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Israel investing more than $100 billion into independent arms industry, Netanyahu reveals | The Times of Israel

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  • Weapons independence: Netanyahu approved NIS 350 billion over the next decade to build an independent Israeli munitions industry to reduce dependence on external suppliers.
  • Lessons from war: The move follows two years of multi-front war experiences and restrictions imposed by allies such as the US, UK, and Germany after the October 7 Hamas attack.
  • Export demand: Despite restrictions, Netanyahu noted that many countries, including Germany, continue to want to buy Israeli military systems.
  • European pressure: European allies’ impatience with Israel’s conduct in Gaza sparked calls for arms embargoes and reignited public debate over dependence on foreign weapons.
  • “Super-Sparta” remark: A prior comment about Israel becoming a self-reliant “super-Sparta” caused uproar, prompting Netanyahu to clarify he referred only to defense ministry capabilities.
  • Aerial superiority: Netanyahu vowed to prevent Turkey or others from receiving F-35s, framing Israeli aerial supremacy as fundamental to national security.
  • F-35 inventory: Israel remains the only Middle Eastern country operating F-35s, currently flying 45 jets with an additional 30 on order and emphasizing skilled pilots.
  • Regional dynamics: Turkey, removed from the F-35 program after purchasing Russia’s S-400, now seeks rapid acquisition from European partners and the US, while being a vocal critic of Israel as it faces regional competition.

Israel is working to gain as much independence as possible in its weapons production, Prime Minister Benjamin Netanyahu announced on Wednesday, in a development he said was the result of the lessons learned during the past two years of war on multiple fronts.

“I approved, along with the defense minister and finance minister, a sum of NIS 350 billion [$108 billion] over the next decade to build an independent Israeli munitions industry,” Netanyahu said in an address at a graduation ceremony for Israeli Air Force pilots.

The move, he said, stemmed from a desire to “reduce our dependence on all players, including friends,” after allies including the US, UK, and Germany all imposed various restrictions on weapons sales to Israel since the October 7, 2023, Hamas attack.

Still, he noted, many countries around the world, including Germany, “want to buy from us more and more systems.”

The premier has long been calling for Israel to develop its own self-reliant military industry, and in January 2024 announced that the government would invest in a “multi-year plan to free Israel from dependence on external purchases.”

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The matter returned to the public eye earlier this year as Jerusalem’s European allies began to grow impatient with Israel’s conduct in Gaza, with some calling for arms embargoes and sanctions.

People march behind a banner reading “Against Genocide Let’s block everything” during a nationwide strike in solidarity with Palestinians in Gaza and calling for a halt to arms shipments to Israel, in Rome on September 22, 2025. (Andreas SOLARO / AFP)

In that light, Netanyahu briefly caused an uproar in September when he admitted that Israel was facing increased isolation on the world stage and that, to combat that, it would have to become a more self-reliant “super-Sparta” in the years to come.

The remarks sparked outrage and spooked the markets, forcing him to clarify them in a follow-up press conference the next day, when he insisted that he had been referring only to the defense ministry rather than the overall Israeli economy.

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In his speech on Wednesday, Netanyahu also addressed Israel’s aerial superiority, in what appeared to be a thinly veiled reference to Turkey’s quest to receive F-35 fighter jets from the US.

Israel will “prevent whoever must be prevented from receiving these instruments,” the premier promised, adding that the Jewish state’s “aerial superiority in the Middle East is a cornerstone of our national security.”

Maintaining this, he said, rests on Israel’s skilled pilots and “the best aircraft in the world.”

Israel is currently the only country in the Middle East with F-35s in its arsenal, currently operating 45 of the aircraft with another 30 units on order.

Israeli Air Force F-35I fighter jets depart for strikes in Iran, June 13, 2025. (Israel Defense Forces)

During US President Donald Trump’s first term, Washington removed Turkey, a NATO ally, from its flagship F-35 fighter jet program, after Ankara purchased the S-400 surface-to-air missile system from Russia.

