What to know about the Trump administration’s deal with AI chipmakers

What to know about the Trump administration’s deal with AI chipmakers
What to know about the Trump administration’s deal with AI chipmakers
VCG/VCG via Getty Images

(WASHINGTON) — AI chipmakers Nvidia and Advanced Micro Devices struck an extraordinary accord to pay the United States government 15% of the revenue the two companies are set to make from products sold in China, a White House official confirmed to ABC News.

In exchange for the payment, the Trump administration will grant the companies export licenses for the AI chips, allowing the firms to tap into a large market in China.

The quid quo pro agreement between major corporations and the president holds little or no precedent. The Financial Times first reported the deal.

Speaking to reporters at the White House on Monday, Trump recounted the agreement with Nvidia. “I said, ‘If I’m going to do that, I want you to pay us as a country something, because I’m giving you a release,'” Trump said.

Here’s what to know about the deal reached between Nvidia, AMD and the Trump administration.

Trump green-lights AI chip exports to China

In recent years, Santa Clara, Calif.-based Nvidia has grown into one of the world’s largest companies as its advanced chips have fueled the rapid development of chatbots and other AI tools.

The company said last month that the Trump administration had granted the company permission to sell its H20 chip, a product specifically designed for sale to China. Nvidia developed the chip in compliance with export restrictions put in place by the Biden administration beginning in 2022.

Despite the Trump administration’s apparent green light last month, Nvidia did not receive licenses for chip exports to China over the ensuing weeks.

The deal recently struck between the Trump administration and Nvidia will allow the company to obtain the export licenses and begin the sale of chips in China, a White House official said. AMD, which offers an MI308 chip for Chinese customers, will also receive permission for such sales, the official added.

Some observers have opposed the sale of advanced AI chips in China, saying the technology would help the country keep up with the U.S. in the fast-growing AI industry. The Trump administration has previously challenged the view, describing Nvidia’s H20 chip as inferior to similar products sold in the U.S.

“We don’t sell them our best stuff, not our second best stuff, not even our third best,” Commerce Secretary Howard Lutnick told CNBC last month, referring to Nvidia’s H20 chip as its “fourth best.”

In a statement to ABC News, Nvidia did not directly comment on the terms of the agreement.

“We follow rules the U.S. government sets for our participation in worldwide markets,” Nvidia said. “While we haven’t shipped H20 to China for months, we hope export control rules will let America compete in China and worldwide. America cannot repeat 5G and lose telecommunication leadership. America’s AI tech stack can be the world’s standard if we race.”

AMD did not immediately respond to ABC News’ request for comment.

Chipmakers pay share of revenue to U.S. government

In exchange for approval of chip sales in China, Nvidia and AMD have agreed to pay the U.S. 15% of revenue derived from such business.

The move marks the Trump administration’s latest intervention in the affairs of an individual company. When Japan-based Nippon Steel acquired U.S. Steel in June, the Trump administration received a “golden share” that affords the White House significant influence over the company. The golden share allows the Trump administration to influence the makeup of the company’s board and assert veto power over a host of major decisions, though the White House does not retain a financial stake in the firm.

More recently, Trump last week called on the CEO of Intel, Lip-Bu Tan, to resign. In a message posted on social media, Trump accused Tan of being “HIGHLY conflicted.”

Trump did not explain why Tan should resign, nor did he provide evidence for his allegation of a conflict of interest. But the post came after Republican Sen. Tom Cotton raised concerns about Tan’s alleged ties to China. Tan is still the company’s CEO.

ABC News’ Michelle Stoddart contributed to this report.

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1 dead, 2 unaccounted for, dozens hurt from explosion at Pennsylvania steel plant: Officials

1 dead, 2 unaccounted for, dozens hurt from explosion at Pennsylvania steel plant: Officials
1 dead, 2 unaccounted for, dozens hurt from explosion at Pennsylvania steel plant: Officials
ABC News

(PITTSBURGH) — One person has died, two are believed to be unaccounted for and dozens are hurt following an explosion at a Pennsylvania steel plant on Monday, Allegheny County police said.

The blast at the U.S. Steel Clairton Coke Works plant in Clairton, about 15 miles outside of Pittsburgh, trapped people under rubble, prompting a rescue operation, according to Allegheny County officials.

