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DOGE isn’t dead—it’s been absorbed into the bloodstream of the government, federal employees say

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DOGE may no longer be helmed by Elon Musk or even considered an official government entity anymore, but the reports of its death are greatly exaggerated. The special advisory intended to eliminate government “waste, fraud, and abuse,” is still up to something, two federal employees told Fortune.

Last month, Office of Personnel Management Director Scott Kupor told Reutersthat DOGE “doesn’t exist,” and is no longer a “centralized entity.” According to an executive order signed on President Donald Trump’s first day in office, DOGE as a temporary organization had been scheduled to end on July 4, 2026, suggesting the agency disbanded about eight months ahead of schedule.

Kupor later clarified DOGE’s current role in the federal government in an X post, saying, “The truth is: DOGE may not have centralized leadership under the [U.S. DOGE Service] But, the principles of DOGE remain alive and well: de-regulation; eliminating fraud, waste and abuse; re-shaping the federal workforce; making efficiency a first-class citizen.”

Federal employees interviewed by Fortune, who spoke on the condition of anonymity as they are not authorized to speak to the press, said it was not apparent to them that DOGE had been disbanded.

An Internal Revenue Services (IRS) employee told Fortune that DOGE “became a shell company” as more and more operatives from the temporary group became tangled in the oversight of individual government agencies.

“It’s like taking the dust jacket off of the book and saying, ‘We’ve got rid of the book,’” he said.

DOGE is still barking

The IRS employee confirmed to Fortune that the agency has been administering “coding tests” over the last few weeks, first reported by Wired, an addition to mandatory training required for certain employees. Per Wired, the tests were a directive from the Treasury Department’s chief information officer and DOGE operative Sam Corcos, and were administered through HackerRank, a tool used by private sector tech companies to assess coding and programming skills of prospective hires.

“The business case could be made that you want people who know their job thoroughly,” the IRS employee told Fortune of the purpose of the tests. “However, given the treatment that we’ve received over the past eight, nine months, I would say it’s more of another screening out of more people.”

Court documents from October indicate the Treasury Department has terminated approximately 1,446 employees since the start to Trump’s second term.

A National Institutes of Health (NIH) employee told Fortune the Department of Health and Human Services (HHS), which oversees the NIH, still has plenty of DOGE personnel, though they are now employees of the agency. Amy Gleason, whom Trump named acting administrator of DOGE, was appointed as an expert/consultant to the HHS’s Office of the Secretary in March. 

The HHS likewise lists Clark Minor, DOGE operative and former Palantir software engineer, as the agency’s chief information officer and acting chief artificial intelligence officer. The agency announced earlier this month a Minor-led effort to integrate AI the HHS’s internal operations and research, in order to fulfill a directive from the Office of Management and Budget led by director and DOGE partner Russell Vought, to integrate technology for “improving internal operations, efficiency, and federal use.”

The NIH and IRS did not respond to Fortune’s requests for comment.

DOGE’s lasting impact

DOGE’s sweeping changes have continued to impact the government’s productivity. For the IRS, December is usually a quiet month, when taxpayer call volumes are so low the agency’s servers can be shut down for routine maintenance, the agency employee said. This year, however, offices are so short-staffed as a result of DOGE-led layoffs that employees have been overwhelmed balancing taking calls with their other responsibilities. The IRS employee said his office has one-third of the workers it had about a year ago.

“This is going to be probably the roughest filing season we’ve had since the pandemic,” he said.

He said ongoing burnout from increased workloads has the potential to impact the quality of internal reviews.

“When we look back historically, we’re going to see that the gutting of the bureaucracy that keeps the government running, that keeps the country functional, will be the trigger that collapses America,” the employee said.

Musk, who was DOGE’s de facto leader as a special government employee earlier this year, had his own reservations about the group’s effectiveness. In an interview with conservative influencer Katie Miller, Musk said DOGE was only “somewhat successful,” claiming it saved the government between $100 billion and $200 billion in annual “zombie payments,” or spending on expired programs.

When Miller asked if Musk would go back and run DOGE all over again, Musk said, “I don’t think so.”

“Instead of doing DOGE, I would have, basically…worked on my companies,” he said.

If you’re a federal worker with a tip, or if you’d like to share your experience, please contact Sasha Rogelberg on Signal @sashrogel.13.