But now, anxious to bolster its air power, Turkey has proposed to European partners and the US ways it could swiftly obtain the fighter jets as it seeks to make up ground versus regional rivals such as Israel.

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Turkey is one of the world’s most outspoken critics of Israel, with President Recep Tayyip Erdogan often accusing Israel of genocide over the past two years, and praising Hamas.

Further bolstering Israel’s fears, Trump recently announced the sale of F-35s to Saudi Arabia, although US officials and defense experts told Reuters that the jets to be sold to the Saudis will be less advanced than those used by the IDF.

Times of Israel staff contributed to this report.

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NYC Congestion Pricing: Is the Controversial Program Working? - Bloomberg

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  • Program Launch: NYC began charging drivers on Jan. 5, 2025 to reduce congestion, improve air quality, and raise $15B for transit upgrades.
  • Opposition: Critics spanning NJ Governor Phil Murphy to former President Trump warned the $9 fee would harm small businesses and hardworking families, but the plan survived years of debate.
  • Pollution & Traffic: A Cornell study and MTA data show pollution down about 22% and an 11% drop in vehicles (71,500 fewer per day, 23.7M fewer annually) in the tolled zone.
  • MTA Revenue: The authority is likely to exceed its $500M net revenue goal with $548.3M through December and plans to issue congestion-pricing bonds to finance $15B of infrastructure work.
  • Funding Uncertainty: A legal challenge rooted in actions from the Trump administration threatens the MTA’s planned borrowing against congestion pricing revenue next year.
  • Visitor Trends: Despite the toll, the area south of 60th Street drew 3.4% more visitors than in 2024 versus a 1.4% Manhattan-wide rise.
  • Retail Vacancies: Midtown and downtown storefront vacancy dipped to 15.5% in Q3, 0.9 percentage point lower than the same period in 2024 and better than Manhattan overall.
  • Sales Tax: January through November sales-tax collections reached $9.9B, marking a 6.3% year-over-year increase and outpacing neighboring counties.

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Traffic enters the Congestion Relief Zone from the Ed Koch Queensboro Bridge in New York.

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By Michelle Kaske and Aaron Gordon

December 22, 2025 at 12:00 PM GMT+1

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Takeaways by Bloomberg AI

  • Congestion pricing is working as planned, with a significant drop in pollution and traffic declining by 11% in the tolled zone.
  • The Metropolitan Transportation Authority is poised to beat its target of generating $500 million of revenue from the program after expenses.
  • Despite initial concerns, the business impact in the district doesn't appear to be as onerous as some had feared, with a 3.4% increase in visitors and a 6.3% boost in sales-tax revenue.

Nearly a year ago, New York City embarked on a controversial program to toll drivers entering some of Manhattan’s busiest streets. The goal of the congestion pricing plan, the first of its kind in the US, was to improve air quality and raise $15 billion to upgrade the city’s extensive — and aging — transit system, all while relieving traffic in a routinely clogged part of town.

Critics of the initiative warned that imposing a $9 fee on most drivers would dampen economic activity in an area that was still trying to rebound from the Covid-19 pandemic, while placing an outsized burden on small businesses and working families. Opponents ranged from New Jersey Governor Phil Murphy, a Democrat, to Republican President Donald Trump, and it narrowly survived years of political bickering before finally become a reality on Jan. 5.

E-ZPass readers and license plate-scanning cameras over Second Avenue in Manhattan.Photographer: Michael Nagle/Bloomberg

Despite all that, congestion pricing by a number of measures is working as planned, a reality that may turn New York’s experiment into a blueprint for other US urban centers. Early indicators point to a significant drop in pollution in parts of Manhattan, according to a Cornell University study, with traffic declining by 11% in the tolled zone. The Metropolitan Transportation Authority, which implemented the new toll, is poised to beat its target this year of generating $500 million of revenue from the program after expenses. And the business impact in the district, which runs from 60th street to the southern tip of Manhattan, doesn’t appear to be as onerous as some had feared.

“I undoubtably see it as a success, in the reduction of traffic, the improvement of public safety and air quality and the funding of public transportation needs,” said Sarah Kaufman, director of New York University’s Rudin Center for Transportation.

