Please ensure Javascript is enabled for purposes of website accessibility

US consumer prices increase less than expected in November

Summary

  • U.S. consumer prices rose 2.7% year over year in November, below forecasts
  • Core CPI slowed to 2.6%, signaling easing inflation pressures
  • disrupted data collection, adding uncertainty
  • Markets rallied as investors boosted odds of a January Fed rate cut

NEW YORK, Dec 18 (Reuters) – U.S. consumer prices rose less than expected in the year to November, and expectations for a January rate cut from the inched up slightly as the report was impacted by the extended government shutdown.

The Consumer Price Index rose 2.7% year-on-year in November, the Department’s Bureau of Labor Statistics said on Thursday. Economists polled by Reuters had forecast the CPI advancing 3.1%.

The BLS did not publish month-to-month CPI changes after the 43-day shutdown of the government prevented the collection of October data. The October CPI release was canceled because the price data could not be collected retroactively.

Excluding the volatile food and energy components, the so-called core CPI increased 2.6% after rising 3.0% in September.

MARKET REACTION:

STOCKS: S&P E-minis extended gains and were last up 54.75 points, or 0.8%

BONDS: Treasury yields fell, with the yield on the benchmark U.S. 10-year note down 2.2 basis points to 4.13%

FOREX: The dollar index wakened and was last down 0.12% to 98.25

COMMENTS:

BRIAN JACOBSEN, CHIEF ECONOMIST, ANNEX WEALTH MANAGEMENT, MENOMONEE FALLS, WISCONSIN:

“Inflation was quite a bit cooler than expected in November. Shelter inflation, the biggest component of CPI, simmered down nicely. Some people will dismiss this report as being more unreliable than usual, but ignore it at your own risk. Other indicators like rent costs and used car prices are consistent with the narrative that the old drivers of inflation aren’t the sources of current inflation.

“The current sources of inflation are very visible, but not a large component of the consumer basket. Commodities, excluding food and energy, make up less than 20% of the CPI basket. Goods price deflation turned to inflation, but even that inflation hasn’t been as bad as feared. The Fed could look at the increase in the rate and the tame inflation reading as a reason to cut again. They’ll get some confirming or disconfirming evidence with the next releases before their January meeting.”

PETER CARDILLO, CHIEF MARKET ECONOMIST, SPARTAN CAPITAL SECURITIES, NEW YORK:

“These are good numbers, and basically the core rate moving to 2.6% on a year-over-year is really good news, and we saw the top line inflation year-over-year down to 2.7%. So this is good news for the Fed, good news for the markets, and this should begin to perhaps indicate the Fed is likely to be more generous going into the new year. In other words, these numbers, if they stick, will pave the way for not one, but possibly two, sometime in the first quarter of 2026.”

JAN NEVRUZI, US RATES STRATEGIST, TD SECURITIES, NEW YORK;

“It certainly was a lot softer than pretty much any forecast that I’ve seen, including ours.

“If you think of the two camps within the Fed that are looking at inflation versus labor markets, and you have one side that is saying, well, inflation is not really a problem anymore, I’m a lot more concerned about the labor market, and the other more hawkish side that is saying that inflation is still a problem that we should be thinking very carefully about – I’m sure the latter camp will flag that there are some data collection issues and things like that, but the burden of proof falls on seeing further data that shows that that’s not the case.

“What we have in front of us is much softer inflation. We definitely take it with a grain of salt, but the generated data is the data and until something else comes in, like the December data later on to show the alternative, on net it is a pretty dovish release.

“It’s hard to argue that this is anything but supportive of the view that inflation is going away. And again, I completely agree that compared to a normal month this is certainly a less straightforward release to take at face value, but the data is the data.”

KAY HAIGH, GLOBAL CO-HEAD FIXED INCOME AND LIQUIDITY SOLUTIONS, GOLDMAN SACHS ASSET MANAGEMENT, NEW YORK (via email):

“Today’s low inflation reading won’t move the needle for the Fed given how noisy the data is. The canceling of the October report makes month-on-month comparisons impossible, for example, while the truncated information-gathering process given the shutdown could have caused systematic biases in the data. The Fed will instead focus on the December CPI released in mid-January, just two weeks before its next meeting, as a more accurate bellwether for inflation.”

