It also helps that Tesla is a much smaller company than Volkswagen and Toyota, which in a good year produce more than 10 million vehicles each. “It’s just a smaller supply chain to begin with,” said Mr. Melsert, who is now chief executive of American Battery Technology Company, a recycling and mining firm.

recall more than 475,000 cars for two separate defects. One could cause the rearview camera to fail, and the other could cause the front hood to open unexpectedly. And federal regulators are investigating the safety of Tesla’s Autopilot system, which can accelerate, brake and steer a car on its own.

“Tesla will continue to grow,” said Stephen Beck, managing partner at cg42, a management consulting firm in New York. “But they are facing more competition than they ever have, and the competition is getting stronger.”

The carmaker’s fundamental advantage, which allowed it to sail through the chip crisis, will remain, however. Tesla builds nothing but electric vehicles and is unencumbered by habits and procedures that have been rendered obsolete by new technology. “Tesla started from a clean sheet of paper,” Mr. Amsrud said.

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Why Silicon Valley Can’t Escape Elizabeth Holmes

SAN JOSE, Calif. — In 2016, start-up founders sang, “Theranos doesn’t represent, we are better,” in a holiday video created by the venture capital firm First Round Capital.

Over the next few years, several columnists wrote that Silicon Valley shouldn’t be blamed for Theranos.

Last month, Keith Rabois, a venture capitalist, said on Twitter that articles connecting Theranos with Silicon Valley culture contained “more fabrication than anything ever uttered by Trump.”

The technorati in Silicon Valley and beyond have long tried to separate themselves from Theranos, the blood testing start-up in Palo Alto, Calif., that was exposed for lying about its abilities. But the fraud trial of the company’s founder, Elizabeth Holmes, has shown that just as Bernard Madoff was a creature of Wall Street and Enron represented the get-rich-quick excesses of the 1990s, Theranos and its leader were very much products of Silicon Valley.

a jury found the entrepreneur guilty of four of 11 counts of fraud, starkly underlined her participation in Silicon Valley’s culture.

Ms. Holmes, 37, used the mentorship and credibility of tech industry big shots like Larry Ellison, a co-founder of Oracle, and Don Lucas, a Silicon Valley venture capitalist, to raise money from others. She lived in Atherton, Calif., amid Silicon Valley’s elite and was welcomed into their circles.

She also used the start-up playbook of hype, exclusivity and a “fear of missing out” to win over later investors. She embodied start-up hustle culture by optimizing her life for the maximum amount of work. She dismissed the “haters” and anything that interfered with her vision of a better world. She parroted mission-driven technobabble. She even dressed like Steve Jobs.

No industry wants to be judged only by its worst actors. And many venture capitalists who heard Ms. Holmes’s impossibly lofty claims didn’t fall for them. But if anyone in Silicon Valley was suspicious of her proclamations, none spoke publicly about it until after things went south.

said in a hearing in May before the trial began.

At its best, Silicon Valley is optimistic. At its worst, it is so naïve it believes its own hogwash. Throughout her trial, Ms. Holmes’s lawyers argued she was simply a wide-eyed believer. Any statements that weren’t entirely truthful, they said, were about the future. It was what investors wanted to hear, they said.

“They weren’t interested in today or tomorrow or next month,” Ms. Holmes testified. “They were interested in what kind of change we could make.”

Soon after Theranos got started in 2003, Ms. Holmes used her vision of the future to win over investors and advisers like Mr. Ellison and Mr. Lucas. Mr. Lucas, who was chairman of Theranos’s board until 2013, was involved with more than 20 investment vehicles that backed Theranos. Those included his son’s venture firm, Lucas Venture Group; another vehicle, PEER Venture Partners; and trusts and foundations associated with members of his family.

Bad Blood,” a book by John Carreyrou, a former Wall Street Journal reporter.

Brian Grossman, an investor at the heath care-focused hedge fund PFM Health Sciences, learned about Theranos through Thomas Laffont, a co-founder of Coatue Management, a prominent investment fund with a San Francisco presence. In an email that was part of the court filings, Mr. Laffont gushed that Theranos had “one of the most impressive boards I’ve ever seen” and said Mr. Grossman’s firm should let him know “ASAP” if it was interested in an introduction.

Coatue did not respond to a request for comment and PFM Health Sciences declined to comment.

embraced by many in the tech industry. “This is what happens when you work to change things,” she said in a TV interview. “First they think you’re crazy, then they fight you, and then all of a sudden you change the world.”

