Author: openjargon

• Tesla shareholder Ron Baron has backed Elon Musk's $56 billion pay package. 
• The investor said that without Musk, there would be "no Tesla" in an open letter. 
• Tesla is battling to win over shareholders and ratify Musk's 2018 compensation plan.

Tesla shareholder Ron Baron has backed Elon Musk's $56 billion pay package ahead of a crucial shareholder vote.

The CEO of Baron Capital praised Musk's "relentless drive and uncompromising standards" in an open letter, as Tesla battles to win over shareholders and ratify Musk's 2018 compensation deal after it was struck down by a Delaware court.

The investor said that without Musk, there would be "no Tesla."

This is a breaking news story. Please check back for updates.

• A Manhattan couple who had a child wanted to make their one-bedroom apartment more comfortable.
• After renovations, a movable wall and a Murphy bed transform the living room from day to night.
• The $280,000 renovation carves separate rooms out of 250 square feet, said architect Robert Garneau.

Eight years ago, a Manhattan couple welcomed a child into their lives and faced a dilemma: Move out of their one-bedroom apartment or find a way to make the space work for their growing family.

Unwilling to chance the New York City market — in which homes usually just get more expensive — the couple decided to stay put. But they wanted to create separate sleeping spaces for the growing child and the two working parents, one a clinical psychologist and one an occupational therapist.

Enter architect Robert Garneau, who first experimented with flexible spaces in his own New York City apartment 25 years ago.

"Every project is unique but there's a way of thinking about small spaces," said Garneau, who's worked on over 50 projects across New York City, California, Spain, and France. "You have to consider the space in its entirety, but also down to the square inch to make sure that everything fits properly."

Garneau and his team designed a custom space for the family that allows their main living area to perfectly conceal another bedroom — thanks to a discreet movable wall and Murphy bed.

The whole apartment, located on Manhattan's family-friendly Upper East Side, clocks in at 400 square feet. But Garneau was able to create a flexible space — which functions as a living room with an open kitchen, a bedroom, and an office — out of the main living space, which is just 250 square feet.

Making up the other 150 square feet is the hallway, the bathroom, and the main bedroom, which is the child's.

According to The New York Times, which first profiled the apartment, the couple purchased it in 2006 for around $300,000. The renovation cost about $280,000, Garneau said.

The family has now lived comfortably in the renovated apartment for over two years — take a look inside.

The main living space is about 250 square feet.

The living room can be set up to be one continuous, rectangular living space.

Garneau said there's a 'domino effect' when designing a space this small.

When designing a small space, Garneau recommends starting with the main components of the room and then carving out spaces around them.

In this case, the couple absolutely wanted to keep a leather couch they owned previously and make enough space for their new Murphy bed.

Garneau and his team used those items as a starting point.

Garneau added storage despite the small space by designing some cabinets that are only eight inches deep.

"What's fun in small spaces is you manage to carve space out of things that often don't really get designed," Garneau told Business Insider. "People don't typically build cabinets that are that shallow."

The parents use the storage in the main living room as their closets for clothes and personal items.

Garneau even played with gradients of color to make the room feel brighter.

The cabinets may look all one shade of gray, but there is a slight gradient that brightens the closer you are to the window.

"It's just another one of those games that change the space and how we feel," Garneau told Business Insider.

Leaving patches of exposed brick — rather than putting built-in cabinets everywhere — also helps the space breathe.

Exposed brick is visible above a wooden desk that the parents use as a workspace, with the gray built-in cabinets above that.

"We did everything we could to keep as much of it exposed," Garneau said. "A wonderful piece of wood, some brick, and then the grays with the light — the recipe is there for something that is soothing.'"

The real magic of the space is when the cabinets 'fold' to create an additional bedroom.

Garneau described this ritual of moving the wall as a "preamble."

Configuring the space physically by moving the wall, he pointed out, helps orient yourself to the new dimensions it creates.

The wall clicks into place with strategically placed magnets.

Watching the wall move in person is fascinating.

Garneau said people are often absorbed by the transformation. "It's visceral," he added.

A doorstop locks the wall into place for extra security.

"Normally, the biggest engagement people have with a space is opening the door," Garneau pointed out.

