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How close are we to solid state batteries for electric vehicles?


Superionic materials promise greater range, faster charges and more safety.

In early 2025, Mercedes-Benz ran its first road tests of an electric passenger car powered by a prototype solid-state battery pack. The carmaker predicts the next-gen battery will increase the electric vehicle’s driving range to over 620 miles (1,000 kilometers). Credit: Mercedes-Benz Group

Every few weeks, it seems, yet another lab proclaims yet another breakthrough in the race to perfect solid-state batteries: next-generation power packs that promise to give us electric vehicles (EVs) so problem-free that we’ll have no reason left to buy gas-guzzlers.

These new solid-state cells are designed to be lighter and more compact than the lithium-ion batteries used in today’s EVs. They should also be much safer, with nothing inside that can burn like those rare but hard-to-extinguish lithium-ion fires. They should hold a lot more energy, turning range anxiety into a distant memory with consumer EVs able to go four, five, six hundred miles on a single charge.

And forget about those “fast” recharges lasting half an hour or more: Solid-state batteries promise EV fill-ups in minutes—almost as fast as any standard car gets with gasoline.

This may all sound too good to be true—and it is, if you’re looking to buy a solid-state-powered EV this year or next. Look a bit further, though, and the promises start to sound more plausible. “If you look at what people are putting out as a road map from industry, they say they are going to try for actual prototype solid-state battery demonstrations in their vehicles by 2027 and try to do large-scale commercialization by 2030,” says University of Washington materials scientist Jun Liu, who directs a university-government-industry battery development collaboration known as the Innovation Center for Battery500 Consortium.

Indeed, the challenge is no longer to prove that solid-state batteries are feasible. That has long since been done in any number of labs around the world. The big challenge now is figuring out how to manufacture these devices at scale, and at an acceptable cost.

Superionic materials to the rescue

Not so long ago, says Eric McCalla, who studies battery materials at McGill University in Montreal and is a coauthor of a paper on battery technology in the 2025 Annual Review of Materials Research, this heady rate of advancement toward powering electric vehicles was almost unimaginable.

Until about 2010, explains McCalla, “the solid-state battery had always seemed like something that would be really awesome—if we could get it to work.” Like current EV batteries, it would still be built with lithium, an unbeatable element when it comes to the amount of charge it can store per gram. But standard lithium-ion batteries use a liquid, a highly flammable one at that, to allow easy passage of charged particles (ions) between the device’s positive and negative electrodes. The new battery design would replace the liquid with a solid electrolyte that would be nearly impervious to fire—while allowing for a host of other physical and chemical changes that could make the battery faster charging, lighter in weight, and all the rest.

“But the material requirements for these solid electrolytes were beyond the state of the art,” says McCalla. After all, standard lithium-ion batteries have a good reason for using a liquid electrolyte: It gives the ionized lithium atoms inside a fluid medium to move through as they shuttle between the battery’s two electrodes. This back-and-forth cycle is how any battery stores and releases energy—the chemical equivalent of pumping water from a low-lying reservoir to a high mountain lake, then letting it run back down through a turbine whenever you need some power. This hypothetical new battery would somehow have to let those lithium ions flow just as freely—but through a solid.

Diagram of rechargable battery

Storing electrical energy in a rechargeable battery is like pumping water from a low-lying reservoir up to a high mountain lake. Likewise, using that energy to power an external device is like letting the water flow back downhill through a generator. The volume of the mountain lake corresponds to the battery’s capacity, or how much charge it can hold, while the lake’s height corresponds to the battery’s voltage—how much energy it gives to each unit of charge it sends through the device.

Credit: Knowable Magazine

Storing electrical energy in a rechargeable battery is like pumping water from a low-lying reservoir up to a high mountain lake. Likewise, using that energy to power an external device is like letting the water flow back downhill through a generator. The volume of the mountain lake corresponds to the battery’s capacity, or how much charge it can hold, while the lake’s height corresponds to the battery’s voltage—how much energy it gives to each unit of charge it sends through the device. Credit: Knowable Magazine

This seemed hopeless for larger uses such as EVs, says McCalla. Certain polymers and other solids were known to let ions pass, but at rates that were orders of magnitude slower than liquid electrolytes. In the past two decades, however, researchers have discovered several families of lithium-rich compounds that are “superionic”—meaning that some atoms behave like a crystalline solid while others behave more like a liquid—and that can conduct lithium ions as fast as standard liquid electrolytes, if not faster.

“So the bottleneck suddenly is not the bottleneck anymore,” says McCalla.

True, manufacturing these batteries can be a challenge. For example, some of the superionic solids are so brittle that they require special equipment for handling, while others must be processed in ultra-low humidity chambers lest they react with water vapor and generate toxic hydrogen sulfide gas.

Still, the suddenly wide-open potential of solid-state batteries has led to a surge of research and development money from funding agencies around the globe—not to mention the launch of multiple startup companies working in partnership with carmakers such as Toyota, Volkswagen, and many more. Although not all the numbers are public, investments in solid-state battery development are already in the billions of dollars worldwide.

“Every automotive company has said solid-state batteries are the future,” says University of Maryland materials scientist Eric Wachsman. “It’s just a question of, When is that future?”

The rise of lithium-ion batteries

Perhaps the biggest reason to ask that “when” question, aside from the still-daunting manufacturing challenges, is a stark economic reality: Solid-state batteries will have to compete in the marketplace with a standard lithium-ion industry that has an enormous head start.

“Lithium-ion batteries have been developed and optimized over the last 30 years, and they work really great,” says physicist Alex Louli, an engineer and spokesman at one of the leading solid-state battery startups, San Jose, California-based QuantumScape.

Diagram showing how li-ion battery works

Charging a standard lithium-ion battery (top) works by applying a voltage between cathode and anode. This pulls lithium atoms from the cathode and strips off an electron from each. The now positively charged lithium ions then flow across the membrane to the negatively charged anode. There, the ions reunite with the electrons, which flowed through an external circuit as an electric current. These now neutral atoms nest in the graphite lattice until needed again. The battery’s discharge cycle (bottom) is just the reverse: Electrons deliver energy to your cell phone or electric car as they flow via a circuit from anode to cathode, while lithium ions race through the membrane to meet them there.