In the years since Theranos collapsed, more tech start-ups have followed its strategy of looking outside the small network of Sand Hill Road venture capital firms for funding. Start-ups are raising more money at higher valuations, and deal-making has accelerated. Mutual funds, hedge funds, family offices, private equity funds and megafunds like SoftBank’s Vision Fund have rushed to back them.

Mr. Salehizadeh said Silicon Valley’s shift to a focus on fund-raising over all else was one reason he had left to set up a private equity firm on the East Coast. The big money brought more glitz to tech start-ups, he said, but it had little basis in business fundamentals.

“You’re always left feeling like either you’re an idiot or you’re brilliant,” he said. “It’s a tough way to be an investor.”

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ADDING MULTIMEDIA Satoshi Island, a Real World Crypto Paradise, Launches

SATOSHI ISLAND, Vanuatu–(BUSINESS WIRE)–After two years preparing for launch, Satoshi Island, the crypto focused private island officially went public today. Satoshi Island Limited, which owns the entire 32 million sq. ft. South Pacific island, is approved to go forward with their plan to transform it into the cryptocurrency capital of the world. With favorable laws, support from the government and all the approvals necessary to embark on the development, the tropical island paradise is being designed with the crypto ethos in mind. Satoshi Island will become the first real-world crypto economy, decentralized democracy and also have real estate and licenses all represented by non-fungible tokens (NFTs).

“Living, working, and visiting Satoshi Island will be an experience like no other. The tech industry has Silicon Valley, the entertainment industry has Los Angeles and soon the crypto community will have its own mecca,” said James Law, principal of James Law Cybertecture and chief architect of Satoshi Island.

The first stage of development has already been completed. It includes traditional island-style villas which serve as a check-in area and a relaxation center where visitors can unwind before exploring the entirety of the island. The remainder of the island is being developed with ultra-modern modular homes and offices designed and built by James Law Cybertecture. The modular smart homes called “Satoshi Island Modules” are built offsite and are shipped to the island move-in-ready. With a current production ability of around 200 modules per month, coupled with the rapid installation process, Satoshi Island expects to welcome the first Satoshi Islanders by Q4 of 2022.

An Evolution in NFTs

Satoshi Island is taking the next step in the evolution of NFTs by introducing a way to turn digital ownership into physical ownership. Anyone can own a piece of the island by acquiring Satoshi Island land NFTs that entitle holders with the same rights as holding a physical land title. Land NFT owners can develop their property with private homes or apartment complexes and choose to reside in them or lease them to other would-be Satoshi Islanders. The NFTs can be bought and sold easily, without any of the complications associated with the transfer of traditional real estate, but for those who would prefer a more traditional form of ownership, the NFTs can be converted into a new type of token, called the Non Fungible Property Token (NFPT). Once converted from NFT to NFPT, Satoshi Island Limited will assist the holder in turning their digital rights into physical documentation on the official land registrar of Vanuatu. Although the NFPT was conceptualized for use on Satoshi Island, the technology and intellectual property associated with this process will be freely available, under open source license, to private companies or governments which see merit in its application.

A Metaverse Mirrored in Reality

Although Satoshi Island is a real place, there is also a Satoshi Island metaverse giving anyone the ability to explore a virtual replica of the island where they can watch the development progress on the real island. Landowners can also use this virtual version of the island to design their homes online before finalizing their builds in the real world.

Real-World Decentralized Democracy

Satoshi Island will be governed by its residents in a true democracy built on the blockchain. Representatives of the people will be elected fairly and transparently and all Satoshi Islanders will get a chance to have their say. One NFT, One Vote.

About Satoshi Island

Satoshi Island is a 32 million sq. ft. private island in development to become home for crypto professionals and enthusiasts worldwide. The island is fully approved to develop into the first real-world crypto economy and blockchain based democracy. Satoshi Island recognizes crypto as its exclusive form of currency and has millions of sq. ft. of residential and commercial land represented by non-fungible-tokens (NFTs). The island, which is owned by Satoshi Island Limited, is located in the South Pacific country of Vanuatu, neighboring the popular tourism destination, Fiji. With favorable laws supporting innovation and new technologies, the crypto focused island is now welcoming individuals and companies within the crypto industry to join the first wave of Satoshi Islanders.

For more information about land NFTs, residency and tourism, visit www.Satoshi-Island.com.

Twitter: @SatoshiIsland

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F.T.C. Sues to Block Nvidia’s Takeover of Arm

WASHINGTON — The Federal Trade Commission on Thursday sued to block Nvidia’s $40 billion acquisition of a fellow chip company, Arm, halting what would be the biggest semiconductor industry deal in history, as federal regulators push to rein in corporate consolidation.