That's not the case here.

In a matter of seconds, the parents' bedroom is complete.

Garneau pointed out that the space created by the foldable wall doesn't have to be a bedroom.

If you keep the Murphy bed up, it could be an office or, with the rocking chair that's already in the apartment, a quiet space to soothe a young child.

A queen-sized Murphy bed is easy to pull down.

Mechanical legs for the bed automatically unfurl as you lower the bed to the ground.

Garneau said Murphy beds have an undeserved stigma and could help many people make the most out of their space.

In a different project, Garneau designed a custom space for actress and television host Laverne Cox that features a "glam" Murphy bed. It was also used to optimize a tight New York City space.

Cox's setup, however, has a button that can be pressed to lower the bed.

Cabinets built into the sides of the Murphy bed again optimize the space.

Garneau said the ritual of bringing down the Murphy bed is a good way to orient your schedule.

"There are kind of chapters in your day, and you engage with space to punctuate that routine," he said.

The parents chose to use this bedroom for themselves and give the unit's traditional bedroom to their child.

The project was fully completed in summer of 2022 and cost around $280,000 to complete, Garneau said.

The living room and bedroom do feel completely separate when the wall is clicked into place.

A door to the left of where Garneau is standing can close to entirely separate the bedroom or office space from the living room.

Even when that door is shut, the living room with the couch and television doesn't feel overly compressed.

Garneau is a firm believer a space doesn't need to be gigantic to feel calm and livable.

"You can live these huge mansions that are cavernous, and they don't feel welcoming," he pointed out.

The Murphy bed goes up as easily as it came down.

The whole process of putting the bed up and moving back the wall was barely two minutes.

The room-within-a-room also collapses easily.

A movable wall was a part of the inspiration from the very first discussions with the couple, Garneau said.

"They had seen the idea of what pivots can do to create and carve space on demand — and open up space again," he explained.

An animated GIF captures the seamless transition from living room to bedroom in its entirety.

The slight gradient in the cabinetry and walls — where it's lighter gray toward the windows and darker gray toward the interior of the apartment — is more apparent in the animation.

Garneau said not everyone can afford to completely customize their space, but small design choices can make a world of difference.

Garneau emphasizes that lighting can make a world of difference in how the eye perceives space.

His team placed LED lighting above the gray built-in cabinetry to draw the eye up. In person, the effect mimics a skyline.

LED lighting inside the cabinetry and closets make the tight spaces feel warm and accessible.

"It makes the world of difference when you open a cabinet and it's luminous, as opposed to, like, 'I can't see anything,'" Garneau explained.

Garneau's team left intentional gaps between furniture pieces.

Another tip from Garneau to create compact, but not overly squeezed, spaces: Leave space between pieces of furniture.

Here, there are a few inches left between the couch and the custom-built wall to prevent the space from feeling "too tense or too extreme."

Garneau took the same measures with the Murphy bed in the foldable bedroom — leaving some space on each side.

• This post originally appeared in the Insider Today newsletter.
• You can sign up for Business Insider's daily newsletter here.

Halfway to the weekend! I hope you never face a layoff scare, but if you do we've got some help. A 20-year HR professional offered advice on what to do when the rumors of cutbacks start swirling. (Save those personal docs!)

In today's big story, we're looking at the latest controversy to embroil OpenAI amid a difficult few months for the startup.

What's on deck:

• Markets: Hedge funds' May report cards are in, and an industry juggernaut faced a setback.
• Tech: This isn't your annoying aunt's Facebook; it's now pitching Gen Z.
• Business: A certain group of Americans believe renting over buying is the way to go.

But first, oh how the tables have turned.

If this was forwarded to you, sign up here.

The big story

Up in arms over OpenAI

The world's most high-profile startup has also become one of its most controversial.

A small group of current and former OpenAI employees signed an open letter to tech companies asking for more transparency and not to retaliate against workers who raise concerns about AI's power.

While there was a sprinkling of Google DeepMind and Anthropic signees, the majority of the group were past and present OpenAI-ers. It marks another controversy for the startup that's been grabbing headlines for all the wrong reasons.