Challenges remain. The MTA’s plans to borrow against congestion pricing revenue as soon as next year are in limbo as the program faces a major legal hurdleBloomberg Terminal stemming from the Trump administration. And yet based on results, congestion pricing is doing its job. These five charts show how:

Congestion is down. The toll immediately created a financial disincentive to drive south of 60th Street, and an average of 71,500 fewer vehicles entered the area each day from January through November. That’s an 11% reduction from 2024, according to the MTA. A total of nearly 23.7 million fewer vehicles have entered the area in the first eleven months of this year, the MTA said. That helped the authority’s buses pick up the pace — a little bit— in and around the central business district, making mass transit a more appealing option when every minute counts.

Revenue is up. The MTA’s goal was to collect $500 million of net revenue in 2025 from the new toll — or roughly $42 million a month, on average — and the agency is poised to surpass that target with an anticipated $548.3 million generated through December, according to MTA documents. The transit agency is planning to sell its first-ever congestion-pricing bonds in 2026, secured by the new toll revenue. Over time the MTA will issue $15 billion of such debt to help modernize train signals, add elevators to subway stations and extend the Second Avenue subway to Harlem.

It’s busier. A major concern with implementing a congestion pricing toll was that fewer people would come into the area for shopping, appointments, entertainment and dining. But not only did people still seek out neighborhoods south of 60th, that area saw a 3.4% increase in visitors from 2024, a bigger boost than the 1.4% gain across all of Manhattan.

Filling up: The higher storefront rents in Midtown and downtown neighborhoods tend to keep vacancy rates for those areas above the rest of the city. Still, the 15.5% vacancy rate in the third quarter of this year is 0.9 percentage point less than the same period in 2024, a bigger decline than all of Manhattan and better than the city’s flat performance as a whole.

Business is good. Even with the toll, residents, visitors and commuters were steady spenders in the city, which pulled in $9.9 billion of sales-tax revenue from January through November, a 6.3% boost compared with the same period in 2024. New York City as a whole performed better than its neighboring counties, which saw smaller increases in sales-tax collections.

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Selling F-35s to Turkey Could Lead to War - WSJ

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  • Projection accusation: Erdogan’s criticism of Israel mirrors his own Ottoman revivalism, denial of Armenian genocide, and transformation of Hagia Sophia amid international protests.
  • Regional alliances: Turkey now sides with destabilizing actors, reportedly aiding Pakistan, building Sri Lankan bases, and sheltering Hamas operatives.
  • Hamas support signal: After Israel killed Hamas leader Ismail Haniyeh, the Turkish Embassy in Tel Aviv lowered its flag to half-staff, demonstrating ongoing backing.
  • Opposition to Gaza deployment: Israel, Saudi Arabia, and the UAE all privately oppose incorporating Turkish troops into a Gaza multinational force due to fears of further Hamas preservation.
  • F-35 sale concern: U.S. talks on selling F-35 jets to Turkey are advancing, with a reported 40% approval chance, raising questions about Ankara’s true objectives.
  • Threat to Israel: Turkish rhetoric and national-security documents now list Israel as an existential threat, fueling fears that advanced jets would be aimed at the Jewish state.
  • Qualitative edge risk: Selling F-35s to Turkey could erode the Israel Defense Forces’ military edge, upset regional balance, and enable potential future dogfights between U.S.-supplied aircraft.
  • Historical warning: Citing Bernard Lewis, the author warns against empowering an Islamist Turkey that may surpass Iran as the region’s foremost threat and emphasizes keeping the countries separate.