The exact number of victims was not clear but many of the injuries are non-life-threatening, Allegheny County Emergency Services spokesperson Kasey Reigner said.

Allegheny County Director of Communications Abigail Gardner said the Health Department is on site monitoring air quality and Gov. Josh Shapiro said his administration is in touch with officials.

“The scene is still active, and folks nearby should follow the direction of local authorities,” the governor said on social media. “Please join Lori and me in praying for the Clairton community.”

The Bureau of Alcohol, Tobacco, Firearms and Explosives is also responding, according to a spokesman.

This is a developing story. Please check back for updates.

ABC News’ Michael Pappano contributed to this report.

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Trump describes upcoming summit with Russia’s Putin as ‘feel-out meeting’

Trump describes upcoming summit with Russia’s Putin as ‘feel-out meeting’
Trump describes upcoming summit with Russia’s Putin as ‘feel-out meeting’
Andrew Harnik/Getty Images

(WASHINGTON) — President Donald Trump on Monday previewed his highly-anticipated meeting with Russia’s Vladimir Putin, saying he’s hopeful for “constructive conversations” but that it isn’t up to him to make a peace deal.

Trump confirmed last week he would sit down with Putin in Alaska as his imposed deadline for Moscow to agree to a ceasefire with Ukraine came and went. No exact time or specific venue has been announced for Friday’s summit.

“This is really a feel-out meeting, a little bit,” Trump told reporters in the White House briefing room, where he held a news conference on a federal takeover of Washington’s police force and deployment of the National Guard to deal, he said, with the city’s crime and homelessness.

“I think if it weren’t for me, he would not be even talking to anybody else right now,” Trump said of Putin. At the same time, Trump downplayed the idea that Friday’s talks will result in an end to the war in Ukraine.

“We’re going to see what the parameters are, and then I’m going to call up President [Volodymyr] Zelenskyy and the European leaders right after the meeting,” Trump added. “And I’m going to tell them what kind of a deal — I’m not going to make a deal. It’s not up to me to make a deal.”

Trump said Zelenskyy wasn’t invited to be part of Friday’s meeting, but that he’d call the Ukrainian leader first after to relay what was discussed. He said if there’s a “fair deal” that he would reveal it to Zelenskyy and European leaders.

“And I may say, ‘Lots of luck, keep fighting’ or I may say, ‘We can make a deal,'” Trump said.

When asked by Trump how he’ll know whether a deal can be made, Trump responded: “Because that’s what I do. I make deals.”

Trump declined to share specifics on what he would consider a fair agreement between Ukraine and Russia, but again suggested that there would be “some land swapping.”

Trump said his goal was to set up a next meeting between Zelenskyy and Putin or between himself, Zelenskyy and Putin.

“I’ll be there if they need, but I want to have a meeting set up between the two leaders,” Trump said.

Friday’s meeting will mark the first time Putin will be in the U.S. since 2015. Trump on Monday mistakenly said he was “going to Russia” as he discussed the summit, though he also praised the fact that Putin is coming to the U.S. rather than the other way around.

“I thought it was very respectful that the president of Russia is coming to our country as opposed to us going to his country or even a third party place,” Trump said. “But I think we’ll have constructive conversations.”

Trump on Monday continued to express frustration with Putin and Zelenskyy, and again claimed the war wouldn’t have started if he were president. Trump had repeatedly claimed on the campaign trail that he would end the war within his first 24 hours in office, which he later said was an exaggeration. He described the yearslong conflict as “complex” with a “lot of bad blood” but that he would press Putin to pursue peace.

“I am going in to speak to Vladimir Putin and I will be telling him, ‘You have to end this war. You have to end it.’ And he wasn’t going to mess with me. This war would have never happened,” Trump said.

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People trapped under rubble after explosion at Pennsylvania steel plant, rescue operation underway: Officials

People trapped under rubble after explosion at Pennsylvania steel plant, rescue operation underway: Officials
People trapped under rubble after explosion at Pennsylvania steel plant, rescue operation underway: Officials

(CLAIRTON, Pa.) — A rescue operation is underway for people trapped under rubble following an explosion at a Pennsylvania steel plant, county officials said.

It’s not clear how many people are trapped from the blast at the US Steel Clairton Coke Works plant in Clairton, about 15 miles outside of Pittsburgh.

