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Trump layoffs, shattered trust harden Democrats’ shutdown stance

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President Donald Trump’s hardball tactic of ordering permanent layoffs Friday amid a government shutdown hardened Democrats’ deep distrust of Republicans and risks prolonging a standoff that is already the fourth longest in US history with no end in sight.

Senator Patty Murray, a senior Democrat, slammed the firings announced by Trump budget chief Russell Vought as illegal and “nothing new” from an administration that has ignored spending laws since Trump returned to power in January. 

“No one should be intimidated by these crooks,” she fumed on Friday. “The way we reopen government is compromise, a simple concept every American understands — and no amount of threats will change that.”

The shutdown is the most acute symptom of a general lack of goodwill on Capitol Hill, where bipartisan deal-making has increasingly gone out of vogue. Since Trump returned to office in January, he has steamrolled Democrats and their priorities via executive actions including ordering mass layoffs and slashing billions in spending. 

The GOP Congress has mostly ignored Democrats too, passing a massive partisan spending and tax bill and refusing to sit down with Democratic leaders on funding the government until a day before the deadline.

Democrats see the funding fight as their first real moment of leverage. And they’ve made health care costs, a pocketbook issue they’re counting on to resonate with voters ahead of next year’s midterm elections, their focus.

“They just cannot fathom having to deal with us,” said Senator Brian Schatz of Hawaii, a member of the Democratic leadership who has previously struck deals with Republicans. “It’s making them angry. But this is not about how we all feel. This is about premiums doubling for 24 million people.”

Republicans have dismissed Democrats’ efforts as nothing more than political opportunism, arguing their real concern is satisfying a liberal base eager to take on Trump.

“The whole trust thing is just an excuse for them for bad behavior,” said Markwayne Mullin, an Oklahoma Republican senator who talks frequently with Trump. Mullin said Trump wants to make a deal on health care, “but we’re not negotiating on reopening the government.”

But Democrats say they simply don’t believe congressional Republican leaders, Trump and especially Vought will deliver a health care fix unless forced to do so. Already this year, Trump and Vought have slashed tens of billions in spending on Democratic priorities despite Minority Leader Chuck Schumer and other Senate Democrats providing the votes to keep the government open in March.

“Now they’re like ‘trust us again,’” said Democratic Senator Ruben Gallego of Arizona. “I’m sorry, I’m not going to trust Lucy again when I’m trying to kick the football,’” he said in a reference to the popular Peanuts meme.

Senate Democrats say they won’t drop their filibuster blocking a reopening of the government for a mere promise of future talks. They want upfront negotiations on their demands — including an extension of Affordable Care Act premium subsidies that expire in January.

“The challenge is when senior White House advisers are calling our party a terrorist organization, it’s safe to operate under the assumption that they’re not operating with a desire to make a deal,” Schatz said.

The Senate has already failed to overcome a Democratic filibuster seven times, and they’ll try again when senators return to Washington on Tuesday. 

Speaker Mike Johnson’s decision to send the House home indefinitely — intended to pressure Democrats to cave — only incensed Democrats further, particularly as federal civilians go without pay and military members risk missing their Oct. 15 pay date.

On Friday, Vought posted a single line to his X account: “The RIFs have begun.” He was referring to reductions in force, a way of describing layoffs. 

Some moderates including Republicans Susan Collins of Maine, Lisa Murkowski of Alaska and Democrat Jeanne Shaheen of New Hampshire have been trying — so far unsuccessfully — to negotiate an end to the standoff and unlock a broader deal on health care and the federal budget.

Wary Democrats say they’ve been burned before.

A similar negotiation ended a brief shutdown in a fight over immigration policy in early 2018, only for Trump to torpedo a bipartisan deal weeks later.

That experience, and assorted other issues, have resulted in broken trust, said Senator Chris Coons of Delaware. “It is so corrosive,” he added.

Also corrosive — the contradicting and quick-changing statements. Trump briefly had Democrats abuzz when he said Monday that the administration was talking to them and that he wanted to reach a deal on health care — only to clarify later Democrats must reopen government first. Assorted administration announcements of stalled projects in Democratic states and threats to not pay federal workers also had Democrats digging in rather than caving.

Capitol hallways have become an endless series of partisan scrums and press conferences where the two sides play the blame game, occasionally to each others’ faces on camera in impromptu scuffles. 

Republican leaders like Johnson and Senate Majority Leader John Thune warn programs that help poor women and their children are running out of money and that critical government functions are at risk because of the Democratic filibuster. Democrats say they’re imperiled because Republicans and Trump would rather keep the government shut than protect health care for millions.

