How Mark Zuckerberg is giving away his billions - Axios
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How Mark Zuckerberg is giving away his billions

Rebecca Zisser / Axios

Mark Zuckerberg and his wife, physician Priscilla Chan, are staking out aggressive positions as philanthropists in contentious areas like education, affordable housing and criminal justice, according to an Axios analysis of public disclosures, press reports and statements provided by grantees of their Chan Zuckerberg Initiative.

Why it matters: Zuckerberg got rich creating a product that defined the last decade. But he and Chan are trying to define the next century by giving that money away. The Chan Zuckerberg Initiative is on track to be this generation's Gates Foundation. With an initial pledge of more than $45 billion in stock that has since grown in value it could be more influential than anything else Zuckerberg has ever done. Yes, including Facebook.

The giving decoded:

  • Education is Zuckerberg and Chan's signature issue. Their first major foray into philanthropy was a $100 million donation to Newark public schools in 2010, and they maintained a non-profit called Startup:Education in subsequent years. Chan is also heavily invested in education as the founder of The Primary School, which combines medical care with education in East Palo Alto and is supported by CZI. A 2015 tax filing lists only one donation to the school — more than $7 million — which a spokesperson confirmed came from Chan and Zuckerberg.
  • They're applying a startup approach to the problems they're trying to solve. Examples include Landed, a startup that provides part of the down payment for teachers to buy houses, and Measures for Justice, which aggregates data from the criminal justice system. CZI's in-house engineering team is also led by a former Amazon executive.
  • Chan and Zuckerberg are especially active in the Bay Area, working with several local school districts and the Boys and Girls Club of the Peninsula, for example.

How the organization works: Four different people lead the key arms of CZI, which tackle education, science, technology and policy challenges. Staff members identify organizations for CZI to work with and sometimes solicit grant applications on specific topics. Chan is a more common presence in the offices of the organization than Zuckerberg, and approves grants and investments.

"They're great, they're fantastic," said Austin Beutner, whose organization Vision to Learn recently received a major grant from CZI, adding that "they don't waste your time."

CZI's giving is opaque. It's a limited liability company (the structure means fewer restrictions on how CZI uses its money) that isn't required to disclose its donations or the value of the grants it does choose to announce.

  • Some Silicon Valley donors, like Dustin Moskovitz and Pierre Omidyar, provide more robust disclosures and only partially use LLCs for their philanthropy. But CZI's strategy is similar to that of Laurene Powell Jobs' Emerson Collective, which is also an investor in Axios.
  • A CZI spokesperson confirmed the existence of the grants and investments listed here but said CZI doesn't share information about the size of individual grants. The spokesperson also declined to share the total number of grants or investments that CZI had made. The organization does choose to announce or provide details about some grants, often through its Facebook page.
  • "Since its founding in December 2015, CZI has worked closely with partners and grantees to announce many grants and investments as well as major financial commitments for CZI's core initiatives," said the spokesperson in an email. "This is currently done on a case by case basis in consultation with our partners. As a new and growing organization, we are also constantly assessing and learning from these announcements."

Sound smart: The Chan Zuckerberg Initiative is a test case for what happens when you meld a Silicon Valley interest in disruption with traditional notions of changing the world through philanthropy, according to Amir Pasic, the dean of Indiana University's Lilly Family School of Philanthropy: "I kind of see it as trying to combine those two strands in something that is obviously going to be a fundamental feature of our philanthropic landscape going forward."

Where the money's going:

  • Education: Aim High, BYJU'S, Andela, MasteryConnect, Brightwheel, Vision to Learn, Summit Learning, College Board, Digital Promise, Education Leaders of Color, Camelback Ventures, Latinos for Education, Surge Institute, Teach For America, NewSchools Venture Fund, New Profit, The Center on the Developing Child, SAGA Innovations, Breakthrough Junior Challenge, Silicon Valley Regional Data Trust, The Primary School, Oxford Day Academy.
  • Science: Biohub, Human Cell Atlas, Cold Spring Harbor Laboratory. (Their $600 million commitment to the Biohub research facility is the largest in the short history of CZI.)
  • Affordable housing: Landed, Community Legal Services in East Palo Alto, Terner Center for Housing Innovation.
  • Criminal justice: Measures for Justice.
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Fox renewed O'Reilly's contract after a sixth harrassment settlement

Photo: Andy Kropa / AP

Bill O'Reilly's contract with 21st Century Fox was renewed — with an approximate $7 million pay raise — after O'Reilly made a $32 million agreement to settle sexual harassment allegations, the New York Times reports.