Allegheny County Director of Communications Abigail Gardner said the Health Department is on site monitoring air quality and Gov. Josh Shapiro said his administration is in touch with officials.

“The scene is still active, and folks nearby should follow the direction of local authorities,” the governor said on social media. “Please join Lori and me in praying for the Clairton community.”

This is a developing story. Please check back for updates.

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Texas House Democrats remain out of state as redistricting showdown continues into second week

Texas House Democrats remain out of state as redistricting showdown continues into second week
Texas House Democrats remain out of state as redistricting showdown continues into second week
The Texas State Capitol. Brandon Bell/Getty Images

(AUSTIN, Texas) — The battle over potential mid-decade redistricting in Texas — where the state’s congressional district lines could be redrawn well ahead of the upcoming census — continued Monday as dozens of Texas House Democrats remained out of state for a second week to block any potential votes on the map.

In Austin, the Texas House of Representatives is scheduled to meet and the redistricting bill is technically scheduled for a second reading (which would not be a vote to pass it out of the chamber). But this cannot happen without a quorum present; Republican legislators may try for another roll call vote to see if they still do not have a quorum.

The Texas Senate is also scheduled to meet and may vote on its own version of redistricting legislation, although if it votes the bill out of the Senate it cannot be voted on in the House until there is a quorum.

Texas Gov. Greg Abbott and Attorney General Ken Paxton, separately, escalated legal efforts last week to get Democrats back to Texas or investigate who is funding their efforts.

Abbott has also said he will call special legislative session after special session to get the Republican-supported maps passed, even if Democrats run out the 30-day clock on the current session.

“I’m authorized to call a special session every 30 days. It lasts 30 days, and as soon as this one is over, I’m going to call another one, then another one, then another one, then another one. If they show back up in the state of Texas, they will be arrested and taken to the Capitol,” he told Fox News in an interview on Sunday.

“If they want to evade that arrest, they’re going to stay outside of the state of Texas for literally years, and they might as well just start voting in California or voting in Illinois, wherever they may be,” he continued.

But Democrats are also going on the offensive. Eric Holder, a former attorney general and current chair of the National Democratic Redistricting Committee, is set to speak about redistricting with U.S. House Democrats on Wednesday.

In California, legislators have said they expect to unveil proposed new congressional maps this week that would possibly go in front of voters for approval in a special election in November. But running a statewide election with relatively little notice will be a challenge, the Secretary of State’s office has said.

On Monday, California Gov. Gavin Newsom sent a letter to Trump saying it would drop its potential plans if other states would do the same.

“You are playing with fire, risking the destabilization of our democracy, while knowing that California can neutralize any gains you hope to make,” Newsom wrote. Separately, governors in Florida, Indiana, and Missouri have indicated interest in potential mid-decade redistricting.

Some of the Texas House Democrats who have broken quorum will be appearing at pressers in Illinois on Monday excoriating the continued efforts to redraw the maps.

During an interview with NBC News on Sunday, Illinois Gov. JB Pritzker took pride in housing Texas Democrats, calling President Donald Trump a ‘cheater.’

“[Republicans] know that they’re going to lose in 2026, the congress, and so they’re trying to steal seats, and so that is what these Texas Democrats are trying to stand up against and then don’t forget. The map that they put together, it violates the voting rights act and it violates the constitution,” Pritzker said.

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2 South Carolina women found dead over 100 miles from home, homicide investigation underway: Coroner

2 South Carolina women found dead over 100 miles from home, homicide investigation underway: Coroner
2 South Carolina women found dead over 100 miles from home, homicide investigation underway: Coroner
The deaths of two South Carolina women are being investigated as a possible homicide after their bodies were found in a rural, wooded area on Aug. 8, according to the Sumter County Coroner’s Office. Sumter County Sheriff’s Office

(SUMTER COUNTY, S.C.) — The deaths of two South Carolina women are being investigated as homicides after their bodies were found in a rural, wooded area on Friday, according to the Sumter County Coroner’s Office.

At approximately 1 p.m. on Friday, two bodies were discovered near a rural, wooded area in Rembert, South Carolina, off Richbow Road, officials said.

The person who discovered the bodies alerted authorities and “met deputies upon their arrival,” the Sumter County Sheriff’s Office said in a press release.