Credit: Knowable Magazine

Charging a standard lithium-ion battery (top) works by applying a voltage between cathode and anode. This pulls lithium atoms from the cathode and strips off an electron from each. The now positively charged lithium ions then flow across the membrane to the negatively charged anode. There, the ions reunite with the electrons, which flowed through an external circuit as an electric current. These now neutral atoms nest in the graphite lattice until needed again. The battery’s discharge cycle (bottom) is just the reverse: Electrons deliver energy to your cell phone or electric car as they flow via a circuit from anode to cathode, while lithium ions race through the membrane to meet them there. Credit: Knowable Magazine

They’ve also gotten really cheap, comparatively speaking. When Japan’s Sony Corporation introduced the first commercial lithium-ion battery in 1991, drawing on a worldwide research effort dating back to the 1950s, it powered one of the company’s camcorders and cost the equivalent of $7,500 for every kilowatt-hour (KwH) of energy it stored. By April 2025 lithium-ion battery prices had plummeted to $115 per KwH, and were projected to fall toward $80 per KwH or less by 2030—low enough to make a new EV substantially cheaper than the equivalent gasoline-powered vehicle.

“Most of these advancements haven’t really been down to any fundamental chemistry improvements,” says Mauro Pasta, an applied electrochemist at the University of Oxford. “What’s changed the game has been the economies of scale in manufacturing.”

Liu points to a prime example: the roll-to-roll process used for the cylindrical batteries found in most of today’s EVs. “You make a slurry,” says Liu, “then you cast the slurry into thin films, roll the films together with very high speed and precision, and you can make hundreds and thousands of cells very, very quickly with very high quality.”

Lithium-ion cells have also seen big advances in safety. The existence of that flammable electrolyte means that EV crashes can and do lead to hard-to-extinguish lithium-ion fires. But thanks to the circuit breakers and other safeguards built into modern battery packs, only about 25 EVs catch fire out of every 100,000 sold, versus some 1,500 fires per 100,000 conventional cars—which, of course, carry around large tanks of explosively flammable gasoline.

In fact, says McCalla, the standard lithium-ion industry is so far ahead that solid-state might never catch up. “EVs are going to scale today,” he says, “and they’re going with the technology that’s affordable today.” Indeed, battery manufacturers are ramping up their lithium-ion capacity as fast as they can. “So I wonder if the train has already left the station.”

But maybe not. Solid-state technology does have a geopolitical appeal, notes Ying Shirley Meng, a materials scientist at the University of Chicago and Argonne National Laboratory. “With lithium-ion batteries the game is over—China already dominates 70 percent of the manufacturing,” she says. So for any country looking to lead the next battery revolution, “solid-state presents a very exciting opportunity.”

Performance potential

Another plus is improved performance. At the very time that EV buyers are looking for ever greater range and charging speed, says Louli, the standard lithium-ion recipe is hitting a performance plateau. To do better, he says, “you have to go back and start doing some material innovations”—like those in solid-state batteries.

Take the standard battery’s liquid electrolyte, for example. It’s not only flammable, but also a limitation on charging speed. When you plug in an electric car, the charging cable acts as an external circuit that’s applying a voltage between the battery’s two electrodes, the cathode and the anode. The resulting electrical forces are strong enough to pull lithium atoms out of the cathode and to strip one electron from each atom. But when they drag the resulting ions through the electrolyte toward the anode, they hit the speed limit: Try to rush the ions along by upping the voltage too far and the electrolyte will chemically break down, ending the battery’s charging days forever.

So score one for solid-state batteries: Not only do the best superionic conductors offer a faster ion flow than liquid electrolytes, they also can tolerate higher voltages—all of which translates into EV recharges in under 10 minutes, versus half an hour or more for today’s lithium-ion power packs.

Score another win for solid-state when the ions arrive at the opposite electrode, the anode, during charging. This is where they reunite with their lost electrons, which have taken the long way around through the external circuit. And this is where standard lithium-ion batteries store the newly neutralized lithium atoms in a layer of graphite.

A solid-state battery doesn’t require a graphite cage to store lithium ions at the anode. This shrinks the overall size of the battery and increases its efficiency in uses such as an electric vehicle power pack. The solid-state design also replaces the porous membrane in the middle with a sturdier barrier. The aim is to create a battery that’s more light-weight, safer, stores more energy and makes recharging more convenient than current electric car batteries.

Credit: Knowable Magazine

A solid-state battery doesn’t require a graphite cage to store lithium ions at the anode. This shrinks the overall size of the battery and increases its efficiency in uses such as an electric vehicle power pack. The solid-state design also replaces the porous membrane in the middle with a sturdier barrier. The aim is to create a battery that’s more light-weight, safer, stores more energy and makes recharging more convenient than current electric car batteries. Credit: Knowable Magazine

Graphite anodes were a major commercial advance in 1991—the innovation that finally brought lithium-ion batteries out of the lab and into the marketplace. Graphite is cheap, chemically stable, excellent at conducting electricity, and able to slot those incoming lithium atoms into its hexagonal carbon lattice like so many eggs in an egg carton.

But graphite imposes yet another charging rate limit, since the lattice can handle only so many ions crowding in at once. And it’s heavy, wasting a lot of mass and volume on a simple container, says Louli: “Graphite is an accommodating host, but it does not deliver energy itself—it’s a passive component.” That’s why range-conscious automakers are eager for an alternative to graphite: The more capacity an EV can cram into the same-sized battery pack, and the less weight it has to haul around, the farther it can go on a single charge.

The ultimate alternative would be no cage at all, with no wasted space or weight—just incoming ions condensing into pure lithium metal with every charging cycle. In effect, such a metallic lithium anode would create and then dissolve itself with every charge and discharge cycle—while storing maybe 10 times more electrical energy per gram than a graphite anode.

Such lithium-metal anodes have been demonstrated in the lab since at least the 1970s, and even featured in some early, unsuccessful attempts at commercial lithium batteries. But even after decades of trying, says Louli, no one has been able to make metal anodes work safely and reliably in contact with liquid electrolytes. For one thing, he says, you get these reactions between your liquid electrolyte and the lithium metal that degrade them both, and you end up with a very bad battery lifetime.

And for another, adds Wachsman, “when you are charging a battery with liquids, the lithium going to the anode can plate out non-uniformly and form what are called dendrites.” These jagged spikes of metal can grow in unpredictable ways and pierce the battery’s separator layer: a thin film of electrically insulating polymer that keeps the two electrodes from touching one another. Breaching that barrier could easily cause a short circuit that abruptly ends the device’s useful life, or even sets it on fire.

Dendrite formation

Standard lithium-ion batteries don’t use lithium-metal anodes because there is too high a risk of the metal forming sharp spikes called dendrites. Such dendrites can easily pierce the porous polymer membrane that separates anode from cathode, causing a short-circuit or even sparking a fire. Solid-state batteries replace the membrane with a solid barrier.

Credit: Knowable Magazine

Standard lithium-ion batteries don’t use lithium-metal anodes because there is too high a risk of the metal forming sharp spikes called dendrites. Such dendrites can easily pierce the porous polymer membrane that separates anode from cathode, causing a short-circuit or even sparking a fire. Solid-state batteries replace the membrane with a solid barrier. Credit: Knowable Magazine

Now compare this with a battery that replaces both the liquid electrolyte and the separator with a solid-state layer tough enough to resist those spikes, says Wachsman. “It has the potential of, one, being stable to higher voltages; two, being stable in the presence of lithium metal; and three, preventing those dendrites”—just about everything you need to make those ultra-high-energy-density lithium-metal anodes a practical reality.