SEEMA SHAH, CHIEF GLOBAL STRATEGIST, PRINCIPAL GLOBAL INVESTORS, LONDON (via email):

“November’s inflation undershoot has armed Fed doves with strong ammunition for a January rate cut. It’s just one month of data, and distortions can’t be ruled out, but the sharp drop in annual inflation leaves the Fed with little excuse not to respond to rising unemployment. There’s more data to come before the January meeting, yet this week’s numbers tilt the balance firmly towards the doves. We still expect two cuts in 2026, but today’s CPI print raises the odds that they’ll land in the first half of the year rather than the second.”

JAMIE COX MANAGING PARTNER, HARRIS FINANCIAL GROUP, RICHMOND, VIRGINIA (via email):

“The inflation bump from is behind us, so the path is now clear for the Fed to lower rates again in January. There is no longer a case for restrictive monetary policy.”

CHRIS ZACCARELLI, CHIEF INVESTMENT OFFICER, NORTHLIGHT ASSET MANAGEMENT, CHARLOTTE, NC (via email):

“It always sounds smarter to predict trouble ahead, but this morning’s inflation data was much better than expected. Of course, it’s only one month’s data points and they will likely fluctuate in the upcoming months, but the main concern of Fed officials who are reluctant to keep cutting is that inflation is persistently high and won’t come down if they keep lowering , and at this point that doesn’t look like it’s the case.

“Given that inflation is significantly lower month-over-month there is clearly room to keep cutting rates in order to support the labor market and if the doves win out then we are likely to see stock prices supported – and move higher – as the Fed continues to lower interest rates while the continues to grow.

“While next year will undoubtedly bring new challenges, heading into the end of the year there should be room for the market to move higher as corporate profits are increasing, the GDP is growing and inflation, for now, remains in check.”

(Compiled by the Global Finance & Markets Breaking News team)

 

GDIT wins $285M state cybersecurity contract

General Dynamics Information Technology, a business unit of -based Fortune 100 aerospace and defense contractor , announced Tuesday that it has been awarded a $285 million contract to strengthen the Virginia government’s infrastructure.

The awarded GDIT the contract in October.

Under the contract, GDIT will provide cybersecurity services to the Virginia Information Technologies Agency (), which provides IT services for 67 state agencies. Contracted work will include vulnerability management, zero trust services and a 24/7 security operations center.

GDIT said it will use to automate security monitoring, integrate advanced cybersecurity tools and deliver enhanced threat detection capabilities. In addition, the company will also help VITA safeguard sensitive data against future quantum computing threats and strengthen encryption protocols.

“From public safety to education, Virginia’s ability to deliver essential services to millions of residents depends on a secure digital infrastructure,” said Scott Mack, GDIT’s vice president and general manager for state and local government, in a statement.

VITA Chief Information Security Officer Michael Watson said the contract will help the state better prepare for attacks driven by artificial intelligence.

“Cybersecurity is foundational to the commonwealth’s ability to deliver reliable, secure services to Virginians,” said Watson in a statement. “This partnership with GDIT marks a significant advancement in our efforts to modernize defenses against evolving threats.”

The contract has a one-year transition period, a five-year base period and three one-year option periods.

General Dynamics employs more than 110,000 people worldwide and reported $47.7 billion in revenue for 2024. It ranked No. 96 on the 2025 Fortune 1000. GDIT reported $8.75 billion in revenue in fiscal 2024 and has about 30,000 employees.

US House Republicans block move for quick vote on health subsidy extension

Summary

  • blocked a last-minute push to extend
  • Subsidies are set to expire Dec. 31, affecting about 24 million Americans
  • protested the vote being closed while members were still voting
  • CBO says GOP healthcare bill would cut coverage but reduce deficits

WASHINGTON, Dec 17 (Reuters) – An expanded U.S. federal healthcare subsidy that grew out of the pandemic looked all but certain to expire on December 31, as Republicans on Wednesday blocked a last-ditch effort by Democrats to maintain it.

By a vote of 204-203, the House voted to stop the last-minute move by Democrats, aided by four Republicans, to force quick votes on a three-year extension of the subsidy. Democrats loudly protested, accusing Republican leadership of gaveling an end to the vote prematurely while some members were still trying to vote.

“That’s outrageous,” Democratic Representative Jim McGovern of Massachusetts yelled at Republican leadership.

