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A factory that makes munitions for the military exploded, killing 16 people and leaving no survivors

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A blast in rural Tennessee that leveled an explosives plant and was felt for miles around killed 16 people and left no survivors, authorities said.

The explosion left a smoldering wreck of twisted and charred metal and burned-out vehicles at the Accurate Energetic Systems plant, which supplies and researches explosives for the military.

The cause of the blast is not known. Investigators are combing the incinerated property foot-by-foot searching for possible evidence.

“There’s a gauntlet of emotions there,” Humphreys County Sheriff Chris Davis said during a news conference, pausing to clear his throat before he asked for prayers for the families of the victims in a shaky voice.

“We’ve recovered no survivors,” he added.

During a vigil at Hurricane Chapel in McEwen, senior pastor Tim Farris noted that many in attendance know each other, the victims and their families.

“There’s a lot of people hurting. A lot of people who are crying a lot of tears,” he said. “We are sad that our community is going through this, but it’s a tremendous opportunity for the church to minister to a lot of those people today.”

Farris said he spoke with some families of victims on Friday who were in shock and numb, and they did not show much emotion. That had changed by Saturday, he said.

“Speaking with some of the families today, they were very emotional,” Farris said. “They can hardly speak or anything, they are so emotional. I think as this goes on, it’s going to hit more people. The depth of this, the reality of it. That’s when they’re going to need people the most.”

Pamela Jane Brown was among those who came out to pray for friends missing in the blast and their families. She said an acquaintance of her family was driving by the plant when it exploded, and he was “hurt pretty good … all cut up and bruised,” but is now recovering at home.

“I was heartbroken,” she said, after learning of the explosion on social media. Meeting others for prayer “was a coming together of the community – a good feeling.”

State officials brought in a “rapid DNA” team to help identify the remains of people recovered at the site.

Davis said about 300 responders are working in a “slow, methodical method” as they deal with explosive material that has been damaged and remains volatile. An ambulance and a helicopter used for air evacuations were brought in, for the safety of first responders.

“It’s not like working an accident. It’s not like working a tornado. We’re dealing with explosions. And I would say at this time, we’re dealing with remains,” he said.

Guy McCormick, a supervisory special agent with the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, said explosive specialists and bomb technicians are trying to make the area safe for national ATF investigators. He said the nature of the scene can change because of the heat and pressure caused by the explosion.

Davis said it could be days, weeks or even months before foul play is ruled out.

The site is located in a heavily wooded area of middle Tennessee, between the economically vital Tennessee River to the west and the bustling metropolis of Nashville to the east. Modest homes dot the wooded landscape, residences belonging to “good old country people,” as local man Terry Bagsby put it.

‘A lot of grief’

Bagsby, 68, is retired but he helps out working the register at a gas station near the site. He said people in the close-knit community are “very, very sad.”

He said he knows people who worked at the site.

“I don’t know how to explain it. … Just a lot of grief.”

Officials at an evening news conference said counselors would be available for grieving students on Monday.

Earlier Saturday afternoon at the church in McEwen, about 30 people gathered to pray for victims of the explosion and their families. Music played and mourners bowed their heads and closed their eyes. Some knelt at an altar, placing their hands on each others’ backs and shoulders. Some wept softly, among the whispered prayers.

After the vigil, Farris, the pastor, told media that the area has seen its share of tragedy and loss of life, including a deadly flood a few years ago. He asked for prayers for first responders.

“This is tiresome physically. This kind of thing weighs on you mentally. They carry that home. They need prayer and encouragement as well,” he said.

The company’s website says it processes explosives and ammunition at an eight-building facility that sprawls across wooded hills in the Bucksnort area, about 60 miles (97 kilometers) southwest of Nashville. It is not immediately known how many people work at the plant or how many were there when the explosion happened.

Accurate Energetic Systems, based in nearby McEwen, said in a post on social media on Friday that the company’s “thoughts and prayers” are with the families and community impacted.

“We extend our gratitude to all first responders who continue to work tirelessly under difficult conditions,” the post said.

Explosion jolts residents from sleep

The company has been awarded numerous military contracts, largely by the U.S. Army and Navy, to supply different types of munitions and explosives, according to public records. The products range from bulk explosives to landmines and small breaching charges, including C4.