On Friday, Sumter County Sheriff Anthony Dennis — who joined investigators on the scene — said the deaths were “suspicious.” However, Dennis noted that they would need to wait until they “have the results of the autopsies to know more.”

In a press release shared with ABC News on Monday, the coroner’s office identified the victims as 35-year-old Christine Marie McAbee and 38-year-old Kristen Grissom, and said the deaths would be investigated as homicides.

The two were from Charleston County, which is over 100 miles from where their bodies were found.

The autopsies will be performed on Tuesday at the Medical University in Charleston, the coroner’s office said. Officials said the women’s families have been notified of their deaths.

Anyone with more information regarding the incident should contact the sheriff’s office at 803-436-2000 or submit a tip online.

More information regarding the deaths will “be released as it becomes available,” according to the sheriff’s office.

The Sumter County Sheriff’s Office did not immediately respond to ABC News’ request for comment.

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Tropical Storm Erin likely to be 1st hurricane of season, not forecast to hit US

Tropical Storm Erin likely to be 1st hurricane of season, not forecast to hit US
Tropical Storm Erin likely to be 1st hurricane of season, not forecast to hit US
Erin – Fifth Named Storm Map. ABC News

(NEW YORK) — Tropical Storm Erin is forecast to strengthen into the first hurricane of the Atlantic season by Wednesday and could become a major Category 3 hurricane by the weekend.

But as of now, Erin is not expected to post a direct threat to the U.S.

Long-range modeling shows Erin moving through the ocean between Bermuda and the U.S. East Coast from Aug. 19 to Aug. 21. Because Erin is still more than one week away, meteorologists in Bermuda and the U.S. East Coast will be watching the storm closely, as any deviation east or west could lead to significant impacts.

The National Hurricane Center predicted an above-normal hurricane season for the Atlantic.

August, September and October are the most active months of the Atlantic hurricane season, which ends on Nov. 30.

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Flash-flooding threats move into the Plains, Atlantic Coast as Wisconsin mops up

Flash-flooding threats move into the Plains, Atlantic Coast as Wisconsin mops up
Flash-flooding threats move into the Plains, Atlantic Coast as Wisconsin mops up
Flash-flood threat, August 11, 2025, from Florida to the Carolinas. ABC News

(NEW YORK) — Residents from the Great Plains to the southern Atlantic Coast are bracing for flash flooding on Monday after up to 14 inches of rain fell in a short amount of time over the weekend in parts of Wisconsin, prompting numerous water rescues in Milwaukee.

Severe thunderstorms early Monday were moving through Kansas and northern Oklahoma, packing 60 mph winds and producing rainfall rates of 1 to 3 inches per hour.

Heavy rain is also expected along the Atlantic Coast and could produce possible flash flooding in coastal areas of the Carolinas on Monday, including the cities of Charleston, South Carolina, and Wilmington, North Carolina.

The heavy rain is forecast to extend from the Florida panhandle to the Big Bend area of Florida, possibly bringing flash flooding to the area on Monday afternoon.

On Monday night and into Tuesday, thunderstorms are expected from northern Texas through Oklahoma and southwestern Missouri, possibly producing flash flooding in those areas.

Meanwhile, parts of the Midwest, including Wisconsin, are recovering from storms over the weekend that toppled trees, flooded homes and left numerous drivers stranded on flooded roads.

Between 8 and 14 inches of rain fell in just a few hours in the Milwaukee area on Saturday and into Sunday. The extreme rainfall flooded neighborhoods, made many roads impassable and led to water rescues. The storm that hit Milwaukee was also accompanied by gusts of over 80 mph that toppled numerous trees and power lines.

During a news conference on Sunday, Milwaukee Mayor Cavalier “Chevy” Johnson said thousands of people in Milwaukee were affected by the severe flooding. Johnson said parts of the city saw more than a foot of rain in “a short period of time.”

“It’s something that Milwaukee hasn’t seen in perhaps a decade or more,” Johnson said.

Between 8 p.m. on Saturday and 7 a.m. Sunday, the Milwaukee Fire Department and neighboring fire departments received 614 separate emergency calls, including 65 that required water rescues, Milwaukee Fire Chief Aaron Lipski said at the news conference.