Some 24 million Americans who buy their through the ACA program, nicknamed Obamacare, could face sharply higher costs beginning on January 1 without action by .

It was unclear whether Democrats and a small band of cooperative Republicans had any additional maneuvers available to try again to force action on an extension before Congress leaves Washington at the end of this week. House Republican leadership was forging ahead with its own healthcare bill that was due for a vote on passage later on Wednesday.

With a narrow 220-213 majority, House Speaker Mike Johnson has had a challenging time keeping his caucus in line, and has repeatedly seen members use the maneuver Democrats were attempting, known as a “discharge petition” to try to bypass him.

Twenty-six House members had not yet voted – and some were actively trying to do so – when the House Republican leadership gaveled the vote closed on Wednesday. It is rare but not unprecedented for House leadership to cut a contested vote short.

The Senate, also controlled by ‘s Republicans, last week rejected dueling Republican and Democratic plans to address the subsidies.

SUBSIDIES CAUSE OF RECORD

Tensions are high over the expiring ACA subsidies, which were the cause of the record-breaking government shutdown earlier this fall.

After Wednesday’s vote, Republican leadership corralled the members on the House floor into animated conversations with finger-pointing. House Majority Leader Steve Scalise leaned over Representative Mike Lawler from New York. Johnson tugged on the coat sleeve of Representative Kevin Kiley, a California Republican, to get answers from him as he has been critical of his leadership’s approach to healthcare legislation.

Democratic Representative Rosa DeLauro of Connecticut said Democrats were trying to vote before the vote was closed.

“Listen, it’s playing games when people’s lives are at stake,” DeLauro said, “They jettisoned it.”

The House Republican bill aims to lower premiums for some people while reducing overall subsidies and raising premiums for others, starting January 2027. It would also expand access to association health plans, which allow small businesses, freelancers, and self-employed individuals to pool resources and purchase group health insurance at potentially lower costs.

The nonpartisan Congressional Budget Office on Tuesday said the legislation would decrease the number of people with health insurance by an average of 100,000 per year through 2035. Its money-saving provisions would reduce federal deficits by $35.6 billion, the CBO said.

(Reporting by Richard Cowan and Bo Erickson; editing by Scott Malone, Rod Nickel)

 

Virginia Tech receives $20M anonymous donation for athletics

Virginia Tech’s program announced this week that it has received a $20 million anonymous , the largest gift to athletics in the school’s history.

The donation follows the university’s September announcement of a budget plan that calls for investing $229 million in athletics, coming from operational and philanthropic sources. The university calls the $20 million “a major step” in its efforts for its “Invest to Win” strategy, which aims to make Athletics competitive in NCAA’s current Division I and Football Bowl Subdivision.

The university said the money will help the new head football coach, James Franklin, and all other athletic programs recruit top players.

“We are deeply grateful for this extraordinary and timely gift,” said Virginia Tech President Tim Sands in a statement. “Doing more with less, while a testament to the talent of our staff and student athletes, is no longer an option. Invest to Win is about winning championships.”

The university’s previous record athletics donation was an anonymous $15.2 million alumni gift made in 2017.

“The passion of Virginia Tech fans is unmatched and their continued generosity will help elevate our program,” Franklin, who joined Virginia Tech on Nov. 17, said in a statement. “There’s a clear sense of excitement from our fans about where we’re headed. This unprecedented level of support is critical and creates powerful momentum for everything we’re building.”

University officials say the school’s athletics help draw national attention to the university.

Some of Invest to Win’s objectives include fully funding nearly $20 million annually in student-athlete scholarships, investing in coaching staff, recruiting top players and soliciting potential donors to invest in scholarships, facility improvements and resources.

The university did not provide more specifics on how the money would be spent and whether there is a set time frame for expenditures.

According to the university’s website, supports more than 550 student athletes competing in 22 sports in the Atlantic Coast Conference.

Tariffs have cost U.S. households $1,200 each since Trump returned to the White House, Democrats say

WASHINGTON (AP) — Sweeping taxes on imports have cost the average American household nearly $1,200 since Donald Trump returned to the White House this year, according to calculations by on ‘ Joint Economic Committee.

Using Treasury Department numbers on revenue from and Goldman Sachs estimates of who ends up paying for them, the Democrats’ report Thursday found that American consumers’ share of the bill came to nearly $159 billion — or $1,198 per household — from February through November.

