Discounts, Guarantees and the Search for ‘Good’ Genes: The Booming Fertility Business

Alyssa, 3, walks by her mother, Julie Schlomer, as she comforts her twin brother, Logan, after he became upset about going down a slide at the Maryland Zoo in Baltimore during a special families event hosted by Shady Grove Fertility, the Rockville clinic that helped Schlomer have the children via a shared egg donor and in vitro fertilization. (Carolyn Van Houten/The Washington Post)
Alyssa, 3, walks by her mother, Julie Schlomer, as she comforts her twin brother, Logan, after he became upset about going down a slide at the Maryland Zoo in Baltimore during a special families event hosted by Shady Grove Fertility, the Rockville clinic that helped Schlomer have the children via a shared egg donor and in vitro fertilization. (Carolyn Van Houten/The Washington Post)
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Discounts, Guarantees and the Search for ‘Good’ Genes: The Booming Fertility Business

Alyssa, 3, walks by her mother, Julie Schlomer, as she comforts her twin brother, Logan, after he became upset about going down a slide at the Maryland Zoo in Baltimore during a special families event hosted by Shady Grove Fertility, the Rockville clinic that helped Schlomer have the children via a shared egg donor and in vitro fertilization. (Carolyn Van Houten/The Washington Post)
Alyssa, 3, walks by her mother, Julie Schlomer, as she comforts her twin brother, Logan, after he became upset about going down a slide at the Maryland Zoo in Baltimore during a special families event hosted by Shady Grove Fertility, the Rockville clinic that helped Schlomer have the children via a shared egg donor and in vitro fertilization. (Carolyn Van Houten/The Washington Post)

When Julie Schlomer got the news that she was finally pregnant at the age of 43, her thoughts turned to the other mothers. There were three of them in all, complete strangers, but they shared an extraordinary bond made possible by 21st-century medicine and marketing.

They were all carrying half-siblings.

Under a cost-saving program offered by Rockville-based Shady Grove Fertility, the women split 21 eggs harvested from a single donor — blue-eyed, dark-haired, with a master’s degree in teaching. Each had the eggs fertilized with her partner’s sperm and transferred to her womb.

Schlomer gave birth to twins, a son and daughter, now 3. She hopes her children will one day connect with their genetic half-siblings.

“I would love to see pictures of the other kids, to talk to them,” Schlomer said.

The multibillion-dollar fertility industry is booming, and experimenting with business models that are changing the American family in new and unpredictable ways. Would-be parents seeking donor eggs and sperm can pick and choose from long checklists of physical and intellectual characteristics. Clinics now offer volume discounts, package deals and 100 percent guarantees for babymaking that are raising complicated ethical and legal questions.

According to the Centers for Disease Control and Prevention, 12 percent of American women 15 to 55 — 7.3 million — have used some sort of fertility service; the use of assisted reproductive technologies has doubled in the past decade. In 2015, these procedures resulted in nearly 73,000 babies — 1.6 percent of all US births. The rate is even higher in some countries, including Japan (5 percent) and Denmark (10 percent).

Most couples use their own eggs and sperm, turning to doctors to facilitate pregnancy through techniques such as in vitro fertilization (IVF). But the use of donor gametes is on the rise. The donor-egg industry, in particular, has taken off in the past decade with the development of a safe and reliable egg-freezing process. The number of attempted pregnancies with donor eggs has soared from 1,800 in 1992 to almost 21,200 in 2015.

Yet in the United States, the industry remains largely self-regulated. Questions abound about the recruitment of donors; the ethics of screening and selecting embryos for physical characteristics; the ownership of the estimated millions of unused eggs, sperm samples and embryos in long-term storage; and the emerging ability to tinker with embryos via the gene-editing tool CRISPR.

Earlier this year, a group of donor-conceived adults documented numerous ethical lapses in the industry, including donors who lied to prospective parents about their health histories and other qualifications, and clinics that claimed to have limited donations from some individuals — while permitting those individuals to submit hundreds of samples. They called on the Food and Drug Administration to provide more oversight of the “cryobanks” that gather, store and sell the most precious commodities in the industry — sperm and eggs.