Schumer has touted polls showing more voters blame Republicans and Trump, and strong public support for extending health care subsidies. Most recipients are actually in states won by Trump, with millions of them getting notices now showing they face steep increases in their monthly premiums — in some cases thousands of dollars a month.

Beyond their immediate health care demands, Democrats have other reasons to be wary of any Republican assurances. They have asked repeatedly why they should vote for a spending bill that was negotiated without them and that the Trump administration won’t commit to implementing. Trump and Vought claim sweeping powers to cut spending without Congress, despite laws to the contrary.

If past shutdowns are a guide, Democrats will eventually cave. But they’ve elevated the health care issue, which they plan to run on in next year’s midterm elections, and have exposed divides among Republicans, notably when Representative Marjorie Taylor Greene broke with her party’s leaders and demanded a health care fix.

Meanwhile, some Republicans, including Greene, have started to broach going “nuclear” on the Senate’s 60-vote rule to allow them to bypass Democrats to reopen government. Republicans changed the rules to speed Trump’s nominations a few weeks ago, but doing so on legislation would have profound implications for US politics, with many worried such a move could boomerang on the GOP.

Johnson raised concerns that nuking the filibuster could one day empower socialists, in an appearance on C-SPAN Thursday. Nonetheless, he said the idea is being discussed.

“This government shutdown thing has gotten way out of control,” he said.



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Coupang CEO resigns over historic South Korean data breach

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Coupang chief executive officer Park Dae-jun resigned over his failure to prevent South Korea’s largest-ever data breach, which set off a regulatory and political backlash against the country’s dominant online retailer.

The company said in a statement on Wednesday that Park had stepped down over his role in the breach. It appointed Harold Rogers, chief administrative officer for the retailer’s U.S.-based parent company Coupang Inc., as interim head.

Park becomes the highest-profile casualty of a crisis that’s prompted a government investigation and disrupted the lives of millions across Korea. Nearly two-thirds of people in the country were affected by the breach, which granted unauthorized access to their shipping addresses and phone numbers.

Police raided Coupang’s headquarters this week in search of evidence that could help them determine how the breach took place as well as the identity of the hacker, Yonhap News reported, citing officials.

Officials have said the breach was carried out over five months in which the company’s cybersecurity systems were bypassed. Last week President Lee Jae Myung said it was “truly astonishing” that Coupang had failed to detect unauthorized access of its systems for such a long time.

Park squared off with lawmakers this month during an hours-long grilling. Responding to questions about media reports that claimed the attack had been carried out by a former employee who had since returned to China, he said a Chinese national who left the company and had been a “developer working on the authentication system” was involved.

The company faces a potential fine of up to 1 trillion won ($681 million) over the incident, lawmakers said.

Coupang founder Bom Kim has been summoned to appear before a parliamentary hearing on Dec. 17, with lawmakers warning of consequences if the billionaire fails to show.

Park’s departure adds fresh uncertainty to Coupang’s leadership less than seven months after the company revamped its internal structure to make him sole CEO of its Korean operations. In his new role, Rogers will focus on addressing customer concerns and stabilizing the company, Coupang said.

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Databricks CEO Ali Ghodsi says company will be worth $1 trillion by doing these three things

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Ali Ghodsi, the CEO and cofounder of data intelligence company Databricks, is betting his privately held startup can be the latest addition to the trillion-dollar valuation club.

In August, Ghodsi told the Wall Street Journalthat he believed Databricks, which is reportedly in talks toraise funding at a $134 billion valuation, had “a shot to be a trillion-dollar company.” At Fortune’s Brainstorm AI conference in San Francisco on Tuesday, he explained how it would happen, laying out a “trifecta” of growth areas to ignite the company’s next leg of growth.

The first is entering the transactional database market, the traditional territory of large enterprise players like Oracle, which Ghodsi said has remained largely “the same for 40 years.” Earlier this year, Databricks launched a link-based offering called Lakehouse, which aims to combine the capabilities of traditional databases with modern data lake storage, in an attempt to capture some of this market.

The company is also seeing growth driven by the rise of AI-powered coding. “Over 80% of the databases that are being launched on Databricks are not being launched by humans, but by AI agents,” Ghodsi said. As developers use AI tools for “vibe coding”—rapidly building software with natural language commands—those applications automatically need databases, and Ghodsi they’re defaulting to Databricks’ platform.

“That’s just a huge growth factor for us. I think if we just did that, we could maybe get all the way to a trillion,” he said.

The second growth area is Agentbricks, Databricks’ platform for building AI agents that work with proprietary enterprise data.