The F.T.C. said the deal between Nvidia, which makes chips, and Arm, which licenses chip technology, would stifle competition and harm consumers. The proposed deal would give Nvidia control over computing technology and designs that rival firms rely on to develop competing chips.

“Tomorrow’s technologies depend on preserving today’s competitive, cutting-edge chip markets,” said Holly Vedova, the director of the F.T.C.’s competition bureau. “This proposed deal would distort Arm’s incentives in chip markets and allow the combined firm to unfairly undermine Nvidia’s rivals.”

Federal antitrust regulators have promised greater scrutiny of mergers and a clamp down on monopolies in a push to reinvigorate competition in the economy. The action against the deal is the first major merger decision by the Federal Trade Commission under the leadership of Lina Khan, a critic of big corporate mergers and monopolies in technology. Ms. Khan is among a slew of top antitrust officials picked by President Biden to rein in the power of Silicon Valley giants.

promised to break open gas, telecom and pharmaceutical markets to bring down consumer prices at the gas pump and for home internet and prescriptions. Last month, the Justice Department sued to stop Penguin Random House, the largest publisher in the United States, from acquiring its rival Simon & Schuster.

In a statement, Nvidia said it would contest the F.T.C. lawsuit. “We will continue to work to demonstrate that this transaction will benefit the industry and promote competition.”

The F.T.C. suit, if successful, would not have much immediate financial impact on Nvidia or Arm. Shares in Nvidia rose slightly in aftermarket trading.

But a successful suit would be a blow to Nvidia’s ambitions to play a more central role in shaping the direction of the computer industry — particularly in the field of artificial intelligence.

Arm, a British company that the Japanese conglomerate SoftBank bought in 2016, licenses designs for microprocessors and other technology that other companies use in their semiconductors. Its technology has been wildly successful, providing the calculating functions in essentially all smartphones and many other devices. Arm recently estimated its technology is used in about 25 billion chips per year.

Nvidia, based in California, is a dominant provider of chips used to render graphics in video games, technology it has adapted in recent years to also power artificial-intelligence applications used by cloud companies and self-driving cars.

Jensen Huang, the company’s chief executive, has been pushing the company to become a broader, “full-stack” provider of computing technology. In April, for example, Nvidia said it was building an Arm-based microprocessor for servers used in data centers.

In announcing the deal in September 2020 to buy Arm, Mr. Huang said the combination would create a premier company for advancing A.I. technology. He also promised to operate Arm without any change to its business model, acting independently and treating all chip customers fairly.

Mr. Huang said at the time that artificial intelligence would set off a new wave of computing and that “our combination will create a company fabulously positioned for the age of A.I.”

But the deal was controversial from the start, with some of Arm’s big customers, like Qualcomm, worried about the heightened competition from Nvidia and the possibility of a rival gaining access to their confidential information. Mr. Huang took a dig at Qualcomm’s new chief executive, Cristiano Amon, at an annual dinner hosted by the Semiconductor Industry Association last month in Silicon Valley, asking, “How is it possible that Cristiano knew every regulator on the planet?”

The deal had already attracted close scrutiny from regulators in Europe, particularly in the United Kingdom, where Arm’s headquarters in Cambridge is a major employer. Britain’s Competition and Markets Authority launched an in-depth inquiry into the transaction in November, citing both competition and national-security concerns.

The F.T.C. said the merger would give Nvidia access to sensitive information about its rivals, who license technology and designs from Arm.

“Licensees rely on Arm for support in developing, designing, testing, debugging, troubleshooting, maintaining and improving their products,” the F.T.C. said in a statement. “Arm licensees share their competitively sensitive information with Arm because Arm is a neutral partner, not a rival chip maker. The acquisition is likely to result in a critical loss of trust in Arm and its ecosystem.”

The vote to block the merger was unanimous among the F.T.C.’s commissioners. The full complaint filed by the agency is not expected to be released for a few days. An administrative trial for the lawsuit is scheduled for May 10.

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Jack Dorsey’s Twitter Departure Hints at Big Tech’s Restlessness

“I don’t think there’s anything more important in my lifetime to work on, and I don’t think there’s anything more enabling for people around the world,” he told the audience at a Bitcoin conference in Miami in June.

Mr. Dorsey, whose oracular beard and quirky wellness routines have made him something of a cult figure in Silicon Valley, has become a crypto influencer in recent months. Bitcoin fans cheered his resignation on Monday, assuming he’d be spending his newfound free time championing their cause. (A more likely scenario is that he’ll continue to push crypto projects at Square, where he’s already started building a decentralized finance business.)