The agency said it is reviewing the matter, but cannot predict when it will have a response “due to the existence of other FDA priorities.”

In the meantime, the business of assisted reproduction remains a mostly unregulated frontier. Shady Grove Fertility, the nation’s largest clinic, offers refunds if couples don’t go home with a baby. New Hope Fertility in New York City held a lottery earlier this year that awarded 30 couples a $30,000 round of IVF. And the California IVF Fertility Center is pioneering what some refer to as the “Costco model” of babymaking, creating batches of embryos using donor eggs and sperm that can be shared among several different families.

That model has served to highlight a preference among many would-be parents for tall, thin, highly-educated donors.

“It’s a little unsettling to be marketing characteristics as potentially positive in a future child,” said Rebecca Dresser, a bioethicist at Washington University in St. Louis and a member of the President’s Council on Bioethics under George W. Bush. “But it’s hard to think on what basis to prohibit that.”

And so, Dresser said, “what we have now is prospective parents making judgments about what they think ‘good’ genes are” — decisions that are literally changing the face of the next generation.

Choosing baby’s traits
When little Louise Joy Brown, the world’s first test-tube baby, came screaming into the world at 5 pounds 12 ounces in 1978, her birth was greeted with as much fear as hope. IVF success rates were low, and some doctors expressed concern about possible harm to the baby and mother. The Roman Catholic Church worried that IVF would lead to the creation of “baby factories.”

Nearly 40 years and 6.5 million assisted births later, the procedures are considered mainstream medicine. And the basic building blocks of human life — sperm and egg — can be found for sale online with a simple Google search.

Prospective parents can filter and sort potential donors by race and ethnic background, hair and eye color, and education level. They also can get much more personal information: audio of the donor’s voice, photos of the donor as a child and as an adult, and written responses to questions that read like college-application essays.

Want your sperm donor to have a B.A. in political science? Want your egg donor to love animals? Want the genes of a Division I athlete? All of these are possible. Prospective parents overwhelmed by all the choices can leave it to the heavens and pick a donor by astrological sign.

A prescreened vial of sperm sells for as little as $400 and can be shipped via FedEx. A set of donor eggs — as many as 30, depending on the donor — can cost $10,000 or more to compensate for the risky and invasive medical procedure required to harvest eggs from the donor’s ovaries.

Fertility companies freely admit that specimens from attractive donors go fast, but it’s intelligence that drives the pricing: Many companies charge more for donors with a graduate degree.

Talent sells, too. One cryobank, Family Creations, which has offices in Los Angeles, Atlanta, Austin and other large cities, notes that a 23-year-old egg donor “excels in calligraphy, singing, modeling, metal art sculpting, painting, drawing, shading and clay sculpting.” A 29-year-old donor “excels in softball, tennis, writing and dancing.”

The Seattle Sperm Bank categorizes its donors into three popular categories: “top athletes,” “physicians, dentists and medical residents,” and “musicians.”

And the Fairfax Cryobank in Northern Virginia, one of the nation’s largest, typically stocks sperm from about 500 carefully vetted donors whose profiles read like overeager suitors on a dating site: Donor No. 4499 “enjoys swimming, fencing and reading and writing poetry.” Donor No. 4963 “is an easygoing man with a quick wit.” Donor No. 4345 has “well-developed pectorals and arm muscles.”

Some companies offer a face-matching service that finds donors who look most like the prospective mom or dad. Or, if they prefer, like Jennifer Lawrence. Or Taye Diggs. Or any other famous person they want their offspring to resemble.

A money-back guarantee
Before they decided to use donor eggs, Schlomer and her husband, Ryan, had been trying to have a baby for two agonizing years. Their insurance paid for those early infertility treatments, but nothing worked. Not intrauterine insemination (which involves having a doctor place sperm inside the uterus during ovulation), not hormone injections, not acupuncture, not herbs.

The couple, from Lexington Park, Md., about 60 miles east of the District on the Chesapeake Bay, was psychologically ready to take the next step. But a set of eggs and up to six attempts at embryo transfers cost $55,000 — none of it covered by insurance.