What happened: Lis Wiehl, an analyst at Fox News, notified O'Reilly of her sexual harassment lawsuit in early January. Five days later, the two reached a settlement, per the Times, and Wiehl agreed "not to sue Mr. O'Reilly, Fox News, or 21st Century Fox," as well as destroying texts, photos, and other communications between them. The four-year contract extension with the network was granted in February, the Times reports.

Why it matters: This was the largest settlement made by O'Reilly and 21st Century Fox; it was also the sixth one of its kind.

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The failed U.S. attempt at a Kirkuk compromise

Iraqi soldiers remove a Kurdish flag from a checkpoint in Bashiqa, Iraq. Photo: Khalid Mohammed / AP

The U.S. tried to form a compromise between Iraqi Prime Minister Haider al-Abadi and the Kurdistan Regional Government over the weekend, but ultimately failed, leading to the Iraqi forces overthrowing the Kurds in Kirkuk, according to Bloomberg's Eli Lake.

Why it matters: The compromise would have taken Kurdish control of the K-1 air base outside the city, and suggested a joint administration of the Kurds and Iraqis with a U.S. general. It would've allowed Abadi to "save face...while avoiding the trauma of Iraqi forces taking over" the city. But, Abadi was not convinced, and ultimately ordered troops into Kirkuk.

As Lake writes, "the Kurds have lost their Jerusalem, as Iraqi forces approach what Kurds voted last month should eventually be their independent state's national borders."

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Scoop: Trump pledges to personally pay some legal bills of WH staff and associates

President Trump has promised to spend at least $430,000 of his own money to defray legal costs incurred by campaign associates and White House staff due to the Russia investigations, a White House official tells Axios.

What we know: The Republican National Committee has paid roughly $430,000 to lawyers representing the president and his eldest son, Don Jr. A White House official told me Trump will not be reimbursing the RNC for these costs. However, the White House official says he has pledged to spend the same amount, from his personal finances, "to defray the costs of legal fees for his associates, including former and current White House aides."

To understand the details of the RNC's payments for Trump and his son's lawyers, read this WashPost report — the substance of which the RNC confirmed to Axios.

What we don't know: The president and his legal team haven't announced the mechanism to make these payments. The arrangement raises a number of questions, none of which the White House official answered:

  • Is the plan to put this money into a general legal defense fund that all of the president's associates could request access to, or will the money be disbursed directly to attorneys?
  • $430,000 is a relatively small amount, given the ballooning legal fees of Trump's associates who are under the most intense investigation. Will Trump's legal fund pay the bills of associates with the most expensive legal fees, including Michael Flynn and Paul Manafort?
  • Who decides which of the president's associates get the money and when they get it?
  • What are the president's intentions regarding future legal bills for the first family? Will the RNC keep paying them?
  • Why isn't the president reimbursing the RNC in addition to partially defraying his associates' costs?

Bottom line: TBD on everything. The official said: "We're working on appropriate legal and ethical approval" — and said the president hasn't ruled out spending more of his own money on these legal fees. It's also unclear what the president will do in the future as he and the first family continue to rack up legal bills.

Update: I'm told there's no chance Trump will pay Flynn's legal bills. A source close to Flynn told me that the former National Security Adviser will not accept contributions to his legal defense fund from President Trump or the Trump campaign. Nor will he accept funds from the RNC.