From public spats with Scarlett Johansson and Elon Musk to salty executive exits, Business Insider's Madeline Berg has a full rundown on the chaos at OpenAI this year.

At the center is CEO Sam Altman, whose act is wearing thin in certain tech circles.

Much of the outrage stems from a lack of guardrails around artificial general intelligence, or the idea that tech could ultimately outperform humans at various tasks and capabilities.

OpenAI and Altman have long sought to achieve AGI, but experts warn it could ultimately lead to humanity's extinction.

But how did things turn so quickly for OpenAI?

I asked one venture investor who's spoken to multiple high-profile AI experts. Their takeaway was simple: OpenAI wants to have it both ways regarding how it's perceived about safety and commercialization.

On the one hand, safety is built into the core of the startup. It's structured as a "capped-profit" company governed by a nonprofit, and Altman doesn't hold equity directly in OpenAI. The idea was for OpenAI to pursue building AGI that "is safe and benefits all of humanity."

But the startup's commercial aspirations are clear. It's aggressively pushed out new models to compete with rivals and is reportedly considering adjusting its structure to become a full-blown, for-profit company. It also disbanded the team responsible for mitigating AI risks.

The result, the VC told me, is people feel OpenAI is talking out of both sides of its mouth. In reality, they said, the split between OpenAI's focus on commercialization versus safety feels like it's more 95/5, respectively.

It doesn't help that some OpenAI employees joined when that split was closer to 80/20 and favored safety over business, they added.

The impetus for the increased focus on business isn't entirely clear. But the failed ouster of Altman, which included concerns over safety, does seem like a turning point for the startup.

Whatever the case, OpenAI can't keep trying to sit on both sides of the fence, according to the VC. The tensions are too high between commercial and safety aspirations to straddle the line and not expect more issues, they said.

3 things in markets

1. All the top executives at Millennium Management. Izzy Englander's $64 billion hedge-fund behemoth has grown its leadership ranks considerably over the past decade. BI mapped out Millennium's 47 top executives across its 17 primary offices.
2. Turns out Ken Griffin's Citadel is human after all. The $63 billion hedge fund's flagship fund was down 0.8% last month, several people told BI. Meanwhile, two of Schonfeld's funds enjoyed a strong month. Check out how the top multistrategy managers performed.
3. Maybe we shouldn't celebrate GameStop's comeback. The resurgence in meme stocks is a bad sign for markets, according to JPMorgan strategist Marko Kolanovic. He took issue with how valuations have remained so elevated and reiterated his gloomy stock view.

3 things in tech

1. Hello, youngs. Mark Zuckerberg would like a word. In an attempt to reach Gen Z, Facebook is leaning into TikTok-like discovery, and away from friends and family. It's a strategy that might just work.
2. Elon Musk diverted $500 million in AI processors from Tesla to X. The move, first reported by CNBC, could delay Tesla's development of autonomous vehicles and humanoid robots. It highlights Musk's decision to "build products outside of Tesla" until he has 25% of voting control at the company.
3. Major Google exec makes a shock exit. Google's chief privacy officer, Keith Enright, is leaving the company after 13 years, and the company has no plans to replace him. His move comes as Google's privacy policies have faced scrutiny.

3 things in business

1. Welcome to the golden age for rich renters. It's hard to buy a home right now, but some renters don't care. They've found that instead of buying, they can rent a place with comped parking, boxing gyms, and rooftop pools. And compared to a down payment, the apartments feel like a bargain.
2. Meet the rising stars of sports betting and gaming. As the industry evolves and more states legalize gambling, new roles are being created to meet its growing demands. We profiled 16 people who are driving growth in the field, from responsible gaming to micro betting.
3. No more free internet for Shopify workers. Shopify said it will soon stop reimbursements for employees' internet costs and some other expenses, according to internal docs seen by BI. The expense was introduced during the pandemic, but unlike some of its peers, the company is still remote-first.

In other news

• John Oliver warns India is 'sliding towards authoritarianism' as Modi declares victory in tighter-than-expected election.
• The Great Concert Ticket Bust.
• The 15 companies US business students most want to work for.
• Exclusive: AI video generator Pika is seeking a valuation as high as $700 million in new funding round.
• Ad agency BENlabs has laid off staffers and named a new CEO as the company restructures.