By

Amit Segal

Dec. 24, 2025 5:54 pm ET

147


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image

Turkey's President Recep Tayyip Erdogan in Johannesburg, South Africa, Nov. 23. Jerome Delay/Associated Press

Turkey embodies everything it accuses Israel of being. Psychologists call it “projection”: When President Recep Tayyip Erdoğan accuses Israel of encroaching on its neighbors’ territory in an attempt to establish “Greater Israel,” he’s mirroring his own desire to revive the Ottoman Empire, which once ruled those same regions. When he claims that Israel has “set its sights on” Turkey, he ignores his own prayers to Allah asking for Israel’s destruction. While claiming that Israel is committing genocide against the Palestinians, he denies the genocide his country committed against the Armenians. When he accuses Israel of attempting to turn the Al Aqsa Mosque in Jerusalem into a Jewish temple, he ignores that he turned the Hagia Sophia in Istanbul from a church into a mosque over international protests.

Turkey was once the “Sick Man of Europe.” Now, like Qatar, it’s a dangerous Muslim brother of the Middle East. It stands by many bad actors in the region, supports terrorists and fuels instability. It allegedly has aided Pakistan against India, is reportedly building military bases in Sri Lanka, and, worst of all, hosts and protects Hamas members. When Israel last year killed Hamas leader Ismail Haniyeh, one of the planners of the Oct. 7 massacre, the Turkish Embassy in Tel Aviv lowered its flag to half-staff.

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Israel opposes the integration of Turkish soldiers into the multinational force in the Gaza Strip—and it isn’t alone. Behind closed doors, the Saudis and Emiratis have also voiced strong reservations over Turkish involvement in Gaza. If Turkey is trying to preserve and nurture Hamas in Istanbul, it’s safe to assume it would do the same in Gaza.

Nothing good would come of allowing Turkish power in the region to increase. The U.S. ambassador to Turkey earlier this month tweeted that recent conversations about Washington’s potentially selling F-35 fighter jets to Ankara have been “fruitful.” This is deeply concerning. A senior Israeli official told me on Dec. 12 that the chance of the sale’s approval was around 40%, much higher than he thought a few weeks earlier.

Why would Turkey, already a global military power, need such an advanced fighter jet? The U.S. has at times considered sales of identical jets to the United Arab Emirates, and it recently signaled that it would try to sell F-35s to Saudi Arabia. Although Israel expressed concerns about such sales, it’s clear that the Saudis would use these aircraft to defend against Iranian aggression, not to practice attacking Tel Aviv. By contrast, Mr. Erdoğan preaches the destruction of “Zionist Israel.”

These fighter jets no doubt are intended for a future war with Israel. Reports indicate that Mr. Erdoğan’s government this year added the Jewish state to the Turkish “Red Book,” a core national-security document, as an existential threat to the country. Turkey did so under the false pretext that Israel seeks to conquer Anatolia.

More than one-third of Turks view Israel as the greatest threat to their country, with the U.S. in second place. While Mr. Erdoğan cozies up to President Trump to get the fighter jets he wants, his supporters see the U.S. and Israel as enemies.

Selling the jets to Turkey would give the U.S. a short-term profit at the cost of jeopardizing national security. It would unsettle the delicate balance in the region and diminish or even wipe out the Israel Defense Forces’ qualitative military edge, which the U.S. is committed to maintaining through congressional action. Michael Doran, a Middle East expert at the Hudson Institute, has suggested that if the U.S. wishes to keep the region calm, it must separate Israel and Turkey as much as possible. So why enable a future scenario in which F-35 jets conduct dogfights against each other?

The late historian Bernard Lewis said in 2011 that the day would come when Iran would become like Turkey and Turkey would become like Iran—the ayatollah regime would be replaced by a secular democracy, while the secular republic of Turkey would turn into a threatening Islamic empire. In June, American-made Israeli jets destroyed outdated Iranian F-14s. It would be a mistake to equip an increasingly aggressive and Islamist Turkey—which might in time supplant Iran as the most threatening country in the region—with far more advanced American weapons.

Mr. Segal is chief political commentator on Israel’s Channel 12 News and author of “A Call at 4 AM: Thirteen Prime Ministers and the Crucial Decisions that Shaped Israeli Politics.”

Review & Outlook: European leaders including NATO Secretary General Mark Rutte, German Chancellor Friedrich Merz and the U.K.’s Chief of Defense Staff Richard Knighton are urging voters to make sacrifices to guarantee national security.

