Washington, DC

1. GOP’s data center rebrand
2. Iran conflict drags on
3. Trump gets Hyperliquid
4. Canada waiting game
5. Carlyle’s homecoming
6. ‘Challenging’ Ebola response
7. Drinking dries up

PDB: National debt tops $40 trillion

Moulton, Markey debate … Walmart reports earnings … Accused WHCD gunman appears in court

GOP scrambles for data center identity

As populist pushback builds against the AI industry and data centers that power it, Republicans who have cheered the AI boom are scrambling to find a new identity as middle-ground pragmatists, Semafor’s David Weigel reports. Instead of a moratorium on building new facilities, a growing number of GOP candidates have called for “guardrails” to protect skeptical communities from unchecked AI growth. These Republicans, including Texas Gov. Greg Abbott and Wisconsin gubernatorial nominee Rep. Tom Tiffany, are aligned with President Donald Trump, who acknowledged Wednesday that data centers “could use a little public relations help.” Democrats are responding by reminding voters that the AI industry prefers their opponents for a reason. And it’s not even clear whether the Republican remake will evaporate after November, with the politics of data centers becoming scrambled.

Trump digs in as Iran-Oman talks stall

Trump’s latest step away from military escalation in Iran comes as the US side sees talks between Iran and Oman — which had appeared to be a rare fruitful negotiation path — as having stalled in recent days. A US official and a White House official told Semafor that the administration believes the Iran-Oman discussions broke down weeks ago. Those talks had frustrated Trump by raising the prospect of a possible tolling arrangement in the Strait of Hormuz. For now, though, Trump is framing the situation with Iran as “so good,” remaining optimistic that economic pressure can force Tehran back to the table, even as he has cut off talks for the foreseeable future. In a Truth Social post last night, Trump threatened “economic warfare” against Iran, saying the US would level penalties against any countries doing business with Tehran.

— Shelby Talcott

Trump open to divisive crypto exchange

Trump’s on-camera openness to US market access for Hyperliquid, a Singapore-based cryptocurrency exchange that allows its users to trade anonymously, won’t thrill its domestic competitors. Intercontinental Exchange Inc. and CME Group Inc. recently urged US officials to rein in the exchange, which they warn could be used to manipulate prices or dodge sanctions. Trump addressed Hyperliquid during a White House kickoff for the CFTC’s Innovation Advisory Committee’s inaugural meeting, which takes place today. Crypto firms like Coinbase, Kraken, and Gemini, plus trade associations like Digital Chamber, participated alongside tradfi companies like Intercontinental Exchange and Nasdaq. “It’s good to continue the momentum that we have going” on digital assets legislation, Blockchain Association CEO Summer Mersinger, who also attended, told Semafor. “This five-week stretch between the cloture filing and the vote, it’s easy for everyone to maybe get a little bit too relaxed.”

— Eleanor Mueller

US, Canada work to iron out deal

The US and Canada are working to iron out a trade deal that could see Washington lower tariffs on Canadian aluminum and steel before a deadline tomorrow night. Trump yesterday confirmed that the US is “looking at” lowering the tariffs, which outlets like The Wall Street Journal reported would be halved to 25% under the agreement being discussed. In the meantime, Canadian business owners are anxious as the threat of 50% tariffs hangs over their heads. “We would no longer be competitive in the market,” the CEO of a furniture maker told Bloomberg. A White House official said that “any reporting about details of this possible deal should be regarded as speculation until and unless officially announced by the administration.” The two sides have until midnight Friday to finalize the deal — unless, of course, Trump delays the levies again.

— Morgan Chalfant

Carlyle embraces its Washington roots

The private equity firm Carlyle made its name in DC — then turned away to chase its Wall Street rivals. Now, Liz Hoffman writes, CEO Harvey Schwartz is steering back toward its longstanding relationship with Washington and the US government. The company is courting defense deals and nurturing relationships with policymakers. It’s a shift that predates the 2024 reelection of Trump and has come without MAGA theatrics. Carlyle’s return is a leading indicator of the US capital’s growing centrality to the private sector. JPMorgan launched a $1.5 trillion initiative to invest in critical infrastructure and defense. Bank of America followed with a $250 billion plan. But Carlyle’s edge is its history. “Washington is at the center of all of it, and we’re here by an accident of entrepreneurial birth,” says Schwartz. “Why wouldn’t we lean in?”

‘Long’ road ahead in Ebola response

The State Department is warning of the “long and challenging” road ahead in addressing the Ebola crisis ravaging parts of Africa, after the epidemic became the deadliest in the Democratic Republic of the Congo’s history earlier this week. The grim milestone has renewed scrutiny of the US response to the virus, which critics say has been hampered by the Trump administration’s cuts to global health aid. A State Department spokesperson told Semafor the US has contributed more than $500 million to the response, including funds for border screening, contact tracing, and specialized treatment facilities, and that officials remain “deeply concerned” about the situation. “The rising death toll is a confirmation that the response does not yet have this outbreak fully in hand,” said Stephanie Psaki, a senior fellow at the Council on Foreign Relations and former White House global health security coordinator.

— Adrian Elimian

Americans still aren’t drinking

DC happy hours might be looking different these days. Just 54% of American adults say they drink alcohol, continuing a record low notched last year in polling from Gallup (which started asking the question in 1939). Another record low — 13% — admit they sometimes drink too much, while a modest 17% say they are substituting nonalcoholic drinks for alcohol these days. The shift is tied in part to people becoming more aware of the health effects of alcohol use; more than half of US adults believe drinking moderately is bad for one’s health (that statistic was just 27% 25 years ago). While drinking is down across major demographic groups, Republicans and independents have seen more of a shift than Democrats in the last three years. In January, the Trump administration changed dietary guidance to eliminate recommended drink limits but advise Americans to moderate alcohol use.

Blindspot: Socialism and ‘forever chemicals’

Stories that are being largely ignored by either left-leaning or right-leaning outlets, curated with help from our partners at Ground News.

What the Left isn’t reading: More Democrats have a positive view of socialism than do of capitalism, according to a CBS/YouGov poll.

What the Right isn’t reading: A court upheld an EPA rule requiring polluters to pay for cleaning up “forever chemicals” in the face of the challenge from industry.

White House

• White House legislative affairs director James Braid is leaving the administration for a private-sector job, an administration official told Semafor’s Shelby Talcott, confirming an earlier report by Punchbowl News.

Congress

• Topping The New York Times’ list of lawmakers who traded the most individual stocks this term: Reps. Ro Khanna and Nancy Pelosi, D-Calif.; Michael McCaul, R-Texas; and Jefferson Shreve, R-Ind.; plus Sen. Alan Armstrong, R-Okla.

Outside the Beltway

• Prince Harry and Meghan Markle are moving back to the UK. — The Telegraph
• An Army unit in Georgia is offering new recruits a promise of four days off to play Grand Theft Auto VI when the video game comes out.

Campaigns

• The DCCC is adding five new candidates to its “Red to Blue” program targeting Republican-held House seats: Leela Gray in Florida; Zach Dembo in Kentucky; Matt Dunlap in Maine; Nancy Lacore in South Carolina; and Tom Perriello in Virginia.
• The National Republican Senatorial Committee is sounding the alarm about data centers’ rising unpopularity with GOP voters. — Axios

Business

• A pair of blockbuster tech IPOs in Shanghai underscore how China is trying to use homegrown startups to reduce its dependence on US companies.

Economy

• The US national debt r