Mr. Dorsey didn’t respond to a request for comment, so I can’t be totally sure what’s behind his exit, but it’s easy to see why he would be getting restless at Twitter after more than 15 years of involvement. He cut his teeth during the internet boom of the late 2000s and early 2010s, when being a co-founder of a hot social media app was a pretty great gig. You got invited to fancy conferences, investors showered you with money and the media heralded you as a disruptive innovator. If you were lucky, you even got invited to the White House to hang out with President Barack Obama. Social media was changing the world — Kony 2012! The Arab Spring! — and as long as your usage numbers kept moving in the right direction, life was good.

Today, running a giant social media company is — by the looks of it — pretty miserable. Sure, you’re rich and famous, but you spend your days managing a bloated bureaucracy and getting blamed for the downfall of society. Instead of disrupting and innovating, you sit in boring meetings and fly to Washington so politicians can yell at you. The cool kids no longer want to work for you — they’re busy flipping NFTs and building DeFi apps in web3 — and regulators are breathing down your neck.

In many ways, today’s crypto scene has inherited the loose, freewheeling spirit of the early social media companies. Crypto start-ups are raising tons of money, attracting huge amounts of hype and setting off on utopian-sounding missions of changing the world. The crypto universe is full of weird geniuses with unusual pedigrees and big appetites for risk, and web3 — a vision for a decentralized internet built around blockchains — contains lots of the kinds of complex technical problems that engineers love to solve. Those factors, plus the enormous sums of money flowing into crypto, have made it a tempting landing spot for burned-out tech employees looking to get back in touch with their youthful optimism — and maybe for C.E.O.s, too.

“Silicon Valley tech is the old guard, distributed crypto is the frontier,” Naval Ravikant, another crypto booster and an early Twitter investor, tweeted this month.

Square, which builds mobile payment systems, has always been the most natural outlet for Mr. Dorsey’s crypto dreams. But he has tried to incorporate some of Bitcoin’s principles into Twitter. The company added Bitcoin tipping and started a decentralization project called Bluesky last year, with the goal of creating an open protocol that would allow outside developers to build Twitter-like social networks with different rules and features from the main Twitter app. (Mr. Agrawal, who is taking over for Mr. Dorsey at Twitter, has been closely involved with these initiatives, meaning they probably won’t disappear when Mr. Dorsey does.)

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Elizabeth Holmes Begins Her Defense in Fraud Trial

SAN JOSE, Calif. — For the past 11 weeks, prosecutors revealed emails from desperate investors. They held up falsified documents side by side with the originals. They called dozens of witnesses who lobbed accusations of deceit and evasiveness.

And on Friday, the person whom prosecutors have been making their case against — Elizabeth Holmes, the founder of the failed blood testing start-up Theranos — took the stand to defend herself. She faces 11 counts of defrauding investors over Theranos’s technology and business in a case that has been billed as a referendum on Silicon Valley’s start-up culture. She has pleaded not guilty.

tech industry’s hubris and the last decade’s culture of grift — began her testimony by answering a series of questions about Theranos. She delved into her background and how she began the Silicon Valley start-up, which had promised to revolutionize health care by using just a drop of blood from patients to deduce their illnesses.

trial finally began in September, prosecutors called former investors, partners and Theranos employees to testify. Jim Mattis, the retired four-star Marine Corps general and former defense secretary, who was a Theranos director, took the stand, as did a former Theranos lab director who endured six grueling days of questioning. In one surreal moment, a forensics expert recited text messages between Ms. Holmes and Ramesh Balwani, her boyfriend at the time and business partner at Theranos, who is known as Sunny.

This week, Alan Eisenman, an early investor in Theranos, testified that Ms. Holmes cut him off and threatened him when he asked her for more information about the company. Yet even after that treatment, Mr. Eisenman poured more money into the start-up, believing its seemingly fast-growing business would deliver riches to backers like him.

When asked about his understanding of the value of his Theranos stock today, Mr. Eisenman said: “It’s not an understanding, it’s a conclusion. It’s worth zero.”

a series of validation reports that Ms. Holmes sent to potential investors and partners that made it look as though pharmaceutical companies including Pfizer and Schering-Plough had endorsed Theranos’s technology. Representatives from each company testified that they had not endorsed Theranos’s blood test and were surprised to see their companies’ logos added to the report.

testified that the start-up faked demonstrations of its machines for potential investors, hid technology failures and threw out abnormal blood test results.

Mr. Mattis testified that he was not aware of any contracts between Theranos and the military to put its machines on medevac helicopters or on the battlefield, as Ms. Holmes had frequently told investors.

testimony from Roger Parloff, the journalist who wrote a magazine cover story about Ms. Holmes, helping propel her to acclaim. Mr. Parloff’s article was sent to numerous investors as part of Ms. Holmes’s pitch.