“This report shows that [Trump’s] tariffs have done nothing but drive prices even higher for families,” said Sen. Maggie Hassan of New Hampshire, the top Democrat on the economic committee. “At a time when both parties should be working together to lower costs, the president’s tax on American families is simply making things more expensive.”

In his second term, Trump has reversed decades of U.S. policy that favored free . He’s imposed double-digit tariffs on almost every country on earth. According to Yale University’s Budget Lab, the average U.S. tariff has shot up from 2.4% at the beginning of the year to 16.8%, the highest since 1935.

The president argues that the import taxes will protect U.S. industries from unfair foreign competition, bring factories to the United States and raise money for the Treasury.

“President Trump’s tariffs have actually secured trillions in investments to make and hire in America as well as historic trade deals that finally level the playing field for American workers and industries,” said White House spokesman Kush Desai. “Democrats spent decades complaining about lopsided trade deals undermining the American working class, and now they’re complaining about the one president who has done something about it.”

The taxes are paid by importers who typically attempt to pass along the higher costs to their customers.

In Virginia, the saw a decline in the dollar value of imported and exported goods in 2025 compared to 2024, according to ‘s State of the Commonwealth economic report released this week. However, the report notes that not all costs were passed along to customers this year, as the White House’s revisions and postponements of announced tariffs led to uncertainty. Still, the report forecasts that Virginia’s real GDP growth will have slowed to 1.5% in 2025 due to tariffs and cuts in federal spending and .

Democrats did well in elections last month in Virginia, New Jersey and elsewhere largely because voters blame Trump and the Republicans for the high cost of living, just as they’d blamed Trump’s predecessor, Democrat Joe Biden, for the same thing a year earlier.

Economist Kimberly Clausing of the UCLA School of Law and the Peterson Institute for International Economics, last week told a House subcommittee that Trump’s tariffs amount to “the largest tax increase on American consumers in a generation, lowering standards of living for all Americans.” Clausing, a Treasury Department tax official in the Biden administration, has calculated that Trump’s import taxes ”amount to an annual tax increase of about $1,700 for an average household.”

Virginia Business Deputy Editor Kate Andrews contributed to this article.

Fed’s Waller says he ‘absolutely’ would defend US central bank’s independence

Summary

  • Fed Gov. said he would “absolutely” defend
  • Waller is on the short list to succeed Chair next year
  • He said presidents and Fed leaders can communicate without compromising policy
  • Waller argued the Fed still has room to cut rates as inflation risks ease

NEW YORK, Dec 17 (Reuters) – Governor Christopher Waller, who is on the short list to succeed Fed Chair Jerome Powell next year, said on Wednesday he would “absolutely” defend the central bank’s independence if it were challenged by a U.S. president.

Waller, who is set to meet with about taking over from Powell when his term ends next May, noted that there are ways for the president and a Fed chief to interact and share their views without compromising the central bank’s work.

Trump “makes himself very clear on Truth Social” about what he wants out of monetary policy and “I don’t think there’s any confusion about it,” Waller said in response to a question during the Yale School of Management CEO Summit in New York.

But in terms of direct interactions between a Fed chief and the president, the times when they should interact directly are limited, Waller said. Noting that Fed leaders have appropriately coordinated with presidents in times of crisis, most of the time a closer relationship is not needed, Waller said.

“The Fed chair and the secretary of the Treasury have breakfast every two weeks,” Waller said, noting “that’s a normal chain of communication where information can be passed from the White House to the chair about what the administration’s needs are.”

“That’s a typical channel of communication. It’s well understood, and I don’t think there’s anything wrong with continuing with that channel,” Waller said.

Asked whether he’d defend the central bank’s independence from a president who questioned that status, Waller said the answer would be “absolutely.”

POWELL SUCCESSION RACE

Waller, a former director of research at the St. Louis Fed, became a Fed governor in 2020 after being selected to the job by Trump during his first term in the White House. Waller, White House economic adviser Kevin Hassett and former Fed Governor Kevin Warsh have been mentioned as the ones most likely to take over from Powell.

Trump has repeatedly attacked the Fed and Powell for not cutting as aggressively as he would like.

