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Newsom and Anthropic reach deal to give local governments discounted access to Claude

WASHINGTON DC, UNITED STATES - MAY 20: Governor Gavin Newsom (D-CA) speaks to reporters inside the U.S. Capitol in Washington, DC on May 20, 2026. (Photo by Nathan Posner/Anadolu via Getty Images)
Governor Gavin Newsom speaks to reporters inside the U.S. Capitol in Washington, DC on May 20, 2026.
  • Gavin Newsom reached a deal with Anthropic to expand the use of Claude products across California’s government.
  • The agreement would make Claude the first AI tool available to all state agencies.
  • The terms include free workforce training and technical support from Anthropic staff.

SAN FRANCISCO — Gov. Gavin Newsom has struck a deal with Anthropic to expand the use of Claude products across California’s government at a discounted cost.

The agreement, first shared with POLITICO, would make Claude the first artificial intelligence tool available to all state agencies and local governments. It comes amid a monthslong fight between Anthropic and the Trump administration, which has restricted the rollout of the company’s most advanced models and designated it a risk to the national supply chain.

Newsom’s deal seeks to drive broader adoption of Claude by cutting the AI chatbot’s price in half for state government agencies, as well as Californian cities and counties that decide to take advantage. The terms also include free workforce training and technical support from Anthropic staff.

“A lot of departments are going to switch their usage to this contract, and that’s very much our intent,” Chris Given, California’s chief information officer and director of the state Department of Technology, told POLITICO. “When we see that folks are going to be using a tool more, we want to make sure that we, as the state, have negotiated the best possible price for them.”

This March, Newsom signed an executive order meant to raise standards for AI companies seeking state contracts and allow California to separate its procurement process from the Trump administration.

While that order could directly challenge the federal government, Newsom’s administration says the new Anthropic deal was not intended as a rebuke or response to Washington.

Newsom has issued a series of executive orders to promote generative AI as a way to improve government efficiency. Claude is already used for certain state tasks, from patching code to supporting a platform that collects input on the public’s feelings about AI.

Ahead of a likely presidential run, the governor has tried to position himself as both an ally to the booming, yet increasingly controversial AI industry and an advocate for protecting Americans from the disruption it could bring.

In recent weeks, Newsom has turned his attention to the potential widespread job losses AI could trigger. He issued another executive order last month, tapping state agencies to explore policies that could help California respond faster to AI-driven layoffs.

The order drew mixed reviews, including frustration from labor leaders who have warned Newsom that they will not support a future presidential bid unless he enacts stronger worker protections against AI.

Last week, Newsom launched a new tool to track AI-related job losses.

“AI should not replace the human work of government,” Newsom said in a statement regarding his Anthropic deal. “It should help our workers move faster, solve problems more effectively, and deliver better results for Californians.”

His administration has put Anthropic products to work across a range of government services. Its models helped develop and currently power the state’s digital assistant, Poppy, one of the first gateways for state employees to start using AI.

Claude underpins the public engagement platform that Newsom has employed most recently for gathering residents’ views on how AI is impacting their jobs and the future of work. It’s also a tool for customer service at the California DMV and for internal workflows that assist Medicaid recipients at the Department of Health Care Services. And the state Department of Technology has a cybersecurity partnership with Anthropic, using Claude to spot vulnerabilities in state code and critical systems.

Given said the state will be looking to secure similar discount deals with other AI companies and tech providers. It invited AI model providers to negotiate with the state back in December.

California’s first meeting with Anthropic for the deal was March 5, the same day the Pentagon formally labeled the Claude maker a supply chain risk.

Newsom’s March executive order, which came after the Pentagon’s decision, directed the California Department of Technology to review any such federal designations. If it found the designation to be improper, the order instructed state officials to issue guidance allowing California to continue doing business with that company.

The federal supply chain risk designation “was not an issue that we faced while signing and negotiating this contract,” Given said, declining to elaborate on the reason. “It just didn’t come up.”

His department is formalizing recommendations for Newsom on that part of the order and expects those to be ready by next month.

This story originally appeared on POLITICO and is courtesy of the Axel Springer Global Reporters Network, which harnesses the resources of the company’s newsrooms to publish ambitious scoops, investigations, interviews, opinion pieces, and analysis. It allows journalists — including those from POLITICO, Business Insider, WELT, BILD, Onet, and Fakt — to collaborate on major stories for an international audience of hundreds of millions across platforms.