“That is what is really attractive about this new battery technology,” says Louli. And now that researchers have found so many superionic solids that could potentially work, he adds, “this is what’s driving the push for it.”

Manufacturing challenges

Increasingly, in fact, the field’s focus has shifted from research to practice, figuring out how to work the same kind of large-scale, low-cost manufacturing magic that’s made the standard lithium-ion architecture so dominant. These new superionic materials haven’t made it easy.

A prime example is the class of sulfides discovered by Japanese researchers in 2011. Not only were these sulfides among the first of the new superionics to be discovered, says Wachsman, they are still the leading contenders for early commercialization.

Major investments have come from startups such as Colorado-based Solid Power and Massachusetts-based Factorial Energy, as well as established battery giants such as China’s CATL and global carmakers such as Toyota and Honda.

And there’s one big reason for the focus on superionic sulfides, says Wachsman: “They’re easy to drop into existing battery cell manufacturing lines,” including the roll-to-roll process. “Companies have got billions of dollars invested in the existing infrastructure, and they don’t want to just displace that with something new.”

Yet these superionic sulfides also have some significant downsides—most notably, their extreme sensitivity to humidity. This complicates the drop-in process, says Oxford’s Pasta. The dry rooms that are currently used to manufacture lithium-ion batteries have a humidity content that is not nearly low enough for sulfide electrolytes, and would have to be retooled. That sensitivity also poses a safety risk if the batteries are ever ruptured in an accident, he says: “If you expose the sulfides to humidity in the air you will generate hydrogen sulfide gas, which is extremely toxic.”

All of which is why startups such as QuantumScape, and the Maryland-based Ion Storage Systems that spun out of Wachsman’s lab in 2015, are looking beyond sulfides to solid-state oxide electrolytes. These materials are essentially ceramics, says Wachsman, made in a high-tech version of pottery class: “You shape the clay, you fire it in a kiln, and it’s a solid.” Except that in this case, it’s a superionic solid that’s all but impervious to humidity, heat, fire, high voltage, and highly reactive lithium metal.

Yet that’s also where the manufacturing challenges start. Superionic or not, for example, ceramics are too brittle for roll-to-roll processing. Once they have been fired and solidified, says Wachsman, “you have to handle them more like a semiconductor wafer, with machines to cut the sheets to size and robotics to move them around.”

Then there’s the “reversible breathing” that plagues oxide and sulfide batteries alike: “With every charging cycle we’re plating and stripping lithium metal at the anode,” explains Louli. “So your entire cell stack will have a thickness increase when you charge and a thickness decrease when you discharge”—a cycle of tiny changes in volume that every solid-state battery design has to allow for.

At QuantumScape, for example, individual battery cells are made by stacking a number of gossamer-thin oxide sheets like a deck of cards, then encasing this stack inside a metal frame that is just thick enough to let the anode layer on each sheet freely expand and contract. The stack and the frame together are then vacuum-sealed into a soft-sided pouch, says Louli, “so if you pack the cells frame to frame, the stacks can breathe and not push on the adjacent cells.”

In a similar way, says Wachsman, all the complications of solid-state batteries have ready solutions—but solutions that inevitably add complexity and cost. Thus the field’s increasingly urgent obsession with manufacturing. Before an auto company will even consider adopting a new EV battery, he says, “it not only has to be better-performing than their current battery, it has to be cheaper.”

And the only way to make complicated technology cheaper is with economies of scale. “That’s why the biggest impediment to solid-state batteries is just the cost of standing up one of these gigafactories to make them in sufficient volume,” says Wachsman. “That’s why there’s probably going to be more solid-state batteries in early adopter-type applications that don’t require that kind of volume.”

Still, says Louli, the long-term demand is definitely there. “What we’re trying to enable by combining the lithium-metal anode with solid-state technology is threefold,” he says: “Higher energy, higher power and improved safety. So for high-performance applications like electric vehicles—or other applications that require high power density, such as drones or even electrified aviation—solid-state batteries are going to be well-suited.”

This story originally appeared in Knowable Magazine.

Photo of Knowable Magazine

Knowable Magazine explores the real-world significance of scholarly work through a journalistic lens.

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Boring Company cited for almost 800 environmental violations in Las Vegas

Workers have complained of chemical burns from the waste material generated by the tunneling process, and firefighters must decontaminate their equipment after conducting rescues from the project sites. The company was fined more than $112,000 by Nevada’s Occupational Safety and Health Administration in late 2023 after workers complained of “ankle-deep” water in the tunnels, muck spills, and burns. The Boring Co. has contested the violations. Just last month, a construction worker suffered a “crush injury” after being pinned between two 4,000-foot pipes, according to police records. Firefighters used a crane to extract him from the tunnel opening.

After ProPublica and City Cast Las Vegas published their January story, both the CEO and the chairman of the LVCVA board criticized the reporting, arguing the project is well-regulated. As an example, LVCVA CEO Steve Hill cited the delayed opening of a Loop station by local officials who were concerned that fire safety requirements weren’t adequate. Board chair Jim Gibson, who is also a Clark County commissioner, agreed the project is appropriately regulated.

“We wouldn’t have given approvals if we determined things weren’t the way they ought to be and what it needs to be for public safety reasons,” Gibson said, according to the Las Vegas Review Journal. “Our sense is we’ve done what we need to do to protect the public.”

Asked for a response to the new proposed fines, an LVCVA spokesperson said, “We won’t be participating in this story.”

The repeated allegations that the company is violating regulations—including the bespoke regulatory arrangement agreed to by the company—indicates that officials aren’t keeping the public safe, said Ben Leffel, an assistant public policy professor at the University of Nevada, Las Vegas.

“Not if they’re recommitting almost the exact violation,” Leffel said.

Leffel questioned whether a $250,000 penalty would be significant enough to change operations at The Boring Co., which was valued at $7 billion in 2023. Studies show that fines that don’t put a significant dent in a company’s profit don’t deter companies from future violations, Leffel said.

A state spokesperson disagreed that regulators aren’t keeping the public safe and said the agency believes its penalties will deter “future non-compliance.”

“NDEP is actively monitoring and inspecting the projects,” the spokesperson said.

This story originally appeared on ProPublica.

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Tax credits for electric cars are no more. What’s next for the US EV industry?


Dozens of new models are in the pipeline.

It’s hard to avoid seeing a face here. Credit: Jonathan Gitlin

The end of US tax credits for buying electric vehicles has changed the market in ways that are still unfolding.