The Fed is independent as a matter of law, and a wide range of experts, as well as policymakers, believe central banks make policy better when they are free from political considerations. For example, the aggressively easy monetary policy advocated by Trump carries large inflation risks.

The president’s Fed chief selection process has raised questions about how independent any nominee would be. In a highly unusual move, Trump installed White House economic adviser Steven Miran as a Fed governor, allowing him to serve as a central bank policymaker while on leave from his other role.

Waller has been a steadfast supporter of cutting rates to help buoy a weakening job market. And while some observers thought his early shift toward dovish monetary policy was part of a potential bid to succeed Powell, he has stressed that his view was driven by the data and subsequently supported by the ‘s performance.

In his remarks on Wednesday, Waller said the Fed still has room to cut rates further because inflation risks are declining and job growth has weakened.

A poll shared at the Yale event showed that while corporate leaders strongly favored Waller as Powell’s successor, only about a third of them think Trump will pick the Fed governor, similar to the odds of it being Hassett or Warsh.

 

(Reporting by Michael S. Derby; Editing by Paul Simao)

 

Federal employment, trade declined in 2025 in Virginia

 

SUMMARY:

  • ‘s State of the Commonwealth economic report forecasts 4% in Virginia at end of 2025
  • Federal government has declined in Virginia this year, with further decreases expected with data from October and November
  • Dollar value in at has fallen in first two quarters of 2025 compared to same quarters in 2024.

Virginia saw some economic growth in 2025, but it was slow compared with 2024, and statewide unemployment is expected to rise in 2026, according to Old Dominion University’s State of the Commonwealth economic report released Tuesday.

Authored by Bob McNab, director of ODU’s Dragas Center for Economic Analysis and Policy, the 11th annual report predicts the state’s unemployment rate will hit 4% at the end of 2025. It will reflect the autumn departure of who took the “fork in the road” offered by world’s richest man Elon Musk and DOGE earlier this year.

While those employees received paychecks through the end of September, as of Oct. 1, most were no longer employed by the federal government, and some are out of work entirely, the report says, although national unemployment numbers were delayed by the October-November , so for now, these are conjectures.

However, it is clear that the number of Virginia residents working for the federal government has declined in 2025, from a peak of 196,700 people in December 2024 to 185,200 in August.

Federal employees, the report says, “represent ‘fiscal gold’ for Virginia. Federal civilian employees tend to be older, more educated and relatively more experienced than their private sector counterparts.” They’re also better paid on average, with a federal employee making approximately 1.6 times that of a private sector employee based on 2023 numbers.

This ratio is likely to increase to 2.0 in 2026, the report says — essentially requiring the state to come up with two private sector jobs for every federal government job lost in order to keep up the amount of compensation made in Virginia.

Meanwhile, ‘s tariffs have led to a decline in the dollar value of international trade through the Port of Virginia in 2025, although other events — including 2024’s temporary closure of the Port of Baltimore and the subsequent increase in imports through — make the decline appear more dramatic than in ordinary conditions. Trade decreased 12.6% between the first quarter of 2024 and the same quarter in 2025, and an 8.7% decline between the second quarter of 2024 and Q2 2025 at the Port of Virginia, according to the report.

However, the report notes, some exporters and importers did not pass along tariff costs to customers in the form of higher prices, primarily due to Trump’s “announcements, revisions and postponements,” which created uncertainty. “Since tariffs ‘cascade’ through the supply chain … it is likely that prices will rise. The open question is whether these price increases are transitory or structural,” the report concludes.

Overall, Virginia saw some growth in economic activity in 2025, but it was slower compared with 2024, and the civilian force and the number of people reporting that they are working in Virginia fell by 1.2% between January and August. One bit of good news was that the state reported $1.8 billion in surplus revenues over the past fiscal year — 6.1% in growth over fiscal 2024.

However, on the horizon is the impact of the federal “Big Beautiful Bill,” which the report says will “negatively impact funding for Medicaid, higher education and other functions across the commonwealth.”

McNab, chair of the Strome College of Business’ economic department, noted in a statement Tuesday that 2025 has been “a challenging year for many Virginians. Cuts to federal civilian employment and reductions in non-defense spending have rippled throughout the commonwealth of Virginia. Higher tariffs have negatively impacted the movement of goods through the Port of Virginia. Inflation remains elevated, and consumer sentiment remains near record lows.”

