FT : Permira nears £2bn plus deal to buy JTC

Permira nears £2bn plus deal to buy JTC
Private equity group set to see off interest from rival Warburg Pincus to clinch acquisition of fund administrator

Private equity group Permira is nearing a £2bn plus deal to buy UK-listed fund administrator JTC, in a move that would see off interest from rival buyout firm Warburg Pincus, according to people familiar with the matter.

The deal is expected to be announced as early as Monday, the people said, and would mark the latest take private of a London-listed group by a buyout firm.

Jersey-based JTC was founded in 1987 and has been publicly traded since 2018. It offers administrative services for investment funds across assets such as private equity, real estate and credit.

Representatives for JTC, London-based Permira and Warburg Pincus declined to comment.

JTC has in recent months attracted potential takeover interest from both Permira and Warburg Pincus.

That has helped propel a more than 30 per cent increase in JTC’s shares this year. The stock closed on Friday at £13.58 per share, resulting in a market capitalisation of about £2.2bn. 

Private equity firms have been attracted to companies that provide services to investment funds in recent years in part due to the rising value of assets held in private markets. 

Last year Permira sold a majority stake in the Luxembourg-based fund administrator Alter Domus to private equity firm Cinven in a €4.9bn deal. Permira secured a more than seven-times return on its investment in that deal.

JTC generated £172.6mn in revenue in the six months to June, up more than 17 per cent compared to the same period last year. Earnings before interest, tax, depreciation and amortisation rose 15 per cent to £56.5mn.

Led by founder and chief executive officer Nigel Le Quesne, JTC has expanded in part through acquisitions.

JTC this month announced it had completed the purchase of Kleinwort Hambros Trust Company, which provides trust and estate planning services for wealthy individuals.

WWD : Coty Subsidiary Launches Lawsuit Against Kering and Gucci

Coty Subsidiary Launches Lawsuit Against Kering and Gucci
The case pertaining to the Gucci fragrance and beauty license was lodged in a U.K. commercial court.

PARIS — A Coty Inc. subsidiary has launched a lawsuit against Gucci and its parent company Kering, which pertains to the Gucci beauty and fragrance license, in a U.K. commercial court.

HFC Prestige International Operations Switzerland Sàrl, a subsidiary of Coty, filed a case against Gucci America Inc., Guccio Gucci SpA and Kering SA on Oct. 20 in the U.K., according to public records. The case type deals with general commercial contracts and arrangements.

A copy of the lawsuit, and what it specifically alleges, could not immediately be obtained.

The news comes after it was revealed on Oct. 19 that as part of a new Kering-L’Oréal alliance, L’Oréal has the rights to enter into a 50-year exclusive license for the creation, development and distribution of fragrances and beauty products for Gucci, beginning once the current license with Coty expires. That is expected in 2028. Kering and L’Oréal also said jointly at the time that Kering’s obligations would be respected regarding the existing license agreement.

On Wednesday, following the publication of Coty’s first-quarter fiscal 2025-26 results, Sue Nabi, company chief executive officer, was asked by a financial analyst during an analysts’ call about the lawsuit filed “against Kering for breach of contract,” according to a transcript.

Nabi is quoted as saying: “I will not comment on ongoing litigations, and I can tell you that we will defend our rights until the last day, until the last hour of the contract.”

For its part, Kering, when reached Friday about the case, stated: “With respect to the English court proceedings initiated by Coty in relation to the Gucci license, the Kering group categorically rejects the unfounded allegations advanced by the Coty group and will vigorously defend its rights.”

Analysts have over the past few weeks been wondering whether there could be an early Gucci license termination.

Nabi, during the recent analysts’ call, was asked the question and said: “There is no change to Coty’s existing license, and our ability to operate the Gucci beauty license or contractual rights remain in place and continue as agreed. Coty will continue to manage and operate Gucci beauty under the same structure already in motion. Overall, we continue to solve this amicably with Kering.”

Of a potential deal for early contract ending, Nabi said: “We are always open to evaluate any proposal if — and only if — this creates real value for the company.”

According to Evercore IRI, the Gucci business accounts for about 8 percent of Coty’s overall sales and about 11 percent of its profits. Coty has held the Gucci license since 2016.

On Oct. 21, during a call with analysts and journalists to discuss third-quarter and nine-month sales, Nicolas Hieronimus, L’Oréal CEO, was asked whether the Gucci fragrance and beauty license might go to L’Oréal earlier than 2028.

“The Gucci license belongs to Kering,” Hieronimus said, adding L’Oréal is not privy to any discussions between the companies and that it would be inappropriate for him to ask about the subject.