When the explosion occurred, residents in Lobelville, a 20-minute drive from the scene, said they felt their homes shake, and some people captured the loud boom of the explosion on their home cameras.

The blast rattled Gentry Stover from his sleep.

“I thought the house had collapsed with me inside of it,” he told The Associated Press. “I live very close to Accurate, and I realized about 30 seconds after I woke up that it had to have been that.”

Tennessee Gov. Bill Lee posted on the social platform X that he is monitoring the situation and asked “Tennesseans to join us in prayer for the families impacted by this tragic incident.”

A small group gathered for a vigil Friday night at a nearby park, clutching candles as they prayed for the missing and their families and sang “Amazing Grace.”

The U.S. has a long history of deadly accidents at workplaces, including the Monongah coal mine explosion that killed 362 men and boys in West Virginia in 1907. Several high-profile industrial accidents in the 1960s helped lead President Richard Nixon to sign a law creating the Occupational Safety and Health Administration the next year.

In 2019, Accurate Energetic Systems faced several small fines from the U.S. Department of Labor for violations of policies meant to protect workers from exposure to hazardous chemicals, radiation and other irritants, according to citations from OSHA.

In 2014, an explosion occurred at another ammunition facility in the same small community, killing one person and injuring at least three others.



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Arkansas becomes first state to cut ties with PBS, saying $2.5 million membership dues ‘not feasible’

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The commission that oversees public television in Arkansas voted Thursday to sever ties with PBS, making it the first state to end its contract with the broadcast giant that provides popular television programs such as “Sesame Street,” “Nova” and “Antiques Roadshow.”

The eight-member Arkansas Educational Television Commission, made up entirely of appointees of the governor, announced in a news release Thursday that it planned to disaffiliate from PBS effective July 1, citing annual membership dues of about $2.5 million it described as “not feasible.” The release also cited the unexpected loss of about that same amount of federal funding from the Corporation for Public Broadcasting, which was targeted for closure earlier this year and defunded by Congress.

PBS Arkansas is rebranding itself as Arkansas TV and will provide more local content, the agency’s Executive Director and CEO Carlton Wing said in a statement. Wing, a former Republican state representative, took the helm of the agency in September.

“Public television in Arkansas is not going away,” Wing said. “In fact, we invite you to join our vision for an increased focus on local programming, continuing to safeguard Arkansans in times of emergency and supporting our K-12 educators and students.”

PBS confirmed in an email Thursday that Arkansas is the first state to definitively sever ties with the broadcaster. Alabama considered similar action last month, but opted to continue paying its contract with PBS after public backlash from viewers and donors.

“The commission’s decision to drop PBS membership is a blow to Arkansans who will lose free, over the air access to quality PBS programming they know and love,” a PBS spokesperson wrote in an email to The Associated Press.

The demise of the Corporation for Public Broadcasting, is a direct result of President Donald Trump’s targeting of public media, which he has repeatedly said is spreading political and cultural views antithetical to those the United States should be espousing. The closure is expected to have a profound impact on the journalistic and cultural landscape — in particular, public radio and TV stations in small communities nationwide.

Arkansas House Democratic Leader Rep. Andrew Collins called the demise of PBS in Arkansas sad. “It’s certainly a loss for Arkansas families who value the programming of PBS,” he said.

CPB helps fund both PBS and NPR, but most of its funding is distributed to more than 1,500 local public radio and television stations around the country.



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Disney plus OpenAI: What could go wrong?

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Hello, Alexei Oreskovic pitching in for Allie today. Well folks, this week had it all: A new OpenAI model, reports of an upcoming SpaceX IPO, and even a Waymo baby! And to top it all off, OpenAI and Disney announced a surprise partnership that will include a $1 billion investment in OpenAI and enable OpenAI users to create AI-generated videos with Mickey Mouse and hundreds of other Disney characters.

The 3-year deal is a huge win for OpenAI (all the more so given that Disney simultaneously sent a cease-and-desist letter to Google, accusing the internet giant and OpenAI arch-rival of infringing its IP via its AI systems on a “massive scale”). The question is: Why is the Mouse House rolling out the red carpet for the ChatGPT maker? 

