Trump's Medicaid freeze, Starbucks' vibe shift, and Costco's DEI defense: Business news roundup

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Trump Medicaid freeze seems to lock 72 million Americans out of their health insurance

Hospital hallway corridor lined with medical equipment. - Image: Catherine McQueen (Getty Images)
Hospital hallway corridor lined with medical equipment. - Image: Catherine McQueen (Getty Images)

President Donald Trump’s move to freeze federal funding for a massive number of government programs seems to have impacted Medicaid payment systems across the country, potentially locking 72 million Americans out of their health insurance.

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The Starbucks vibe shift is here

Passengers waiting at a Starbucks at Frankfurt Airport.<br> - Image: kickers (Getty Images)
Passengers waiting at a Starbucks at Frankfurt Airport.
- Image: kickers (Getty Images)

Starbucks is changing its vibe beginning today.

The coffee chain is reintroducing elements many customers associate with its “classic coffeehouse vibe,” like condiment bars and handwritten names on cups.

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Costco is already under fire for sticking with DEI

Photo: James Leynse (Getty Images)
Photo: James Leynse (Getty Images)

Nineteen Republican attorneys general sent a letter to Costco on Monday blasting the wholesale retailer for standing by its commitment to diversity, equity, and inclusion (DEI) programs.

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Costco is making a big food court change

Workers talk with customers about power outages outside a closed Costco in Foster City, California on January 16, 2025. - Image: Tayfun Coskun/Anadolu (Getty Images)
Workers talk with customers about power outages outside a closed Costco in Foster City, California on January 16, 2025. - Image: Tayfun Coskun/Anadolu (Getty Images)

Costco (COST) is making a big change to its soda offerings.

After years of serving Pepsi (PEP), the wholesale giant will switch to Coca-Cola (KO) beverages later this year, according to CEO Ron Vachris.

“This summer, we will be converting our food court fountain business back over to Coca-Cola,” Vachris confirmed during the company’s annual shareholders meeting on Jan. 23.

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‘This is insane s—t’: Bill Gates blasts Elon Musk’s meddling in global politics

Tesla CEO Elon Musk raises his fists as he speaks virtually during the Alternative for Germany (AfD) general election campaign launch in Halle, Germany, on Saturday, Jan. 25, 2025. - Photo: Krisztian Bocsi/Bloomberg (Getty Images)
Tesla CEO Elon Musk raises his fists as he speaks virtually during the Alternative for Germany (AfD) general election campaign launch in Halle, Germany, on Saturday, Jan. 25, 2025. - Photo: Krisztian Bocsi/Bloomberg (Getty Images)

Bill Gates had some choice words for Elon Musk when asked about Musk’s recent involvement in global politics.

“It’s really insane that he can destabilize the political situations in countries,” Gates told The Sunday Times in an interview published over the weekend.

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Tesla earnings miss the mark — but the stock rises anyway

Tesla - Photo: David Paul Morris/Bloomberg (Getty Images)
Tesla - Photo: David Paul Morris/Bloomberg (Getty Images)

Tesla (TSLA) shares rose despite fourth-quarter revenue and other metrics falling short of Wall Street expectations.

The Austin, Texas-based electric vehicle maker reported fourth-quarter revenue of $25.7 billion, up 2% compared to last year’s $25.2 billion. But analysts had expected $27.2 billion, according to estimates compiled by FactSet (FDS).

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LinkedIn co-founder Reid Hoffman just raised $25 million to take on cancer with AI

Reid Hoffman, partner at Greylock Partners, during the Bloomberg Technology Summit in San Francisco, California, US, on Thursday, May 9, 2024. - Image: Bloomberg / Contributor (Getty Images)
Reid Hoffman, partner at Greylock Partners, during the Bloomberg Technology Summit in San Francisco, California, US, on Thursday, May 9, 2024. - Image: Bloomberg / Contributor (Getty Images)

LinkedIn (MSFT) co-founder and venture capitalist Reid Hoffman on Monday launched an AI startup aimed at discovering new treatments for cancer.

Manas AI will use a proprietary AI-driven platform to help speed up the drug discovery process, from identifying potential drug candidates with “paradigm-shifting speed and accuracy” all the way to clinical trials, Hoffman said in a press release. The company is initially focusing on treatments for breast cancer, prostate cancer, and lymphoma. Eventually, it intends to target other autoimmune diseases and rare conditions.