• A New Mexico judge ordered Meta to pay $25 billion over how it handled its users' data.
• It could be the largest penalty against Meta in history.
• Meta recently agreed to an $18 billion settlement over the impact of its tech on kids.

A judge in New Mexico ordered Meta to pay $25 billion for misleading users about how it handled their data and for failing to prevent misinformation on Facebook.

The ruling could be the largest penalty in Meta's history. Last month, Meta settled a child-safety lawsuit brought by a group of US states for $18 billion.

The New Mexico case focused on Meta's handling of user records that Cambridge Analytica used for campaign purposes during the 2016 election. New Mexico alleged that Facebook misrepresented the extent of users' control over their data on the app.

"Facebook's wrongdoing—over the course of years and systematically broadcast to the public—goes to the heart of Facebook's core business practices," Judge Francis J. Mathew wrote in the ruling. "It relates to the way in which Facebook induces people onto the platform and ultimately keeps them there."

In a statement, Meta's chief legal officer, C.J. Mahoney, said the penalty "makes it all but impossible to do business in the state of New Mexico."

"At its core, this lawsuit seeks to impose a tax on speech to enforce new rules for what people can say online," Mahoney said. "We are confident we will prevail on appeal."

A jury ruled against Meta last month, finding the company committed nearly 50 million violations of a New Mexico law prohibiting deceptive trade practices. Each violation carries a penalty of up to $5,000.

Some Meta executives, including CEO Mark Zuckerberg, were deposed in the case. New Mexico first sued the company in 2021, and the case went to trial last month.

In internal Meta communications presented at the trial, Zuckerberg appeared to obfuscate methods for users to hide their data.

"Give them a chance to change their privacy settings but obviously don't encourage it," Zuckerberg wrote in one internal message.

Meta's next move remains unclear. The company didn't immediately respond to a request for comment on Wednesday.

This is a breaking news story. It will be updated.

• Elon Musk said AI rivals are clamoring to rent SpaceX's compute.
• SpaceX plans to split compute between its internal uses and outside customers.
• The company could rent out its compute "several times over if we said yes to everyone," Musk said.

SpaceX's AI rivals are clamoring to rent computing power from the artificial intelligence and rocket company, CEO Elon Musk said.

"We are also, frankly, hounded relentlessly by every hyperscaler and by dozens of smaller companies to rent more of our compute," Musk said during SpaceX's third-quarter earnings call Tuesday.

Musk said SpaceX could rent out the company's compute "several times over if we said yes to everyone."

SpaceX, however, is reserving a chunk of that capacity for its own AI ambitions, including scaling its AI chatbot Grok and Cursor, the coding startup it recently acquired.

Musk said SpaceX is seeking to devote roughly half of its compute to internal uses and rent out the other half to third parties. That balance could change month to month, he said.

"It's going to be dynamic," said Musk. "And obviously, our approach is to rent at the — effectively the spot market rate as opposed to sign these long-term deals."

The company expects the value of compute to increase as AI models improve and ultimately generate "more useful intelligence per watt," said Musk.

"And the value of that compute is proportionate to the useful intelligence per watt," Musk said, adding that rental rates for older Nvidia H100 chips have climbed from when they were new.

"I think that's likely to continue," said Musk. "I think we're going to face a shortage of super intelligence compute. And that shortage is going to remain for a long time."

Musk likened the situation to Monty Python's famed cheese shop sketch, in which a customer repeatedly asks for different cheeses only to find that none are available.

"We've actually tried to offload some of our inference compute to other cloud providers so that we can use more compute for training," the CEO said. "And we get the cheese shop sketch."

• J.Crew's website temporarily went down and displayed an odd message.
• It read: "JCrew generative AI Backend is healthy."
• The clothing retailer later offered shoppers 20% off due to the "technical issues."

The website of clothing retailer J.Crew crashed Monday, leaving shoppers with a bizarre message: "JCrew generative AI Backend is healthy."

Multiple screenshots posted to social media by puzzled customers showed the statement on the brand's website set against an otherwise blank, black page.

"Wtf is up with the @jcrew website," one online browser posted to X along with a screenshot. J. Crew's customer service account responded to the post shortly after, saying, "We're working to get the site back up and running - sorry for the trouble. Hope you'll check back soon!"

In an apparent attempt to make up for the odd disruption, J.Crew later emailed its customers a 20% discount code that expires on Thursday.

