Breaking News: Musk Unveiled US Government Layoff Plan and AI industry Reorganization

 

 

On Wednesday, November 20, Tesla CEO Musk and American entrepreneur Vivek Ramaswamy, who were appointed by Trump to lead the Department of Government Efficiency (DOGE), exposed the departmental work plan in an op-ed in the Wall Street Journal. In the article, the two men explained Trump's possible ways of reforming government spending to achieve cost reductions.

 

The article also details their plans. DOGE will be drafting thousands of regulations for reforms President-elect Trump can rescind. DOGE's regulations focus on three areas: deregulation, administrative reductions, and cost-savings to rationalize mass layoffs. Two men argued that the Supreme Court should reduce federal regulations that exceed federal authority. Such a reduction would also allow for proportional reductions in the government workforce.

 

 

Additionally, the two suggested requiring federal employees to work at the office five days a week rather than allowing for remote working. Musk also suggested cutting subsidies to organizations such as public broadcasting or Planned Parenthood to save $500 billion.

 

In response to Musk and Ramaswamy's aggressive reforms, Reuters reported that U.S. federal employees were seeking legal help to counter their initiatives. It is unclear which side the U.S. Congress will support. However, DOGE's sharp declines in spending and employment could challenge Congress's control of financial powers. Steve Lenkart, executive director of the National Federation of Federal Employees, said DOGE was fighting against congressional mandates and the Constitution.

 

Some analysts have argued that the DOGE only has an advisory capacity, meaning that its regulations will face many hurdles from the executive branch and Congress. However, Musk's close relationship with President-elect Trump might expand the scope of the department's authority.

　　

Musk's reforms are not only at the government level but also in the AI industry. The Wall Street Journal reported on Nov. 20 that Musk's artificial intelligence startup valued at $50 billion, xAI, informed investors that it raised $5 billion in its latest round of funding. These funds lifted xAI's total funding to $11 billion.

 

Moreover, Musk's lawsuit against the US-based Open Artificial Intelligence Research Center (OpenAI) escalated. Musk filed a new lawsuit, adding allegations that OpenAI tried to monopolize the AI market and naming Microsoft as a defendant.

 

OpenAI refuted the lawsuit, calling Musk's allegations baseless and emphasizing that the company's operations comply with market norms. Microsoft, OpenAI's partner in the lawsuit, has not yet responded.

 

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