You don’t need a lot of imagination to guess the sordid scenarios that await Disney’s family-friendly cast of characters now that the tortured souls of the internet will have carte blanche to feed them into the AI nightmare machine. There will be safeguards in place to prevent Mickey and friends from doing drugs, fornicating, and engaging in other unseemly or illegal behavior, a source told the Wall Street Journal. And I’m sure absolutely no one will figure out how to bypass those guardrails.

Entertainment businesses need to stay ahead of the trends and make sure they’re relevant to the next generation of consumers, of course. So hooking up with OpenAI is an obvious way for a company to stay connected with the kids. But if there’s any company that would seem in less immediate danger of losing the kids, it’s the company with The Lion King, The Little Mermaid, Donald Duck, and Iron Man. 

This will certainly be an interesting adventure to watch. And perhaps Disney’s deal with OpenAI will prove prescient and astute. I just hope Donald can hold his liquor.

See you Monday,

Alexei Oreskovic
X:@lexnfx
Email:
alexei.oreskovic@fortune.com
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Venture Deals

Harness, a San Francisco-based AI-powered platform designed to ship code faster, raised $240 million in Series E funding. GoldmanSachs led the round and was joined by IVP, MenloVentures, and UnusualVentures.

Port, a Middletown, Del.-based AI agent designed to handle some software developer tasks, raised $100 million in Series C funding. General Atlantic led the round and was joined by Accel, BessemerVenturePartners, and Team8.

Serval, a San Francisco-based developer of AI agents designed for IT processes, raised $75 million in Series B funding. Sequoia led the round and was joined by Redpoint, Meritech, FirstRound, and others.

Medra, a San Francisco-based AI platform designed to accelerate data generation for scientists, raised $52 million in Series A funding. HunanCapital led the round and was joined by LuxCapital, Neo, NFDG, and others.

RelationalAI, a San Francisco-based enterprise decision intelligence platform, raised $22.5 million in funding from SnowflakeVentures and AT&TVentures.

HavenEnergy, a Los Angeles, Calif.-based solar and home battery tech company, raised $15 million in Series B funding. GiantVentures led the round and was joined by CaliforniaInfrastructureBank, CarnriteVentures, ChaacVentures, ComcastVentures, and LererHippeau.

Neosapience, the San Francisco-based developer of the Typecast platform for creating voice and video content designed to have emotional intelligence, raised $11.5 million in Series C funding. Intervest led the round and was joined by HBInvestment, K2Investment, and BokwangInvestment.

Skydo, a Bangalore, India-based payments platform for global exporters, raised $10 million in Series A funding. SusquehannaAsiaVentureCapital and ElevationCapital.

Subsense, a Palo Alto, Calif.-based developer of non-surgically invasive, nanoparticle-based brain-computer interfaces, raised $10 million in funding from GoldenFalconCapital.

Kilo, a San Francisco-based open source coding agent, raised $8 million in seed funding. CotaCapital led the round and was joined by Breakers, GeneralCatalyst, QuietCapital, and TokyoBlack.

OnMe, a San Francisco-based digital gifting platform, raised $6 million in seed funding. NFX led the round and was joined by existing investors LererHippeau and Focal.

Cyphlens, a New York City-based enterprise security platform, raised $3.8 million in seed funding from SalesforceVentures, MotivateVentures, DCG, ex/ante, and CambrianVentures.

Conveyd, a London, U.K.-based AI conveyancing platform, raised $3.3 million in seed funding. Eka Ventures led the round and was joined by PortfolioVentures and existing investor FoundersFactory and angel investors.

Realm.Security, a Boston, Mass.-based security data pipeline platform, raised $2 million in funding from PresidioVentures.

Private Equity

LongRidgeEquityPartners acquired a majority stake in OnCorpsAI, a Boston, Mass.-based agentic AI platform designed for fund operations, for $55 million.

Aretum, a portfolio company of RenovusCapitalPartners, acquired VeteransEngineering, a Rockville, M.D.-based IT modernization, cybersecurity, and cloud architecture company for mission-critical government programs. Financial terms were not disclosed.