"We're sorry!" the email viewed by Business Insider read. "Thanks for your patience during our recent technical issues at jcrew.com. As a token of our gratitude, enjoy an extra 20% off your next purchase."

It was not immediately clear what caused the website to malfunction or whether it was related to AI. Representatives for J.Crew did not immediately respond to a request for comment by Business Insider on Tuesday.

• Elon Musk said that "AI and robots" are the key to fixing America's national debt.
• On a podcast, Musk said it would be "impossible" to tackle any other way.
• He predicted "digital superintelligence" could boost the output of goods and services by 20% to 30%.

Elon Musk said artificial intelligence and robots — not government spending cuts — are the only way to fix the US national debt problem.

Speaking on a newly released episode of author Walter Isaacson's "The Builders" podcast, Musk said his 130-day stint as a special government employee in the second Trump administration led him to that view.

Musk, the world's richest person, served as the de facto leader of the White House DOGE office from January to May 2025, where he sought to slash federal spending.

"I came to the conclusion that the only way we're going to solve the national debt is with AI and robots. We're not going to solve it by trying to save our way there," Musk told Isaacson, calling the latter "impossible."

The US national debt load hit a record $40 trillion in August and has continued to climb, according to Treasury data.

"Maybe if the president made that his, you know, primary goal, we could do that, but the problem is if you try to solve the deficit and stop wasteful spending, you make a lot of enemies in that situation," Musk said.

The Tesla and SpaceX CEO said political leaders in Washington are mostly unwilling to rein in federal spending enough to significantly shrink the deficit.

"The appetite is not there, and it's not just at the presidency. The appetite is not there at the presidency, the House, the Senate, or the judiciary," Musk said.

He added, "Basically, no one in authority in the government whatsoever, really, with maybe a few rare exceptions of like the Rand Pauls of the world type of thing, actually wants to reduce spending — no, they don't."

Musk estimated that "digital superintelligence" could boost the global output of goods and services by 20% to 30% — an increase he estimated could add roughly $30 trillion a year to the world economy.

"If you have robots and you get to space and can do a mass driver on the moon, then you can get to, I think, potentially a million times the size of the Earth economy," he said.

This could ultimately make money "irrelevant," Musk said.

"There will still be currency, but I think currency will be measured in fundamental physics metrics like wattage and tonnage, mass and energy," he said, predicting, "Conventional currency will not matter."

During the interview, Musk also reflected on his chainsaw-wielding time with the Department of Government Efficiency, admitting he got "carried away."

"I think I should have been more in the background and probably only had it last for a month or two, because at that point you've sort of seen most of what there is to see," Musk told Isaacson.

Musk said he should have left and "focused on AI a little sooner than I did."

• Anthropic said it has been hiring a smaller number of junior technical positions.
• Entry-level hires in technical departments fell from 27% to 9%, the AI company said.
• AI agents have spread across the firm to write code, fix bugs, and handle other tasks.

Anthropic's own data offers a stark warning for entry-level tech employees in an AI-heavy workplace.

The company behind the AI chatbot Claude said in a newly released internal report that it has been hiring for a "smaller share of junior technical positions" as AI agents have been deployed across the firm to write code, fix bugs, and handle other tasks.

By August, Anthropic said its interactive AI agents were logging six hours of work for every hour a human employee logged.

A chart published in the new report titled "How Employment is Changing at Anthropic" shows that junior workers made up 27% of hires in technical departments at the company in early 2025. By June of this year, that number had plummeted to 9%.

The share of junior-level workers in technical departments had also declined over the same period from 21% to 14%, while open roles for junior positions slid to 6% after topping 20% late last year, the chart shows.

That downward trend was less pronounced in non-technical departments, where hiring of junior workers fell from 31% to 26% over the same timeframe, while their share of head count rose from 23% to 25%. Junior job openings in non-technical departments, meanwhile, dropped from 31% to 13%.

Anthropic said the changes came as AI usage inside the company rapidly expanded.

"As AI agents diffused through the company, Anthropic began producing more code per person, closing more sales per rep, and processing more contracts," the report said. "Following the same employee over time, output rose as they adopted new AI tools."

It added, "We find that even as the company grows, relative hiring in junior technical positions has slowed. Productivity for both engineers and non-technical employees has leapt up and did so sharply when they adopted coding agents."

The findings land as Anthropic CEO Dario Amodei has emerged as one of the tech industry's most prominent voices on how AI could disrupt jobs.