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Trump’s student-loan overhaul takes effect July 1 — but it’s not the deadline for borrowers to act on repayment changes

College graduation
President Donald Trump’s student-loan repayment overhaul takes effect on July 1.
  • Trump’s sweeping student-loan changes take effect July 1.
  • SAVE borrowers aren’t required to switch to a new repayment plan right away.
  • They’ll receive a 90-day timeframe in which they can select a new plan.

For millions of student-loan borrowers, July 1 is the starting point — not the deadline — to act on repayment changes.

After President Donald Trump’s administration eliminated the SAVE repayment plan in March, the Education Department recommended that the 7 million enrolled borrowers switch to a new plan and begin making payments as soon as possible. However, switching before July 1 is not required.

Beginning July 1, the department said it would start sending emails to SAVE borrowers about their timeline for switching plans. Upon receiving this email, which may come later than July 1, borrowers will have 90 days to select a new plan. If they do not select a new plan by the end of the 90-day period, they will automatically be placed in the standard repayment plan, which is the most expensive option.

A notice the department recently sent to SAVE borrowers, reviewed by Business Insider, said that “hundreds of thousands” of borrowers have already switched plans. In a recent court filing, the department affirmed that, because borrowers will be transitioned in waves, some “will get even more time” than the earliest possible transition deadline of September 29.

Trump’s student-loan repayment overhaul will bring a host of changes, in addition to the SAVE transition. Also beginning July 1, new repayment plans and borrowing caps will take effect, and borrowers expect to see their monthly bills increase — some by hundreds of dollars.

Ongoing litigation could halt some of those changes. A lawsuit filed in March aims to stop the forced transition of borrowers off the SAVE plan, and a federal judge recently blocked the department’s narrowed definition of a professional degree from taking effect July 1, which would have placed lower borrowing limits on some advanced degree programs.

The administration has previously said that these changes are intended to simplify a complex repayment system and curb excessive borrowing.

Have a story to share about student loans? Contact this reporter at asheffey@businessinsider.com, or fill out this form.

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Rocket Lab’s $8 Billion Iridium Acquisition Reshapes the Satellite IoT Landscape

Iridium Next satellite

Iridium Next satellite

By Marc Kavinsky, Lead Editor at IoT Business News.

Rocket Lab has agreed to acquire Iridium in a cash-and-stock transaction valuing Iridium at about $8.0 billion. For the IoT market, the proposed deal is notable because it would combine a global L-band satellite communications network and subscriber base with launch and satellite manufacturing capabilities under one owner.

Satellite IoT is no longer defined only by coverage maps. For remote monitoring, maritime tracking, aviation, defense and industrial assets outside terrestrial network reach, the harder questions increasingly concern spectrum access, constellation renewal, device ecosystem support and the economics of keeping services available over long operating lifecycles.

That is the context behind Rocket Lab’s agreement to acquire Iridium Communications, a transaction that would move Rocket Lab beyond launch services and spacecraft systems into the operation of a global satellite services business. Under the agreement, Iridium shareholders would receive $54 per share in a cash-and-stock transaction, with the deal implying an enterprise value of approximately $8.0 billion. Completion is expected in mid-2027, subject to Iridium shareholder approval, regulatory approvals and other customary closing conditions.

Why this is different from a typical satellite IoT announcement

Most satellite IoT announcements involve a new constellation plan, a module integration, a roaming arrangement or a standards-based NTN initiative. This proposed deal is different because it links several layers of the space connectivity stack that are usually managed by separate companies: launch, spacecraft manufacturing, satellite components, spectrum rights, on-orbit network operations, and a commercial partner ecosystem.

Iridium brings globally coordinated L-band spectrum, a low Earth orbit satellite network, more than 2.55 million active subscribers and a partner ecosystem of more than 500 companies. Rocket Lab brings launch capabilities, spacecraft manufacturing and space systems expertise. If the transaction closes, the combined company would not merely resell satellite capacity or manufacture satellites for third parties; it would own the infrastructure needed to design, build, launch and operate its own space-based communications services.