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2 U.S. service members and one American civilian killed in Islamic State ambush in Syria

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Two U.S. service members and one American civilian were killed and three other people wounded in an ambush on Saturday by a lone member of the Islamic State group in central Syria, the the U.S. military’s Central Command said.

The attack on U.S. troops in Syria is the first to inflict casualties since the fall of President Bashar Assad a year ago.

Central Command said in a post on X that as a matter of respect for the families and in accordance with Department of Defense policy, the identities of the service members will be withheld until 24 hours after their next of kin have been notified.

U.S. Defense Secretary Pete Hegseth posted on X: “Let it be known, if you target Americans — anywhere in the world — you will spend the rest of your brief, anxious life knowing the United States will hunt you, find you, and ruthlessly kill you.”

The shooting took place near historic Palmyra, according to the state-run SANA news agency, which earlier said two members of Syria’s security force and several U.S. service members had been wounded. The casualties were taken by helicopter to the al-Tanf garrison near the border with Iraq and Jordan.

SANA said the attacker was killed, without providing further details.

The Britain-based Syrian Observatory for Human Rights said the attacker was a member of the Syrian security force.

The U.S. has hundreds of troops deployed in eastern Syria as part of a coalition fighting the Islamic State group.

Last month, Syria joined the international coalition fighting against the IS as Damascus improves its relations with Western countries following the ouster of Assad when insurgents captured his seat of power in Damascus.

The U.S. had no diplomatic relations with Syria under Assad, but ties have warmed since the fall of the five-decade Assad family rule. The interim president, Ahmad al-Sharaa, made a historic visit to Washington last month where he held talks with President Donald Trump.

IS was defeated on the battlefield in Syria in 2019 but the group’s sleeper cells still carry out deadly attacks in the country. The United Nations says the group still has between 5,000 and 7,000 fighters in Syria and Iraq.

U.S. troops, which have maintained a presence in different parts of Syria — including Al-Tanf garrison in the central province of Homs — to train other forces as part of a broad campaign against IS, have been targeted in the past. One of the deadliest attacks occurred in 2019 in the northern town of Manbij when a blast killed two U.S. service members and two American civilians as well as others from Syria while conducting a patrol.



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Stock market rotation out of AI is just getting started, analysts say

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Investors rushed out of the AI trade this past week and piled into materials, industrials, financials and healthcare, representing a sector rotation that could have staying power, according to Wall Street analysts.

Oracle stock led the latest AI selloff after the hyperscaler’s earnings report and spending guidance renewed fears about excessive capital expenditures.

Jeremy Siegel, Wharton professor emeritus and WisdomTree chief economist, told CNBC on Friday that it’s hard to be certain about the current stock market rotation because there have been “so many head fakes in the past.”

“But as I said, this one has more legs in the sense that there are more things that are happening that throw doubt on how fast or how profitable all the AI buildout is going to be,” he added.

In Oracle’s case, recent delays in data center construction may actually end up being a silver lining if it slows expenditures, but there are still more questions than answers about the profitability of AI, Siegel said.

He noted his research has shown that when companies grow spending faster than their income, they ultimately overexpand, hitting profits and stock returns.

“I’m not saying that that’s necessarily going to happen to AI or certainly all the AI, but that narrative has to come in mind,” Siegel warned.

Also on Friday, Bank of America Securities investment strategist Michael Hartnett said markets are frontrunning a “run-it-hot” scenario expected for next year by rotating into a Main Street trade made up of mid- and small-cap stocks, while getting out of a Wall Street trade consisting of mega-cap names.

Eric Teal, chief investment officer for Comerica Wealth Management, had a similar view in a note on Thursday, saying that the market was dominated by momentum and AI stocks during the first eight months of the year.

But since then, concerns about valuations, margin sustainability, and high debt shifted sentiment around the technology sector.

Financial and healthcare stocks have been more appealing, while small caps and even “micro-cap stocks” will benefit from falling short-term rates, he added.

“More importantly, we foresee this rotation in the early stages with relative valuations remaining attractive,” Teal predicted. 



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Even in Silicon Valley, skepticism looms over robots, while ‘China has certainly a lot more momentum on humanoids’

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Robots have long been seen as a bad bet for Silicon Valley investors — too complicated, capital-intensive and “boring, honestly,” says venture capitalist Modar Alaoui.

