This week in business: Shutdown chaos, AI jitters, and a penny farewell

This week’s biggest business news is perhaps that the U.S. federal government shutdown finally ended; however, that ending didn’t come without more than a few noteworthy concessions. Meanwhile, a beloved coffee chain walked straight into a strike on one of its biggest promo days, and a regional grocer found a way to turn literal loose change into both PR and foot traffic.

In the background, the tech world reminded everyone that hype cycles come with fine print. CoreWeave, one of the hottest names in AI infrastructure, delivered blockbuster revenue but still saw its stock sink on news of a delayed data center. IBM, facing louder rivals in quantum computing, rolled out new chips and a faster manufacturing plan to reassure customers it is still a contender. And amid all of that, Target is telling workers to smile more, and Google is suing over scam texts. Here are the stories that defined the week in business.

Marriott and Sonder’s Split Leaves Guests on the Street

Marriott abruptly terminated its licensing deal with Sonder, and within a day, the short-term rental operator announced plans to liquidate and file for Chapter 7 bankruptcy protection. The collapse has created chaos for roughly 1,400 employees across more than 35 cities, not to mention for guests caught in the middle of stays. Some travelers reported being told to vacate with little warning, and others were denied access to their rooms or forced to navigate partial refunds and small credits after hours while on hold on the phone. Marriott says its priority is minimizing disruption for guests who booked through its channels, but both companies have gone quiet publicly as blame for the failed partnership flies in both directions.

Google Sues Alleged Smishing Kingpins Behind Fake USPS Texts

If you have ever gotten a fake USPS or toll road text, Google says it has found one of the groups responsible. The company filed a lawsuit against 25 unnamed individuals it ties to a global “phishing as a service” operation called “Lighthouse,” which allegedly used hundreds of fake website templates to mimic brands such as Google, USPS, and New York City agencies. Google argues that the nefarious network may have stolen as much as a billion dollars over three years by tricking users into entering logins and payment information. The suit leans on RICO, trademark, and computer fraud laws, and aims to disrupt Lighthouse’s infrastructure, even if the operators themselves are based overseas and beyond easy reach of U.S. law enforcement.

Starbucks Baristas Turn Red Cup Day Into a Red Cup Rebellion

On what is usually one of Starbucks’s biggest promotional days, unionized baristas at more than 65 stores across 42 cities walked off the job. Members of Starbucks Workers United say negotiations over pay, hours, and hundreds of alleged unfair labor practices have stalled, and they accuse the company of refusing to bring serious proposals to the table. Starbucks insists the strike has had minimal impact so far and says it is ready to bargain when the union returns. The union counters that it is prepared to escalate into the largest, longest strike in company history if leadership does not agree to a contract that improves scheduling and take-home pay.

Hemp Becomes Collateral Damage in the Shutdown Deal

To move a bill that would reopen the federal government, senators accepted language that could effectively outlaw many hemp-based products within a year. The provision bans unregulated sales of items containing THC, which even legal hemp can include in trace amounts, and could devastate a $28 billion industry built after the 2018 Farm Bill loosened restrictions. Kentucky Sen. Rand Paul tried and failed to strip the hemp language, arguing that it threatened thousands of jobs in his home state and elsewhere.

Shutdown Fix Sets Up a 2026 Sticker Shock for Health Insurance

The same deal that moved the government toward reopening will leave millions of Americans facing higher health insurance premiums in 2026. Senators agreed to fund the government without extending enhanced Affordable Care Act premium tax credits that currently keep exchange plans more affordable. Data from the Kaiser Family Foundation suggests that individuals could pay up to $1,836 more per year, and families of four could pay up to $3,735 more a year, if the credits expire. Democrats secured only a promise of a future vote on an extension and will now have less leverage, while employers are expected to hike premiums on workplace plans as well, continuing a decades-long trend of costs outrunning inflation.

Target Bets on Smiles and Service With New ‘10-4’ Policy

Target is testing a back-to-basics strategy for its in-store experience as it heads into the holiday rush. A new “10-4” policy instructs employees to smile, wave, and acknowledge customers who are within 10 feet and to actively greet shoppers who are closer than 4 feet. The initiative lands just ahead of Black Friday and at the start of weeks of rolling promotions that stretch through late December, a period when two-thirds of Americans say they will already be shopping. Behind the friendlier vibes, Target is coming off better-than-expected second-quarter earnings, but also traffic declines, DEI-related boycotts, and recent layoffs that trimmed about 8% of its corporate staff.

CoreWeave’s Data Center Delay Spooks AI Investors

AI infrastructure firm CoreWeave reported staggering growth, with revenue up 134% year over year and a $55.6 billion backlog of future business, yet its stock slid nearly 10%. The problem is a delay at a third-party data center that forced the company to lower its full-year 2025 revenue forecast by about $200 million. CoreWeave says the affected customer has agreed to keep the contract intact, meaning the revenue should arrive in 2026 instead, and stresses that 41 other data centers remain on track. Even so, the market reaction shows how jumpy investors have become about richly valued AI names, and how quickly sentiment can swing when execution hiccups threaten hyper-growth narratives.

IBM Pushes Back in the Quantum Arms Race

With DARPA publishing a list of top quantum contenders, and with rivals like Quantinuum touting record-setting machines, IBM is working to remind customers that it is still on schedule. The company announced two new processors: Nighthawk for near-term quantum advantage experiments, and Loon for longer-term, fault-tolerant architectures backed by advanced error correction codes. IBM is also moving quantum chip production into a 300-millimeter wafer fabrication plant at the Albany NanoTech Complex, a shift that should double its manufacturing speed and allow for much more complex processors. Executives say the goal is to make sure both hardware and classical software tools are ready so that real-world applications can scale by the latter half of the decade.

Pennies End, but a Grocer Turns Them Into a Marketing Win

With the U.S. Mint pressing its final penny this week after an order from President The President to stop producing one-cent coins, a regional grocer is trying to capture both coins and customers. Market 32 and Price Chopper stores in six Northeastern states are hosting a “Double Exchange Day” that will swap up to $100 in pennies for gift cards worth twice as much. For shoppers, it is a way to turn jars of change into a sizable grocery credit. For the chain, it is a clever way to stock up on coins ahead of a looming shortage.

View the full article