What's happening today

• SpaceX will attempt its fourth suborbital test launch of its prototype Starship vehicle.

The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York. Jordan Parker Erb, editor, in New York. Jack Sommers, deputy editor, in London. George Glover, reporter, in London. Annie Smith, associate producer, in London.

• United Airlines' CEO called for an end to the Airbus-Boeing duopoly.
• Scott Kirby said he thinks Boeing made the 737 Max instead of a new model because there wasn't enough competition.
• He doubts the potential of China's Comac to become a world player, instead preferring Brazil's Embraer.

The CEO of United Airlines said he wants to see the end of the Airbus-Boeing duopoly, in an interview on "The Air Show" podcast.

"I think we need more competition in the aerospace business," Scott Kirby said.

He pointed to the Boeing 737 Max as an example of the duopoly's negative impact. Kirby said building on the 737 model — which was first produced in the 1960s — instead of creating a new one was a "fundamental mistake."

"The reason they haven't done it is because, I think — I'm almost certain — is they look at the world and say, 'Well, we have a duopoly. Why would we invest $10 billion in a new airplane in a duopoly?'" he said.

"If there'd have been five aircraft manufacturers, they'd have built an airplane 15 years ago," Kirby told "The Air Show."

"We wouldn't be sitting here today with some of the challenges they've had with the Max," he added. "It's a platform that's older than I am."

Kirby made headlines in January when he said United would take the Boeing 737 Max 10 out of its plans. That came in the wake of the Alaska Airlines blowout, when a Max 9 lost its door plug in midair and sparked huge scrutiny of Boeing.

Certification of the 737 Max 10 has been much delayed, and United's chief financial officer later said the airline would replace them with Max 9 and Airbus A321neo jets.

One potential new competitor to Boeing and Airbus has arisen in China, where Comac has built the country's first homegrown airliner, the C919.

Orders have so far been limited to China and Southeast Asia — although Reuters reported that Saudi officials held discussions with Comac as well.

Kirby, however, is unconvinced. He told "The Air Show" that Comac becoming a global player is "not inevitable, I think it's unlikely."

Instead, he's more bullish about Embraer, the Brazilian planemaker. Its E175 and E190 narrowbody jets are operated by the likes of SkyWest Airlines, the US' largest regional carrier, which is contracted by American, United, and Delta.

Last month, Embraer denied The Wall Street Journal's report that it was looking to build a new narrowbody jet to compete with Boeing and Airbus.

"Embraer certainly has the capability to develop a new narrowbody aircraft. However, we have a young and very successful portfolio of products developed in recent years, and we are really focused on selling those products and making Embraer bigger and stronger," a spokesperson said.

• Russia's foreign minister said French military instructors in Ukraine would be "legitimate targets."
• Sergey Lavrov said he had reasons to think some were already active in Ukraine.
• Russia has threatened nuclear strikes on countries that are considering sending troops to Ukraine.

French military instructors operating in Ukraine would be a "legitimate target" for Russia, Russia's foreign minister, Sergey Lavrov, said on Tuesday.

Lavrov was speaking at a press conference in the Republic of the Congo when he was asked about reports that French instructors would shortly be sent to Ukraine.

"Regardless of whether they are French Army service personnel or just mercenaries, they are an absolutely legitimate target for the Russian Armed Forces," he told reporters, per an official transcript from Russia's Ministry of Foreign Affairs.

"I have reasons to think that they are already active in Ukraine," he said, without giving specifics.

Lavrov's comments came after French President Emmanuel Macron said he was not ruling anything out, including the deployment of NATO troops to help defend Ukraine.

Oleksandr Syrskyi, the commander in chief of Ukraine's armed forces, said in a Telegram post late last month that he had already signed documents allowing French instructors to visit training centers, per a translation by the Kyiv Independent.

Stephen Bryen, a deputy undersecretary for the Department of Defense during the Reagan administration, wrote last month that France had already sent its first troops officially to Ukraine.

But France's Ministry for Europe and Foreign Affairs pushed back in a post on X, saying France had not sent troops to Ukraine, while calling out disinformation campaigns.