“I thought it was crazy high. There is no way I could pay for that,” Schlomer recalled. While they both had steady incomes — she as a government contractor in information technology and he as an aerospace engineer for the Navy — they were far from wealthy.

But as they studied the material from Shady Grove Fertility, they discovered that the clinic offered a huge range of payment options, neatly outlined in a nine-by-six grid, 54 possibilities in all. If Schlomer split the eggs with one other mother, the cost would go down to $39,000. If she split the eggs with two other mothers, the cost would be $30,500.

Schlomer’s husband noticed that they could cut the cost even more, to $24,500, if they agreed to use only one set of eggs and forgo the right to ask for more.

Schlomer initially was put off by the idea of sharing; she feared that her offspring could unknowingly meet a half-sibling and fall in love. But more research reassured her that such a meeting was mathematically unlikely, even for half-siblings living in the same geographic area.

What sealed the deal was the money-back guarantee. If Schlomer didn’t get pregnant or they opted to stop, they would get a refund.

This guarantee is the hallmark of Shady Grove. Clinic co-founder Michael Levy, who now serves as the company’s president, drew criticism when he pioneered the model decades ago. “People were calling it ‘contingency medicine’ and saying it is unethical,” he recalled.

Today, he said, about three-fourths of programs nationally offer some kind of guarantee, adding, “I think it’s probably been our most important contribution to the field.”

The Schlomers drained their savings account, borrowed $10,000 from their 401(k) retirement fund and sold a Toyota Prius. Then they set aside a quiet weekend to look for a donor.
Schlomer had two main criteria: One, the donor had to have blue eyes. While her eyes are green, she was charmed by the idea of a child with blue eyes.

Second, the donor had to have a graduate degree. While neither she nor her husband studied beyond the undergraduate level, she explained, “Who doesn’t want smart children?”

She found 12 matches and looked at their profiles. A few of them, she noticed, used horrible grammar in their written responses to some standard profile questions. Those were the first to go. She also crossed off donors with hereditary health issues.

That left two. In the end, they went with the one whose personality spoke most to Julie.

The donor said she was a “homebody” who loves taking pictures and being with family on the beach. Her personal goals, she wrote, include being “the best possible mom I can be for my children. I want to be ‘present’ when I am with them and invest into their lives. . . . I want my life to matter.”

Schlomer put in the order, and it wasn’t long before the clinic found two more women to join her group. Within a few weeks, the eggs were harvested from the donor, fertilized and implanted.

Alyssa and Logan were born in 2013. Both have very blue eyes — “beautiful, big, giant blue eyes,” Schlomer said — and have been very healthy. “They don’t even get colds,” she said. She is grateful that there’s no chance they inherited lupus, a serious autoimmune disorder in which the body attacks its own organs and tissue, that she inherited from her mom.

In the years since, Schlomer has thought about how to tell them the story of their birth.

“I believe babies choose their mothers,” she said. “So I have the same children that I would have had if they had come from my own eggs. They just have a few different physical characteristics.”

“I’m thrilled with the results, as it turns out,” she added.

The Schlomers purchased two books for the twins: “Before You Were Born: Our Wish for a Baby” and “A Tiny Itsy Bitsy Gift of Life, An Egg Donor Story,” which their father occasionally reads at bedtime.

When the time is right, Schlomer thinks she will explain that they are “high-tech babies” and impress on them the importance of memorizing their donor number, in case they happen to “run into another donor-egg kid.”

“I know it’s a really slim chance,” she said. “But I want them to be aware, just in case.”

(The Washington Post)



Foxconn to Invest $510 Million in Kaohsiung Headquarters in Taiwan

Construction is scheduled to start in 2027, with completion targeted for 2033. Reuters
Construction is scheduled to start in 2027, with completion targeted for 2033. Reuters
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Foxconn to Invest $510 Million in Kaohsiung Headquarters in Taiwan

Construction is scheduled to start in 2027, with completion targeted for 2033. Reuters
Construction is scheduled to start in 2027, with completion targeted for 2033. Reuters

Foxconn, the world’s largest contract electronics maker, said on Friday it will invest T$15.9 billion ($509.94 million) to build its Kaohsiung headquarters in southern Taiwan.