I spoke this week with people closely monitoring the auto industry to get a sense of what’s next. They said the loss of federal incentives is likely to dampen shoppers’ enthusiasm, but the upcoming arrival of several dozen new or redesigned models could help fuel a comeback.

“I think the dust needs to settle for everyone to figure out what’s going to happen near term,” said Stephanie Valdez Streaty, director of industry insights for Cox Automotive.

Until October 1, the federal government offered a tax credit of up to $7,500 for the purchase of a qualifying new EV, and $3,000 for a qualifying used EV. In addition, there was a $7,500 incentive available for new EV leases. Those are now gone with the passage in July of the One Big Beautiful Bill Act, which sought to undo clean energy policies as part of a larger package of tax cuts and spending.

EV sales surged in recent months as customers aimed to get the credits before they expired. Now, without the credits, sales are likely to drop this month and the rest of this year.

But automakers have taken steps to soften the blow. Ford and General Motors have said they will continue to offer a $7,500 credit on leases. They can do this because their in-house finance companies purchased the vehicles while the credits were still active and the companies can pass on the savings to consumers, even after October 1.

Hyundai is offering a promotion in which it is selling and leasing its 2026 Ioniq 5 with price cuts of up to $9,800, effectively providing the equivalent of the tax credit and then some.

Also, some state and local governments are increasing their incentives for buying EVs. For example, Colorado Gov. Jared Polis last week announced that the state is increasing its tax credit from $6,000 to $9,000 for buying or leasing a new EV.

The promotions by automakers are likely to contribute to a “soft landing” for EV sales, said Ed Kim, president and chief analyst at AutoPacific, a research firm.

“We’ve hit a massive speed bump,” he said. “But I do firmly believe that electrification is the future, and you can’t stop the future, especially when the rest of the world is heading that way.”

He is referring to how China and the European Union have outpaced the United States in terms of electrifying their transportation sectors.

According to AutoPacific’s most recent forecast, EV market share in the United States is expected to remain at 8 percent in 2025 and 2026, the same as it was in 2024. This represents a decrease from the firm’s estimate last year, when it predicted market share would reach 11 percent in 2025 and 15 percent in 2026.

Chart showing EV sales forecasts dropping

Credit: Inside Climate News

While the current situation is not ideal for anyone who wants to see broad EV adoption, the forecast indicates that the market will hold its own despite the end of the tax credits, Kim said.

Keith Barry, who covers autos for Consumer Reports, had a similar sentiment about how life will go on for the US EV market.

“We don’t know what happens next, but I suspect that Oct. 1 won’t be the ‘end of the world’ for EV deals,” he said in an email. “Some automakers found a way to extend tax credits on leases for some in-stock EVs until the end of the year. Other automakers ramped up production in expectation of the tax credit being around until 2032, and now they have too much stock and have to price their vehicles accordingly.”

Barry’s main advice for EV buyers is similar to what it was when tax credits were still around. First, he thinks people should consider leasing an EV rather than buying one.

“The technology is changing so fast that you don’t want to get stuck with a model that’s out of date and that has depreciated accordingly,” he said. “With a lease, that’s not your problem.”

Second, Barry recommends that shoppers choose a model that has been on the market for a few years. In his experience, newly designed cars have growing pains and tend to become more reliable after the first model year.

To gain insight into how EV companies view this moment, I got in touch with the Zero Emission Transportation Association, an advocacy group for auto manufacturers, battery makers, and others that support the growth of the EV economy. Corey Cantor, the group’s research director, said this is a good time to focus on consumer education about the benefits of EVs, such as lower fuel and maintenance costs.

He described this as “getting back to basics of making electric vehicles and the industry more understood by the mass market.” Such an approach makes sense, he said, because the cars continue to improve and some of the main obstacles—such as concerns about battery range and access to charging stations—are diminishing as batteries improve and the charging infrastructure expands.

About three dozen new or redesigned EVs are coming on the market later this year and next year. This reflects automakers’ continuing ramp-up of their EV lineups, and that the companies were putting together their plans for 2025 and 2026 before they had much of an inkling that the tax credits would be canceled.

For perspective, the new models will mean that shoppers will have about 50 percent more EV options than they currently have. (I’m basing this percentage on Cox Automotive’s list of current EV models.)

I asked each of the people I interviewed this week which models they thought have the potential to be great cars, strong sellers, or both.

Valdez Streaty is eager to see the Rivian R2, a mid-size SUV set to begin production next year, with a starting price of about $45,000, which is much lower than other vehicles in the company’s lineup.

She has high expectations for the new version of the Chevrolet Bolt hatchback, which is set to begin production late this year after a three-year break. The updated version uses General Motors’ Ultium battery platform and is likely to have a starting price in the $35,000 range.

The new Bolt “could be really good for the industry, since it’s a good price point,” she said.

She’s hinting at the larger question of which upcoming model will appeal to a mass market because of a combination of an affordable price and compelling features.

“The new Nissan Leaf is one to watch,” said Barry of Consumer Reports.

The next-generation Leaf will go on sale this year with a starting price of $29,990. Previous versions were affordable but often lacking in range and features. This one has a listed range of 303 miles, which is a lot for an entry-level model.

Kim is eager to see how customers respond to the Subaru Trailseeker, which is set to go on sale next year with a price likely to be in the $50,000 range.

Guests look at the 2026 Subaru Trailseeker after it was unveiled during a press preview at the New York International Auto Show in New York City on April 16.

Credit: Timothy A. Clary/AFP via Getty Images

Guests look at the 2026 Subaru Trailseeker after it was unveiled during a press preview at the New York International Auto Show in New York City on April 16. Credit: Timothy A. Clary/AFP via Getty Images

“It’s basically an electric Outback,” he said, referring to one of Subaru’s top-selling and best-known models.

He noted that Subaru has often appealed to consumers who are also likely to be open to buying an EV. So, if the brand ever produces a compelling EV, it should have an eager audience.

I haven’t yet mentioned Tesla, the country’s leading EV brand, which has suffered through declining sales and harmed its image because of CEO Elon Musk’s close association with the Trump administration.

On Tuesday, Tesla announced the introduction of the Model 3 Standard and Model Y Standard, which are more affordable versions of the company’s top two models.

The Model 3 Standard has a base price of $36,990, which is $5,500 less than the Model 3 Premium. The Model Y Standard sells for $39,990, which is $5,000 less than the Model Y Premium.

To reduce the prices, Tesla took steps to cut costs. One notable difference is that the Model Y Standard’s glass roof is only on the outside of the car, while the inside is a solid headliner of sound-absorbing material, creating an effect which Car and Driver describes as “pulling a ‘Cask of Amontillado’ and sealing occupants off from the panoramic glass above.”