The following day, during a call to discuss Kering results, group chief operating officer Jean-Marc Duplaix clarified that the plan is to wait for the Gucci license to expire.

WSJ : Republicans Pitch Alternative to ACA Extension to End Government Shutdown

Republicans Pitch Alternative to ACA Extension to End Government Shutdown
A proposal by GOP senators to send money directly to consumers’ health accounts rather than to insurance companies showed signs of breaking a stalemate on negotiations

WASHINGTON— The Senate was driving toward a deal to end the record government shutdown, with the Senate majority leader saying to expect a vote as soon as Sunday but also warning that an unpredictable negotiation could still hit some snags.

“The deal is coming together,” Senate Majority Leader John Thune (R., S.D.) said as he headed to the Senate floor in order to open the chamber for business. “We’ll see where the votes are,” he said, warning that “this kind of stuff can drag out indefinitely.” As he headed back to his office, he said, “there’s going to be something to vote on—let’s put it that way.”

The Senate Appropriations Committee released two full-year funding bills, covering veterans’ programs and the construction of military housing as well as the Agriculture Department, ahead of what was expected to be the release of another measure covering the legislative branch. An interim measure expected to temporarily fund the rest of the government still had not been released, and Republicans didn’t specify how the main Democratic demand to extend expiring healthcare subsidies would be handled.

Any deal would still need approval in the House of Representatives, which has been out of session since Sept. 19. House Speaker Mike Johnson (R., La.) has put members on notice that he would give them 48 hours to return in the event the Senate passed a spending bill.

Democrats and Republicans have been locked for more than a month in a standoff over healthcare coverage, with Democrats repeatedly blocking a GOP bill to reopen the government. Without an extension of enhanced Affordable Care Act credits, which run roughly $30 billion a year, more than 20 million Americans are set to see increases in their insurance premiums. Open enrollment for next year started this month.

A key development that appeared to break the logjam in the negotiations was that Senate Republicans proposed that some healthcare funding be provided directly to households rather than be used to pay for a one-year extension of enhanced ACA subsidies.

That GOP proposal involves sending federal money into flexible-spending accounts instead of to insurance companies that use the money to offset the cost of premiums, so consumers pay a smaller monthly bill. The money could be used to cover deductibles and other out-of-pocket costs, which Republicans see as a way to give consumers more choice and control healthcare inflation.

“Let’s just move beyond our trench line, and let’s actually think creatively,” said Senate Health, Education, Labor and Pensions Committee Chairman Bill Cassidy (R., La.), the proponent of the leading idea, on the Senate floor Saturday. “And can we give just a little bit to find something which actually benefits the patient but may also get us out of this situation?”

Republicans had previously said there would be no negotiations until Democrats ended their blockade, but the new healthcare pitch—despite many questions about how it would work and when it could be rolled out—showed the GOP could be flexible on that stance.

Thune has kept the Senate in session all weekend, as lawmakers see growing urgency to end the shutdown, amid growing airport snarls and delays in food aid being distributed to millions of Americans.

Adding to the pressure was the fact that the Trump administration on Saturday told states to undo any steps they’ve taken to issue full federal food-assistance benefits for November. The memo from the Agriculture Department came after a Supreme Court order on Friday paused a lower-court order directing the Trump administration to fully fund food aid under the Supplemental Nutrition Assistance Program, or SNAP.

Senate Minority Leader Chuck Schumer (D., N.Y.) rolled out the idea for a one-year extension of enhanced ACA subsidies on Friday as the price of Democratic votes to fund the government. But the idea was promptly rejected by Republicans, who said it showed Democrats were desperate. Democrats had previously proposed a permanent extension of the enhanced ACA credit, which was introduced during the Covid-19 pandemic.

Still, the overture looked to point to actual negotiations, and by late Friday Cassidy was pitching his idea on the floor—and drawing engagement from Democrats like Sen. Maria Cantwell (D., Wash.), who took to the floor to ask about his idea.

“I think you are trying to figure out something that would get people the same amount of money to make them whole over the next year or two; is that correct?” she asked. Cassidy said, “That is correct.”

President Trump then followed with a social-media message Saturday morning. “We must stop taxpayer money from going to insurance companies and instead give it directly to Americans in HSA-style accounts and let them buy the healthcare they want,” he said on Truth Social.

That was viewed within the Senate as an endorsement of the sort of approach being pursued by Cassidy—albeit suggesting a broader version that would put the entire federal subsidy into health savings accounts. Sen. Rick Scott (R., Fla.) said in a separate post, “Totally agree,” and added: “I’m writing the bill right now.”

Kevin Hassett, director of the National Economic Council, said that Trump had discussed the idea with Cassidy. While Hassett didn’t endorse all the details in the Cassidy plan, he said it could lead to a compromise.