Yet notably absent from the courtroom were some of the most prominent witnesses on the prosecution’s list. Ms. Holmes’s rise was aided by her association with business titans such as the media mogul Rupert Murdoch, elder statesmen such as Henry Kissinger and Adm. Gary Roughead, and the lawyer David Boies. Theranos was felled, in part, by whistle-blowers such as Tyler Shultz, a grandson of George Shultz, the former secretary of state, who sat on Theranos’s board. None of them testified.

Also absent was Mr. Balwani, who was charged with fraud alongside Ms. Holmes and faces trial next year. His role as a fiery defender of Theranos who went after anyone who questioned the company has been in the background of much of the testimony.

At nearly every turn, Ms. Holmes’s lawyers sought to limit testimony and evidence. They attacked the credibility of investors, using legal disclaimers to show that investors knew they were gambling on a young start-up. The lawyers also poked holes in investors’ limited due diligence on Theranos’s claims. At one point, they directed Erika Cheung, a key whistle-blower who worked in Theranos’s lab, to read the entire organizational chart of the people employed in lab to show she played a small role in the overall operation.

she said in one of the videos. “Anything that happens in this company is my responsibility.”

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Trump Allies Help Bolsonaro Sow Doubt in Brazil’s Elections

BRASÍLIA — The conference hall was packed, with a crowd of more than 1,000 cheering attacks on the press, the liberals and the politically correct. There was Donald Trump Jr. warning that the Chinese could meddle in the election, a Tennessee congressman who voted against certifying the 2020 vote, and the president complaining about voter fraud.

In many ways, the September gathering looked like just another CPAC, the conservative political conference. But it was happening in Brazil, most of it was in Portuguese and the president at the lectern was Jair Bolsonaro, the country’s right-wing leader.

Fresh from their assault on the results of the 2020 U.S. presidential election, former President Donald J. Trump and his allies are exporting their strategy to Latin America’s largest democracy, working to support Mr. Bolsonaro’s bid for re-election next year — and helping sow doubt in the electoral process in the event that he loses.

pillow executive being sued for defaming voting-machine makers.

academics, Brazil’s electoral officials and the U.S. government, all have said that there has not been fraud in Brazil’s elections. Eduardo Bolsonaro has insisted there was. “I can’t prove — they say — that I have fraud,” he said in South Dakota. “So, OK, you can’t prove that you don’t.”

Mr. Trump’s circle has cozied up to other far-right leaders, including in Hungary, Poland and the Philippines, and tried to boost rising nationalist politicians elsewhere. But the ties are the strongest, and the stakes perhaps the highest, in Brazil.

WhatsApp groups for Bolsonaro supporters recently began circulating the trailer for a new series from Fox News host Tucker Carlson that sympathizes with the Jan. 6 Capitol riot, Mr. Nemer said. The United States, which has been a democracy for 245 years, withstood that attack. Brazil passed its constitution in 1988 after two decades under a military dictatorship.

advised President Bolsonaro to respect the democratic process.

In October, 64 members of Congress asked President Biden for a reset in the United States’ relationship with Brazil, citing President Bolsonaro’s pursuit of policies that threaten democratic rule. In response, Brazil’s ambassador to the United States defended President Bolsonaro, saying debate over election security is normal in democracies. “Brazil is and will continue to be one of the world’s freest countries,” he said.

Unemployment and inflation have risen. He has been operating without a political party for two years. And Brazil’s Supreme Court and Congress are closing in on investigations into him, his sons and his allies.

Late last month, a Brazil congressional panel recommended that President Bolsonaro be charged with “crimes against humanity,” asserting that he intentionally let the coronavirus tear through Brazil in a bid for herd immunity. The panel blamed his administration for more than 100,000 deaths.

Minutes after the panel voted, Mr. Trump issued his endorsement. “Brazil is lucky to have a man such as Jair Bolsonaro working for them,” he said in a statement. “He is a great president and will never let the people of his great country down!”

instant.

“They say he’s the Donald Trump of South America,” Mr. Trump said in 2019. “I like him.”

To many others, Mr. Bolsonaro was alarming. As a congressman and candidate, he had waxed poetic about Brazil’s military dictatorship, which tortured its political rivals. He said he would be incapable of loving a gay son. And he said a rival congresswoman was too ugly to be raped.