But the commercial boom in artificial intelligence has lit a spark under long-simmering visions to build humanoid robots that can move their mechanical bodies like humans and do things that people do.

Alaoui, founder of the Humanoids Summit, gathered more than 2,000 people this week, including top robotics engineers from Disney, Google and dozens of startups, to showcase their technology and debate what it will take to accelerate a nascent industry.

Alaoui says many researchers now believe humanoids or some other kind of physical embodiment of AI are “going to become the norm.”

“The question is really just how long it will take,” he said.

Disney’s contribution to the field, a walking robotic version of “Frozen” character Olaf, will be roaming on its own through Disneyland theme parks in Hong Kong and Paris early next year. Entertaining and highly complex robots that resemble a human — or a snowman — are already here, but the timeline for “general purpose” robots that are a productive member of a workplace or household is farther away.

Even at a conference designed to build enthusiasm for the technology, held at a Computer History Museum that’s a temple to Silicon Valley’s previous breakthroughs, skepticism remained high that truly humanlike robots will take root anytime soon.

“The humanoid space has a very, very big hill to climb,” said Cosima du Pasquier, founder and CEO of Haptica Robotics, which works to give robots a sense of touch. “There’s a lot of research that still needs to be solved.”

The Stanford University postdoctoral researcher came to the conference in Mountain View, California, just a week after incorporating her startup.

“The first customers are really the people here,” she said.

Researchers at the consultancy McKinsey & Company have counted about 50 companies around the world that have raised at least $100 million to develop humanoids, led by about 20 in China and 15 in North America.

China is leading in part due to government incentives for component production and robot adoption and a mandate last year “to have a humanoid ecosystem established by 2025,” said McKinsey partner Ani Kelkar. Displays by Chinese firms dominated the expo section of this week’s summit, held Thursday and Friday. The conference’s most prevalent humanoids were those made by China’s Unitree, in part because researchers in the U.S. buy the relatively cheap model to test their own software.

In the U.S., the advent of generative AI chatbots like OpenAI’s ChatGPT and Google’s Gemini has jolted the decades-old robotics industry in different ways. Investor excitement has poured money into ambitious startups aiming to build hardware that will bring a physical presence to the latest AI.

But it’s not just crossover hype — the same technical advances that made AI chatbots so good at language have played a role in teaching robots how to get better at performing tasks. Paired with computer vision, robots powered by “visual-language” models are trained to learn about their surroundings.

One of the most prominent skeptics is robotics pioneer Rodney Brooks, a co-founder of Roomba vacuum maker iRobot who wrote in September that “today’s humanoid robots will not learn how to be dexterous despite the hundreds of millions, or perhaps many billions of dollars, being donated by VCs and major tech companies to pay for their training.” Brooks didn’t attend but his essay was frequently mentioned.

Also missing was anyone speaking for Tesla CEO Elon Musk’s development of a humanoid called Optimus, a project that the billionaire is designing to be “extremely capable” and sold in high volumes. Musk said three years ago that people can probably buy an Optimus “within three to five years.”

The conference’s organizer, Alaoui, founder and general partner of ALM Ventures, previously worked on driver attention systems for the automotive industry and sees parallels between humanoids and the early years of self-driving cars.

Near the entrance to the summit venue, just blocks from Google’s headquarters, is a museum exhibit showing Google’s bubble-shaped 2014 prototype of a self-driving car. Eleven years later, robotaxis operated by Google affiliate Waymo are constantly plying the streets nearby.

Some robots with human elements are already being tested in workplaces. Oregon-based Agility Robotics announced shortly before the conference that it is bringing its tote-carrying warehouse robot Digit to a Texas distribution facility run by Mercado Libre, the Latin American e-commerce giant. Much like the Olaf robot, it has inverted legs that are more birdlike than human.

Industrial robots performing single tasks are already commonplace in car assembly and other manufacturing. They work with a level of speed and precision that’s difficult for today’s humanoids — or humans themselves — to match.

The head of a robotics trade group founded in 1974 is now lobbying the U.S. government to develop a stronger national strategy to advance the development of homegrown robots, be they humanoids or otherwise.

“We have a lot of strong technology, we have the AI expertise here in the U.S.,” said Jeff Burnstein, president of the Association for Advancing Automation, after touring the expo. “So I think it remains to be seen who is the ultimate leader in this. But right now, China has certainly a lot more momentum on humanoids.”



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