For IoT professionals, the most important asset in the transaction may not be the satellites themselves but the combination of L-band spectrum and an established service ecosystem. Spectrum is a gating factor in satellite communications, and L-band remains relevant for applications that prioritize reliability and availability over broadband throughput. That makes the deal particularly relevant to low-data-rate and mission-critical use cases such as remote asset monitoring, maritime operations, aviation communications, emergency services and industrial activity in off-grid locations.

The announcement also places Iridium’s satellite IoT, direct-to-device, PNT and safety-of-life services inside a company whose business already includes launch and spacecraft production. A practical implication is that future constellation deployment and replenishment decisions could be coordinated more tightly with manufacturing and launch planning. That does not remove the regulatory, technical or capital requirements associated with satellite networks, but it could reduce the number of organizational handoffs involved in maintaining and evolving the infrastructure.

Implications for IoT device and connectivity strategies

For OEMs and device makers, the transaction does not immediately change hardware requirements or service availability. The deal has not yet closed, and the companies have not announced new device specifications, module programs or pricing changes. The relevant near-term takeaway is more strategic: a major satellite IoT network could become part of a vertically integrated space company with an incentive to expand recurring services, not just supply launch capacity or spacecraft hardware.

Connectivity providers and system integrators will be watching how Rocket Lab handles Iridium’s existing partner-led go-to-market model. The press release specifically references Iridium’s 500-plus partner ecosystem, which is central to how satellite connectivity reaches specialized vertical markets. Preserving that ecosystem matters because satellite IoT deployments often depend on integration knowledge around antennas, power budgets, enclosure design, certification processes, cloud ingestion and field maintenance.

Enterprises and industrial users should view the announcement through the lens of resilience rather than replacement. Iridium’s network supports applications where terrestrial cellular, LPWAN or GNSS-based systems may be unavailable, degraded or unsuitable. In practical IoT architectures, satellite links typically complement terrestrial networks by covering remote assets, emergency fallback paths or mobile operations outside reliable ground coverage.

The transaction also reflects a broader shift in the space and telecom sectors: satellite connectivity is moving closer to mainstream communications infrastructure, including standards-based direct-to-device services and alternative PNT. The companies specifically point to proprietary and standards-based satellite IoT, Iridium NTN Direct, PNT and safety-of-life services as areas of focus. For the IoT ecosystem, that convergence could increase the importance of multi-network device design and service orchestration across terrestrial and non-terrestrial networks.

The deal still faces a long approval path. Until it closes, customers and partners should avoid assuming product-level changes. But the strategic direction is clear: Rocket Lab is attempting to move from enabling space infrastructure to owning a global communications service layer. In satellite IoT, where coverage, spectrum, device ecosystems and constellation continuity all matter, that vertical integration is what makes this announcement stand apart.

The post Rocket Lab’s $8 Billion Iridium Acquisition Reshapes the Satellite IoT Landscape appeared first on IoT Business News.

Telit Cinterion’s NExT eSIM Supports FleetSafe.ai Video Telematics in British Truck Racing

Telit Cinterion’s NExT eSIM Supports FleetSafe.ai Video Telematics in British Truck Racing

Telit Cinterion’s NExT eSIM Supports FleetSafe.ai Video Telematics in British Truck Racing

By Marc Kavinsky, Lead Editor at IoT Business News.

Telit Cinterion says its NExT IoT eSIM solutions are supporting FleetSafe.ai’s AI video telematics deployment in the 2026 British Truck Racing Championship. The announcement is notable because it applies managed, multiprofile cellular connectivity to a high-bandwidth video use case rather than a conventional low-data fleet tracking application.

For fleet operators, video telematics has shifted the connectivity requirement well beyond periodic GPS updates and driver scorecards. Once in-cab and external cameras are streaming video while analytics systems monitor fatigue, behavior and incidents, the network becomes part of the safety architecture rather than a background utility.

That is the context for Telit Cinterion’s announcement that its NExT IoT eSIM solutions are being used by FleetSafe.ai in an AI video telematics deployment for the 2026 British Truck Racing Championship. The deployment equips trucks with FleetSafe.ai’s AI-powered in-cab and external cameras, supporting live video streaming, driver behavior monitoring, fatigue monitoring and analytics.