“Why not take the people who have higher healthcare premiums and just mail them a check and let them decide?” Hassett said on CBS’s “Face the Nation.”

Some Democrats don’t like the idea, viewing it as making it harder for people to buy health insurance and particularly difficult on lower-income people—and could make healthcare coverage worse, not better.

“This is, unsurprisingly, nonsensical. Is he suggesting eliminating health insurance and giving people a few thousand dollars instead?” said Sen. Chris Murphy (D., Conn.) in reaction to Trump’s post.

But others were open to engaging with Republicans. On Saturday, multiple Democrats approached Cassidy or said they had spoken with him.

“Republicans are now talking about how they want to go after big insurance companies,” said Sen. Ron Wyden (D., Ore.), the top Democrat on the Senate Finance Committee. “If they’re serious, I’m all in.” He said that he and Cassidy had been talking—but he also said that the idea couldn’t be implemented right away.

“If you don’t do it right, you’ll have people in January, small businesses, who will have their business closed because they will not be able to keep the doors open or pay their employees, cover healthcare and the like,” Wyden said.

Sen. Cynthia Lummis (R., Wyo.) said the president’s remarks show that Trump is backing the idea from Cassidy as well as Sen. Roger Marshall (R., Kan.), another physician who is involved in it. She said the ideas amounted to the GOP response to the Democratic demand for a one-year ACA extension.

“This has real legs,” Lummis said. “It’s not a tennis court where only one player is on the court. I think two tennis players are on the court here, and I think it’s some of the Republican healthcare experts like Bill Cassidy and Roger Marshall, and some of theirs. So I think the ball is going to start getting hit back and forth now.”

NYT : The Dangerous Stalemate Over Iran’s Nuclear Program With no negotiations,

The Dangerous Stalemate Over Iran’s Nuclear Program
With no negotiations, no oversight and no clarity about Iran’s stock of nuclear material, many in the region fear another war with Israel is inevitable.


President Trump insists that U.S. strikes “obliterated” Iran’s nuclear enrichment program this summer, but regional officials and analysts have become less convinced in the months since, and they warn another outbreak of war between Israel and Iran is only a matter of time.

The 2015 deal intended to limit Iran’s nuclear enrichment expired last month. Tough sanctions on Iran have been restored. Negotiations on its nuclear program appear to be dead, at least for now. And Iran’s stockpile of highly enriched uranium, enough to make 11 nuclear weapons, is either buried under rubble, as Iran claims, or has been spirited away to a safe place, as Israeli officials believe.

Iran also appears to be continuing to work on a new enrichment site known as Pickaxe Mountain. It has refused to give international inspectors access to that site or any other suspected nuclear sites other than those already declared.

The result is a dangerous stalemate — with no negotiations, no certainty over Iran’s stockpile, no independent oversight. And many in the Gulf believe that makes another Israeli attack on Iran almost inevitable, given Israeli officials’ long-held view that Iran’s nuclear program is an existential threat.

Iran is likely to respond to any Israeli attack in a far less restrained way than it did in June, said Ali Vaez, the Iran project director at the International Crisis Group. Iranian officials have told him that missile factories are working 24 hours a day, he said, and if there is another war, “they hope to fire 2,000 at once to overwhelm Israeli defenses, not 500 over 12 days” as they did in June.

There is no evidence that a new attack is imminent. But “Israel feels the job is unfinished and sees no reason not to resume the conflict, so Iran is doubling down preparedness for the next round,” he said.
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Iran is more isolated from the West than it has been in decades. Arab regional powers like Saudi Arabia, Egypt and the United Arab Emirates have enhanced their influence over Washington and Mr. Trump, partly through economic ties and partly through their willingness to work with the United States to try to find a lasting settlement to the Gaza war. The new president of Syria is headed to the White House on Monday to seek American support. Syria had been a strategic ally of Iran’s under the Assad government that collapsed last year.

At the same time, those regional powers are working to preserve their own relationships with Iran, said Sanam Vakil, the director of the Middle East and North Africa program at Chatham House. They do not want another regional war, and they respect Iran’s ability, however weakened, to create instability through its own military forces and through proxies in Lebanon, Iraq, Yemen, the Persian Gulf and elsewhere, she said.
“Iran is weaker than at any point since the U.S. invasion of Iraq, but not so weak as to be irrelevant,” said Suzanne Maloney, an Iran expert and the director of the foreign policy program at the Brookings Institution. “A weaker Iran is easier for the Gulf States to engage and keep close because Iran, in its desperation, could become more dangerous.”