Even so, the prospect of sending troops to Ukraine appears to be gaining traction among NATO members.

The Baltic States said they could send troops to Ukraine if Russia made considerable gains on the battlefield, per Der Spiegel.

And Poland's foreign minister said in March that the presence of NATO forces in Ukraine "is not unthinkable" and that he appreciated Macron for not ruling out the idea.

Ukrainian leaders have asked the US and other NATO allies to assist in training 150,000 recruits closer to the front lines for speedier deployment, The New York Times reported last month.

Last month, former Russian President Dmitry Medvedev threatened nuclear attacks on Western capital cities if NATO sends any troops to Ukraine.

He said the "choir of irresponsible bastards from among Western elites calling for sending their troops to the nonexistent country is expanding."

But Estonia's prime minister, Kaja Kallas, a staunch supporter of Ukraine, told the Financial Times that NATO members should not be concerned that sending troops to train Ukrainian soldiers would risk a wider war with Russia.

According to unnamed sources quoted by Le Monde, French authorities are seeking to set up a coalition of countries willing to send military trainers to Ukraine, with a possible announcement coming during the anniversary of the D-Day landings on June 6 and 7.

• Texas is set to get its own stock exchange, The Wall Street Journal reported.
• BlackRock and Citadel have backed the TXSE group, which has raised $120 million, per the report.
• The exchange plans to impose fewer rules and regulations than its New York-based rivals.

Texas is set to get its own stock exchange to rival those in New York, The Wall Street Journal reported.

BlackRock and Citadel are among the backers of the TXSE, which has raised about $120 million from investors and plans to register with the Securities and Exchange Commission later this year, CEO James Lee said.

He told The Journal the exchange would be based in downtown Dallas and aimed to open for trading in 2025.

The group's founders have pledged to have fewer rules and regulations than the New York Stock Exchange and the Nasdaq. Since gaining the SEC's approval in August 2021, the latter exchange has imposed diversity quotas on its constituents.

They're also hoping to appeal to large-cap companies' desire to incorporate in the Lone Star State, which has fewer regulations and more favorable tax policies.

Texas is now home to more Fortune 500 companies than any other state, including mega-caps like Exxon Mobil, AT&T, and Phillips 66.

Tesla CEO Elon Musk said in a post on X earlier this year that he'd call a shareholder vote on moving the electric car-maker's state of incorporation to Texas after a Delaware judge voided his $55 billion pay package.

Lee said that the TXSE would be apolitical, but its proposed launch comes at a time when right-wing culture warriors have taken aim at mainstream financial markets.

Republican presidential candidate Vivek Ramaswamy set up an "anti-woke" investing firm in 2022. Some GOP members have called for funds to pull their money out of BlackRock due to its pro-ESG policies.

• Designers shared the home trends that will be in and out this summer.
• People are gravitating toward bold styles, curves, and water features.
• Minimalism, all-white kitchens, and soft monochromatic looks are falling out of favor.

Renovating a home can be pretty expensive. In fact, the average cost of a project is over $40,000. Before spending that kind of money on upgrades and shopping for new pieces, take a look at what trends are in and out this summer.

To figure out which updates are worth the splurge, Business Insider spoke to four designers. Here's what they said.

Bold styles and patterns will be thriving this summer.

The designers we spoke to said home design is all about taking risks this summer.

"2024 has been about not playing it safe, design-wise," said Sunita Ritesh, founder and principal designer at House of MDC. "I see more textures, bold colors, and patterns."

Designer Elle H-Millard also told BI that bold styles are becoming more popular, citing maximalism luxe — a mix of many pieces to create a luxurious, abundant feel — as a new defining trend. According to H-Millard, more people are mixing color, shape, and patterns to create visual drama.

Greens and blues are making a comeback.

Charmain Bibby, owner and principal designer at Bibby Fine Interiors, predicts that bold greens and blues, especially mixed into colorful and geometric patterns, will make a comeback this season.

H-Millard also thinks nature-inspired colors are on the rise.

"Floral patterns mixed with animals or birds lean into the need to be surrounded by nature, which connects with the biophilic trend that's been increasing since COVID," said H-Millard.

Curves and archways are on the rise.