Copyright ©2025 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

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Inventing a Nonexistent Famine Should Be a Credibility Killer – Commentary Magazine

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  • IPC reversal: The organization now reports Gaza’s situation is much improved from earlier famine predictions.
  • Policy exclusion: The author urges barring IPC claims from future policy discussions to limit false narratives fueling anti-Semitism.
  • Alternative data: The Times of Israel cites the Global Nutrition Cluster showing malnutrition stayed 23% below famine levels even during peak insecurity.
  • Data omission: IPC had access to and partially used GNC data but withheld the consolidated figures that show malnutrition peaked in July-August before improving.
  • Impact of false claims: The alleged famine narrative convinced democratic allies to withhold supplies from Israel, supposedly prolonging the war and costing lives.
  • Violence linkage: The author connects the “Israel is starving babies” story to a global surge in violence against Jews and contends halting the narrative would shorten the war and weaken the Global Intifada.
  • Legitimacy denial: Those spreading the narrative should be kept out of policymaking, although they remain free to post on social media.
  • AP report critique: The Associated Press noted famine was averted but conditions remain critical; the author claims Hamas tried to cause famine, Israel delivered aid, NGOs lied about the situation, and politicians should stop trusting IPC-like sources.

Those looking for specific actions that can be taken to blunt the spread of escalating anti-Semitism got one this week thanks to a prominent famine monitor’s about-face on Gaza. According to the IPC, Gaza is miraculously in much better shape than the organization’s researchers claimed it would be earlier this year.

The IPC’s big fat “never mind” is a good reminder that political leaders presiding over a wave of deadly Jew-hatred, and who are at a loss for how to respond, can start by simply preventing the spread of the kind of intentional, explosive blood libels that feed—and have always fed—mob violence against Jews. That means excluding the IPC’s claims from all policy discussion in the future.

After all, more reliable data sources are available, as the Times of Israel points out. One such source is the Global Nutrition Cluster, “which has found that malnutrition rates never crossed famine levels even in July and August, and actually remained 23 percent under that level even at the peak of food insecurity.”

The IPC, meanwhile, has access to the same data and even uses some GNC data in its Gaza reports “but failed to show the consolidated, weighted data used by that organization.” According to the full data the IPC hid, “malnutrition peaked in July and August, and then steadily improved in September, October and November.”

It’s obviously great news that there was no famine in Gaza. It is terrible news that the organizations responsible for informing the world of such conditions knew the whole time that there was no famine and manipulated data in order to spread false accusations against Israel. The “famine” narrative materially affected the war by convincing supposed members of the democratic alliance to withhold supplies from Israel and force Israel to resupply Hamas, thereby prolonging the war and costing additional Israeli and Palestinian lives. The wider “child killer” narrative, meanwhile, has been part of a global campaign of ever-escalating violence against Jews around the world.

If the objectively false “Israel is deliberately starving babies” narrative never takes hold, the war ends sooner and the Global Intifada is starved of some of its oxygen. It’s a no-brainer, then, that anyone who contributed to the spread of that narrative should be considered outside the bounds of respectable opinion. They can be free to post deranged material to social media just like anybody else, but they should be given no legitimacy by governments and academics and the media.

That last one might be too much to hope for, of course. The Associated Press “report” on the IPC’s acknowledgement of improved conditions in Gaza begins this way: “The spread of famine has been averted in the Gaza Strip, but the situation remains critical with the entire Palestinian territory still facing starvation, the world’s leading authority on food crises said Friday.”

Let’s just be clear: “famine has been averted” is thankfully true of most places in the world today. And if famine was averted, why the passive phrasing? Doesn’t that mean someone was getting food to Gazans even while their own government was hoarding it from them? And wouldn’t that someone be… the State of Israel?

Yes, it would. So here’s what happened: Hamas tried to bring a famine upon the people of Gaza, and Israel (at great risk) made sure to deliver enough food and supplies to stop that from happening even while Gaza’s armed forces remained at war with Israel. In their disappointment that there was no famine, Hamas’s allies in the NGO world pretended there was famine anyway, so that they could also lie about Israel’s efforts to supply Gaza. And a major global news wire rewarded them by telling readers they are the “world’s leading authority on food crises” despite the fact that the lesson of the article is that the IPC cannot be trusted.

