than xAI’s).

We may however have a hint as to how that vote will go, because the last time Musk campaigned for a clearly terrible idea, Tesla shareholders ate it up.

In mid-2024, Musk ended his yearslong absenteeism at Tesla in a flurry of activity, hoping to persuade enough shareholders to vote for his illegal $55B pay package.

That flurry involved firing 10% of the company (supposedly in order to save money – though Tesla’s earnings have dropped drastically since), including important leadership and successful teams, which caused chaos with Tesla’s projects. He also pushed back an all-important affordable car project (which we’ve still heard nothing about) and held Tesla’s AI projects hostage while shifting both resources and staff from Tesla to his private AI company, even as he claims that AI is the future of Tesla.

In the end, these bad decisions worked, and shareholders voted to give their bad CEO his $55B pay package, even though it was later ruled to still be illegal.

So it looks like we’ve got another campaign coming up, and if last time was any indication, expect some really bad decisions along the way. It worked last time, didn’t it?


Republicans recently killed a number of home energy efficiency credits, including the rooftop solar credit. That means you only have until the end of this year to upgrade your home before republicans raise the cost of doing so by an average of ~$10,000. So if you want to go solar, get started TODAY, because these things take time and the system needs to be active before you file for the credit.

To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.

Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here. – ad*

FTC: We use income earning auto affiliate links. More.

Continue Reading

Trending