H-Millard said curves and arches will become more popular in the home this summer. According to the designer, the curves in archways, doors, and hallways create visual warmth and softness in shape.

Indoor and outdoor water features are gaining traction.

Ritesh has seen an increase in water features in the home. Though these features are more commonly seen outdoors, the designer predicts a rising demand for indoor fountains and highlight-wall waterfalls.

According to designer Gillian Ley, founder of Ley Art and Interiors, plunge pools are also trending in outdoor living areas. "Their compact size creates an optimal addition to any outdoor space, which can be used for cold-water plunges, health, relaxation, and well-being," she said.

The designer also told BI that plunge-pool sanctuaries surrounded by outdoor furnishings like speakers, atmospheric night lighting, and decorative privacy panels are becoming increasingly popular.

On the other hand, minimalism is waning.

Though the less-is-more trend has been popular for years, H-Millard said minimalism is out this summer. 

Ritesh also predicts homeowners will move away from the safety of simple minimalism in favor of bolder and louder choices.

White kitchens are losing appeal.

White kitchens have long been a staple in home design, but the designers we spoke to said this trend is waning.

"Don't gasp for air — white will be around forever," said H-Millard. "However, white is now being woven into patterns and composed with positive and negative space."

Ritesh also told BI that she expects white kitchens to fade away and has seen a greater demand for colored cabinets.

Straight lines and narrow spaces are falling out of favor.

Many people are also moving away from straight lines and narrow spaces this summer. According to H-Millard, sharp lines and linear designs lack the open, airy vibe that many people want.

Monochromatic looks are going away.

Popular for its calming ambiance and subtlety, the monochromatic, tone-on-tone look offered serenity during the winter. But as summer heats up, the designers said these subtle looks aren't hitting the sweet spot.

"The vanilla, tone-on-tone monochromatic interiors are definitely fading," said Bibby. The designer expects cream and beige hues to be replaced with more colorful options.

• A Russian military planner said he doesn't sleep well after sending troops to almost certain death.
• "I can't tell the men, otherwise they wouldn't fight with the hope of winning," he said.
• Russia is known for treating some of its soldiers as disposable, letting them die to make progress.

A Russian soldier who plans offensives as part of the invasion of Ukraine said he finds it difficult sending men into situations where he knows they will probably die.

The soldier, Pavel, told The Moscow Times that: "I draw arrows on a map, and the soldiers move forward."

According to the report, Pavel's job is to manage antiaircraft systems and plan offensives. This means he sometimes has to send men into an attack knowing that they are unlikely to survive.

"I can't tell the men, otherwise they wouldn't fight with the hope of winning," he said.

The Moscow Times said his eyes were "glistening with emotion" as he spoke about it.

"After all this, you don't sleep well," he said.

According to the report, Russia is sending soldiers forward in these attacks in the hope of distracting Ukrainian forces, with the aim of getting them to send soldiers away from its main offensives.

Russia has previously been accused of treating its soldiers as highly disposable.

This includes using "meat wave" tactics, where Russia sends waves of men forward to try to overwhelm Ukrainian positions, to then allow better-trained or more elite soldiers to progress.

Russia is believed to have suffered a much higher casualty rate than Ukraine in the war.

The UK Ministry of Defence said late last month that 500,000 Russian soldiers had likely been killed or wounded since the full-scale invasion began in February 2022.

It also said that Russia's average daily casualties were 1,200 in May, the highest numbers so far reported in the conflict.

Pavel spoke to The Moscow Times on a train near Ukraine's border. Some soldiers on the train were going to the front lines, while others were on a short leave break.

Pavel joined Russia's military as a volunteer, The Moscow Times reported, after hearing some of his family had been killed by Ukrainian soldiers at the start of the invasion.

He previously worked as a senior specialist at one of Russia's largest companies, the report said, and had asked for his army salary to be given to an orphanage.

"I don't want to be paid to kill people," he told the outlet.

The Moscow Times reported that most soldiers on the train were drinking, including Pavel, and that a fight almost broke out between one of the soldiers and another passenger.

Other soldiers on the train described brutal conditions, with huge Russian losses.

"Many young guys I knew are dead, they weren't even 30," one soldier, Yegor, said.