In the Milwaukee suburb of Franklin, the Root River reached a record level of 11.7 feet, causing it to spill its banks and flood nearby neighborhoods, officials said.

The Franklin Fire Department responded to a 911 call at about 4:27 p.m. local time, reporting that a teenage boy was missing after being swept into the Root River, authorities said.

Police officers and firefighters searched the river and found the teenager holding onto a tree branch and standing on a submerged log in the rapidly moving water about 100 yards downstream from where he was washed into the river, according to the statement from the Franklin Fire Department.

Rescuers made voice contact with the teenager, officials said.

“Although they could not initially see the subject, responders stayed in constant contact, reassuring him to stay calm and continue to hold onto the tree until rescuers arrived,” according to the fire department’s statement.

The Franklin Fire Department divers deployed an inflatable Zodiac boat to rescue the teenager, who was treated at the scene by paramedics, reunited with his family and taken to Children’s Hospital of Wisconsin for further medical evaluation, officials said.

“This incident serves as a stark reminder of the dangers posed by flood waters,” the fire department said. “Never walk or drive through flooded roadways or around barricades. Moving water as shallow as 6 inches can knock an adult off their feet, and 2 feet of moving water can sweep away most vehicles.”

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Trump puts DC police department under federal control, deploys National Guard

Trump puts DC police department under federal control, deploys National Guard
Trump puts DC police department under federal control, deploys National Guard
Andrew Harnik/Getty Images

(WASHINGTON) — President Donald Trump is holding a news conference Monday to reveal plans he’s said “will, essentially, stop violent crime in Washington, D.C.”

“We’re here for a very serious purpose. Very serious, very,” Trump said. “Something’s out of control. But we’re going to put it in control very quickly, like we did in the southern border. I’m announcing a historic action to rescue our nation’s capital from crime, bloodshed, bedlam and squalor. And worse, this is Liberation Day in DC, and we’re going to take our capital back.”

He said he was declaring a public safety emergency, putting the Washington, D.C., police department under federal control and deploying the National Guard.

“I’m announcing a historic action to rescue our nation’s capital from crime, bloodshed, bedlam and squalor and worse. This is Liberation Day in D.C., and we’re going to take our capital back,” he said.

The president promoted the news conference in multiple posts on his social media platform and on Sunday posted that it would “also be about Cleanliness and the General Physical Renovation and Condition of our once beautiful and well maintained Capital.”

In a separate post, Trump said the homeless should leave D.C., accompanied by photos of homeless encampments along his route from the White House to his golf club in Sterling, Virginia.

“The Homeless have to move out, IMMEDIATELY. We will give you places to stay, but FAR from the Capital,” Trump wrote. “The Criminals, you don’t have to move out. We’re going to put you in jail where you belong.”

The news conference comes after Trump last week ordered an increase in law enforcement as part of an executive order he signed in March to “Make the District of Columbia Safe and Beautiful.”

Contrary to the president’s claim, preliminary year-to-date crime comparisons from Washington’s Metropolitan Police Department show that overall crime in D.C. has decreased by 7% since last year, with violent crime down 26% and property crime reduced by 5%.

A White House official said the law enforcement effort a “whole of government approach to improve overall public safety” and said that law enforcement will “be focused on high traffic tourist areas and other known hotspots.”

The official added that federal officers “will be identified, in marked units, and highly visible.”

Trump said Sunday that he has given D.C. Mayor Muriel Bowser an opportunity to reduce crime rates but she has failed to do that.

“The Mayor of D.C., Muriel Bowser, is a good person who has tried, but she has been given many chances, and the Crime Numbers get worse, and the City only gets dirtier and less attractive. The American Public is not going to put up with it any longer,” he claimed.

Bowser said Sunday that Washington has spent the last two years driving down violent crime, “driving it down to a 30 year low, in fact.”

“It is true that we had a terrible spike in crime in 2023, but this is not 2023, this is 2025 and we’ve done that by working with the community, working with the police, working with our prosecutors, and, in fact, working with the federal government,” Bowser told MSNBC.

On Saturday, Trump said the nation’s capital has become “one of the most dangerous cities anywhere in the World.”

Last week he threatened to deploy the National Guard to D.C. and, as he has on several occasions since he was inaugurated in January, suggested that there should be a federal takeover.