Israeli officials have warned since June that they are prepared to attack Iran again if it moves closer to producing a nuclear weapon, an intention Iran has always denied. The Israelis recognize that Iran’s nuclear program has been degraded but not destroyed, partly because Mr. Trump stopped the June war sooner than Israel wanted.

“Israel wants to ensure that Iran’s nuclear program is contained, and they won’t get it through negotiations, so I suspect the Israelis intend to strike again,” said H.A. Hellyer, a senior associate at the Center for American Progress in Washington and at London’s Royal United Services Institute. “The Iranians are rebuilding, but once they are past a certain line, Israel will attack again.”

The Arab states are also eager to work with Mr. Trump to ensure some restraints on Israel, which has ambitions to be a regional hegemon after devastating Gaza, Hamas and Hezbollah and damaging Iran. Arab officials are encouraging new nuclear talks between Iran and the United States, but with little optimism for now.

Iran’s supreme leader, Ayatollah Ali Khamenei, said on Tuesday that American hostility to Iran is deep-seated.
“America’s arrogant nature accepts nothing but surrender,” he said in an address to mark the anniversary of the takeover of the American Embassy in Tehran on Nov. 4, 1979.

His remarks seemed designed to block any new negotiations with the United States on Iran’s nuclear program.

Last week, Foreign Minister Abbas Araghchi of Iran said that Washington had offered “unacceptable and impossible conditions,” including direct talks and a complete, verifiable halt to Iran’s enrichment of uranium. He again rejected direct talks and an end to enrichment.

But he repeated that Iran remained open to indirect talks under certain conditions. They include a guarantee of no further military attacks or economic pressure and compensation for war damage, demands Washington is unwilling to accept. Speaking to Al Jazeera, Mr. Araghchi also warned Israel of “dire consequences” for any future attack.
With the diplomatic deadlock, a debate is underway in Iran about how to move forward, with few good options, Mr. Vaez said. Some Iranian officials want to compromise and make a deal with Mr. Trump. They argue that Iran cannot even keep the lights on, and that further resistance plays into Israel’s hands and could break the Iranian government given pressure from below.

Others favor confrontation, he said, believing it impossible to deal with Mr. Trump, who pulled out of the 2015 nuclear deal and angered Iran yet again by bombing it to help Israel in the middle of another set of nuclear negotiations.


But both camps consider another round of confrontation with Israel inevitable, he said. “So the country is doubling down on preparedness for the next round, and they want it to produce a new equilibrium that will wipe out the sense of Iranian weakness,” Mr. Vaez said.

Rafael Grossi, director of the International Atomic Energy Agency, told The Financial Times last week that the organization believes that the majority of Iran’s stockpile of highly enriched uranium survived the war, but that its status is unclear without inspections. He estimated that Iran has roughly 400 kilograms of 60 percent enriched uranium, which is close to weapons grade.

Currently, the region’s Arab nations are focused on Gaza, Mr. Vaez said. While a nuclear Iran remains a concern, the Saudis are trying to enhance their security with a mutual defense treaty with Pakistan, signed in September, and hopes for U.S. security guarantees like Qatar got after Israel bombed Hamas leaders there, prompting Mr. Trump’s fury.

There are nuances in the regional positions, Ms. Vakil argued. The perception of Iranian weakness and retreat translates into an opportunity to get Tehran to step back from support for its proxies in a more formal way. The Gulf States are thinking of the longer term, she said.

“There is a window of opportunity for more compromises with Iran weaker and more isolated,” she said. “And there is worry that in another round of the Iran-Israel war, Iran would be less restrained.”

Steven Erlanger is the chief diplomatic correspondent in Europe and is based in Berlin. He has reported from over 120 countries, including Thailand, France, Israel, Germany and the former Soviet Union.

>>> Miss Tweed : Louis Vuitton boss Pietro Beccari may change jobs within LVMH

Pietro Beccari, one of LVMH’s most talented captains and CEO of the group’s No. 1 brand Louis Vuitton, is expected to move to a new position, industry sources said. The timing is not yet certain, but it could happen as early as next year, they said. The move comes as the five children of CEO Bernard Arnault become more vocal on the group’s internal affairs and projects, challenging the authority of brand CEOs and creating tensions within the group, Miss Tweed has learned

The Information : Google’s $2.7 Billion AI Hire Tests Company’s Speech Limits Wi

Google’s $2.7 Billion AI Hire Tests Company’s Speech Limits With Inflammatory Posts
Last year, Google paid a fortune to bring Noam Shazeer back to the company. Since then, the AI pioneer has sparred with colleagues on Google’s employee discussion forums over his views on transgender identity, the Gaza conflict and other topics, prompting Google to delete his posts.