The motorsport setting is important, but not because it proves every commercial fleet will operate in the same conditions. Its relevance is that truck racing creates an unusually demanding environment for a connected video system: moving assets, continuous video data, and network conditions that can vary by location. For IoT professionals, the useful signal is how the connectivity layer is being managed when the application cannot tolerate the operational friction typically associated with multi-operator cellular deployments.

Why this is different from a typical telematics connectivity announcement

Most fleet connectivity announcements still center on coverage, SIM supply or a hardware module win. This one is more specific. Telit Cinterion is positioning NExT not simply as a SIM for vehicles, but as a managed eSIM and connectivity control layer for high-bandwidth video workloads.

According to the company, NExT IoT eSIM supports multiprofile technology designed to maintain coverage and data flow by switching between operator profiles based on location, predefined rules and cost. That architectural detail is what separates the announcement from a standard roaming or single-carrier telematics deployment. For a video telematics provider, the issue is not only whether a device can connect; it is whether connectivity policies can be adjusted without manually managing multiple SIM vendors, APNs and regional contracts.

FleetSafe.ai is also using Telit Cinterion’s NExT connectivity management platform as a centralized portal for the deployment. The platform provides per-device usage analytics, session-level diagnostics and SIM lifecycle status, and supports policy-driven remote activation. It also issues alerts and insights for anomalous data consumption.

A practical implication follows from those details: in video telematics, data usage itself becomes an operational variable that must be monitored. A camera system that streams continuously or unexpectedly changes consumption patterns can affect cost, performance and support processes. Session diagnostics and anomaly alerts therefore matter as much as initial network access, especially when the service provider is responsible for keeping connected assets operational across changing coverage conditions.

Implications for IoT providers and fleet technology buyers

For OEMs and device makers building camera-based fleet systems, the announcement underlines the need to treat connectivity management as part of product design. Video telematics devices are not comparable to low-power trackers where connectivity failures may be resolved after the fact. If the use case involves live video and incident response, remote SIM lifecycle control and diagnostics can reduce the amount of field intervention required.

Connectivity providers may read the deployment as another example of how eSIM management is moving closer to application performance. The value proposition is no longer limited to offering international access; it increasingly includes policy control, profile selection and operational visibility at the device level.

For system integrators and fleet technology vendors, the benefit is potentially simpler commercial and technical administration. Telit Cinterion says FleetSafe.ai can operate under a single framework rather than managing multiple SIM vendors, APNs and contracts across regions. That does not remove the complexity of deploying AI video systems, but it can reduce the number of external connectivity dependencies that need to be coordinated during rollout and support.

Enterprises evaluating AI video telematics should also note the trade-off implicit in this type of architecture. High-bandwidth safety applications can provide richer visibility into driver behavior and incidents, but they put more pressure on cellular reliability, data policy design and usage monitoring than traditional telematics. The FleetSafe.ai deployment shows how vendors are addressing that pressure through managed eSIM orchestration rather than relying solely on a single network relationship.

Telit Cinterion has not disclosed deployment scale, performance metrics or commercial terms. Even so, the announcement is a useful indicator of where connected fleet systems are heading: toward applications where the connectivity platform must actively manage cost, coverage and diagnostics because the data workload is too important, and too heavy, to be treated as an afterthought.

The post Telit Cinterion’s NExT eSIM Supports FleetSafe.ai Video Telematics in British Truck Racing appeared first on IoT Business News.

I’ve been to 38 states, but there’s just one that truly blew me away — and I still can’t stop thinking about it

Person walking in Utah near Angels Landing
Of all the places I (not pictured) have traveled in the United States, Utah has been one of the most memorable.
  • I’ve traveled to 38 states, but Utah is the one that stands out to me most of all.
  • It has a surreal landscape and incredible views inside and out of its famous national parks.
  • The dark night skies full of stars, ghost towns, and the natural beauty of Utah really won me over.

Growing up, my family was whatever the opposite of outdoorsy is. We didn’t camp or go to national parks.

Instead, we traveled to cities, ate well, visited museums, and planned our days around dinner reservations.

It wasn’t until I had been living in New York City for a long time and was traveling more for work that I understood the appeal of wide-open space. And nowhere changed my perspective more than Utah.

I’ve now been to 38 states, but Utah is the one I still think about most.