Is the lower price going to boost Tesla’s sales and offset the effects of losing tax credits?

It may help a little, but Kim is mostly unimpressed.

“I see it as a post-credit price correction more than anything else,” he said.

Even with a lower price, he thinks the Model Y compares unfavorably in terms of cost and features with the Ioniq 5.

And, as several people have observed this week, Tesla’s price cuts aren’t enough to offset the effect of losing the tax credit, underscoring how the loss of the credit is like a sad trombone playing in the background.

This story originally appeared on Inside Climate News.

Photo of Inside Climate News

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Insurers balk at paying out huge settlements for claims against AI firms

OpenAI is currently being sued for copyright infringement by The New York Times and authors who claim their content was used to train models without consent. It is also being sued for wrongful death by the parents of a 16-year-old who died by suicide after discussing methods with ChatGPT.

Two people with knowledge of the matter said OpenAI has considered “self insurance,” or putting aside investor funding in order to expand its coverage. The company has raised nearly $60 billion to date, with a substantial amount of the funding contingent on a proposed corporate restructuring.

One of those people said OpenAI had discussed setting up a “captive”—a ringfenced insurance vehicle often used by large companies to manage emerging risks. Big tech companies such as Microsoft, Meta, and Google have used captives to cover Internet-era liabilities such as cyber or social media.

Captives can also carry risks, since a substantial claim can deplete an underfunded captive, leaving the parent company vulnerable.

OpenAI said it has insurance in place and is evaluating different insurance structures as the company grows, but does not currently have a captive and declined to comment on future plans.

Anthropic has agreed to pay $1.5 billion to settle a class-action lawsuit with authors over their alleged use of pirated books to train AI models.

In court documents, Anthropic’s lawyers warned the suit carried the specter of “unprecedented and potentially business-threatening statutory damages against the smallest one of the many companies developing [AI] with the same books data.”

Anthropic, which has raised more than $30 billion to date, is partly using its own funds for the settlement, according to one person with knowledge of the matter. Anthropic declined to comment.

© 2025 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

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OpenAI, Jony Ive struggle with technical details on secretive new AI gadget

OpenAI overtook Elon Musk’s SpaceX to become the world’s most valuable private company this week, after a deal that valued it at $500 billion. One of the ways the ChatGPT maker is seeking to justify the price tag is a push into hardware.

The goal is to improve the “smart speakers” of the past decade, such as Amazon’s Echo speaker and its Alexa digital assistant, which are generally used for a limited set of functions such as listening to music and setting kitchen timers.

OpenAI and Ive are seeking to build a more powerful and useful machine. But two people familiar with the project said that settling on the device’s “voice” and its mannerisms were a challenge.

One issue is ensuring the device only chimes in when useful, preventing it from talking too much or not knowing when to finish the conversation—an ongoing issue with ChatGPT.



“The concept is that you should have a friend who’s a computer who isn’t your weird AI girlfriend… like [Apple’s digital voice assistant] Siri but better,” said one person who was briefed on the plans. OpenAI was looking for “ways for it to be accessible but not intrusive.”

“Model personality is a hard thing to balance,” said another person close to the project. “It can’t be too sycophantic, not too direct, helpful, but doesn’t keep talking in a feedback loop.”

OpenAI’s device will be entering a difficult market. Friend, an AI companion worn as a pendant around your neck, has been criticized for being “creepy” and having a “snarky” personality. An AI pin made by Humane, a company that Altman personally invested in, has been scrapped.

Still, OpenAI has been on a hiring spree to build its hardware business. Its acquisition of io brought in more than 20 former Apple hardware employees poached by Ive from his alma mater. It has also recruited at least a dozen other Apple device experts this year, according to LinkedIn accounts.

It has similarly poached members of Meta’s staff working on the Big Tech group’s Quest headset and smart glasses.

OpenAI is also working with Chinese contract manufacturers, including Luxshare, to create its first device, according to two people familiar with the development that was first reported by The Information. The people added that the device might be assembled outside of China.

OpenAI and LoveFrom, Ive’s design group, declined to comment.

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ice-wants-to-build-a-24/7-social-media-surveillance-team

ICE wants to build a 24/7 social media surveillance team

Together, these teams would operate as intelligence arms of ICE’s Enforcement and Removal Operations division. They will receive tips and incoming cases, research individuals online, and package the results into dossiers that could be used by field offices to plan arrests.

The scope of information contractors are expected to collect is broad. Draft instructions specify open-source intelligence: public posts, photos, and messages on platforms from Facebook to Reddit to TikTok. Analysts may also be tasked with checking more obscure or foreign-based sites, such as Russia’s VKontakte.

They would also be armed with powerful commercial databases such as LexisNexis Accurint and Thomson Reuters CLEAR, which knit together property records, phone bills, utilities, vehicle registrations, and other personal details into searchable files.

The plan calls for strict turnaround times. Urgent cases, such as suspected national security threats or people on ICE’s Top Ten Most Wanted list, must be researched within 30 minutes. High-priority cases get one hour; lower-priority leads must be completed within the workday. ICE expects at least three-quarters of all cases to meet those deadlines, with top contractors hitting closer to 95 percent.

The plan goes beyond staffing. ICE also wants algorithms, asking contractors to spell out how they might weave artificial intelligence into the hunt—a solicitation that mirrors other recent proposals. The agency has also set aside more than a million dollars a year to arm analysts with the latest surveillance tools.

ICE did not immediately respond to a request for comment.

Earlier this year, The Intercept revealed that ICE had floated plans for a system that could automatically scan social media for “negative sentiment” toward the agency and flag users thought to show a “proclivity for violence.” Procurement records previously reviewed by 404 Media identified software used by the agency to build dossiers on flagged individuals, compiling personal details, family links, and even using facial recognition to connect images across the web. Observers warned it was unclear how such technology could distinguish genuine threats from political speech.

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how-different-mushrooms-learned-the-same-psychedelic trick

How different mushrooms learned the same psychedelic trick

Magic mushrooms have been used in traditional ceremonies and for recreational purposes for thousands of years. However, a new study has found that mushrooms evolved the ability to make the same psychoactive substance twice. The discovery has important implications for both our understanding of these mushrooms’ role in nature and their medical potential.

Magic mushrooms produce psilocybin, which your body converts into its active form, psilocin, when you ingest it. Psilocybin rose in popularity in the 1960s and was eventually classed as a Schedule 1 drug in the US in 1970, and as a Class A drug in 1971 in the UK, the designations given to drugs that have high potential for abuse and no accepted medical use. This put a stop to research on the medical use of psilocybin for decades.

But recent clinical trials have shown that psilocybin can reduce depression severity, suicidal thoughts, and chronic anxiety. Given its potential for medical treatments, there is renewed interest in understanding how psilocybin is made in nature and how we can produce it sustainably.