The Takeaway
  • Google AI leader has written several inflammatory internal posts on topics including transgender people in year since hire.
  • Other Google leaders have pushed back on Shazeer in responses.
  • Company’s handling of situation shows tension over speech issues in 2025.

This spring, Google AI leader Noam Shazeer posted a comment in one of the company’s internal discussion forums, in response to a post about how Google employees could support their transgender and nonbinary colleagues on International Transgender Day of Visibility.

“I do not believe that humans have an attribute called gender,” Shazeer wrote, according to a copy of the post viewed by The Information. “I do not believe that G-d puts people in the wrong bodies. I do not believe that it is okay to sterilize children. You have the right to your beliefs. I do not share them.”

The comment drew a rush of rebukes from Shazeer’s Google colleagues. One came from Jeff Dean, Shazeer’s manager at the time and one of Google’s most respected AI leaders. “Noam, you don’t have to agree with all positions others express, but as leaders, supporting our whole community of employees is something that we should be doing, not creating environments that don’t show this support for everyone,” Dean wrote.

David Silver, an influential leader in the Google DeepMind division, which creates Google’s core AI technology, commented that “leadership is a privilege and the words we speak matter.” A Google moderator later deleted Shazeer’s comment.

It is possible the post violated Google’s employee policies, which prohibit discrimination and harassment based on gender identity and transgender status. Employees who violate the policies are subject to discipline, which can range from a verbal warning to termination of employment. A Google spokesperson said the company does not comment on internal disciplinary matters.

The situation provides a window into how Google is handling issues around employee speech in a new political era. Even before the election of Donald Trump as president last November, many prominent tech figures had begun to shift to the right. Since then, some of tech’s highest-profile companies have backed away from a range of policies that conservatives found objectionable, from commitments to diversity in hiring to longstanding content moderation practices on social media. They have also tried to discourage political speech and protest from their employees at work.

Google has long been a crucible for Silicon Valley activism and culture wars. Last year, the company fired dozens of employees involved with a sit-in protest against the company’s cloud computing contract with Israel. In 2018, thousands of staffers temporarily walked out of the company over its handling of employee sexual misconduct complaints.

And in 2017, Google fired a software engineer, James Damore, after an outcry over a 10-page memo he wrote that questioned Google’s diversity efforts and argued that women are less assertive and more prone to “neuroticism” than men. His ouster won Damore high-profile defenders on the right, who saw him as a victim of liberal intolerance.

In the years since Damore was fired, Google and other tech companies have adopted policies intended to discourage employees from engaging in battles with each other over politics and divisive social issues. In 2019, Google introduced community guidelines telling staff to avoid insulting each other and “disrupting the workday to have a raging debate over politics or the latest news story.” Coinbase and Meta Platforms have instituted similar policies.

Google has an “internal community moderation team” that moderates employee discussions on online forums such as chat threads, including on contentious topics like politics. Google’s community guidelines prohibit “discussions that make other Googlers feel like they don’t belong or have no place here,” including “making statements that insult, demean, or humiliate (whether individually or by reference to groups) other employees,” according to a copy of the guidelines viewed by The Information.

In the case of Shazeer, 49, Google has a particularly tricky balancing act. Widely considered an AI luminary, he co-authored a groundbreaking research paper that laid the foundations for today’s AI boom. A little over a year ago, Google rehired Shazeer—who started his career at the company in 2000—as part of a $2.7 billion agreement with his startup, Character.AI. The deal presaged the increasingly astronomical amounts of money tech companies have become willing to pay for top AI talent.

Since then, Shazeer has co-led Google’s work on its Gemini AI models, becoming a central figure in the company’s push to improve its standing in AI after the rise of OpenAI caught Google off guard. He is also close to Google co-founders Sergey Brin and Larry Page.

And yet Shazeer has developed a reputation for posting inflammatory comments about sensitive topics like the conflict in Gaza and gender in company channels, according to current and former Google employees. As a result, Google has deleted many of his comments from its systems. Multiple employees have gone to DeepMind leadership to complain about Shazeer’s posts, a person familiar with the matter said.

In July, for example, an employee posted a link in a Google channel to an article about a study that showed large language models advised women to ask for lower salaries than men when applying for the same jobs, people with knowledge of the situation said. The post sparked conversation and concern in the channel. Some employees wanted to make sure Gemini didn’t have the same problem.

But Shazeer tried to shut the conversation down and criticized the employee who posted the article, one of the people said. Other DeepMind staffers, including Dean, pushed back, arguing that it was important to make sure Google’s models weren’t biased against women. A Google moderator later deleted Shazeer’s comment.

Shazeer declined to comment for this story.

Gaza Threads

The situation with Shazeer had already escalated in June, following a series of arguments in an internal Google channel named GDM AI Principles.