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Trump: Syrian victory in Raqqa is a “critical breakthrough”

Photo: Gabriel Chaim / AP

The image above from drone video shows damaged buildings in Raqqa, Syria, two days after Syrian Democratic Forces said that military operations to oust the Islamic State have ended, and that their fighters have taken full control of the ancient city on the Euphrates River.

  • The devastation was "caused by weeks of fighting between Kurdish-led forces and the Islamic State group, and thousands of bombs dropped by the U.S.-led coalition," AP writes.
  • Why it matters: "Entire neighborhoods are seen turned to rubble, with little sign of civilian life. ... The U.N. and aid organizations estimate about 80 percent of the city is destroyed or uninhabitable."
  • Now, a humanitarian crisis is escalating.
President Trump issued a statement on the Syrian victory, saying it "represents a critical breakthrough in our worldwide campaign to defeat ISIS."
"Today, we reaffirm that ISIS leaders, and anyone who supports them, must and will face justice."

Go deeper: Axios' Shannon Vavra and Steve LeVine explain how ISIS is scattered, but not gone.

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Blueberry-picking robots' threat to human beings

"Tech Support," by R. Kikuo Johnson

"Welcoming Our New Robot Overlords: Once, robots assisted human workers. Now it's the other way around," by The New Yorker's Sheelah Kolhatkar:

The frontier: "An industrial robot will pick up the same object, in the same location, over and over. The challenge, and the multibillion-dollar business opportunity, [is] to teach a robot to function in an environment that [is] constantly changing."

Why it matters: "Harvesting fruit and other produce ... is the kind of job that Americans are increasingly reluctant to do ... Yet the implications extend beyond agriculture. A robot that could efficiently pick blueberries could probably do a lot of things that are currently the exclusive province of human beings."

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300 people have been killed in U.S. disasters this year

Home destroyed from fires in the Coffey Park neighborhood in Santa Rosa, California. Photo: Jeff Chiu / AP

Damage from California wildfires is now estimated to exceed $1 billion, giving the U.S. 16 separate billion-dollar disasters so far this year, tying 2011 for the most in one year, per the Weather Channel.

Why it matters: The disasters, combined, have killed over 300 people, the Weather Channel reports. There have been 218 climate disasters since 1980, which has cost the U.S. over $1.2 trillion, not including the hurricanes last month or the wildfires in California.

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A new North Korea problem

Kim Jong-un speaks to the central committee of the Workers' Party of Korea in Pyongyang on Oct. 7. (Korean Central News Agency/Korea News Service via AP)

"[A]nalysts ... see signs that Mount Mantap, the 7,200-foot-high peak under which North Korea detonates its nuclear bombs, is suffering from 'tired mountain syndrome,'" the WashPost reports on A1:

Why it matters: "Chinese scientists ... have warned that further nuclear tests [by North Korea] could cause the mountain to collapse and release the radiation from the blast."

P.S. CIA Director Mike Pompeo said Thursday a Foundation for Defense of Democracies forum that North Korea is months away from perfecting its nuclear weapons capabilities, AP reports:

  • Pompeo: "They are close enough now in their capabilities that from a U.S. policy perspective we ought to behave as if we are on the cusp of them achieving" their objective of being able to strike the United States.
  • John Brennan, Pompeo's predecessor as CIA director, said at Fordham University in New York on Wednesday that the prospects of a military conflict on the Korean Peninsula "are greater than they have been in several decades": "I don't think it's likely or probable, but if it's a 1-in-4 or 1-in-5 chance, that's too high."
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Trump: Rep. Wilson is "killing" the Democratic Party

Photo: Evan Vucci / AP

President Trump sent a series of tweets Saturday morning regarding Congresswoman Frederica Wilson, the new budget passed in Congress on Thursday, and more.

Go deeper: Chief of Staff John Kelly misrepresented a story about Rep. Wilson earlier this week, which further intensified a feud between Trump and the Florida Congresswoman, evidenced by his tweet this morning. Yesterday Wilson raised the issue of race, suggesting that the animosity from Kelly is racially charged and called him a liar. "The White House itself is full of white supremacists," she said.