The very least politicians can do is ensure that untrustworthy sources have no role in policymaking ever again.

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Los Angeles Wants to Rebuild. Red Tape Is Still Holding It Back.

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  • Fire aftermath: January Palisades and Eaton fires destroyed over 16,000 structures, prompting executives to promise expedited rebuilding through CEQA/Coastal Act waivers and 30-day permit goals.
  • July progress data: By mid-December, only 14% of Palisades homes and 16% of unincorporated Altadena homes had rebuilding permits, with most lots still vacant despite cleared landscapes.
  • Permit delays: Average rebuilding permit processing far exceeds 30-day target, with November’s 61 Palisades permits taking 93 days and residents describing the process as prolonged and adversarial.
  • Milestone confusion: City touted a “first completed rebuild” in Palisades that was actually a pre-fire developer model home, while the true first rebuild—a County-approved Altadena ADU—arrived in November.
  • Regulatory hurdles: Homeowners face a maze of agencies, conflicting guidance, and shifting rules, with inspectors offering contradictory directions and forcing repeated resubmissions.
  • Leadership gaps: Chief recovery officer Steve Soboroff departed months after appointment, leaving the coordinating role unfilled amid ongoing recovery delays.
  • Cost relief stalls: Fee suspensions remain temporary as City Council delays permanent waivers, homeowners await clarity on billing, and Mayor Bass withdrew support for a Measure ULA exemption; federal assistance sought.
  • Policy constraints: Newsom exempted wildfire rebuilds from green mandates but also approved an SB 9 exemption that blocks duplex/lot-split options, prompting a YIMBY Law lawsuit and limiting income-generating reconstruction options.

[

](https://substackcdn.com/image/fetch/$s_!tMVJ!,f_auto,q_auto:good,fl_progressive:steep/https%3A%2F%2Fsubstack-post-media.s3.amazonaws.com%2Fpublic%2Fimages%2F2fde9f39-d0dd-455e-9cdc-b0fcd959b7e5_5000x3333.jpeg)

Courtesy Drew A. Kelley/MediaNews Group/Long Beach Press-Telegram/Getty.

When the Palisades and Eaton fires tore through the Los Angeles area last January—destroying more than 16,000 structures and killing 31 people in what became the most destructive blazes in the city’s history—officials were quick to make bold promises. Governor Gavin Newsom signed executive orders suspending review requirements under the California Environmental Quality Act and the Coastal Act. Mayor Karen Bass pledged to fast-track rebuilding, setting a 30-day target for permit reviews and moving to waive permit fees for fire victims. The message was clear: red tape would not stand in the way of rebuilding.

One year later, that optimism has faded. As of mid-December, Los Angeles has issued rebuilding permits for just 14 percent of homes destroyed in the Palisades—and that counts only permits issued, not homes actually rebuilt. In unincorporated areas of Los Angeles County, where the Eaton Fire burned near Altadena, that figure is only slightly higher, at 16 percent. The vast majority of residents have either not begun the permitting process or remain mired in its early stages. Block after block of empty lots extend through Pacific Palisades and Altadena. The landscape has been cleared, but construction has barely begun.

Mayor Bass’s 30-day review pledge has not been borne out in practice. According to the city’s own data, average permit processing times have consistently exceeded that threshold. In November, just 61 rebuild permits were issued for Palisades, with an average processing time of 93 days—more than triple the promised timeline. “It feels endless,” one resident told the Guardian, describing months spent navigating a permitting process in which every step has become “a fight.”

City Hall has nonetheless celebrated symbolic milestones. Last month, Bass issued a press release touting what she called the first completed rebuild in the Palisades, a “major milestone.” Residents quickly pointed out that the structure was not, in fact, a family home rebuilt after the fire, but a developer’s “showcase” model home. The building was permitted for demolition and reconstruction before the fire even began.

