U.S. Government’s $8.9 Billion Intel Deal Under Fire

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📝 usncan Note: U.S. Government’s $8.9 Billion Intel Deal Under Fire

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The legendary Giorgio Armani died Thursday at age 91, but he leaves behind a decades-long fashion legacy.

Armani, who began as a low-level department store buyer in the late 1950s, launched his eponymous brand in 1975 and would go on to become a leader in luxury fashion. At the time of his death, Forbes estimates Armani was worth $12.1 billion, thanks to his 99.9% stake in the designer fashion house.

In interviews, Armani had detailed his succession plans, naming his niece Roberta Armani and his right-hand man Leo Dell’Orco as his heirs. “I always try to maintain a sense of reality and ensure that I surround myself with the right people, who understand the times in which we live,” he told Forbes in 2017 for the magazine’s 100-year-anniversary issue.

FIRST UP

Tesla outlined a new compensation package for CEO Elon Musk on Friday, which could be worth around $1 trillion if the company meets certain ambitious goals over the next decade, a move that comes a month after the company’s board approved a stock award for him worth around $29 billion. To receive his full compensation reward, Musk will need to raise Tesla’s market cap from around $1 trillion at present to $8.5 trillion within a ten-year period.

Senator Elizabeth Warren (D-Mass.) criticized President Donald Trump’s unusual deal for the U.S. government to take an $8.9 billion dollar stake in the chipmaker Intel, calling it an “extremely risky investment” as the company’s stock has faltered in recent years. Warren demanded details about the transaction, which is one of many unclear deals the president has made with executives at institutions and companies across the country.

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BUSINESS + FINANCE

In the latest sign of a cooling job market, private sector hiring fell again in August, according to a report from payroll processing firm ADP. The weakening labor market has fueled speculation that the Federal Reserve will cut rates at its meeting this month, as the central bank has a dual mandate of full employment and stabilized inflation.

TECH + INNOVATION

Munster Cheong for Forbes Asia

Gaming hardware giant Razer is planning to release AI software tools it says will be game-changers in helping developers create games faster and for less money. CEO Min-Liang Tan is betting the new offerings, which come at a time of sluggish growth for video game hardware like keyboards and mice, will unlock a fresh revenue stream.

MONEY + POLITICS

The Justice Department launched an investigation into mortgage fraud allegations against Federal Reserve Governor Lisa Cook, who has denied the accusations. President Donald Trump has attempted to fire Cook over the fraud claims, though Cook has sued over the move, calling it “unprecedented and illegal.”

Washington, D.C. challenged the Trump Administration’s recent deployment of the National Guard in court, alleging the move violated federal law prohibiting the military from being used in domestic law enforcement. The capital’s attorney general, Democrat Brian Schwalb, accused the administration of running “roughshod over a fundamental tenet of American democracy,” as a judge ruled against the use of the National Guard in Los Angeles this week.

MORE: The National Guard will remain in Washington, D.C., until the end of November, according to Brig. Gen. Leland D. Blanchard II, the interim commanding general for the D.C. National Guard. The National Guard has been deployed in the capital since August 12, a day after President Donald Trump declared a “crime emergency” in the city despite 30-year low violent crime rates.

TRENDS + EXPLAINERS

The One Big Beautiful Bill Act created a temporary deduction for tip income, and this week the Treasury Department released a preliminary list of 68 jobs that qualify. It includes occupations you might expect, like bartenders, babysitters and hairdressers—but also some surprising ones, like social media influencers and podcasters.

DAILY COVER STORY

This Billionaire’s AI Was Supposed To Speed Up Policing. It’s Not Going Well.

In June 2022, the San Mateo County Sheriff’s Office in California organized a “day of fun” down at the Coyote Point Shooting Range. The department’s IT team and staff from C3 AI, a $2.4 billion market cap company founded by billionaire Tom Siebel, were invited to celebrate their work on a new surveillance system intended to unify police data from agencies across the county into a single app.

Working closely with C3 AI and its longtime partner, Amazon Web Services, the Sheriff’s Office wanted to connect masses of data from at least 15 different agencies under its jurisdiction, collected from devices like license plate readers, surveillance cameras, arrest records, 911 calls and historical police databases. At the core of Project Sherlock was artificial intelligence that could piece the data together, find leads for investigators and give situational awareness to cops on the beat. The ultimate aim was to dramatically speed up the grunt work of policing.

But $12 million and three years later, Project Sherlock has been struggling with usability, feature oversights and significant delays, in some cases well over a year, according to public records obtained by Forbes. A timeline of the planned Sherlock rollout, obtained via public records, showed that 14 agencies were due to go live with Sherlock by January this year at the latest. Seven of those agencies told Forbes they didn’t have access to a fully functional product and therefore hadn’t seen any investigational benefit.

WHY IT MATTERS The stuttering progress of Project Sherlock, the name and nature of which is reported here for the first time, shows how even with the backing of a Silicon Valley billionaire in Siebel and one of the world’s most powerful companies in Amazon, AI’s much-hyped use in policing is running into bureaucratic stumbling blocks and problems performing as promised. In San Mateo County, the Sheriff’s Office’s hope that AI plus mass collection of surveillance data would get vital information into the hands of cops faster has yet to be fully realized.

MORE AI Startup Flock Thinks It Can Eliminate All Crime In America

FACTS + COMMENTS

Competitors are capitalizing on Spirit Airlines’ woes, launching new routes after the low-cost carrier filed for a second bankruptcy in less than a year. Spirit has not announced plans to cease operations, but the airline warned investors last month it might not survive another year without additional cash infusions:

15: The number of new routes United Airlines announced it was adding Thursday, while ultra-low-cost carrier Frontier Airlines unveiled 22

94%: The plunge in Spirit’s stock this year; the airline was informed this week that it will soon be delisted from the New York Stock Exchange

2019: The last year Spirit was profitable

STRATEGY + SUCCESS

Today’s job market is reshaping what career success looks like, and you no longer need a college degree to work in a high-paying profession. Consider the skilled trades, which offer one of the most reliable paths to a six-figure salary, and focus on in-demand abilities like AI and soft skills. Consider attending a coding bootcamp or earning an industry certification, which typically offer training at a lower price point than a four-year degree.