Three months into his term, President Bolsonaro went to Washington. At his welcome dinner, the Brazilian embassy sat him next to Mr. Bannon. At the White House later, Mr. Trump and Mr. Bolsonaro made deals that would allow the Brazilian government to spend more with the U.S. defense industry and American companies to launch rockets from Brazil.

announced Eduardo Bolsonaro would represent South America in The Movement, a right-wing, nationalist group that Mr. Bannon envisioned taking over the Western world. In the news release, Eduardo Bolsonaro said they would “reclaim sovereignty from progressive globalist elitist forces.”

pacts to increase commerce. American investors plowed billions of dollars into Brazilian companies. And Brazil spent more on American imports, including fuel, plastics and aircraft.

Now a new class of companies is salivating over Brazil: conservative social networks.

Gettr and Parler, two Twitter clones, have grown rapidly in Brazil by promising a hands-off approach to people who believe Silicon Valley is censoring conservative voices. One of their most high-profile recruits is President Bolsonaro.

partly funded by Guo Wengui, an exiled Chinese billionaire who is close with Mr. Bannon. (When Mr. Bannon was arrested on fraud charges, he was on Mr. Guo’s yacht.) Parler is funded by Rebekah Mercer, the American conservative megadonor who was Mr. Bannon’s previous benefactor.

Companies like Gettr and Parler could prove critical to President Bolsonaro. Like Mr. Trump, he built his political movement with social media. But now Facebook, YouTube and Twitter are more aggressively policing hate speech and misinformation. They blocked Mr. Trump and have started cracking down on President Bolsonaro. Last month, YouTube suspended his channel for a week after he falsely suggested coronavirus vaccines could cause AIDS.

In response, President Bolsonaro has tried to ban the companies from removing certain posts and accounts, but his policy was overturned. Now he has been directing his supporters to follow him elsewhere, including on Gettr, Parler and Telegram, a messaging app based in Dubai.

He will likely soon have another option. Last month, Mr. Trump announced he was starting his own social network. The company financing his new venture is partly led by Luiz Philippe de Orleans e Bragança, a Brazilian congressman and Bolsonaro ally.

said the rioters’ efforts were weak. “If it were organized, they would have taken the Capitol and made demands,” he said.

The day after the riot, President Bolsonaro warned that Brazil was “going to have a worse problem” if it didn’t change its own electoral systems, which rely on voting machines without paper backups. (Last week, he suddenly changed his tune after announcing that he would have Brazil’s armed forces monitor the election.)

Diego Aranha, a Brazilian computer scientist who studies the country’s election systems, said that Brazil’s system does make elections more vulnerable to attacks — but that there has been no evidence of fraud.

“Bolsonaro turned a technical point into a political weapon,” he said.

President Bolsonaro’s American allies have helped spread his claims.

At the CPAC in Brazil, Donald Trump Jr. told the audience that if they didn’t think the Chinese were aiming to undermine their election, “you haven’t been watching.” Mr. Bannon has called President Bolsonaro’s likely opponent, former President Luiz Inácio Lula da Silva, a “transnational, Marxist criminal” and “the most dangerous leftist in the world.” Mr. da Silva served 18 months in prison but his corruption charges were later tossed out by a Supreme Court justice.

Eduardo Bolsonaro’s slide show detailing claims of Brazilian voter fraud, delivered in South Dakota, was broadcast by One America News, a conservative cable network that reaches 35 million U.S. households. It was also translated into Portuguese and viewed nearly 600,000 times on YouTube and Facebook.

protest his enemies in the Supreme Court and on the left.

The weekend before, just down the road from the presidential palace, Mr. Bolsonaro’s closest allies gathered at CPAC. Eduardo Bolsonaro and the American Conservative Union, the Republican lobbying group that runs CPAC, organized the event. Eduardo Bolsonaro’s political committee mostly financed it. Tickets sold out.

a fiery speech. Then he flew to São Paulo, where he used Mr. Miller’s detainment as evidence of judicial overreach. He told the crowd he would no longer recognize decisions from a Supreme Court judge.

He then turned to the election.

“We have three alternatives for me: Prison, death or victory,” he said. “Tell the bastards I’ll never be arrested.”

Leonardo Coelho and Kenneth P. Vogel contributed reporting.

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Elizabeth Holmes Trial Exposes Investors’ Lack of Due Diligence

SAN JOSE, Calif. — In 2014, Dan Mosley, a lawyer and power broker among wealthy families, asked the entrepreneur Elizabeth Holmes for audited financial statements of Theranos, her blood testing start-up. Theranos never produced any, but Mr. Mosley invested $6 million in the company anyway — and wrote Ms. Holmes a gushing thank-you email for the opportunity.

Bryan Tolbert, an investor at Hall Group, said his firm invested $5 million in Theranos in 2013, even though it did not have a detailed grasp of the start-up’s technologies or its work with pharmaceutical companies and the military.