The new study, led by pharmaceutical microbiology researcher Dirk Hoffmeister, from Friedrich Schiller University Jena, discovered that mushrooms can make psilocybin in two different ways, using different types of enzymes. This also helped the researchers discover a new way to make psilocybin in a lab.

Based on the work led by Hoffmeister, enzymes from two types of unrelated mushrooms under study appear to have evolved independently from each other and take different routes to create the exact same compound.

This is a process known as convergent evolution, which means that unrelated living organisms evolve two distinct ways to produce the same trait. One example is that of caffeine, where different plants including coffee, tea, cacao, and guaraná have independently evolved the ability to produce the stimulant.

This is the first time that convergent evolution has been observed in two organisms that belong to the fungal kingdom. Interestingly, the two mushrooms in question have very different lifestyles. Inocybe corydalina, also known as the greenflush fibrecap and the object of Hoffmeister’s study, grows in association with the roots of different kinds of trees. Psilocybe mushrooms, on the other hand, traditionally known as magic mushrooms, live on nutrients that they acquire by decomposing dead organic matter, such as decaying wood, grass, roots, or dung.

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illinois-utility-tries-using-electric-school-buses-for-bidirectional-charging

Illinois utility tries using electric school buses for bidirectional charging


Thank you driver for getting me here

School buses are usually parked when the grid is under its biggest strain.

The Thomas C2 Jouley is a popular electric school bus. Credit: Thomas Built Buses

The largest electric utility in Illinois is rolling out a program for a vehicle-to-grid (V2G) electric school bus-charging pilot with three Chicagoland school districts, testing the functionality of bidirectional chargers that could make energy cheaper for customers and reduce grid load.

The Commonwealth Edison Co. (ComEd) announced in September that it would begin the testing phase of its novel V2G electric school bus charging pilot, the first of its kind in northern Illinois, coinciding with the beginning of the school year.

The utility began testing with the River Trails, Troy, and Wauconda school districts—which have all had electric buses for more than two years—in northern Illinois. It is currently collecting data from bidirectional chargers, EV chargers that flow energy both ways. Its testing will determine how the chargers and buses can best transfer energy when parked and plugged into the grid.

“We’re not only working with these three school districts, we’re testing with them, but we’re also seeking input from other school districts to better understand their interest in V2G and how we could support their needs as we design new research and development efforts and potentially new programs,” said Cristina Botero, senior manager for beneficial electrification at ComEd.

According to the utility, bidirectional charging could result in a number of benefits, such as reducing grid demand during peak hours; lowering costs and energy usage for customers; and funding school districts that participate in the program. Botero said the goal is to eventually have a scalable model for the V2G program that other districts across Illinois could opt into “later down the line.”

The testing is beginning with four electric school buses across the three districts. ComEd began soft testing the pilot in June before publicly testing with the school districts in September, prioritizing research and development on the functionality of the chargers.

“School buses in general tend to be stationary during times where normally the grid is at its biggest strain,” Botero said. “[When] the grid is most loaded, that happens to be the time where many of these vehicles are not in use and happen to be connected and fully charged. This offers the possibility of using some of the energy in that battery to send back to the grid to support grid congestion,” she said.

Botero added that this can even be helpful during outages, because energy stored in electric school bus chargers can still be used. Participating school districts could also see their energy consumption and costs drop.

“It is helping potentially reduce the energy consumption of a school if it’s able to use its own battery for its own consumption. It can also reduce the cost of energy for the school, and really to all customers, because it’s reducing grid strain,” Botero said.

The pilot is part of ComEd’s $231 million beneficial electrification (BE) program, approved by the Illinois Commerce Commission. In 2021, Illinois passed the Climate and Equitable Jobs Act, which required all major utilities to establish a BE plan. ComEd’s first BE plan, spanning 2023 to 2025, consists of eight pilot programs in which the company has invested $11 million, including the V2G pilot.

The commission recently approved $168 million in funding for the next BE plan from 2026 to 2028, which includes an additional $11 million for research and development efforts that will include V2G.

ComEd partnered with software company Resource Innovations and charging vendor Nuvve for the pilot. The current testing phase, Botero said, is technology-based and focuses on determining how the technology works and how energy discharge impacts the grid.

Nuvve owns and operates the bidirectional charging technology and identified the customers to bring to the pilot.

“When you have an electric school bus, you have a fairly large battery inside that vehicle that is going to be doing nothing most of the time,” said Hamza Lemsaddek, chief operating officer at the Nuvve subsidiary Fermata Energy, which oversees the project. “The concept of V2G is, number one, the ability of not just charging the vehicle, but also discharging the vehicle [with] this bidirectional piece. The second step is to have a platform that is able to aggregate a large number of vehicles, and depending on where those vehicles are, provide a variety of grid services.”

Lemsaddek explained that the performance of the buses and chargers helps ComEd reduce their grid peak load. “By providing those grid services to help the grid be stable or more resilient, there is a value that you are providing, and therefore [Nuvve] can get compensated for that,” he said. “Then we share a lot of that value with the vehicle owner”—in this case, the school districts. “While the vehicle is parked doing nothing, it’s actually providing a service to the grid, and you get compensated for that.”

While the three districts are getting stipends for participation in the pilot, they were chosen because they already had electric school bus technology. The Wauconda school district, for example, has two electric school buses funded through a Driving a Cleaner Illinois grant, a program of the Volkswagen Environmental Mitigation Trust Fund.

Wauconda has had the two buses for three years, with two years of funding left. Rick Strauss, director of transportation for Wauconda, said that while he is hopeful for the success of the pilot, the electric buses have already posed significant challenges for the district, leading him to doubt whether the buses can effectively give back to the grid.

For example, Strauss said that the district will put an average of 10,000 miles on a diesel bus per year. “But after three years with our electric buses, with the amount of issues that we had, each one of them had less than 1,000 miles on them after two years of service,” he said, adding that the buses probably spent more time “on a tow truck” going to get fixed than on their actual routes.

Strauss also listed among the issues a lack of certified mechanics that can work on the buses when they break, frequent technological failures, and buses losing functionality in cold weather.

Although he said he recognizes the benefits of electric buses, such as quieter motors, better air quality for students, and less diesel fuel emissions, the lack of functionality of the buses overshadows potentially positive outcomes. After the five-year grant runs out, he’s not sure whether the district will continue to use them.

“It’ll be interesting to see the metrics and what we get back from ComEd versus what it costs to run these [buses],” he said, adding that the cost of two electric buses “would take my entire bus budget.”

ComEd is prioritizing testing the technology as well as anticipating challenges moving forward. Botero said the goal of the current testing is “making sure that the technology is well understood” and to answer any questions.