Amodei has repeatedly said that AI may eliminate up to half of entry-level white-collar jobs over the next several years.

"We, as the producers of this technology, have a duty and an obligation to be honest about what is coming," Amodei said in an interview last year.

• Google Labs leaders use ominous meeting invites to surprise and thank top staff.
• It's a "secret society" ritual for the most valuable employees, Google Labs chief Josh Woodward said.
• Woodward called the meetings "pretty fun" during an appearance on "Lenny's Podcast."

An unexpected meeting invite with the boss is often the kind of thing that sends employees spiraling. For Google Labs staffers, though, it could mean top brass are about to tell you how great you are.

Speaking on a recent episode of "Lenny's Podcast," Josh Woodward, the vice president of Google Labs, the Gemini app, and AI Studio, described the surprise appreciation meetings as a kind of "secret society" ritual for the team's most valuable employees.

"We'll basically like put an invite on someone's calendar, and we'll just, you know, it looks kind of scary because there's like four or five leaders on the team," Woodward told podcast host Lenny Rachitsky, adding that there's no agenda given.

"And then they show up, and we take turns. We go around the circle, and we just tell them why we appreciate them so much for being on the team," Woodward said.

Woodward called the sessions "pretty fun" and said employees are regularly surprised to learn what the meetings are about.

"I always start the meeting with like, 'This is not a bad meeting. This is a good meeting,'" he said. "Your mind may assume the worst, but we're actually doing the opposite. These are some of the most valuable people."

The surprise recognition meetings are one of the ways Google Labs celebrates the often unflashy work behind its AI products, according to Woodward.

He said the team also has a tradition of handing out quirky awards to employees.

There's the "TPU harvester" award, which consists of a "little miniature rake" from Etsy as well as a cash reward, for staffers who optimize Google's AI chips, known as Tensor Processing Units, Woodward said.

"A few of us wanted to figure out a way to reward people who do the grungy work of efficiency and reclaiming TPUs, harvesting TPUs, so we can build the next features and fuel our growth," he said, adding, "we kind of turned it into this big celebration."

Employees who fix small product flaws or "paper cuts" receive a golden Band-Aid, Woodward said. And those who find surprising ways to push AI models toward new capabilities can become an "LLM whisperer," earning them a giant set of ears and a "really nice" mechanical keyboard.

"We're trying to find like ways to kind of like I don't know encode the value in these like dorky symbols, but that means something," he said, explaining, "We're always coming up with weird stuff like this."

• President Donald Trump said he told Katie Zacharia to reconsider the White House press secretary job.
• Shortly after, a White House official said she is "transitioning out" of the role.
• She lasted five days in the role after mounting scrutiny over her legal credentials.

Embattled White House press secretary Katie Zacharia is out of the job after just five days, making her the shortest-tenured person to hold the role in history.

President Donald Trump said on Friday that he told Zacharia to reconsider taking on the high-profile job.

Shortly after his statements, The New York Times and CNN reported that Zacharia had been fired after less than a week in the role. A White House official told Business Insider that she is "transitioning out" of the role.

"I said to Katie just two minutes ago, I said, 'Katie, you know, you don't have to do this if you don't want,'" Trump told reporters at the White House, adding that Zacharia responded that the job is "a lot tougher" than she thought.

"I said to her, 'Honestly, if I were you, I'd reconsider. You think about it, but I would reconsider,'" Trump said.

A conservative commentator who has repeatedly described herself as a lawyer, Zacharia made her White House press briefing debut on Tuesday and quickly came under intense scrutiny over her legal credentials.

She was widely panned after the roughly 14-minute briefing, most of which was spent on reading from prepared remarks. After the briefing, while alongside Trump, Zacharia was asked which state she passed the bar exam in and replied, "When I moved to China," raising eyebrows.

National headlines soon followed reports that Zacharia had not been licensed to practice law in any US jurisdiction.

On Thursday, Zacharia said she took the bar exam but failed, and never retook it.

Trump told reporters on Friday that Zacharia had been treated "very badly" and "very unfairly" by the media.

"She's been treated very rough, and she's a nice person, very nice person," the president said. "I've watched her for years on television, but I said, 'Is this for you, Katie? Because, honestly, you don't need this.'"

"She's been treated, I would say, very nastily," he said.

A rocky start

Following her first briefing, CNN reported that "several White House officials" were questioning how long she could remain in the role.

The news of Zacharia's ouster means Trump will be searching for a top spokesperson again after Karoline Leavitt left the role in August.

