WSJ What’s News: “U.S. Government Reopens, But Slowly”

Date: November 13, 2025
Host: Caitlin McCabe (The Wall Street Journal)
Guests: Ken Thomas, Stu Wu, Ji Young Sohn

Episode Overview

This episode covers the aftermath and implications of the U.S. government reopening after a historic 43-day shutdown, the political maneuvering surrounding the ongoing investigation into Jeffrey Epstein’s ties with high-profile figures (notably Donald Trump), and the growing complexity in the global AI chip race, particularly how Chinese companies are navigating U.S. export restrictions. The show also highlights a groundbreaking AI-run data center project in South Korea, contextualizing major business and political developments with clear, actionable insight.

Key Discussion Points & Insights

1. U.S. Government Reopens, But Recovery Is Slow

[00:18–02:53]

• Funding Bill Passage:

  • The Republican-led House approved a spending package extending federal funding through January, signed into law by President Trump.
  • Key inclusions:
    • Full-year funding for the Agriculture Department, military construction, and the legislative branch.
    • Guaranteed reversal of Trump-initiated federal layoffs aimed at pressuring Democrats during the shutdown.
    • Moratorium on further federal workforce cuts.

• Reopening Challenges:

  • Not all agencies will resume regular operations immediately.
  • Ken Thomas:

    “The return to work process will vary agency by agency, but many employees were told to be prepared to return to work on Thursday.” (01:57)

  • Backlogs affect:
    • Air travel: Aviation officials estimate days or more before normalcy ([01:57])
    • SNAP benefits: Uncertain timing for restoring food aid to 40 million Americans.
    • National parks: Services resuming; most parks were open during the shutdown but with skeleton staffing.

• Missing Economic Data:

  • No immediate return for essential government reports (e.g., CPI, jobs numbers) interrupted by the shutdown.
  • Caitlin McCabe:

    “The two major government reports on inflation and the labor market for October are likely never to be released.” (02:53)

  • The Bureau of Labor Statistics has provided no timeline for clearing the results backlog.
  • Listeners are encouraged to look at alternatives, like copper prices, covered in a related podcast episode.

2. Epstein Email Releases Prompt New Political Tensions

[02:53–06:33]

• House Moves on Epstein Files Disclosure:

  • Rep. Adelita Grijalva (D-AZ) gave the final needed signature on a bipartisan petition compelling a House vote to release Epstein records, moments after her swearing-in to fill her late father’s seat.
  • Adelita Grijalva:

    “With my signing, we move one step closer to the truth… survivors deserve their day of justice and the American people demand it.” (03:41)

  • The bill could face obstacles in the Senate and a Trump veto, but the House vote would put lawmakers publicly on record.

• Document Dump:

  • Democrats released emails in which Epstein discussed Trump; in response, House Republicans released over 20,000 pages of Epstein documents.
  • Trump White House Reaction:
    • Press Secretary Caroline Levitt called the timing a “distraction campaign by the Democrat in the liberal media.” (04:42)
    • Trump reiterated he cut all ties with Epstein before Epstein’s first 2006 arrest.

3. U.S.-China AI Chip Export Loopholes

[06:49–10:52]

• Export Restrictions and Workarounds:

  • The U.S. bars export of Nvidia’s most advanced chips directly to China due to military and security concerns.
  • Stu Wu:

    “For the past three years, the US Government has made it forbidden for Nvidia to sell its most advanced chips to China... directly sending those chips to China, not allowed. But there is this gray area—what if they’re sent to a third country like Indonesia? Can a Chinese company access those chips there? … In many cases, yes, they can do that totally legally.” (07:43)

• Case Study: Chips to Indonesia, Ends in Chinese Hands:

  • Nvidia sells chips to hardware makers, who sell to Indonesian data centers, which then resell to Chinese AI firms.
  • Wu:

    “It took four companies. It starts with Nvidia, then it starts with somebody who buys Nvidia chips... and finally the final customer is the Chinese AI company.” (08:35)

• Legal and Policy Gray Areas:

  • No laws are directly broken in these circumvention cases; potential violation of the policy’s “spirit” rather than letter.
  • Wu:

    “There’s no evidence that they broke any law. Now, the question here is, did they break the spirit of the law?” (09:16)

  • A stricter rule proposed under Biden—requiring government permission for any export to third-party countries—was lobbied against by Nvidia and dropped by the Trump administration.
  • New regulatory clarifications are expected in the coming weeks.

4. AI-Designed, AI-Run Data Center in South Korea

[11:01–12:45]

• New AI Milestone:

  • A $35 billion data center under development in South Korea may be the first designed, built, and run by AI.
  • Ji Young Sohn:

    “AI will be the one making optimal decisions on things like how to design the layout... energy usage, how to set up the cooling systems... and once the data center is up and running, the company expects that AI will be able to run it in the most efficient manner.” (11:25)

• Industry Impact:

  • Expected capacity: up to 3 gigawatts—three times the size of OpenAI’s “Stargate” complex in Texas ([12:17]).
  • Human supervisors will remain, but AI will optimize for myriad variables, potentially setting a new standard for infrastructure design and management.

Notable Quotes & Memorable Moments

• Ken Thomas on the return-to-work process:

  “Once employees are back, they will have a lot of work that's piled up… It will take days, perhaps longer, before US Air travel goes back to normal.” (01:57)

• Adelita Grijalva on transparency:

  “With my signing, we move one step closer to the truth… survivors deserve their day of justice and the American people demand it.” (03:41)

• Caroline Levitt (Trump Press Secretary) on the political maneuvering:

  “Another distraction campaign by the Democrat in the liberal media and it’s why I’m being asked questions about Epstein instead of the government reopening…” (04:42)

• Stu Wu explaining the chip export gray area:

  “But there is this gray area. What if they're sent to a third country like Indonesia? Can a Chinese company access those chips there? … In many cases, yes, they can do that totally legally.” (07:43)

• Ji Young Sohn on the AI-run data center’s innovation:

  “In the beginning stages, AI will be the one making optimal decisions on things like how to design the layout... and once the data center is up and running, the company expects that AI will be able to run it in the most efficient manner.” (11:25)

Timestamps for Important Segments

• 00:18: Episode theme and top stories recap
• 00:55: Breakdown of the government shutdown, new funding bill
• 01:57: Ken Thomas on challenges and delays in resuming government services
• 02:53: Effects of the shutdown on SNAP, travel, national parks, missing government economic data
• 03:41: Epstein files political updates; Rep. Grijalva’s impact
• 04:42: White House response to Epstein document dump
• 06:49: Vanguard research insights on human investing behavior
• 07:43: Stu Wu details Nvidia chip export loopholes
• 08:35: Story of US chips going through intermediaries to Chinese AI firms
• 09:16: Legalities and spirit versus letter of U.S. export controls
• 10:10: Explaining regulatory gaps between Biden and Trump administrations
• 11:25: Ji Young Sohn on the South Korean AI data center project
• 12:17: AI facility’s planned size vs. current data center industry standards

Conclusion

This episode of “What’s News” deftly weaves together the immediate challenges of restarting government after a record shutdown, the high-stakes political drama of the Epstein files, and the geostrategic tug-of-war over AI technology. Through interviews and expert commentary, listeners receive a concise yet comprehensive update on the intersection of governance, technology, and politics as they unfold in real time.