The companies are also determining the exact way to compensate school districts before further evaluations and eventual modeling to “see what a program would look like” at a larger scale.

Botero said that they will be getting results from the pilot testing at the end of the year and will design the next phase of the pilot based on those findings.

This story originally appeared on Inside Climate News.

Photo of Inside Climate News

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japan-is-running-out-of-its-favorite-beer-after-ransomware-attack

Japan is running out of its favorite beer after ransomware attack

According to cyber security experts at the Tokyo-based group Nihon Cyber Defence (NCD), Japanese companies are increasingly seen as attractive targets for ransomware attackers because of their poor defenses and the fact that many companies simply paid the demanded sum through back channels.

In 2024 Japan’s National Police Agency said it had received 222 official reports of ransomware attacks—a 12 percent rise from the previous year, but experts at NCD said it represented just a small fraction of the real volume of attacks.

In a survey conducted by the agency, Japanese companies said that in 49 percent of ransomware cases, it took at least a month to recover the data lost in the attack. Asahi said in a statement that there was no confirmed leakage of customer data to external parties.

In a measure of growing public and private sector panic over cyber vulnerabilities, Japan passed a law in May that granted the government greater rights to proactively combat cyber criminals and state-sponsored hackers. The chair of the government’s policy research council at the time, Itsunori Onodera, warned that without an urgent upgrade of the nation’s cyber security, “the lives of Japanese people will be put at risk.”

Asahi, whose shares fell 2.6 percent on Thursday, not only produces Super Dry beer in Japan but also soft drinks, mints, and baby food, as well as producing own brand goods for Japanese retailers.

Asahi is still investigating whether it was a ransomware attack, according to a spokesperson.

As a result of the cyber attack, Asahi has postponed the planned launch of eight new Asahi products, including fruit soda, lemon-flavored ginger ale, and protein bars, indefinitely.

On Wednesday, Asahi trialled using paper-based systems to process orders and deliveries in a small-scale trial and it is in the process of figuring out whether to proceed with more manual-style deliveries.

Operations in other regions of the world, such as Europe, where it sells Peroni Nastro Azzurro, have not been affected by the cyber attack.

© 2025 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

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uk-once-again-demands-backdoor-to-apple’s-encrypted-cloud-storage

UK once again demands backdoor to Apple’s encrypted cloud storage

Caroline Wilson Palow, legal director of the campaign group Privacy International, said the new order might be “just as big a threat to worldwide security and privacy” as the old one.

She said: “If Apple breaks end-to-end encryption for the UK, it breaks it for everyone. The resulting vulnerability can be exploited by hostile states, criminals, and other bad actors the world over.”

Apple made a complaint to the Investigatory Powers Tribunal over the original demand, backed by a parallel legal challenge from Privacy International and Liberty, another campaign group. That case was due to be heard early next year, but the new order may restart the legal process.

TCNs are issued under the UK Investigatory Powers Act, which the government maintains is needed by law enforcement to investigate terrorism and child sexual abuse.

Key figures in Donald Trump’s administration, including vice-president JD Vance and director of national intelligence Tulsi Gabbard, had pressured the UK to retract the January TCN. President Donald Trump has likened the UK’s request to Chinese state surveillance.

In August, Gabbard told the Financial Times that the UK had “agreed to drop” its demand that Apple enable access to “the protected encrypted data of American citizens.”

A person close to the Trump administration said at the time that the request for Apple to break its encryption would have to be dropped altogether to be faithful to the agreement between the two countries. Any back door would weaken protections for US citizens, the person said.

UK Prime Minister Sir Keir Starmer last month hosted Trump for a state visit, during which the two world leaders announced that US tech companies would invest billions of dollars to build artificial intelligence infrastructure in Britain.

Members of the US delegation raised the issue of the request to Apple around the time of Trump’s visit, according to two people briefed on the matter. However, two senior British government figures said the US administration was no longer leaning on the UK government to rescind the order.

© 2025 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

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burnout-and-elon-musk’s-politics-spark-exodus-from-senior-xai,-tesla-staff

Burnout and Elon Musk’s politics spark exodus from senior xAI, Tesla staff


Not a fun place to work, apparently

Disillusionment with Musk’s activism, strategic pivots, and mass layoffs cause churn.

Elon Musk’s business empire has been hit by a wave of senior departures over the past year, as the billionaire’s relentless demands and political activism accelerate turnover among his top ranks.

Key members of Tesla’s US sales team, battery and power-train operations, public affairs arm, and its chief information officer have all recently departed, as well as core members of the Optimus robot and AI teams on which Musk has bet the future of the company.

Churn has been even more rapid at xAI, Musk’s two-year-old artificial intelligence start-up, which he merged with his social network X in March. Its chief financial officer and general counsel recently departed after short stints, within a week of each other.

The moves are part of an exodus from the conglomerate of the world’s richest man, as he juggles five companies from SpaceX to Tesla with more than 140,000 employees. The Financial Times spoke to more than a dozen current and former employees to gain an insight into the tumult.

While many left happily after long service to found start-ups or take career breaks, there has also been an uptick in those quitting from burnout, or disillusionment with Musk’s strategic pivots, mass lay-offs and his politics, the people said.

“The one constant in Elon’s world is how quickly he burns through deputies,” said one of the billionaire’s advisers. “Even the board jokes, there’s time and then there’s ‘Tesla time.’ It’s a 24/7 campaign-style work ethos. Not everyone is cut out for that.”

Robert Keele, xAI’s general counsel, ended his 16-month tenure in early August by posting an AI-generated video of a suited lawyer screaming while shoveling molten coal. “I love my two toddlers and I don’t get to see them enough,” he commented.

Mike Liberatore lasted three months as xAI chief financial officer before defecting to Musk’s arch-rival Sam Altman at OpenAI. “102 days—7 days per week in the office; 120+ hours per week; I love working hard,” he said on LinkedIn.

Top lieutenants said Musk’s intensity has been sharpened by the launch of ChatGPT in late-2022, which shook up the established Silicon Valley order.

Employees also perceive Musk’s rivalry with Altman—with whom he co-founded OpenAI, before they fell out—to be behind the pressure being put on staff.

“Elon’s got a chip on his shoulder from ChatGPT and is spending every waking moment trying to put Sam out of business,” said one recent top departee.

Last week, xAI accused its rival of poaching engineers with the aim of “plundering and misappropriating” its code and data center secrets. OpenAI called the lawsuit “the latest chapter in Musk’s ongoing harassment.”

Other insiders pointed to unease about Musk’s support of Donald Trump and advocacy for far-right provocateurs in the US and Europe.

They said some staff dreaded difficult conversations with their families about Musk’s polarizing views on everything from the rights of transgender people to the murder of conservative activist Charlie Kirk.

Musk, Tesla, and xAI declined to comment.