“It’s a commodity now to have AI that has general knowledge,” Ghodsi said, but “it’s very elusive to get AI that really works and understands that proprietary data that’s inside enterprise.” He pointed to the Royal Bank of Canada, which built AI agents for equity research analysts, as an example. Ghodsi said these agents were able to automatically gather earnings calls and company information to assemble research reports, reducing “many days’ worth of work down to minutes.”

And finally, the third piece to Ghodsi’s puzzle involves building applications on top of this infrastructure, with developers using AI tools to quickly build applications that run on Lakehouse and which are then powered by AI agents. “To get the trifecta is also to have apps on top of this. Now you have apps that are vibe coded with the database, Lakehouse, and with agents,” Ghodsi said. “Those are three new vectors for us.”

Ghodsi did not provide a timeframe for attaining the trillion-dollar goal. Currently, only a handful of companies have achieved the milestone, all of them as publicly traded companies. In the tech industry, only big tech giants like Apple, Microsoft, Nvidia, Alphabet, Amazon, and Meta have managed to cross the trillion-dollar threshold.

To reach this level would require Databricks, which is widely expected to go public sometime in early 2026, to grow its valuation roughly sevenfold from its current reported level. Part of this journey will likely also include the expected IPO, Ghodsi said.

“There are huge advantages and pros and cons. That’s why we’re not super religious about it,” Ghodsi said when asked about a potential IPO. “We will go public at some point. But to us, it’s not a really big deal.”

Could the company IPO next year? Maybe, replied Ghodsi.



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New contract shows Palantir working on tech platform for another federal agency that works with ICE

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Palantir, the artificial intelligence and data analytics company, has quietly started working on a tech platform for a federal immigration agency that has referred dozens of individuals to U.S. Immigration and Customs Enforcement for potential enforcement since September.

The U.S. Citizenship and Immigration Services agency—which handles services including citizenship applications, family immigration, adoptions, and work permits for non-citizens—started the contract with Palantir at the end of October, and is paying the data analytics company to implement “Phase 0” of a “vetting of wedding-based schemes,” or “VOWS” platform, according to the federal contract, which was posted to the U.S. government website and reviewed by Fortune.

The contract is small—less than $100,000—and details of what exactly the new platform entails are thin. The contract itself offers few details, apart from the general description of the platform (“vetting of wedding-based schemes”) and an estimate that the completion of the contract would be Dec. 9.Palantir declined to comment on the contract or nature of the work, and USCIS did not respond to requests for comment for this story.

But the contract is notable, nonetheless, as it marks the beginning of a new relationship between USCIS and Palantir, which has had longstanding contracts with ICE, another agency of the Department of Homeland Security, since at least 2011. The description of the contract suggests that the “VOWS” platform may very well be focused on marriage fraud and related to USCIS’ recent stated effort to drill down on duplicity in applications for marriage and family-based petitions, employment authorizations, and parole-related requests.

USCIS has been outspoken about its recent collaboration with ICE. Over nine days in September, USCIS announced that it worked with ICE and the Federal Bureau of Investigation to conduct what it called “Operation Twin Shield” in the Minneapolis-St. Paul area, where immigration officials investigated potential cases of fraud in immigration benefit applications the agency had received. The agency reported that its officers referred 42 cases to ICE over the period. In a statement published to the USCIS website shortly after the operation, USCIS director Joseph Edlow said his agency was “declaring an all-out war on immigration fraud” and that it would “relentlessly pursue everyone involved in undermining the integrity of our immigration system and laws.” 

“Under President Trump, we will leave no stone unturned,” he said.

Earlier this year, USCIS rolled out updates to its policy requirements for marriage-based green cards, which have included more details of relationship evidence and stricter interview requirements.

While Palantir has always been a controversial company—and one that tends to lean into that reputation no less—the new contract with USCIS is likely to lead to more public scrutiny. Backlash over Palantir’s contracts with ICE have intensified this year amid the Trump Administration’s crackdown on immigration and aggressive tactics used by ICE to detain immigrants that have gone viral on social media. Not to mention, Palantir inked a $30 million contract with ICE earlier this year to pilot a system that will track individuals who have elected to self-deport and help ICE with targeting and enforcement prioritization. There has been pushback from current and former employees of the company alike over contracts the company has with ICE and Israel.

In a recent interview at the New York Times DealBook Summit, Karp was asked on stage about Palantir’s work with ICE and later what Karp thought, from a moral standpoint, about families getting separated by ICE. “Of course I don’t like that, right? No one likes that. No American. This is the fairest, least bigoted, most open-minded culture in the world,” Karp said. But he said he cared about two issues politically: immigration and “re-establishing the deterrent capacity of America without being a colonialist neocon view. On those two issues, this president has performed.”



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