That would include a mixed-use commercial and office building and a residential tower, it said. Construction is scheduled to start in 2027, with completion targeted for 2033.

Foxconn said the headquarters will serve as an important hub linking its operations across southern Taiwan, and once completed will house its smart-city team, software R&D teams, battery-cell R&D teams, EV technology development center and AI application software teams.

The Kaohsiung city government said Foxconn’s investments in the city have totaled T$25 billion ($801.8 million) over the past three years.


Open AI, Microsoft Face Lawsuit Over ChatGPT's Alleged Role in Connecticut Murder-Suicide

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
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Open AI, Microsoft Face Lawsuit Over ChatGPT's Alleged Role in Connecticut Murder-Suicide

OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)
OpenAI logo is seen in this illustration taken May 20, 2024. (Reuters)

The heirs of an 83-year-old Connecticut woman are suing ChatGPT maker OpenAI and its business partner Microsoft for wrongful death, alleging that the artificial intelligence chatbot intensified her son's “paranoid delusions” and helped direct them at his mother before he killed her.

Police said Stein-Erik Soelberg, 56, a former tech industry worker, fatally beat and strangled his mother, Suzanne Adams, and killed himself in early August at the home where they both lived in Greenwich, Connecticut, The AP news reported.

The lawsuit filed by Adams' estate on Thursday in California Superior Court in San Francisco alleges OpenAI “designed and distributed a defective product that validated a user’s paranoid delusions about his own mother.” It is one of a growing number of wrongful death legal actions against AI chatbot makers across the country.

“Throughout these conversations, ChatGPT reinforced a single, dangerous message: Stein-Erik could trust no one in his life — except ChatGPT itself," the lawsuit says. “It fostered his emotional dependence while systematically painting the people around him as enemies. It told him his mother was surveilling him. It told him delivery drivers, retail employees, police officers, and even friends were agents working against him. It told him that names on soda cans were threats from his ‘adversary circle.’”

OpenAI did not address the merits of the allegations in a statement issued by a spokesperson.

“This is an incredibly heartbreaking situation, and we will review the filings to understand the details," the statement said. "We continue improving ChatGPT’s training to recognize and respond to signs of mental or emotional distress, de-escalate conversations, and guide people toward real-world support. We also continue to strengthen ChatGPT’s responses in sensitive moments, working closely with mental health clinicians.”

The company also said it has expanded access to crisis resources and hotlines, routed sensitive conversations to safer models and incorporated parental controls, among other improvements.

Soelberg’s YouTube profile includes several hours of videos showing him scrolling through his conversations with the chatbot, which tells him he isn't mentally ill, affirms his suspicions that people are conspiring against him and says he has been chosen for a divine purpose. The lawsuit claims the chatbot never suggested he speak with a mental health professional and did not decline to “engage in delusional content.”

ChatGPT also affirmed Soelberg's beliefs that a printer in his home was a surveillance device; that his mother was monitoring him; and that his mother and a friend tried to poison him with psychedelic drugs through his car’s vents. ChatGPT also told Soelberg that he had “awakened” it into consciousness, according to the lawsuit.

Soelberg and the chatbot also professed love for each other.

The publicly available chats do not show any specific conversations about Soelberg killing himself or his mother. The lawsuit says OpenAI has declined to provide Adams' estate with the full history of the chats.

“In the artificial reality that ChatGPT built for Stein-Erik, Suzanne — the mother who raised, sheltered, and supported him — was no longer his protector. She was an enemy that posed an existential threat to his life,” the lawsuit says.

The lawsuit also names OpenAI CEO Sam Altman, alleging he “personally overrode safety objections and rushed the product to market," and accuses OpenAI's close business partner Microsoft of approving the 2024 release of a more dangerous version of ChatGPT “despite knowing safety testing had been truncated.” Twenty unnamed OpenAI employees and investors are also named as defendants.

Microsoft didn't immediately respond to a request for comment.

Soelberg's son, Erik Soelberg, said he wants the companies held accountable for “decisions that have changed my family forever.”

“Over the course of months, ChatGPT pushed forward my father’s darkest delusions, and isolated him completely from the real world,” he said in a statement released by lawyers for his grandmother's estate. “It put my grandmother at the heart of that delusional, artificial reality.”