The first true post-fire residential completion came instead from Altadena: an accessory dwelling unit approved by Los Angeles County in November. Both milestones arrived more than ten months after the fires, lagging behind the recovery timelines of several recent California wildfires.

What explains L.A.’s sluggish pace? The obstacles are both structural and self-inflicted. Despite executive orders meant to streamline rebuilding, homeowners continue to describe a maze of agencies, conflicting requirements, and shifting rules. One 78-year-old architect who volunteered to design ten homes in the burn area told Bloomberg that a rotating cast of inspectors offered contradictory guidance, forcing repeated and costly resubmissions. “The building department’s answers change every day,” he said.

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The first “completed rebuild” in Pacific Palisades—a developer’s model home—was permitted before the fire even started (source: Google Maps)

Leadership churn has compounded the problem. In the immediate aftermath of the Palisades fire, Bass appointed Los Angeles notable Steve Soboroff as chief recovery officer to coordinate rebuilding efforts. But Soboroff departed just a few months later amid internal turmoil, and the position has yet to be permanently refilled.

As the Los Angeles Times recently documented, the recovery effort has also suffered from a series of false starts and delays. “Since the Jan. 7 fire destroyed thousands of homes,” the Times’s David Zahniser wrote last week, “Bass has been announcing recovery strategies with great fanfare, only for them to get bogged down in the details or abandoned altogether.”

Even the cost-cutting measures touted early on have stalled. In April, Bass announced that rebuilding permit and plan-check fees would be suspended, potentially saving homeowners tens of thousands of dollars. But her executive order merely suspended fee collection pending a city council vote to formally waive the fees.

Nearly a year later, the council has yet to adopt a permanent waiver. It has repeatedly delayed a vote as members argue over the fiscal impact. Residents face continued uncertainty about whether—or how much—they will ultimately be billed.

The same pattern has played out with Measure ULA, the city’s so-called “mansion tax,” which imposes steep transfer taxes on high-value property sales. Bass initially backed legislation to exempt fire victims from the tax for five years, easing sales for homeowners unable or unwilling to rebuild. But she abruptly withdrew her support hours before the bill’s first scheduled vote, leaving the tax fully in place.

Newsom, for his part, has exempted fire rebuilds from certain green-building mandates, including the state’s rooftop solar requirements, which can add tens of thousands of dollars to the cost of a home. He has also allowed homes to be rebuilt without conforming to new building code regulations set to take effect next year. These are sensible accommodations, but they underscore how California’s web of mandates has made even basic rebuilding a regulatory minefield.

Then there’s the case of SB 9, the state law that allows homeowners to build duplexes or split their lots in single-family neighborhoods. In July, Newsom signed an executive order allowing Los Angeles to exempt wildfire-affected areas from the law, enabling local governments to block denser development in neighborhoods like Pacific Palisades. Mayor Bass quickly exercised that authority.

The move appeased some residents concerned that new construction would destroy their neighborhood’s character. But the policy will make it harder, not easier, for some families to rebuild. With construction costs running $500 to $600 per square foot—meaning a modest 2,000-square-foot home could cost $1.2 million—some homeowners could offset rebuilding costs by splitting their lots or building rental units to generate income. The pro-housing group YIMBY Law has since sued Newsom over the order, arguing the exemption “raises the barrier of who gets to come back at all.”

A year after the worst fires in Los Angeles history, thousands of families remain displaced. Mortgage forbearance periods are expiring. Infrastructure repairs continue to lag. Newsom has demanded $34 billion in federal wildfire aid, even as he wages public feuds with President Trump. Yet no infusion of federal dollars can fix a system designed to move slowly.

Despite pledges to the contrary, decades of regulatory accumulation cannot be suspended by executive fiat. The emergency orders meant to speed recovery have given way to the same bureaucratic inertia that plagues California governance in normal times. The same regulatory machinery that helped create the state’s housing crisis is now ensuring that its wildfire recovery remains equally protracted.

For the residents of Pacific Palisades and Altadena, the road home remains long indeed.