Google works to erode Nvidia’s software advantage with Meta’s help

Summary

  • is building “TorchTPU” to improve support on its
  • Initiative aims to lower barriers to adopting TPUs instead of GPUs
  • PyTorch compatibility is key to winning over enterprise AI developers
  • Google is working with Meta as it expands TPU sales beyond its own cloud

Dec 17 (Reuters) – Alphabet’s Google is working on a new initiative to make its chips better at running PyTorch, the world’s most widely used AI software framework, in a move aimed at weakening Nvidia’s longstanding dominance of the AI computing market, according to people familiar with the matter.

The effort is part of Google’s aggressive plan to make its a viable alternative to Nvidia’s market-leading GPUs. TPU sales have become a crucial growth engine of Google’s cloud revenue as it seeks to prove to investors that its AI investments are generating returns.

But hardware alone is not enough to spur adoption. The new initiative, known internally as “TorchTPU,” aims to remove a key barrier that has slowed adoption of TPU chips by making them fully compatible and developer-friendly for customers who have already built their tech infrastructure using PyTorch software, the sources said. Google is also considering open-sourcing parts of the software to speed uptake among customers, some of the people said.

Compared with earlier attempts to support PyTorch on TPUs, Google has devoted more organizational focus, resources and strategic importance to TorchTPU, as demand grows from companies that want to adopt the chips but view the software stack as a bottleneck, the sources said.

PyTorch, an open-source project heavily supported by Meta Platforms, is one of the most widely used tools for developers who make AI models. In Silicon Valley, very few developers write every line of code that chips from Nvidia, Advanced Micro Devices or Google will actually execute.

Instead, those developers rely on tools like PyTorch, which is a collection of pre-written code libraries and frameworks that automate many common tasks in developing AI software. Originally released in 2016, PyTorch’s history has been closely tied to Nvidia’s development of CUDA, the software that some Wall Street analysts regard as the company’s strongest shield against competitors.

Nvidia’s engineers have spent years ensuring that software developed with PyTorch runs as fast and efficiently as possible on its chips. Google, by contrast, has long had its internal armies of software developers use a different code framework called Jax, and its TPU chips use a tool called XLA to make that code run efficiently. Much of Google’s own AI software stack and performance optimization has been built around Jax, widening the gap between how Google uses its chips and how customers want to use them.

A spokesperson did not comment on the specifics of the project, but confirmed to Reuters that the move would provide customers with choice.

“We are seeing massive, accelerating demand for both our TPU and GPU infrastructure,” the spokesperson said. “Our focus is providing the flexibility and scale developers need, regardless of the hardware they choose to build on.”

TPU FOR CUSTOMERS

Alphabet had long reserved the lion’s share of its own chips, or TPUs, for in-house use only. That changed in 2022, when Google’s cloud computing unit successfully lobbied to oversee the group that sells TPUs. The move drastically increased Google Cloud’s allocation of TPUs and as customers’ interest in AI has grown, Google has sought to capitalize by ramping up production and sales of TPUs to external customers.

But the mismatch between the PyTorch frameworks used by most of the world’s AI developers and the Jax frameworks that Google’s chips are currently most finely tuned to run means that most developers cannot easily adopt Google’s chips and get them to perform as well as Nvidia’s without undertaking significant, extra engineering work. Such work takes time and money in the fast-paced AI race.

If successful, Google’s “TorchTPU” initiative could significantly reduce switching costs for companies that want alternatives to Nvidia’s GPUs. Nvidia’s dominance has been reinforced not only by its hardware but by its CUDA software ecosystem, which is deeply embedded in PyTorch and has become the default method by which companies train and run large AI models.

Enterprise customers have been telling Google that TPUs are harder to adopt for AI workloads because they historically required developers to switch to Jax, a machine-learning framework favored internally at Google, rather than PyTorch, which most AI developers already use, the sources said.

JOINT EFFORTS WITH META

To speed development, Google is working closely with Meta, the creator and steward of PyTorch, according to the sources. The two tech giants have been discussing deals for Meta to access more TPUs, a move first reported by The Information.

Early offerings for Meta were structured as Google-managed services, in which customers like Meta installed Google’s chips designed to run Google software and models, with Google providing operational support. Meta has a strategic interest in working on software that makes it easier to run TPUs, in a bid to lower inference costs and diversify its AI infrastructure away from Nvidia’s GPUs to gain negotiating power, the people said.