And Lisa Peterson, who handles investments for Michigan’s wealthy DeVos family, said she did not visit any of Theranos’s testing centers in Walgreens stores, call any Walgreens executives or hire any outside experts in science, regulations or legal matters to verify the start-up’s claims. In 2014, the DeVos family invested $100 million into the company.

The humiliating details of bad investments like Theranos are rarely displayed so prominently to the public. But they have been laid bare in recent weeks at the trial of Ms. Holmes, 37, who faces a dozen counts of wire fraud and conspiracy to commit wire fraud; she has pleaded not guilty. She and Theranos fell from grace — with investor money evaporating and the company shutting down in 2018 — after claims about its blood-testing technology were shown to be false.

frenzied state of record-breaking fund-raising.

With so many new investors flocking to start-ups, due diligence is sometimes so minimal that it is used as a punchline, investors said. An overheated market “definitely creates an environment for people to make more inflated claims” and may even tempt them to lie, said Shirish Nadkarni, a longtime entrepreneur, investor and author.

During its lifetime, Theranos exemplified that dynamic. The company raised $945 million from famous venture capitalists including Tim Draper, Donald Lucas and Dixon Doll; wealthy heirs to the founders of Amway, Walmart and Cox Communications; and powerful tech and media moguls such as Larry Ellison and Rupert Murdoch.

And as investors have testified at Ms. Holmes’s trial, a central tension has emerged around due diligence. Could these investors have avoided disaster if they had simply done better research on Theranos? Or were they doomed because their research was based on lies?

added pharmaceutical company logos to validation reports indicating the pharmaceutical firms had endorsed its technology when they hadn’t, according to evidence and testimony. Theranos also claimed in late 2014 that it would bring in $140 million in revenue that year when it had none, according to evidence and testimony. The start-up also faked demos of its blood-testing machines to investors, witnesses have testified.

Wade Miquelon, the former chief financial officer of Walgreens, to admit that he didn’t know if his company had ever gotten one of Theranos’s devices in its offices for testing before entering into a partnership. The lawyers also got Mr. Mosley to concede he never directly asked Ms. Holmes whether a pharmaceutical company had written the validation report.

The strategy has sometimes veered into condescension. That was evident last week when Lance Wade, a lawyer for Ms. Holmes, asked Ms. Peterson, an investment professional, if she was familiar with the concept of due diligence.

“You understand that’s a typical thing to do in investing?” he said.

The investors have pushed back, explaining that they were acting on false information supplied by Ms. Holmes.

“You’re trying to measure our sophistication as an investor when we weren’t given complete information,” Ms. Peterson said. Mr. Wade asked the judge to strike the comment from the record.

Still, testimony from pharmaceutical company executives who interacted with Theranos showed it was possible to see through at least some of Ms. Holmes’s grandiose claims.

Constance Cullen, a former director at Schering Plough, said this week that she was responsible for evaluating Theranos’s technology in 2009. She said she came away “dissatisfied” with Ms. Holmes’s answers to her technical questions, calling them “cagey” and indirect. She said she stopped responding to emails from Ms. Holmes.

Shane Weber, a director at Pfizer, looked into Theranos in 2008 and concluded that the company’s responses to his technical questions were “oblique, deflective or evasive,” according to a memo used as evidence. He recommended Pfizer cease working with Theranos.

But investors were less probing, especially when Ms. Holmes appealed to their egos. Her persona as a visionary, bolstered by magazine cover stories and personal eccentricities, created a sense that backing Theranos was an exclusive and elite opportunity.

In testimony and evidence, Ms. Holmes was shown to have guarded information about the business, calling it a trade secret. She told investors she sought out wealthy families who would not want to see a return on their investment anytime soon, making those that she picked feel special with formal invitations. And she controlled the company tightly with “supervoting” shares worth 100 times the power of other shares.

“She has a firm grasp on the company, let there be no mistake,” Christopher Lucas, a Theranos investor, said on a call with other investors that was recorded and played in court. “She would have the right to cast out investors.”

Mr. Lucas’s firm, Black Diamond Ventures, invested around $7 million into Theranos, despite not getting access to its financial information or examining all of its corporate records. This was unusual, Mr. Lucas testified on Thursday, but Ms. Holmes told him the information was sensitive because a leak could “give competitors a chance to crush the company.”

That secrecy extended to due diligence. Ms. Peterson testified that she was scared Ms. Holmes would cut her firm out of the deal if they dug deeper into the details of Theranos’s business.

“We were very careful not to circumvent things and upset Elizabeth,” she said. “If we did too much, we wouldn’t be invited back to invest.”

Mr. Nadkarni, the longtime investor, said such behavior sounded familiar. He said he had observed a loosening of diligence in deals he’s been involved with over the last year.