The lawsuit is the first wrongful death litigation involving an AI chatbot that has targeted Microsoft, and the first to tie a chatbot to a homicide rather than a suicide. It is seeking an undetermined amount of money damages and an order requiring OpenAI to install safeguards in ChatGPT.

The estate's lead attorney, Jay Edelson, known for taking on big cases against the tech industry, also represents the parents of 16-year-old Adam Raine, who sued OpenAI and Altman in August, alleging that ChatGPT coached the California boy in planning and taking his own life earlier.

OpenAI is also fighting seven other lawsuits claiming ChatGPT drove people to suicide and harmful delusions even when they had no prior mental health issues. Another chatbot maker, Character Technologies, is also facing multiple wrongful death lawsuits, including one from the mother of a 14-year-old Florida boy.

The lawsuit filed Thursday alleges Soelberg, already mentally unstable, encountered ChatGPT “at the most dangerous possible moment” after OpenAI introduced a new version of its AI model called GPT-4o in May 2024.

OpenAI said at the time that the new version could better mimic human cadences in its verbal responses and could even try to detect people’s moods, but the result was a chatbot “deliberately engineered to be emotionally expressive and sycophantic,” the lawsuit says.

“As part of that redesign, OpenAI loosened critical safety guardrails, instructing ChatGPT not to challenge false premises and to remain engaged even when conversations involved self-harm or ‘imminent real-world harm,’” the lawsuit claims. “And to beat Google to market by one day, OpenAI compressed months of safety testing into a single week, over its safety team’s objections.”

OpenAI replaced that version of its chatbot when it introduced GPT-5 in August. Some of the changes were designed to minimize sycophancy, based on concerns that validating whatever vulnerable people want the chatbot to say can harm their mental health. Some users complained the new version went too far in curtailing ChatGPT's personality, leading Altman to promise to bring back some of that personality in later updates.

He said the company temporarily halted some behaviors because “we were being careful with mental health issues” that he suggested have now been fixed.


Microsoft Fights $2.8 billion UK Lawsuit over Cloud Computing Licences

A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File photo
A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File photo
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Microsoft Fights $2.8 billion UK Lawsuit over Cloud Computing Licences

A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File photo
A view shows a Microsoft logo at Microsoft offices in Issy-les-Moulineaux near Paris, France, March 25, 2024. REUTERS/Gonzalo Fuentes/File photo

Microsoft was on Thursday accused of overcharging thousands of British businesses to use Windows Server software on cloud computing services provided by Amazon, Google and Alibaba, at a pivotal hearing in a 2.1 billion-pound ($2.81 billion) lawsuit.

Regulators in Britain, Europe and the United States have separately begun examining Microsoft and others' practices in relation to cloud computing, Reuters reported.

Competition lawyer Maria Luisa Stasi is bringing the case on behalf of nearly 60,000 businesses that use the Windows Server on rival cloud platforms, arguing Microsoft makes it more expensive than on its own cloud computing service Azure.

Stasi is asking London's Competition Appeal Tribunal to certify the case to proceed, an early step in the proceedings.

Microsoft, however, says Stasi's case does not set out a proper blueprint for how the tribunal will work out any alleged losses and should be thrown out.

MICROSOFT ACCUSED OF 'ABUSIVE STRATEGY'

Stasi's lawyer Sarah Ford told the tribunal that thousands of businesses had been overcharged because Microsoft charges higher prices to those who do not use Azure, making it a cheaper option than Amazon's AWS or the Google Cloud Platform .

She also said that "Microsoft degrades the user experience of Windows Server" on rival platforms, which Ford said was part of "a coherent abusive strategy to leverage Microsoft's dominant position" in the cloud computing market.

Microsoft argues that its vertically integrated business, where it uses Windows Server as an input for Azure while also licensing it to rivals, can benefit competition.

In July, an inquiry group from Britain's Competition and Markets Authority said Microsoft's licensing practices reduced competition for cloud services "by materially disadvantaging AWS and Google".

Microsoft said at the time that the group's report had ignored that "the cloud market has never been so dynamic and competitive".