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bogorad
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Nvidia Licenses Groq’s AI Technology as Demand for Cutting-Edge Chips Grows - WSJ

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  • License deal: Nvidia struck a nonexclusive agreement with Groq to license its AI-inference technology as demand for advanced chips grows.
  • Leadership transition: Groq CEO Jonathan Ross, its president and some staff are joining Nvidia as part of the pact.
  • Inference chips: Groq’s language processing unit chips emphasize embedded memory for faster deployment, lower energy use and inference-focused workloads.
  • Market demand: Rising inference needs have spurred startups to redesign hardware for efficiency and energy reduction.
  • Comparable agreements: Recent similar moves include Meta’s investment in Scale AI, Alphabet’s hiring from Character.AI and Microsoft’s deal with Inflection AI.
  • Valuation and production: Groq was valued at $6.9 billion in a $750 million raise featuring BlackRock, Neuberger Berman, Cisco and Samsung, and it designs chips in North America with partners like Samsung.
  • GroqCloud continuity: Ross said GroqCloud will remain independent while Simon Edwards ascends to CEO and Ross helps integrate the licensed technology, drawing on his TPU experience under Yann LeCun at Google.
  • Nvidia positioning: Nvidia shares are up over 35% year-to-date, reflecting its dominant AI chip status even as competitors like Google, Amazon and some major customers develop in-house solutions.

Nvidia CEO Jensen Huang looking on during the US-Saudi Investment Forum.

Nvidia founder and CEO Jensen Huang Brendan Smialowski/AFP/Getty Images

Nvidia NVDA -0.32%decrease; red down pointing triangle has forged a licensing deal with chip startup Groq for its AI-inference technology, the companies said Wednesday, a sign of growing demand for cutting-edge AI chips.

The nonexclusive deal will result in Groq chief executive and founder Jonathan Ross joining Nvidia, along with its president and some of the startup’s staff. The company, founded in 2016, makes chips and software to run artificial-intelligence models.

Groq’s “language processing unit” chips are built for inference, the everyday process that occurs when consumers or businesses ask trained AI models to provide answers, make predictions or draw conclusions on new data. Ross has said that the company’s design, with embedded memory, means its chips can be produced and deployed faster and use less power than graphics-processing units, which typically consume a lot of energy and are more necessary for training models.

Demand for inference is on the rise and a group of startups including Groq have been working to redesign hardware that addresses that need while better limiting energy consumption.

The deal follows a string of recent AI licensing agreements. Meta Platforms invested $14 billion in Scale AI, a transaction that led the startup’s CEO to join the social media giant to help lead its AI efforts. Last year, Alphabet’s Google agreed to hire top executives from Character.AI while licensing the company’s technology. And Microsoft struck such a deal with startup Inflection AI.

Groq was last valued at $6.9 billion in a $750 million September raise that included money managers BlackRock and Neuberger Berman as well as Cisco and Samsung. The company says its chips are designed, fabricated and assembled in North America using partners including Samsung.

Close up of the GroqNode product by AI chip startup Groq.

Groq, founded in 2016, makes chips and software to run artificial-intelligence models. groq Inc./Reuters

Ross said on LinkedIn on Wednesday that he was joining Nvidia to help integrate the licensed technology and that the company’s GroqCloud, a service provider which sells its AI processing to software developers in lieu of chips or servers, would continue to operate independently. Groq’s finance chief Simon Edwards will become its new CEO.

Ross, who previously studied under AI pioneer Yann LeCun, previously worked at Google, where he started developing the Google processors that would become known as tensor processing units, or TPUs.

Nvidia shares, which are up more than 35% year to date, were flat in aftermarket trading.

Nvidia has long been the dominant seller of advanced computer chips that power AI, becoming the most valuable company in the world. It has also increased the cadence of its advanced AI chip releases.

But it is increasingly contending with new entrants including Google and Amazon.com, and some of Nvidia’s big customers such as OpenAI and Meta Platforms are starting to design their own custom chips.

Write to Kate Clark at kate.clark@wsj.com

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bogorad
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