Another who was on his way back to the front line showed a gunshot wound in his chest that was not properly healed yet.

"I probably won't make it this time," he said.

• The high cost of living for Gen Zers and millennials appears to have impacted the tattoo industry.
• Clients seem to be becoming more selective, preferring respectful and accommodating artists.
• Several stories of tattoo consultations gone wrong have spiraled into viral outrage on TikTok.

Tattoo artists and enthusiasts on social media have been debating whether there is a "tattoo recession" afoot over the past few weeks.

Some believe the number of clients wanting to get inked has declined, while others claim there's simply been a shift in how discerning people are when choosing an artist.

Jason John Miles, a tattoo artist and content creator, said the industry is in a "bad state." Artists are struggling to fill their books.

Almost a third of all adults in the US have at least one tattoo, a study from Pew Research Center found. According to data from Fortune Business Insights, the tattoo industry is expected to reach $3.92 billion by 2030.

However, according to a BoldData study, the number of people getting tattoos in the UK has started to decline for the first time in a decade, which may be an early indicator of a more global trend.

Barry Hua, a New York-based tattoo artist who goes by the alias "Unloveable" on social media, told Business Insider the tattoo industry has "undergone significant changes" and is "experiencing a downturn."

"Over the past year, I have observed a decrease in the number of individuals seeking tattoos, largely attributed to the rising inflation rates in the United States," he said. "As a result, clients are now more discerning in their decision-making processes, opting to schedule appointments months in advance to financially plan for their desired tattoos."

Clients becoming more selective and an abundance of artists gaining prominence on social media is also "intensifying competition," Hua said.

Several other artists and tattoo shop owners spoke to BI, saying they have noticed "a dip" and that the industry seems "slow." They also pointed to budgeting under more financial constraints, and more selectivity as the reasons behind the trend.

Allan Buhl, a Florida-based tattoo artist, told BI the industry has "felt the slowest season we've had in many years."

A decade ago, there were only a few shops in a 10-mile radius, Buhl said. Now, "there are hundreds."

The recession has played out on TikTok

On TikTok, videos about an apparent tattoo industry recession are racking up views, with some artists saying they've noticed a downward trend and expressing their opinions on what's to blame.

One creator, Dominique, said she believes the perceived crisis is "a culmination of a few things."

She said it has nothing to do with people not wanting tattoos anymore. They're just being more picky, especially as tattoos have become so expensive.

"Consumers are less likely to put up with bullshit from tattoo artists and tattoo shops," Dominique said.

According to Statista, Gen Zers and millennials are the biggest cohorts likely to have one or more tattoos. Both generations have been hit by the rising cost of living and debts racking up.

There's also been some discourse around how appropriate visible tattoos are for securing interviews and landing a job amid conversations about how much of a part appearance and "pretty privilege" play in career success.

Several stories of tattoo consultations gone wrong have spiraled into viral outrage on TikTok, often due to miscommunication between the client and artist about what is possible in the allotted timeframe and budget.

One woman named Courtney Monteith turned to TikTok when she ended up thousands of dollars out of pocket last year.

She said the artist overcharged her and designed a piece that looked nothing like what she wanted. The internet responded, flooding the studio with negative reviews.

Another creator, who makes content under the name Tattoo Red Flags and works as a tattoo artist, said the tattoo market is incredibly saturated, and clients are choosing to go to female artists more because they feel "a lot more welcome."

"They're feeling like they are being tended to in a nicer manner. They're being checked on during the tattoo. They're being given snacks. They're not being belittled for the things that they're asking for, the styles that they want," she said.

There are tons of good male tattoo artists, she said, and there is still a market for them. But they are the ones who are likely to be experiencing the shift most intensely, as the industry has been "male-dominated" for so long.

"Maybe it's because they're treating people like shit," she said. "Or half of their clients are female, and they're just not making the space comfortable enough."

Another artist and creator, called Electric Elaine, said she didn't see the shift as a "tattoo recession."

"Many clients are choosing artists very carefully because they really have to prioritize getting tattooed when everything has been going up in price," she said.

