FT News Briefing Sequoia Capital’s free speech debate
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Oct 23, 2025 Tesla's quarterly profits plummeted by nearly 30% due to factors like AI pivot and lost tax credits. Sequoia Capital is reeling from an Islamophobic comment made by partner Shaun Maguire, leading to the resignation of COO Sumaya Babale. Meanwhile, UK inflation surprisingly remained steady at 3.8%, impacting future rate decisions. In the U.S., the administration has been accused of suppressing climate change data, raising concerns over weather forecasting and agricultural impacts globally.
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Free Speech Versus Hate Speech
- Shaun McGuire's social media posts provoked a major internal debate at Sequoia about where to draw the line between free speech and hate speech.
- His comments linking Islamism to inherent dishonesty were viewed by many as Islamophobic and deeply divisive.
COO Resigned Over Partner's Posts
- Sumaya Babale, a practicing Muslim and Sequoia COO, resigned quietly after five years because partners declined to act on McGuire's posts.
- She complained to senior partners who defended McGuire on free-speech grounds, prompting her departure.
Reputation Risk Beyond Silicon Valley
- Sequoia held an all-hands on free speech vs hate speech, showing the issue unsettled staff and portfolio companies.
- Partners in the Middle East warned the controversy could damage Sequoia's reputation and regional operations.