Previously, Jonathan Daniels held the record for shortest tenure. Daniels served as White House press secretary for just 19 days before President Franklin D. Roosevelt died in office. (He briefly served in an interim capacity for President Harry Truman.)

In the modern era, press secretaries have historically served roughly a year in the role, a fact that CNN noted when Trump's first-ever White House press secretary, Sean Spicer, departed after 182 days in August 2017.

During the first Trump administration, Anthony Scaramucci famously spent just 11 days as the White House communications director before he was booted from the position.

Scaramucci, known as "The Mooch," weighed in on Zacharia's departure in an X post, writing, "Records are made to be broken. But I take no pleasure in other people's pain."

Before becoming press secretary, Zacharia worked for Trump Media, the parent company of Truth Social, and served a brief stint at the Department of Homeland Security.

Compared to her predecessors, her résumé was void of the campaign and Capitol Hill experience that previous White House press secretaries brought to the challenging role.

• In a new interview, White House press secretary Katie Zacharia didn't deny failing the bar exam.
• She also defended calling herself a lawyer.
• "The results are somewhat inconsequential because I knew I wouldn't need the bar in China," she said of the bar exam.

President Donald Trump's new White House press secretary Katie Zacharia is defending her self-description as a lawyer, while acknowledging that she took the bar exam and considered the results "inconsequential."

Zacharia's legal qualifications have faced growing scrutiny since her debut White House media briefing earlier this week, when shortly afterward she was asked which state she passed the bar exam in and replied: "When I moved to China."

In an interview Thursday with right-wing provocateur Jack Posobiec on Real America's Voice, she did not deny reports that she'd failed to pass the bar.

Zacharia, who moved to China after earning her law degree in 2011, told Posobiec she had already preregistered for the bar exam before moving to Beijing, where her husband was working at an American private equity firm.

"I didn't want to withdraw from that," Zacharia said of the bar exam. "And we knew we would be moving out to China, and I was obviously incredibly distracted and overwhelmed and excited for finally being married to someone who I had been long-distance from for at least a year."

Zacharia said she thought she'd take the bar and "see what happens."

"The results are somewhat inconsequential because I knew I wouldn't need the bar in China, and we left shortly thereafter," said Zacharia.

The Wall Street Journal reported late Wednesday that Zacharia failed California's bar exam after graduating from Pepperdine University in 2011.

A Business Insider review of records for all 50 states and the District of Columbia found no evidence that Zacharia had been admitted to practice law in the US.

In China, Zacharia said she took a job in the international practice division of the Zhong Lun law firm, where she said she worked on multimillion-dollar shareholder agreements and cross-border transactions. She said she was one of four associates under a senior partner.

"After moving to China, I didn't really think much of the bar results or consider that something that I needed to focus on," Zacharia told Posobiec, adding, "There's no Chinese bar. I had enough credentials, which was my law degree, to be able to do this practice."

"I had all the necessary requirements to do that, and I was able to do it effectively and well," she said.

She also said that she never retook the bar exam after returning to the US and having the first of four children with her husband within six years.

Zacharia said she consulted with people within the legal field "for a very long time" and was told it would be acceptable to call herself a lawyer "and provide legal analysis, not legal advice."

"They said absolutely, absolutely across the board — you can call yourself a lawyer, you have a JD, and to buffer that, you have international legal experience in transactional law," Zacharia said.

"It's unfortunate that people dub this as some kind of conspiracy," she said. "The truth is, I was very careful how I executed this, and I never came across as someone who was an attorney at law."

Zacharia's LinkedIn page says she served as general counsel for Fix California, a political advocacy group, between January 2024 and March 2025. In California, it is a misdemeanor to practice law or to advertise yourself as an attorney without a license.

At least two watchdog groups have filed a complaint about Zacharia with the State Bar of California this week.

• Two watchdog groups asked the California state bar to investigate White House spox Katie Zacharia.
• She worked as a general counsel in California. The state bar has no record she was licensed there.
• Zacharia said she consulted with people in the field to see if she could label herself a lawyer.

A growing chorus is voicing concern about White House press secretary Katie Zacharia's self-described legal career.

Two watchdog groups Wednesday filed complaints with the State Bar of California, asking it to investigate whether she violated California law by calling herself a lawyer.

It is a misdemeanor in California to practice law or advertise yourself as an attorney if you don't have a license to do so.