Employees at DeepMind had created the channel earlier in the year, after Google updated its principles regarding how it and external customers, including governments, can use its AI technology. With the changes, the company had ended previous commitments not to pursue “weapons or other technologies whose principal purpose or implementation is to cause or directly facilitate injury to people,” as well as “technologies that gather or use information for surveillance violating internationally accepted norms.”

Many DeepMind employees were upset about the changes, fearing the technology they created could be used to kill and injure people—particularly in Israel’s assault on Gaza, current and former employees said. Some Google employees put together a petition, calling for Google to reverse the changes to its principles. The channel became a hub for discussing these issues and sharing links, and it soon amassed hundreds of members.

Shazeer, who is Jewish, was a frequent poster in the group. He often accused employees who spoke out against the policy change or who expressed concern about how Google’s technology was used in Gaza of being antisemitic, according to current and former employees.

When members of the group proposed meeting for lunch at the company’s London office to discuss certain issues, including a related unionization effort, Shazeer commented: “LOL - you have found a way to take your anitsemitic Israel-bashing club offline where I can’t call you out on it,” according to a copy of the exchange viewed by The Information.

After repeated complaints, moderators removed Shazeer from the channel and locked it to prevent newcomers from joining it without prior approval.

Building Character

Shazeer has tangled with Google before over the limits of speech, though in a different context.

Roughly five years ago during a prior stint at Google, Shazeer developed a chatbot similar to ChatGPT with colleague Daniel De Freitas. The pair wanted to release the chatbot publicly but Google blocked the effort, concerned that the model, which was prone to spewing misinformation and issuing toxic responses, was too unpredictable to launch. The decision frustrated Shazeer, who quit Google in 2021 to start Character.AI with De Freitas.

Freed from Google’s guardrails, Character.AI launched an app online in 2022. Users could chat with an array of chatbots it offered or create their own. User-generated chatbots modeled after videogame and cartoon characters quickly took off.

Soon users began engaging in romantic and sexual role-playing with their Character.AI chatbots. A number tried to escalate the chats to simulated rape and incest scenarios, behavior that troubled some of Character.AI’s employees. The company installed filters, hoping to stop chats from veering into pornographic territory.

“I don’t really think it’s very good for people,” Shazeer—whom colleagues describe as deeply religious—told The Information in a 2023 interview, referring to users’ attempts to initiate erotic conversations.

In August 2024, as safety concerns about Character.AI’s products mounted and the AI race was reaching new heights, news broke that Google had agreed to pay a staggering $2.7 billion to hire Shazeer, De Freitas and other Character.AI employees and license the company’s technology.

But Shazeer hasn’t been able to entirely detach himself from the scrutiny directed at Character.AI’s products. Last October, Florida mother Megan Garcia sued Shazeer, De Freitas, Character.AI and Google, claiming the app had caused her son’s suicide. Shazeer was recently deposed in the case, which a judge ruled could move forward after rejecting a request for dismissal by the defendants, who argued that the chatbot’s output is protected speech under the First Amendment.

It is one of six similar cases filed against Shazeer and Character.AI in the past year by the families of young users allegedly harmed by the app. Character.AI recently announced it would ban users under 18 from interacting with its chatbots.

‘Don’t Need This at Google’

Shazeer has had a swift impact on Google’s AI efforts.

Shortly after he rejoined the company last year, he managed to identify a fix for a problem in Gemini’s pretraining architecture that had stymied other researchers for months, leading to a big jump in quality for the Gemini 2.5 model, two employees said.

“People were making jokes that it justified the whole Character acquisition,” one of the employees said.

Other significant projects followed. Last fall, Shazeer co-led a team scrambling to come up with a response to OpenAI’s thinking model, o1-preview, a major effort for the company. More recently, Shazeer, who oversees roughly 50 people, has been leading a team focused on long-context learning, or expanding how much information AI models can process. He is also working on long-term research trying to uncover the next major advancement in AI development, one of the employees said.

At Google’s Mountain View, Calif., office, Shazeer comes across as more mild-mannered than his combative persona in internal channels, according to two employees who work with him. Some employees said they were not even aware that he had been involved in tense exchanges in those channels.

But he remains a presence in Google’s online employee forums. Commenting on a company message board in September, Shazeer complained repeatedly about having been locked out of the GDM AI Principles chat several months earlier, accusing the group’s moderators of bias. He called on the company to delete the channel altogether, arguing: “We don’t need this at Google.”

Later that month, Google did, in fact, shut down the channel by merging it into a separate Safety and Responsibility channel, people with knowledge of the situation said.

A Google spokesperson said the channel was not shut down in response to Shazeer’s request. Instead, the spokesperson said, it was part of the company’s moderation processes to make sure employees were having productive, nondisruptive discussions at work.