Rentsync, backed by SilversmithCapitalPartners, acquired Spacelist, a Vancouver, Canada-based real estate listing marketplace. Financial terms were not disclosed.

Exits

PerimeterSolutions agreed to acquire MedicalManufacturingTechnologies, a Charlotte, N.C.-based provider of medical manufacturing solutions, from ArclineInvestmentManagement for $685 million.

ExperiGreenLawnCare, backed by WindPointPartners, acquired TurfMastersBrand, a Roswell, Ga.-based lawn care company, from CenterOakPartners. Financial terms were not disclosed.

Funds + Funds of Funds

SwishVentures, a Tel Aviv, Israel-based venture capital firm, raised $100 million for a new fund focused on companies in cybersecurity, infrastructure, and AI.

People

CoreInnovationCapital, a Los Angeles, Calif.-based venture capital firm, hired Michael J. Hsu as venture partner. He most recently served as Comptroller of the Currency.



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Retail investors drive stocks to a pre-Christmas all-time high—and Wall Street eyes a moment to sell

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S&P 500 futures ticked downward 0.22% this morning, an indicator that some traders decided overnight to lock in their gains from yesterday’s close, when the index reached a new all-time high of 6,901. The peak was entirely predictable, given that U.S. Federal Reserve chairman Jerome Powell delivered a new dose of liquidity, as expected, via Wednesday’s 0.25% interest rate cut.

Nasdaq 100 futures were down 0.51% this morning, premarket, as traders picked winners and losers in the tech sector. Oracle lost another 1% overnight. It’s down more than 9% over the last five sessions after reporting revenue below expectations and capital expenditure above expectations. Alphabet (Google) by contrast was up 0.26% in overnight trading.

The bigger picture is the fact that the S&P 500 has now risen 17.33% year to date.

The trigger for that came from Powell telegraphing 175 basis points of cuts since last year. But the markets have also been driven by retail investors—individuals, as opposed to financial institutions—buying into exchange-traded funds and individual tech stocks, according to Arun Jain and his colleagues at JPMorgan.

In the week up to December 10, retail investors ploughed $7.8 billion into stocks, above the $6.3 billion weekly average. “Retail investors continued to favor ETFs (+$6.3B) over Single Stocks (+$1.5B),” they told clients in a note seen by Fortune.

“2025 is set to be a record year for retail traders in terms of flows (tracking at ~1.9x the 5y avg), 53% above the levels seen last year and 14% above the previous peak during the retail mania of 2021,” they said.

Retail investors probably did very well in the markets this year because they tended to buy the dips—there was a 38% gain between the market’s April low and yesterday—they bought ETFs, and they bought gold (up 65% year to date), the JPM team said.

Retail trading volume has doubled since 2010, according to the Financial Times, and individual investors are now more active than mutual funds and hedge funds.

Retail investors are so enthusiastic for risk assets that some people on Wall Street are starting to worry about it. The Bank of International Settlements—a sort of bank for central banks—published a paper recently arguing that retail traders now represent the dumb money in the market.

“Retail investors continued to pour money into U.S. equity funds, even as institutional investors gradually withdrew,” the bank wrote. “Appetite for precious metals may underscore market participants seeking at least some safe asset exposure in the event that things turn sour. But part of the surge can also be traced to investors trying to take advantage of the momentum in search of price appreciation, consistent with elevated risk-taking.”

Michael Hartnett and his colleagues at Bank of America see it as as sell-signal. Their “Bull & Bear Indicator”—a gauge that measures “investor fear and greed” from technical market data such as fund flows—now stands at 7.8, just below the “extreme bullishness” level that suggests it might be a good time to cash out:

Here’s a snapshot of the markets ahead of the opening bell in New York this morning:

  • S&P 500 futures were down 0.22% this morning. The last session closed up 0.21% to hit a new record high of 6,901. 
  • STOXX Europe 600 was up 0.37% in early trading. 
  • The U.K.’s FTSE 100 was up 0.38% in early trading. 
  • Japan’s Nikkei 225 was up 1.37%. 
  • China’s CSI 300 was up 0.63%. 
  • The South Korea KOSPI was up 1.38%. 
  • India’s NIFTY 50 was up 0.51%. 
  • Bitcoin went to $92K.
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