Several law and legal-ethics professors told Business Insider that if Zacharia misrepresented herself as an attorney, or used a title like general counsel without having been admitted to the bar, that could land her in trouble with state bar officials should she try to join in the future.

Substack publication Popular Information this week reported that Zacharia hadn't been admitted to any state bar, and The Wall Street Journal reported that she failed California's bar exam after graduating from law school in 2011. After her graduation, she moved to China, where she worked for a law firm as an associate on an international practice team.

Zacharia Thursday defended calling herself a lawyer.

In an interview Thursday with right-wing activist Jack Posobiec, Zacharia said she considered her bar exam results "inconsequential" because of her impending move to China.

"After moving to China, I didn't really think much of the bar results or consider that something that I needed to focus on," she said.

She told Posobiec that she "consulted for a very long time with many people in the field" to see if she could label herself a lawyer and offer legal analysis, not "legal advice." She also said she wouldn't weigh in on legal matters as press secretary.

President Trump's new press secretary has repeatedly referred to herself as a lawyer. Her LinkedIn page says she worked as a general counsel in California, and on Tuesday, in a statement to Business Insider, she said she had "practiced international transaction law, with all the appropriate credentials."

Zacharia used her legal pedigree to give herself credibility in her White House role, the Campaign for Accountability said Wednesday in its complaint to the California bar.

"The public is entitled to rely on the representation that a person who calls herself a lawyer is in fact licensed to practice law," the group wrote.

White House Communications Director Steven Cheung said Thursday that Zacharia "is uniquely qualified and whip smart to help inform the American people about all the great things President Trump and his Administration have been doing, and she will do an incredible job as Press Secretary."

In an X post Wednesday, Cheung referred to the Campaign for Accountability as a "radical leftist-organization run by rabid numbskulls suffering from a severe case of Trump Derangement Syndrome."

"Nobody takes them seriously because they are deranged low lifes," his post said.

Watchdog group Democracy Defenders Fund also filed a complaint with the bar.

'Character and fitness'

There is no record that Zacharia has ever been licensed to practice law in her home state of California, a spokesperson for the state bar told Business Insider.

Zacharia earned her law degree at California's Pepperdine University in 2011, then moved to China, according to her LinkedIn page.

She later served as general counsel for Fix California, a political advocacy group, between January 2024 and March 2025, her LinkedIn page says. Richard Grenell, the founder of Fix California and a state department official in the Trump administration, didn't respond to requests for comment about Zacharia's work for the organization.

That résume entry could hurt her chances of admission to the bar in future, legal-ethics professors told Business Insider.

The bar admissions process in most states includes a step in which the bar evaluates prospective members' "character and fitness," according to Richard Zitrin, a legal-ethics professor at the University of San Francisco's law school.

Claiming to be a general counsel in California would cut against her if she didn't have a license to practice law at the time, Zitrin said.

Business Insider reviewed records for all 50 states and the District of Columbia and found no evidence that Zacharia had been admitted to any state bar in the US.

A law firm in China

Zacharia moved to China with her husband because of his job at an American private equity firm, the White House said.

In China, only Chinese nationals can become a member of the country's bar and practice law, experts in the Chinese legal system told Business Insider.

According to her LinkedIn page, Zacharia worked for Zhong Lun, a large law firm in Beijing, between 2011 and 2013. Asked by a reporter on Tuesday which state she passed the bar exam in, Zacharia responded, "When I moved to China."

Unlike the United States, where the bar admission process varies by state, China has a single unified bar exam process. It is available only to Chinese nationals and generally requires a degree from a Chinese university, according to Jacques deLisle, a professor at the University of Pennsylvania law school who studies the Chinese legal system.

"The odds that she is a member of the Chinese bar are essentially zero," he said. "Both because of the citizenship requirement and the education requirement."

It's possible for employees of international law firms to do some work on transactions without passing a bar exam, but the scope of the work they're permitted to do is limited, according to Taisu Zhang, a professor of Chinese law at Yale Law School. Those firms generally require employees to pass a bar exam within a few years, he said.

Law firms like Zhong Lun often hire recent foreign law school graduates to review contracts and advise on elements of US law for transactions, but they need to "stay within the edges" of their work so that they don't cross into practicing law, which is illegal in China, deLisle said.

"She was never a lawyer in China. It doesn't mean she didn't do law-related work, but she was never a lawyer in China," deLisle said.

Representatives for Zhong Lun didn't respond to Business Insider's requests for comment.