Still, some DeepMind employees viewed it as an effort to quash discussion and silence criticism of the company.

WSJ : Israeli Spyware Maker NSO Gets New Owners, Leadership and Seeks to Mend Re

Israeli Spyware Maker NSO Gets New Owners, Leadership and Seeks to Mend Reputation
Hollywood producer Robert Simonds takes controlling stake, appoints former Trump official David Friedman

  • A group of investors led by Hollywood producer Robert Simonds acquired a controlling stake in NSO Group, which named former Trump official David Friedman as executive chairman.
  • Friedman aims to restore the company’s reputation in the U.S. and help rebuild its spyware business there using his Trump administration ties.
  • NSO Group was recently ordered to pay Meta $4 million in damages and cease targeting WhatsApp, a decision the company is appealing.

TEL AVIV—NSO Group, the Israeli company behind Pegasus spyware, says a group of investors led by Hollywood producer Robert Simonds has acquired a controlling stake in the firm, which has named a former Trump official to lead an effort to restore its battered reputation.

The company, which has faced lawsuits and U.S. government sanctions since revelations that its technology was used to spy on political dissidents, human-rights advocates, journalists and American officials, declined to disclose the purchase price.

NSO’s new executive chairman, David Friedman, a former U.S. ambassador to Israel and onetime bankruptcy lawyer for President Trump, said he wants to use his ties to the Trump administration to help rebuild the company’s spyware business in the U.S.

“If the administration, as I expect they’ll be, is receptive to considering any opportunity that might keep Americans safer, it will consider us,” said Friedman, who splits his time between Florida and Israel.

Friedman and NSO said Simonds, the chairman of STX Entertainment, declined to comment for this article. Friedman said he and Simonds want to use NSO’s eavesdropping and surveillance technologies to “achieve a safer world.”

NSO’s flagship product, Pegasus, has used WhatsApp to infiltrate phones without the target having to do or tap on anything. The spyware has also been sent to phones via links in messages, according to security researchers.

Pegasus can turn a smartphone into a silent spying device by gaining access to its files, messages, microphone and camera, they say.

In 2021, the Biden administration placed NSO on an export-prohibition list that restricted the firm from obtaining some types of technology from the U.S. In 2023, President Biden signed an executive order banning government agencies and departments from using commercial spyware that “poses risks to national security or has been misused by foreign actors to enable human rights abuses around the world.”

Unless Biden’s executive order is rescinded, it is unlikely U.S. government agencies would do business with NSO.

Since its legal troubles began, the company has struggled financially and changed hands a few times. It mulled pivoting away from spyware but says it has since refocused on cyber offensive capabilities and Pegasus remains the company’s key product.

“They have been struggling and looking for capital. This change of control and ownership brings with it sufficient capital to maintain the business,” Friedman said.

Intelligence agencies such as the U.S. National Security Agency and the U.K.’s Government Communications Headquarters routinely use hacking tools. NSO often sells such cyber capabilities to countries that don’t have their own.

NSO’s products would be “additive” to existing technologies used by U.S. law enforcement and intelligence agencies, Friedman said. He said he’s aiming to recruit U.S. law-enforcement agencies, including police forces, among the company’s customers.

In March 2022, former FBI Director Chris Wray said in congressional testimony that the bureau had bought NSO Group technology to test it and didn’t use it for operational purposes.

As ambassador to Israel, Friedman oversaw the U.S. recognition of Jerusalem as Israel’s capital, the relocation of the U.S. Embassy to Jerusalem and the negotiation of the Abraham Accords, a series of diplomatic normalization agreements between Israel and some Muslim-majority countries.

Friedman said his pitch to the U.S. government is that NSO’s products will make America safer. NSO says its products can be used by government agencies to fight terrorism and crime by allowing them access to encrypted messaging systems such as WhatsApp.

The company says it doesn’t know who its clients target with Pegasus. But it said it terminates contracts when it learns of abuses and has taken measures to stem abuse and vet potential clients. Friedman said preventing abuses would come down to finding trustworthy clients.

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The power of Pegasus creates “unbearable temptation for abuse,” said John Scott-Railton, a researcher with the Citizen Lab, an academic research group that studies state-sponsored cyber espionage.

“I can’t think of something more chilling for Americans’ basic rights and freedom than some police department reaching into their lives and dumping it on the table in front of a bunch of cops,” said Scott-Railton.

He said despite vows by the firm to prevent abuse, cases continue to emerge. Two journalists from the Balkan Investigative Reporting Network, a Serbian network of investigative journalists, recently received links on the Viber messaging app infected with Pegasus, according to researchers at Amnesty International.