The landscape feels surreal

Reddish rocks in Utah dotted with greenery
Snow Canyon State Park is one of many incredible spots in Utah.

I landed in St. George and immediately understood why people become obsessed with Utah’s scenery. From the plane window, red rock stretched endlessly in every direction — a color palette so different from the Northeast that it barely felt real.

View of narrow red rock area
There are so many shades of red, pink, and orange in Utah’s scenery.

Driving through the state only deepened that feeling. Every road seemed to lead to another dramatic shift in landscape: towering sandstone cliffs, high-desert plains, winding canyons, and stretches of open space so vast they completely reset your sense of scale.

Routes like Scenic Byway 12 are famous for a reason: The drive becomes the destination.

Utah’s beauty goes way beyond its famous national parks

View of large rocks/sandstone behind houses near Snow Canyon State Park in Utah
There are sandstone cliffs and red rocks almost everywhere you look in some parts of Utah.

Utah is best known for places like Zion National Park, Bryce Canyon National Park, and Arches National Park, but what surprised me most was how much beauty exists outside the marquee attractions.

Snow Canyon State Park, just outside St. George, combines lava flows, sand dunes, and Navajo sandstone cliffs into a landscape so dramatic it would likely qualify as a national park in almost any other state.

In Utah, though, extraordinary scenery is simply the norm, and there’s too much natural wonder to be contained in the “Mighty Five” of Zion, Bryce, Arches, Canyonlands, and Capitol Reef parks.

Even the stretches between destinations felt cinematic, especially the drive from St. George to Kanab, where towering red cliffs and open desert made every mile feel like part of the experience.

One of the most unforgettable places I visited was Peek-A-Boo Slot Canyon, located in Grand Staircase-Escalante National Monument.

Woman surrounded by reddish rocks in Peek-A-Boo Slot Canyon in Utah
The Peek-A-Boo Slot Canyon feels otherworldly.

At points, the canyon narrows so tightly that only thin beams of sunlight reach the ground. The sandstone walls tower overhead, making the entire experience feel less like hiking and more like being absorbed into the landscape.

Woman leaning between narrow red rocks, smiling
I had a blast exploring Peek-A-Boo and other beautiful spots in Utah.

Unlike more photographed destinations like Antelope Canyon, Peek-A-Boo feels quieter and less polished, which somehow makes it even more powerful.

Many parts of Utah feel like a movie set

View of desert-like landscape in Utah
Many iconic movies and shows have been filmed in Utah.

Part of what makes Utah so visually striking is how familiar it already feels. For decades, filmmakers used the state’s landscapes to define the look of the American West.

Movies like “Butch Cassidy and the Sundance Kid” used Utah’s dramatic scenery as a backdrop, and towns like Kanab became production hubs for generations of Westerns.

Kanab was nicknamed “Little Hollywood” because so many films were shot there, and the Once Upon a Time in America Museum still preserves that history today.

More modern classics like “Yellowstone” (seasons one through three) and “Thelma & Louise” were also filmed here, and the next generation of productions is already taking shape. Kevin Costner recently built a new film studio in St. George.

It’s got ghost towns galore

homestead from the 1850's in the Ghost Town of Grafton, Utah with buttes in background
Walking through some places, like Grafton Ghost Town, feels like being on a movie set.

Utah is home to more than 140 recognized ghost towns, many abandoned after failed farming settlements, flooding, or the collapse of mining industries.

One of the most famous is Grafton Ghost Town, located just outside Zion National Park. Established in 1859 by Mormon settlers, it later became known as a filming location for “Butch Cassidy and the Sundance Kid.”

Today, the town remains remarkably well-preserved, with its 1886 schoolhouse and adobe homes sitting beneath towering red cliffs. Walking through it feels eerie and strangely emotional.

It’s a reminder of the people who once built lives there, only to be driven out by the unpredictable flooding of the Virgin River and other struggles.

The night sky can change you

What stayed with me most wasn’t just the landscapes; it was the feeling of space.

In New York, it’s easy to forget how dark the night sky can actually get. In Utah, the stars felt impossibly bright and endless. Combined with the silence, the open roads, and the constant presence of nature, it created a sense of calm I hadn’t realized I was missing.