Tattoo artists have to work hard and learn how to be better with people, Elaine added, because clients will sometimes want to change designs and will be much more likely to return for future pieces if the artist is flexible.

Despite the current challenges, artists who spoke with BI said they were hopeful about the tattoo industry.

One artist, named Kee Kee James, said they are "still going strong."

Buhl said the artists who will survive are the ones who "evolve and roll with the changes."

"More importantly, those that care about their craft and genuinely want to make great tattoos for their clients day in, day out," he said.

Mikhaila Friel contributed reporting.

• Joe, 38, feels financially strained despite a six-figure household income.
• Joe is a HIFI, a group of Americans who are defined as high income, financially insecure.
• Many are experiencing an unsustainable lifestyle creep.

Joe doesn't think he lives an extravagant life. Sure, he and his wife enjoy spending their disposable income on concert tickets, takeout, and travel when possible, but they try to live within their means.

When the millennial couple bought a house in Austin a decade ago, they thought they were doing everything right: building their careers in a big city, raising two children, and working toward retirement. They loved Austin's music scene, could afford leisure activities, and saw themselves settling in their home long-term.

Joe tries to be smart about money, but he feels like his bills keep piling up. Daily life is expensive, and those concerts and plane tickets are drifting further out of reach.

"We want to make sure that we're actually enjoying our time in our youth," said Joe, whose identity is known to BI but he asked to use his first name due to fear of professional repercussions. "But we know that we need to be saving more but it feels incredibly daunting to try to do so."

The 38-year-old earned $119,764 last year in his job as a senior product designer, according to documents reviewed by BI. Combined with his wife's accountant salary, he said his household earns over $200,000 — "more money than ever." But with the rising cost of living, Joe is apprehensive about the future.

His experience echoes that of many HIFIs, a group of Americans who are defined as high income, financially insecure. HIFIs are often Gen Zers and millennials, tend to earn six-figure salaries, and feel stressed by their major living expenses. However, the group also has an affinity for luxury spending: fashion, real estate, vacations, and experiences. And many are experiencing an unsustainable lifestyle creep.

People under 40 are accumulating more wealth earlier in life than previous generations, but 48% of Gen Zers and 59% of millennials say they feel behind financially, according to a Credit Karma survey of 1,006 US adults published in December.

Debra Kaplan, a licensed therapist and financial expert, told BI that HIFIs often have a disconnect between how they spend their money and what they can afford.

"What it costs to live day to day is more now, and people are feeling that sense of 'Oh, money may not go as far,"' Kaplan said. "They don't feel as comfortable or financially secure even though their financial situation has not appreciably changed."

Joe said his family isn't living paycheck to paycheck — but they're also not saving.

"We're not taking as many vacations as we used to, we're not going through as many shows as we used to," Joe said. "We still feel like we're just treading water, and we can't get any traction to get to build any wealth."

Joe doesn't feel wealthy, despite a six-figure income

Right before the pandemic, Joe estimates he and his wife made about $150,000 together. While their combined income is now over $50,000 more a year, they "just feel like we're living worse," Joe said.

Joe said his biggest expenses are his mortgage, utilities, and groceries. His two children are now young adults, but they're still enrolled on his insurance and aren't fully financially independent. A few years ago, he finished paying off about $100,000 in student debt, but the payments made it difficult for him to build long-term savings.

Joe understands that America's economy is doing well, but he said he doesn't feel the benefit. With growing expenses, he feels like his family can no longer afford the full amenities of Austin. His family's budget for restaurants and travel keeps shrinking. And, despite his household income, Joe doesn't feel wealthy.

"We're really making educated and important choices for us to feel like we're living a fulfilled happy life," he said. "We're not going into the store and buying up all this stuff to 'keep up with the Joneses' or anything."

Looking forward, Joe is worried about retirement. He doesn't feel like he's saved enough in his 401(k), and he worries his current spending will hurt his future. Joe hopes he can stop working someday, but he doesn't think he will have any extra money to give his children.

"Not being a financial burden to my kids in my old age would be a great accomplishment," he said.

Are you a HIFI? Do you struggle to afford your lifestyle, even with a high income? Are you open to sharing your story? If so, reach out to this reporter at allisonkelly@businessinsider.com.