Meta declined to comment.

This year, Google has begun selling TPUs directly into customers’ data centers rather than limiting access to its own cloud. Amin Vahdat, a Google veteran, was named head of AI infrastructure this month, reporting directly to CEO Sundar Pichai.

Google needs that infrastructure both to run its own AI products, including the Gemini chatbot and AI-powered search, and to supply customers of Google Cloud, which sells access to TPUs to companies such as Anthropic.

 

(Reporting by Krystal Hu, Kenrick Cai and Stephen Nellis in San Francisco; Editing by Kenneth Li and Matthew Lewis)

 

Peraton executive returns to SAIC as chief growth officer

Reston-based Science Applications International Corp. () announced Tuesday that it has tapped former Peraton executive Ravi Dankanikote to be , effective immediately.

Dankanikote, who left SAIC in August to become Peraton’s chief growth officer, will succeed , who is remaining at SAIC as its chief technology officer, a position he has held since 2022. In September, under former CEO Toni Townes-Whitley, Ritchie was named chief growth officer. Townes-Whitley departed in October, after having served two years as the contractor’s CEO, and in mid-November, SAIC reorganized and consolidated five business groups into three.

In his new role, Dankanikote will lead the company’s enterprise growth strategy. He has more than 30 years of growth leadership experience in the government contracting space. SAIC praised him for having a proven track record of building organizations that focus on customer needs, a deep understanding of mission requirements, the ability to align people to accomplish company goals and a commitment to promoting modern solutions.

“By fusing cutting-edge commercial innovation with trusted delivery customers, we have a powerful opportunity to drive mission outcomes, accelerate modernization and deliver sustainable growth for all stakeholders,” Dankanikote said in a statement.

Dankanikote previously served as SAIC’s senior vice president for business development from 2021 until August, when he joined Peraton. He also spent 27 years at CACI serving in multiple senior business development and growth roles.

As chief growth officer, Dankanikote will report to SAIC’s interim CEO, Jim Reagan.

“Ravi doesn’t just know SAIC, he knows the industry,” Reagan said in a statement. “He is deeply attuned to industry trends and the transformation that is occurring right now in the market in terms of what customers want and how they want to purchase it. He is the right choice to lead our business development and growth strategy as SAIC implements our simplified organizational structure and sharpens our focus on key opportunities to provide even greater value to our customers, increase growth for our shareholders, and create a stronger company.”

SAIC has about 24,000 employees and reported annual revenue of $7.48 billion for fiscal 2025.

Hooker Furnishings closes $6.1M sale of two brands

Martinsville-based maker has completed the sale of its Pulaski Furniture and Samuel Lawrence Furniture case goods brands to Magnussen Home Furnishings for approximately $6.1 million, the company confirmed on Monday, marking what executives call a key step in its effort to streamline operations and improve profitability.

The transaction includes a customary post-closing adjustment, with 10% of the purchase price subject to a 210-day holdback for indemnification and final purchase price true-ups. The company announced the transaction in early December, and the estimated purchase price at the time was approximately $4.8 million.

As part of the deal, Magnussen will assume the lease for Home Meridian International’s High Point showroom, allowing Hooker to shed approximately $4.8 million in showroom lease liabilities and related expenses.

“Completing this transaction marks a significant milestone in our journey toward enhanced profitability, and we are pleased to complete the transaction at a higher price than initially estimated,” CEO Jeremy Hoff said in a statement. “We are moving ahead with positive momentum after delivering a modest improvement in sales and margins within Hooker Branded and Domestic Upholstery for the fiscal third quarter, and we are excited for the significant opportunity ahead with our Margaritaville licensed collection.”

Hoff added that the company plans to continue returning capital to shareholders through its newly announced share repurchase program while investing in its streamlined business.

Stump & Co. served as financial adviser to Hooker, while McGuireWoods acted as legal adviser in connection with the transaction.

The sale follows Hooker’s fiscal 2026 third quarter earnings report, in which the company reported a wider net loss driven largely by non-cash impairment charges and lower hospitality shipments, but in the report and follow-up investor call, executives cited improving margins in core segments, a significantly reduced cost structure and early retailer commitments for the Margaritaville licensed collection as signs the company is positioning itself for future growth.