It hasn’t led to many problems while times were good, he said, but “if something happens to the economy, then everyone is going to be toast.”

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Google Wants to Work With the Pentagon Again, Despite Employee Concerns

Three years after an employee revolt forced Google to abandon work on a Pentagon program that used artificial intelligence, the company is aggressively pursuing a major contract to provide its technology to the military.

The company’s plan to land the potentially lucrative contract, known as the Joint Warfighting Cloud Capability, could raise a furor among its outspoken work force and test the resolve of management to resist employee demands.

In 2018, thousands of Google employees signed a letter protesting the company’s involvement in Project Maven, a military program that uses artificial intelligence to interpret video images and could be used to refine the targeting of drone strikes. Google management caved and agreed to not renew the contract once it expired.

The outcry led Google to create guidelines for the ethical use of artificial intelligence, which prohibit the use of its technology for weapons or surveillance, and hastened a shake-up of its cloud computing business. Now, as Google positions cloud computing as a key part of its future, the bid for the new Pentagon contract could test the boundaries of those A.I. principles, which have set it apart from other tech giants that routinely seek military and intelligence work.

contract with Microsoft that was canceled this summer amid a lengthy legal battle with Amazon. Google did not compete against Microsoft for that contract after the uproar over Project Maven.

The Pentagon’s restart of its cloud computing project has given Google a chance to jump back into the bidding, and the company has raced to prepare a proposal to present to Defense officials, according to four people familiar with the matter who were not authorized to speak publicly. In September, Google’s cloud unit made it a priority, declaring an emergency “Code Yellow,” an internal designation of importance that allowed the company to pull engineers off other assignments and focus them on the military project, two of those people said.

On Tuesday, the Google cloud unit’s chief executive, Thomas Kurian, met with Charles Q. Brown, Jr., the chief of staff of the Air Force, and other top Pentagon officials to make the case for his company, two people said.

Google, in a written statement, said it is “firmly committed to serving our public sector customers” including the Defense Department, and that it “will evaluate any future bid opportunities accordingly.”

The contract replaces the now-scrapped Joint Enterprise Defense Infrastructure, or JEDI, the Pentagon cloud computing contract that was estimated to be worth $10 billion over 10 years. The exact size of the new contract is unknown, although it is half the duration and will be awarded to more than one company, not to a single provider like JEDI.

Project Maven in 2017 and prepared to bid for JEDI. Many Google employees believed Project Maven represented a potentially lethal use of artificial intelligence, and more than 4,000 workers signed a letter demanding that Google withdraw from the project.

Soon after, Google announced a set of ethical principles that would govern its use of artificial intelligence. Google would not allow its A.I. to be used for weapons or surveillance, said Sundar Pichai, its chief executive, but would continue to accept military contracts for cybersecurity and search-and-rescue.

weapons or those that direct injury.”

Lucy Suchman, a professor of anthropology of science and technology at Lancaster University whose research focuses on the use of technology in war, said that with so much money at stake, it is no surprise Google might waver on its commitment.

“It demonstrates the fragility of Google’s commitment to staying outside the major merger that’s happening between the D.O.D. and Silicon Valley,” Ms. Suchman said.

Google’s efforts come as its employees are already pushing the company to cancel a cloud computing contract with the Israeli military, called Project Nimbus, that provides Google’s services to government entities throughout Israel. In an open letter published last month by The Guardian, Google employees called on their employer to cancel the contract.

The Defense Department’s effort to transition to cloud technology has been mired in legal battles. The military operates on outdated computer systems and has spent billions of dollars on modernization. It turned to U.S. internet giants in the hope that the companies could quickly and securely move the Defense Department to the cloud.

awarded the JEDI contract to Microsoft. Amazon sued to block the contract, claiming that Microsoft did not have the technical capabilities to fulfill the military’s needs and that former President Donald J. Trump had improperly influenced the decision because of animosity toward Jeff Bezos, Amazon’s executive chairman and the owner of The Washington Post.

In July, the Defense Department announced that it could no longer wait for the legal fight with Amazon to resolve. It scrapped the JEDI contract and said it would be replaced with the Joint Warfighting Cloud Capability.

The Pentagon also noted that Amazon and Microsoft were the only companies that likely had the technology to meet its needs, but said it would conduct market research before ruling out other competitors. The Defense Department said it planned to reach out to Google, Oracle and IBM.

But Google executives believe they have the capability to compete for the new contract, and the company expects the Defense Department to tell it whether it will qualify to make a bid in the coming weeks, two people familiar with the matter said.

The Defense Department has previously said it hopes to award a contract by April.

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