That call came after Edward Coristine, a former Department of Government Efficiency employee, was beaten after he tried to break up a carjacking in D.C.

“So whether you call it federalize or what. And that also includes the graffiti that you see, the papers all over the place, the roads that are in bad shape, the medians that are falling down, the median in between roads, it’s falling down,” Trump said in the Oval Office on Wednesday.

“We’re going to beautify the city. We’re going to make it beautiful. And, what a shame. Rate of crime, the rate of muggings, killings and everything else. We’re not going to let it. And that includes bringing in the National Guard, maybe very quickly.”

White House press secretary Karoline Leavitt said in a statement last week, “Washington, DC is an amazing city, but it has been plagued by violent crime for far too long. President Trump has directed an increased presence of federal law enforcement to protect innocent citizens. There will be no safe harbor for violent criminals in D.C. President Trump is committed to making our Nation’s capital safer for its residents, lawmakers, and visitors from all around the world.”

The seven-day law enforcement effort is being led by the U.S. Park Police but includes personnel from the Metro Transit Police Department, Amtrak Police Department, United States Capitol Police, Washington’s Metro Police Department, Homeland Security Investigations, Federal Protective Service, Enforcement and Removal Operations, Drug Enforcement Administration, Federal Bureau of Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, United States Marshals Service, United States Attorney’s Office-District of Columbia, Department of Interior, Pre-Trial Services Agency, Court Services and Offender Supervision Agency (CSOSA), the White House official said.

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Judge rejects Trump administration’s request to unseal Ghislaine Maxwell grand jury testimony

Judge rejects Trump administration’s request to unseal Ghislaine Maxwell grand jury testimony
Judge rejects Trump administration’s request to unseal Ghislaine Maxwell grand jury testimony
Ghislaine Maxwell attends day 1 of the 4th Annual WIE Symposium at Center 548 on September 20, 2013 in New York City. (Photo by Laura Cavanaugh/Getty Images)

(NEW YORK) — A federal judge in New York has denied the Trump administration’s motion to unseal grand jury testimony from the criminal case against Jeffrey Epstein associate Ghislaine Maxwell.

The Trump administration has been seeking to release materials related to the investigation into Epstein, the wealthy financier and convicted sex offender who died by suicide in jail in 2019, following the blowback it received from MAGA supporters after it announced last month that no additional files would be released.

Maxwell, a longtime associate of Epstein, is currently serving a 20-year prison sentence for sex trafficking and other offenses in connection with Epstein.

In his 31-page opinion, U.S. District Judge Paul Engelmayer of the Southern District of New York criticized the Department of Justice for using “demonstrably false” reasoning to justify the release of grand jury testimony.

The transcripts would “not reveal new information of any consequence” about Epstein and Maxwell’s crimes, according to Judge Engelmayer, who suggested that the Trump administration’s push to release documents might be an intentional “diversion.”

“Its entire premise — that the Maxwell grand jury materials would bring to light meaningful new information about Epstein’s and Maxwell’s crimes, or the Government’s investigation into them — is demonstrably false,” he wrote.

Engelmayer wrote that the transcripts contain material already in the public record and lack any firsthand information about Epstein’s and Maxwell’s crimes. The records do not identify anyone other than Epstein or Maxwell who had sexual contact with a minor, mention any clients, shed light on their methods, or provide new information about Epstein’s death, Engelmayer wrote.

“Insofar as the motion to unseal implies that the grand jury materials are an untapped mine lode of undisclosed information about Epstein or Maxwell or confederates, they definitively are not that. A ‘public official,’ ‘lawmaker,’ ‘pundit,’ or ‘ordinary citizen’ ‘deeply interested and concerned about the Epstein matter,’ and who reviewed these materials expecting, based on the Government’s representations, to learn new information about Epstein’s and Maxwell’s crimes and the investigation into them, would come away feeling disappointed and misled. There is no ‘there’ there,” the judge wrote.

Engelmayer also suggested that the only reason that might justify the release of the records would be to “expose as disingenuous the Government’s public explanations for moving to unseal.”

“A member of the public, appreciating that the Maxwell grand jury materials do not contribute anything to public knowledge, might conclude that the Government’s motion for their unsealing was aimed not at ‘transparency’ but at diversion — aimed not at full disclosure but at the illusion of such,” he wrote.

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