When I came home, I was happy to be back with my family, but part of me still missed the red rocks, the endless horizons, and the feeling that something extraordinary was waiting around every turn.

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I’m a travel consultant who’s been all over the world. I’d recommend these 3 European spots for a dreamy summer trip.

A shot of Hvar, Croatia, at sunset in the summer.
Hvar is one of my favorite summer travel destinations.
  • After traveling across Europe, I have a few favorite destinations for summer travel.
  • Gozo, an island near Malta, had delicious food, cool hikes, and a stunning beach.
  • My other top recommendations are Hvar, Croatia, and Comporta, Portugal.

At 21, I planned a girls’ trip to Iceland and fell in love with the art of crafting the perfect itinerary. I’ve been traveling internationally ever since.

Now, years later, I’ve been all over Europe, from Spain to Germany to Slovakia. I work in the industry as a travel consultant, and I love nothing more than discovering new places that I’m excited not only to share with clients, but also to return to again and again.

If you also have the travel bug this summer, there are three European spots that I’d recommend for an incredible time.

I can’t stop thinking about Comporta, a laid-back beach town in Portugal

Beachgoers relax and walk on a sandy shoreline beside green-blue ocean waves under a clear sky in Comporta, Portugal.
Comporta has unforgettable beaches.

Seventy-five miles south of Lisbon — or about an hour-and-a-half drive away — is Comporta, a dreamy village with white-sand beaches, pine forests, and clear blue water.

During my time there, I soaked in the sun at Praia da Comporta and Praia do Pego, where the ocean was the main attraction and superb beach clubs were never too far away.

I loved Comporta Café Beach Club, which was nestled in the dunes of Praia da Comporta and offered plenty of delicious, traditional Portuguese seafood.

One of the highlights of my visit was horseback riding right on the beach. I visited a local equestrian school that offered scenic trail rides — and, while riding, I learned that Madonna was a frequent visitor.

If you’re looking for a true gem that offers serenity, great food, and a bit of adventure, I’d plan a trip to Comporta.

Gozo, an island located in the Maltese archipelago, is relaxing and unique

Coastal bay with turquoise water and cliffs viewed from inside a rocky cave opening in Gozo.
Mixta Cave was a highlight of my Gozo trip.

Malta had been on my list for a long time, but I had no idea that its sister island, Gozo, would leave such a lasting impression. I first learned about this island from the owners of a local Maltese restaurant, who recommended that my partner and I visit.

Getting there was straightforward: We took a quick ferry ride from Malta, and within 40 minutes, we were instantly awestruck by the island’s dramatic coastline.

Once we arrived, we chatted with some locals and learned about the famous Maxokk Bakery. We were told that the ftira — a flattened Maltese bread often used for sandwiches — would be well worth the hourslong wait times. After trying a tuna ftira and anchovy pizza ourselves, we agreed.

Soon, we took a quick ride-share to Ramla Bay, a gorgeous red-sand beach. After some relaxing, we hiked up to Mixta Cave, a natural cave overlooking Ramla Bay. It turned out to be the highlight of our trip.

Next time, I want to stay for even longer, and explore towns and villages like Xlendi and Marsalforn — not only for some seaside dining, but to check out the diving scene and more natural wonders.

After exploring Croatia, Hvar was my favorite spot

Small boats float in turquoise coastal water between tree-covered islands under a bright blue sky with scattered clouds.
The views in Hvar were incredible.

Split and Dubrovnik were both highlights of my trip to Croatia, but the true standout was Hvar, a stunning island in the Adriatic Sea. It’s easy to get there — just fly into Split, then take a 90-minute ferry ride.

There are tons of cool places to stay here. We found a gorgeous Airbnb located right in Hvar Town, about 90 steps from the water.

The seafood here was also delicious. Two memorable spots were Mamato Bar, which offered a laid-back lunch with great ocean views, and Laganini Lounge Bar and Fish House, a slightly fancier spot that we reached by boat. There, we enjoyed Dalmatian cuisine and a live DJ music set.

Speaking of music, Hvar has a great nightlife scene. Specifically, Carpe Diem Beach Hvar and Hula-Hula Beach Bar provided some legendary sunsets, dancing, and drinks.

For a lively place where you can relax and dance the night away, I’d recommend Hvar.

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