Tesla has traditionally been the most stable part of Musk’s conglomerate. But many of the top team left after it culled 14,000 jobs in April 2024. Some departures were triggered as Musk moved investment away from new EV and battery projects that many employees saw as key to its mission of reducing global emissions—and prioritized robotics, AI, and self-driving robotaxis.

Musk cancelled a program to build a low-cost $25,000 EV that could be sold across emerging markets—dubbed NV-91 internally and Model 2 by fans online, according to five people familiar with the matter.

Daniel Ho, who helped oversee the project as director of vehicle programs and reported directly to Musk, left in September 2024 and joined Google’s self-driving taxi arm, Waymo.

Public policy executives Rohan Patel and Hasan Nazar and the head of the power-train and energy units Drew Baglino also stepped down after the pivot. Rebecca Tinucci, leader of the supercharger division, went to Uber after Musk fired the entire team and slowed construction on high-speed charging stations.

In late summer, David Zhang, who was in charge of the Model Y and Cybertruck rollouts, departed. Chief information officer Nagesh Saldi left in November.

Vineet Mehta, a company veteran of 18 years, described as “critical to all things battery” by a colleague, resigned in April. Milan Kovac, in charge of Optimus humanoid robotics program, departed in June.

He was followed this month by Ashish Kumar, the Optimus AI team lead, who moved to Meta. “Financial upside at Tesla was significantly larger,” wrote Kumar on X in response to criticism he left for money. “Tesla is known to compensate pretty well, way before Zuck made it cool.”

Amid a sharp fall in sales—which many blame on Musk alienating liberal customers—Omead Ashfar, a close confidant known as the billionaire’s “firefighter” and “executioner,” was dismissed as head of sales and operations in North America in June. Ashfar’s deputy Troy Jones followed shortly after, ending 15 years of service.

“Elon’s behavior is affecting morale, retention, and recruitment,” said one long-standing lieutenant. He “went from a position from where people of all stripes liked him, to only a certain section.”

Few who depart criticize Musk for fear of retribution. But Giorgio Balestrieri, who had worked for Tesla for eight years in Spain, is among a handful to go public, saying this month he quit believing that Musk had done “huge damage to Tesla’s mission and to the health of democratic institutions.”

“I love Tesla and my time there,” said another recent leaver. “But nobody that I know there isn’t thinking about politics. Who the hell wants to put up with it? I get calls at least once a week. My advice is, if your moral compass is saying you need to leave, that isn’t going to go away.”

But Tesla chair Robyn Denholm said: “There are always headlines about people leaving, but I don’t see the headlines about people joining.

“Our bench strength is outstanding… we actually develop people really well at Tesla and we are still a magnet for talent.”

At xAI, some staff have balked at Musk’s free-speech absolutism and perceived lax approach to user safety as he rushes out new AI features to compete with OpenAI and Google. Over the summer, the Grok chatbot integrated into X praised Adolf Hitler, after Musk ordered changes to make it less “woke.”

Ex-CFO Liberatore was among the executives that clashed with some of Musk’s inner circle over corporate structure and tough financial targets, people with knowledge of the matter said.

“Elon loyalists who exhibit his traits are laying off people and making decisions on safety that I think are very concerning for people internally,” one of the people added. “Mike is a business guy, a capitalist. But he’s also someone who does stuff the right way.”

The Wall Street Journal first reported some of the details of the internal disputes.

Linda Yaccarino, chief executive of X, resigned in July after the social media platform was subsumed by xAI. She had grown frustrated with Musk’s unilateral decision-making and his criticism over advertising revenue.

xAI’s co-founder and chief engineer, Igor Babuschkin, stepped down a month later to found his own AI safety research project.

Communications executives Dave Heinzinger and John Stoll, spent three and nine months at X respectively, before returning to their former employers, according to people familiar with the matter.

X also lost a rash of senior engineers and product staff who reported directly to Musk and were helping to navigate the integration with xAI.

This includes head of product engineering Haofei Wang and consumer product and payments boss Patrick Traughber. Uday Ruddarraju, who oversaw X and xAI’s infrastructure engineering, and infrastructure engineer Michael Dalton were poached by OpenAI.

Musk shows no sign of relenting. xAI’s flirtatious “Ani bot” has caused controversy over sexually explicit interactions with teenage Grok app users. But the company’s owner has installed a hologram of Ani in the lobby of xAI to greet staff.

“He’s the boss, the alpha and anyone who doesn’t treat him that way, he finds a way to delete,” one former top Tesla executive said.

“He does not have shades of grey, is highly calculated, and focused… that makes him hard to work with. But if you’re aligned with the end goal, and you can grin and bear it, it’s fine. A lot of people do.”

Additional reporting by George Hammond.

© 2025 The Financial Times Ltd. All rights reserved. Not to be redistributed, copied, or modified in any way.

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big-ai-firms-pump-money-into-world-models-as-llm-advances-slow

Big AI firms pump money into world models as LLM advances slow

Runway, a video generation start-up that has deals with Hollywood studios, including Lionsgate, launched a product last month that uses world models to create gaming settings, with personalized stories and characters generated in real time.

“Traditional video methods [are a] brute-force approach to pixel generation, where you’re trying to squeeze motion in a couple of frames to create the illusion of movement, but the model actually doesn’t really know or reason about what’s going on in that scene,” said Cristóbal Valenzuela, chief executive officer at Runway.

Previous video-generation models had physics that were unlike the real world, he added, which general-purpose world model systems help to address.

To build these models, companies need to collect a huge amount of physical data about the world.

San Francisco-based Niantic has mapped 10 million locations, gathering information through games including Pokémon Go, which has 30 million monthly players interacting with a global map.

Niantic ran Pokémon Go for nine years and, even after the game was sold to US-based Scopely in June, its players still contribute anonymized data through scans of public landmarks to help build its world model.

“We have a running start at the problem,” said John Hanke, chief executive of Niantic Spatial, as the company is now called following the Scopely deal.

Both Niantic and Nvidia are working on filling gaps by getting their world models to generate or predict environments. Nvidia’s Omniverse platform creates and runs such simulations, assisting the $4.3 trillion tech giant’s push toward robotics and building on its long history of simulating real-world environments in video games.

Nvidia Chief Executive Jensen Huang has asserted that the next major growth phase for the company will come with “physical AI,” with the new models revolutionizing the field of robotics.

Some such as Meta’s LeCun have said this vision of a new generation of AI systems powering machines with human-level intelligence could take 10 years to achieve.

But the potential scope of the cutting-edge technology is extensive, according to AI experts. World models “open up the opportunity to service all of these other industries and amplify the same thing that computers did for knowledge work,” said Nvidia’s Lebaredian.

Additional reporting by Melissa Heikkilä in London and Michael Acton in San Francisco.

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