Friedman said “the NSO of today is a far more careful company in how it licenses its technology than it was five six years ago.”

From 2020 through 2024, NSO spent $7.6 million on lobbying efforts in Washington, according to Open Secrets, a government transparency group that tracks political spending.

Those efforts bore little fruit, said Steve Feldstein, a senior fellow at the Carnegie Endowment for International Peace in Washington. He said the fact that NSO’s technology was used to spy on U.S. officials abroad turned opposition to the company into a bipartisan issue.

NSO still faces significant legal hurdles. In 2019, WhatsApp’s parent company, now called Meta, sued NSO over what it alleged was a breach of its servers to install NSO’s malware on target devices. In July, the six-year trial came to an end, with a federal jury in California ordering NSO to pay Meta $168 million in damages.

In October, the U.S. District Court for the Northern District of California reduced the fine NSO was ordered to pay Meta down to $4 million. But in the same ruling, the judge ordered NSO to stop targeting WhatsApp, in a move that the company said during its defense could put it out of business.

NSO is appealing the decision against targeting WhatsApp, and is filing for a stay.

“It’s a meaningful setback, not only for NSO Group, but potentially for the people who benefit from this surveillance,” said Friedman of the injunction against targeting WhatsApp.

>>> OpenAI Urges U.S. to Expand Chips Act Credit to Data Centers — Potential Mar

OpenAI Urges U.S. to Expand Chips Act Credit to Data Centers — Potential Market Winners


Key Development:
OpenAI asked the U.S. government to broaden the Advanced Manufacturing Investment Credit (AMIC) — a 35% tax credit originally tied to the Chips Act — to cover AI servers, data centers, and grid components.
The company’s letter, signed by Chief Global Affairs Officer Chris Lehane and sent to White House tech policy head Michael Kratsios, argues that expansion “will lower the effective cost of capital, de-risk early investment, and unlock private capital.”
OpenAI also called for faster permitting and a strategic reserve of raw materials such as copper, aluminum, and rare earths critical to AI infrastructure.
CEO Sam Altman later clarified that OpenAI “does not have or want government guarantees” but supports credits for data center infrastructure.

Market Takeaway:
A potential 35% U.S. federal tax credit for data centers would materially cut capital costs for AI infrastructure buildouts.
Effectively, it would expand the Chips Act beyond semiconductors into AI hardware and energy infrastructure — positioning U.S.-based buildouts ahead of global peers.

Winners:
  • U.S. Data Center REITs: Digital Realty (DLR), Equinix (EQIX), CyrusOne (CONE) — Lower effective CAPEX, faster project IRRs, likely multiple expansion as U.S. buildout accelerates.
  • Power & Grid Infrastructure: Eaton (ETN), ABB (ABB), Schneider Electric (SU FP), GE Vernova (GEV) — Demand surge for transformers, switchgear, copper-heavy equipment.
  • Construction & Engineering Contractors: Fluor (FLR), Jacobs (J), AECOM (ACM) — Pipeline of AI-related infrastructure could expand materially.
  • AI Hardware Supply Chain: NVIDIA (NVDA), AMD (AMD), Broadcom (AVGO) — Potential downstream uplift from accelerated domestic data center deployment.

Relative/Pair Trades:
  • Long data center REITs / Short global peers without U.S. tax exposure.
  • Long U.S. grid-equipment suppliers / Short European industrials with higher cost base.
  • Overweight AI-infrastructure plays with U.S. CAPEX exposure / Underweight software-heavy hyperscalers where marginal benefit is smaller (MSFT, AMZN, GOOGL).

Valuation Impact (Scenario):
For a $1B U.S. data center project, the 35% tax credit effectively cuts net cost to $650M → IRR improvement of ~200–300bps depending on financing.
That could lift valuation multiples by 10–15% across listed U.S. data center operators and construction peers if policy passes.

Catalysts:
  • Draft legislation expanding AMIC coverage (watch for Congressional language).
  • Press releases citing AMIC credit in U.S. data center build announcements.
  • Supplier backlog data (transformers, copper cabling) showing U.S. demand spike.

Risks:
  • Policy stall or partial implementation in Congress.
  • Overbuild risk → excess compute capacity compressing margins.
  • Supply chain delays: transformer bottlenecks, copper shortages.
  • Elevated financing costs could offset part of tax relief.

Bottom Line:
Expansion of the Chips Act credit to AI data centers would act as a major fiscal tailwind for U.S. data center infrastructure and grid-equipment providers.
Trade skew: Long infrastructure buildout and REITs; short global peers and overexposed hyperscalers.

Source: OpenAI letter (Oct. 27 2025); Reuters (Nov 7 2025)