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Meta and Amazon Scale Back Diversity Programs Ahead of Trump’s Inauguration

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Meta Platforms and Amazon have decided to scale back their diversity, equity, and inclusion (DEI) programs ahead of the upcoming U.S. presidential inauguration, with the return of Donald Trump to office intensifying conservative opposition to such initiatives.

Both companies, which had previously ramped up their diversity efforts in response to protests following the police killings of George Floyd and other Black Americans in 2020, are now adjusting their policies in light of a changing legal and political landscape. Meta is halting its DEI programs, which included initiatives focused on hiring, training, and selecting suppliers. The decision was shared with employees in an internal memo on Friday and follows a series of actions that have attracted support from conservative circles. In the past two weeks, Meta has dismantled its U.S. fact-checking program, appointed Republican Joel Kaplan as its Chief Global Affairs Officer, and added UFC CEO Dana White—a close associate of Trump—to its board. The company also made headlines by contributing $1 million to Trump’s inaugural fund in December, signaling a shift in its political positioning.

Similarly, Amazon has begun winding down its diversity-related programs and materials, with plans to complete this process by the end of 2024. The decision was outlined in a memo seen by Reuters, which highlighted the company’s intention to phase out what it considered “outdated” programs on representation and inclusion.

The conservative backlash against DEI programs has been emboldened by legal developments, including a 2023 U.S. Supreme Court ruling that struck down affirmative action in university admissions. Critics, including figures like Elon Musk, have targeted DEI initiatives, accusing them of hindering business responses to crises, such as the wildfires in Los Angeles, despite lacking evidence to support these claims.

Janelle Gale, Meta’s Vice President of Human Resources, acknowledged in the memo that the legal and policy environment surrounding DEI efforts is evolving. She pointed to recent rulings, including a decision by a U.S. appeals court in December that blocked Nasdaq from enforcing diversity requirements for corporate boards. Gale also noted that the term “DEI” has become contentious, with some viewing it as promoting preferential treatment for certain groups.

As part of its restructuring, Meta will no longer have a dedicated team for DEI efforts. Chief Diversity Officer Maxine Williams will transition to a new role focused on accessibility and engagement, marking a significant shift in the company’s approach to diversity initiatives.

 

Nvidia Faces Setbacks as Major Customers Delay Orders of Latest AI Racks Due to Overheating Issues

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Nvidia is encountering challenges with its new ‘Blackwell’ AI racks, with major customers delaying their orders due to overheating issues, as reported by The Information on Monday. Shares of the Santa Clara-based company dropped more than 4% following the news.

The overheating problems reportedly affect the initial shipments of the racks, which house Nvidia’s chips in data centers. The glitches include issues with how the chips are connecting to each other. This problem has led major customers such as Microsoft, Amazon’s cloud division, Alphabet’s Google, and Meta Platforms to reduce their orders for the new racks.

Delayed Orders and Shift to Older Models

The affected customers, often referred to as hyperscalers, had placed substantial orders for the Blackwell racks, with each company initially committing $10 billion or more. Some are opting to delay their orders until a later version of the racks is available, while others are returning to older AI chip models.

Microsoft, for instance, had planned to deploy at least 50,000 Blackwell chips in a Phoenix facility, but due to the delays, OpenAI, one of its key partners, requested that Microsoft provide older ‘Hopper’ chips instead.

Despite these delays, it remains unclear how much this will impact Nvidia’s overall sales, as the company may still find other buyers for the affected racks. In November, Nvidia’s CEO Jensen Huang had expressed confidence that the company would exceed its target of generating billions of dollars in revenue from Blackwell chips during its fourth fiscal quarter.

Nvidia and Amazon declined to comment, while Microsoft, Google, and Meta did not immediately respond to Reuters’ inquiries.

 

Musk, Bezos, and Zuckerberg to Attend President-elect Trump’s Inauguration

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Tech moguls Elon Musk, Jeff Bezos, and Mark Zuckerberg are set to attend the inauguration of U.S. President-elect Donald Trump on Monday, according to a source familiar with the event’s planning. The CEOs of Tesla, Amazon, and Meta will have prominent seating alongside Trump’s Cabinet nominees and other officials during the swearing-in ceremony, NBC News reported.

Both Amazon and Meta have reportedly contributed $1 million each to support Trump’s inauguration. Elon Musk, CEO of Tesla, SpaceX, and X, played an even larger financial role, spending over $250 million to aid Trump’s election campaign in November. Representatives from Tesla, Amazon, and Meta did not immediately provide comments regarding the event or their executives’ participation.

Their attendance underscores the influence of major tech leaders in the political landscape, despite occasional public disagreements between Trump and some of the tech companies represented.