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Big Tech's new Wall Street problem

Photo courtesy of Barron's

Just as Big Tech has begun to seriously worry about Washington, now Wall Street is waking up to possible government threats to the market dominance of the Silicon Valley giants.

While the "biggest companies don't face an immediate threat of being broken up ... just the possibility creates a risk factor in the stocks," Barron'sreports in its new cover story:

  • "More than antitrust issues are in play. The huge amounts of personal data that Google, Facebook, and Amazon are amassing is just as troubling to some."
  • Why it matters: "Taken together, these challenges threaten the stock valuations of the group. To get an idea of the worst-case scenario, take a look at two of tech's dominant players from previous eras: IBM [1969] and Microsoft [1998]."
  • "If these giants get sideswiped, it could be because of the fatal flaw in large tech companies that's often drawn social ire and regulation — the will to exploit their dominance."

Possible hits to the platforms' business models are blossoming in Europe, and the contagion could spread across the Atlantic. An AP takeoutfrom London points out that the giants "are increasingly facing an uncomfortable truth":

  • "[I]t is Europe's culture of tougher oversight of companies, not America's laissez-faire attitude, which could soon rule their industry as governments seek to combat fake news and prevent extremists from using the internet to fan the flames of hatred."

Be smart: My conversations with tech execs show they're skeptical that Congress will figure out the mechanics of inhibiting the platforms in a way that would do serious damage to the bottom line.

  • It's true that potential D.C. action is in the early stage. And there are huge impediments to doing anything radical. But the companies are now such tempting targets, this is a rising passion in both parties.
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Those "puppy eyes" are all for you

Photo: Alan Diaz / AP

"Puppy dog eyes" — the pleading look a dog gives by lifting its inner brow and widening its eyes — has become synonymous with a sad pup hoping for a scrap of food off its owner's plate. However a new study published Thursday in Scientific Reports suggests "puppy dog eyes" may not be meant to be manipulative, but are simply a reaction to human expression.

Key findings: The study, conducted by researchers in Britain who closely monitored dogs' facial expressions, found that dogs were much more expressive when a person was paying attention to them as opposed to when they were turned away. The presence of food didn't make a difference in the dogs' reactions.

Why it matters: "This study is the first to show evidence that dogs adjust their facial expressions when humans are looking at them," Angie Johnston, a graduate student at Yale university working in the Psychology Department's Canine Cognition Center, told Axios. "This suggests that the methods dogs use to communicate with us may be more nuanced than we previously thought."

Details of the study and other findings:

  • Juliane Kaminski, a psychologist at the Dog Cognition Centre at the University of Portsmouth, U.K. and her colleagues studied 24 pet dogs of various breeds from ages 1-12 years.
  • The researchers filmed the dogs' facial expressions while a woman was a) facing the dog and displaying food in her hands; b) facing it and not displaying food; c) facing away and displaying food; and d) facing away and not displaying food.
  • The dogs were found to be much more expressive when the woman was facing them, and stuck out their tongues and barked more when they got attention.
  • Meanwhile, the presence of food didn't seem to make a difference. "This kind of 'dinner table effect' that dogs try and look super cute when they want something is something we did in fact not find," wrote Kaminski, "meaning, there was no effect of food being visible or not."
  • Take note: Kaminiski underscored that the team doesn't know dogs' intentions for making certain faces. "We cannot in any way speculate what dogs might 'mean' with whatever facial movement they produce," she wrote.

What they're saying:

  • "That the dogs raised their eyebrows and flicked their tongues more when people are looking at them... suggests that dogs might be using the actions communicatively, just as people do with facial expressions," Alexandra Horowitz from Barnard University's Dog Cognition Lab told Axios.
  • Looking forward: "This study represents a promising new frontier in canine science... I was surprised that dogs made 'puppy dog eyes' at the person regardless of whether she had food in her hands or not. This makes me wonder exactly what it is that dogs are trying to communicate," says Johnston. "More work is going to be needed to pin down exactly what dogs are trying to tell us, if anything, when they make these facial expressions."

Go deeper: