9AM HOUR: Nvidia's Record Run, Sam Altman Makes the Rounds, Yields Keep Rising 10/5/26

0:00Never bet against American grit or American energy. Through innovation, venture global is not only building some of the largest energy facilities in the world right here in the United States, but delivering American energy at a fraction of the cost and a fraction of the time. So while others are busy talking, we're busy building. That's venture global. That's unstoppable energy. AI is here, transforming how we work, live and lead, and the women I talked to aren't waiting for the future, they're shaping it. I'm Julia Borsten, Senior Media and Tech correspondent at CNBC. This is CNBC Changemakers, where I talk with the female leaders transforming business as AI reshapes the world. Follow and listen to CNBC Changemakers, Women Leading in the Age of AI, wherever you get your podcasts. Market insight and analysis you're listening to the opening bell of CNBC, Squawk on the Street.

1:04Good morning, welcome to Squawk on the Street. I'm Carl Kington E. W. Jim Kramer, David Faber's back at Post-Niner of the New York Stock Exchange. Coming off Friday is all time highs for Nasdaq and Vidya, the XLK. Yeeled still in focus though, the 10-year pin to 5-3. Got a nice badge of M&A and some self-sight upgrades today. Brett 102, Triple A gasoline does back off to about 436 a gallon. Roe Matvin gets within Vidya in that record watch, poised for some more gains after hitting its first all-time high since May on these renewed AI optimism fueling investor demand. Plus Sam Altman says AI's benefit, so suffice accepting some risks. He said, quote, some bad things could happen. And Troy's Re-Secondary Besson backing off his bond market bluster, now saying the house does not always win. Let's begin with the video's record run and a potential 6 trillion valuation now. Jensen Wong's net worth surpassing 200 billion, that's according to Forbes. Jim, we talked last week about pushing through like a push through 230.

2:06Well, I like that. I mean, I think kind of the things that happened were there was an extra client interview that actually thinking it's somewhat seminal. The people who like Jensen are saying, you know, he's got under control, he's the adult in the room and they've got, I think they've got a lot of worries. The existential worries, sure. Yeah, there are some people who say, you know what, he's become so close to Trump, it's really amazing. But what has mattered, I think, is that we finally don't care about China. We're so thrilled about all the orders that he has, that Jensen has, that we stop digging without China what's going to happen. David, when you were way, there's the tug of war, tug of war, tug of war. But in video breaking out is a seminal situation because 6 trillion in the end. Pretty amazing. Yeah, I mean, you had two different things there which I think is interesting. One is obviously the operation of the business, talking about how successful it's been and whether even they get any China orders, how much that matters. The other thing you just said is that the existential crisis has been cured. No, the people who liked him were saying the existential crisis.

3:10I see, because I listened to that same interview and I found some of his answers were less than compelling. Okay, so that's where I wanted to go for a segment. Because this was the first time I felt there were people on both sides. I have very informed people who said to me, you're a friend Jensen, and I'm a serious user, you know, he's been very good. He's not really addressing it. He's got this idea that we're fine. What seemed to matter to Wall Street, that carry weight on Wall Street. I don't know if it carries weight. It's like into the elections, where I think the data center is a dissent. There are two separate arguments being had. One is about it. One is about in video and its ability to continue to execute on the opportunity and around whether really it is. Circular financing or how much it's at risk and how much its business is going to grow. Obviously, you have great insight into that. Then the other is the one that we talk about at this desk as well, which is this raging debate, Carl, about what the advance of this technology is going to mean for society.

4:15And Wong's been a lot of this interviewer referring to, which was a couple of weeks ago now. What's a couple of weeks ago about resonates? Talking about that. Bill Gates obviously also then responding in a very different way. On Ezra Klein as well. On the same good for Ezra. Good for Ezra. We have this idea that Jensen raised simply saying why ability is enough to curb bad behavior. Right. And I'm paraphrasing here. And the companies will do the right thing and should not release products that are unsafe. And I wonder what I've been living in, he and our similar ages, but we've been living in different worlds, I guess. Yeah, that's true. It's funny. I've got, I have some friends who are in the insurance business. And they're literally saying, okay, so we'll chop, do it. Do you really want Liberty Mutual? Well, so how about the mediation? Someone said that, do you really want Liberty Mutual? I said, look, I am not closely in the issue. But he's always thinking about the greater good and not necessarily their shareholder. I would. Yeah, we've missed the synthesis and we've been going at this level. We forgot to go in this realm. Welcome back. Thank you. Four years of covering business.

5:15Maybe it made me, I didn't, it wasn't born cynical. No. And I wasn't born yesterday. I think that this is about the midterm elections. I think that this has become maybe the most hated force in America. Oh, they're a month away. Do you think it will have a real impact on the ability to build data centers in this country? They are. Should we just, I mean, SpaceX stock took off again. I mean, maybe orbital data centers are coming soon. Well, I think that they will. I think that that's part of the theme of Adam Jonas. Ah, I'm just saying, Carl, look, I, the midterm election, something that surprises me is that the staunch nature of how whoever can identify with anti-data centers does boost their numbers. But I do think that in the end there will be a couple of states that don't seem to mind. But I think that it's going to be a radical defeat for the, for the data center because they've forgotten. Other than that, because of the inter-palmacorn, these people are so tone-daffed. And I don't think that, I don't think that should disagree with this. They forgot, they ran over the country.

6:16And now the country has actual politicians who can run down. Ah, yeah, we're going to talk about Sam Altman here in a moment, but he did say over the weekend to political, I think, don't think spending money on politics is what's going to make people feel better about it. The industry needs to figure out a way to address what the actual concerns are. And right now, a lot of people in the industry are being quite tone-daffed. Well, I'll tell you he's not being tone-daffed, the people who listen to Microsoft. I think, and this is something that my friend Ben and I just said this morning, but we had a really terrific outfit called 100X1 on Friday, which is this polling. It's a bit part of a Goldman, he does great job, job pace. The sudden advance of Copilot, I think, and this is over Gemini and over Chattupey, although it's still close, in his polling indicates that what could be happening here is a belief that Dario blew it up. That Dario basically said some things that made it so he sounded erratic. Maybe have to go with the parent, and the parent David is always going to be Microsoft.

7:21And this could be the reason why this stock is breaking out. It's Copilot. Interesting. I've read this, was that an upgrade that we got to know? Yeah, which surprised you, he really hated it. I went with the whole thing. A whole way negative on it for some time, I think that's fair to say. And I think that you're seeing maybe some belief at the corporate level that perhaps you go with Copilot, because maybe you don't want to go with people who are saying, listen, this could end the world, because in the boardroom, they say, why are you going with the end of the world, or we've done a lot of business with Microsoft? Are they end of the world? No, no, they're adults. And you got to be careful, because as much as I think that there could be existential, if you're in the boardroom, it's not existential. It's like, hey, maybe we go back to Microsoft, they weren't that bad. I see their name on this NFL, they've got something going there. It's huge, it's that. It is. What corporate America's like? Dario is crossing over from the point of view of what corporate America wants. All right, I want to explore what you're talking about again. What do you mean?

8:21Okay, when you have, by the way, Dario, of course, Dario, Moda, you're looking at him there. Well, I say they're waiting for an S1 there. By the way, given the move in the rates, I don't know anything. I do wonder when we're going to, you know, is bringing an IPO now. So we're obviously not coming, but interesting moment to try. Given what's going on with rates, not so much. We haven't even talked about Europe yet. And oil still hanging in there in the, but the tenure, what fire to. I think the world, the short is cutting price is not being dollars enough, but we'll get to that. What I thought was interesting, two-fold. First, Dario, look, I had the good foresharing interview. And I think it's absolutely right to be worried about these issues because the issues are very big about what could happen. But he did something that I've seen people have. It had, have when you meet the President. He agreed with the President. He wholeheartedly agreed with the President. Do you wholeheartedly agree with the President in front of the President and wholeheartedly hate the President? Disagreeing the President behind his back?

9:21I've seen this happen. I saw it happen with Brad Corp, who ran Paul Weiss. He went down there for Paul Weiss. He really didn't make any compromise. Then maybe he didn't make the compromise. Just, you know, Paul Weiss sides with the President. The President is a powerful, he's a powerful person. When you're standing next to him and you disagree with him and then suddenly you agree with him, what is that? Is that somebody I want to be with? Even though I like him? So much. Okay. No, not okay on this one. Well, that was an amazing turn about by a person. Yeah, I mean, could he have been more pro-Trump? I mean, just putting it down, I got one when they come to doing that stuff. Magamy. When you are about to become a public company and you have responsibilities to your shareholders, you are in a very difficult position if you disagreed because this administration certainly has shown a willingness to extract whatever it needs to, to accomplish what it sees as its goal.

10:27How much to President? I don't know if it's super intelligence and that, in fact, it could be AI and it does have issues. How about seeing something that's consistent with what you've been saying? You know, when I think about people in that position who disagreed with the President, I can only, I'm a J-Powl, when they were standing next to each other in hard hats. Remember that? Well, about how much it costs. There was a man of creating terror. There was a man who was willing to put his own bed as well. Dennis, on Venezuela. McCrone on the loans to Ukraine, not being loans from the European Union. Sure, and then the Chamber of Commerce on tariffs. I mean, that does happen. It's rare. But it's rare. And corporate leaders in particular, hard press to find many who truly disagreed publicly. Okay. You don't know what happened, private. By the way, he hasn't denied that he ever wrote those blogs, those papers. No. No, but I thought he was part of the pro-president view of things. And I think that I don't even think that the debate that we're discussing here is also breaking down on political as so much does now in this country from political perspective.

11:32On the one side, you've got move fast and as quickly as possible, no regulation or very little. Although we do know how an AI czar and Jake waiting. And the other is, whoa, whoa, whoa, you know, regulate, regulate, regulate. I just have a guy who just says, look, he could be the end of the world. And next again, no, he's next to the president saying, look, Mr. President, this is super. I'm just saying that if you're going to do that, it's a little difficult to believe that that's not irratic behavior. And I don't want to be with the rat if you ever. I want to be with Sajim. I don't be with Amy Hood. I don't even care if Copilot isn't as good. I know I'm going to cover my ass. Well, Melius' report is literally the adults are in charge to your point. On all of this, Altman does continue to make the rounds today when it comes to talking AI safety, the opening I CEO, discussing the issue in a cover story with Vanity Fair. This is what he had to say about to Politico about what people should accept when it comes to AI.

12:32We have always been a big believer that this technology has to be democratized and put in people's hands. I think one of the biggest differences between us and some of the stricter, let's say AI safety people, is we believe that the world should accept some bad things happening for the benefits of this technology and people having the agency. I disagree, but I understand the perspective of people who are like this technology going to get so powerful and it's so dangerous that a single lab in San Francisco should have it and make sure nothing bad happens and kind of figure out how to go out the benefits. I think that is a completely unacceptable trade off from a perspective of liberty and human agency and people self determining the future. So that's making the rounds this morning. It goes back to the same debate we just been having in this idea of painting and the topic as seeking regulatory capture to protect their moat essentially. You heard him, he didn't name them. We know there's no love loss between Dario and Sam, and he wants to work together of course.

13:33Again to remind people of history, Altman AI was begun with safety as being the key. Elon Musk was the original investor because this technology was seen as potentially one day be so powerful that it needed to be protected. We know what open AI is now. Today obviously they're talking a lot about safety of late and anthropic was created by people who left open AI. Dario and his wife and Karnovsky a few others who left to create it because they didn't feel like safety was being taken seriously enough at open AI. And that just continues today, this debate. Well, I mean if you were listening to Sam Altman could you not say that you were listening to people debating atomic energy? Yes. But right, the Manhattan Project was in the hands of the US government. Right. The making of the atomic bomb I think is Dario's favorite book. By the way one of my favorites too. Although I really didn't understand a lot.

14:33Most of the physics I'm sure a lot of people do. Still really good read. I like to book downfall. Oh yeah? Yeah. Because at the end it says the next one is on your head. President Truman's to the man who ran a time to pan at the time. This is existential for a lot of people. My father was in the sixth Army. He was ready. I just think that you have the situation where you have. You have people on the one side saying this is the end of the world. And the other one saying hey listen we give you a good deal. This is pretty good product that we have. Yes. I mean I'm thinking of just last few weeks, Accenture. Certainly some moves and vibes. Yeah, I don't want to hear about the emperor. I don't want to hear about what happened in World War II. But I want to hear about it. Hey you know what? We have pretty good deal using. We're using that Microsoft product. Let's maybe we switch over to that because I don't really want to know about

15:33whether it was right to do the sandbox. I don't want to sandbox. You're talking about board members. He's board member in America. Typical board member in America just wants to be able to check a box. Because they had a lot of things to do. They got a lot of $100. They got a big $100,000 from four different boards. Correct. It's like, oh Microsoft. I haven't heard them say anybody here. They're saying it's in the world. But they're they're the one for this 30% wolf. No, Sartee has not said it's the end of the world. No, no. But I think you probably get a good deal. Good deal on what? Go battle. Oh yeah. Sure. Why not? Good deal in the end of the world. I just can't get into the world. That's full price. For fuck's back. Let's go hard. Regardless of whether it's coming. Let's just I mean if it's handle the world or not. It's like it's worth. It's worth. Consumers spending maybe holding up for that very reason. That's really what we're going.

16:33Take a look at the pre-market here. We'll get to some of these upgrades today on draft kings. Microsoft as we said. Harley. Wells. Stay lauderd. Futures having a tough time getting back to flat. Stay with us. Who says Americans don't build big things anymore? Through innovation, venture global is not only building some of the largest energy facilities in the world right here in the United States, but delivering American energy at a fraction of the cost and a fraction of the time. So while others are busy talking, we're busy building. That's venture global. That's unstoppable energy. AI is here, transforming how we work, live, and lead. And the women I talk to aren't waiting for the future, they're shaping it. I'm Julia Borsten, senior media and tech correspondent at CNBC. This is CNBC Changemakers, where I talk with the female leaders transforming business.

17:33As AI reshapes the world. Follow and listen to CNBC Changemakers, Women Leading in the Age of AI, wherever you get your podcasts. Got some M&A on the tape today. There's a look at C.H. Robinson buying R.X.O. Cash and stock deal, valued at $5.8 billion. We're going to talk to the CEO coming up in the next hour, big move in the world of logistics. We'll get Kramer's Mad Dash, count down to the opening bell. Don't go anywhere. Who says Americans don't build big things anymore? Through innovation, venture global is not only building some of the largest energy facilities in the world right here in the United States, but delivering American energy at a fraction of the cost and a fraction of the time. So while others are busy talking, we're busy building. That's venture global. That's unstoppable energy.

18:34CNBC Changemakers, spot-letting women who innovate, lead boldly, and are transforming business. Do you know someone who is rewriting the future? Nominations for the 2027 List are open now, at changemakersnominations.cnbc.com. All right, let's get to a mad dash. We have eight minutes before we get started with trading here at the New York Stock Exchange, first opening bell of the week. We're going to be focused a lot on Europe and the French bond, suddenly blowing out, difference between German borrowing costs and French borrowing costs. But let's come back to the financial sector here and start with Wells Fargo. Right, now we're about to have bank earnings. And typically we would not get anything of any substance ahead of the numbers because other than a Chinese general, like, well, this group is soggy. But Morgan Stanley's six to snack out this morning. First talk to me about him for the trust. It's not been good lately, but it's been good long term. Wells Fargo updated overweight top pick. And this is the net interest margin stabilization.

19:34It had been very criticized in the previous quarter. But David, I need your help on this. It talks about how that really Wells is finding the future. It really Wells is finally starting to make an investment bank. I know Charlie Sharp, to see how, did talk about that on the call. He felt that it was not given the significance that it was deserving. Have you seen Charlie be able to accrue some top pick? Yes, without a doubt. They've recruited a number of people. It's been a number of years now. Yes. But it takes a while to have it all co-less. No, it takes a while. Obviously using your balance sheet as one of the biggest banks is a helpful way to get yourself in an advisory position as well. And then having it all come together where you're actually one of the top amenay advisors and capital markets and things like that. It can take a while, but they have done that hiring. And I think they have. They would argue scene real progress. Right, no. Charlie has told me Jim, we can't focus necessarily on both at the same time. But this piece says it's finally happening.

20:34He's worried about NIM, that interest margin. So he's going to help you there. And he's bringing in the right people and they're going to begin to win some deals. Now I asked him if I'm going to cap tables. But the reason why this is important is Charlie Sharp, that's not bad. I'm your 71%. Charlie Sharp has tore up these bitter winner and the multiple, 11 times earnings means he's the loser. Right. And I don't think that's fair. I think he's a very good seat. But once, you know, they had to ask the capital of lifted. Right? Yes, they did. But it didn't really do what we thought it would. And that's where a lot of this is. In terms of real positive for the stock. Exactly. That's where a lot of us got it wrong. I thought that the cap removed would make it so they were more aggressive. Charlie just has looked, I'm just doing this thing the way it should be. The cap removed, we have more cap, actually kind of made it so that they can pay it. You know, buy back a lot more stock. But I only put it out because it's an odd call to do ahead of the group. Yeah. All right. Well, there it is looking up as much as 2%. This morning we'll keep an eye on the broader financials as well. We got an opening about five minutes from now.

21:34And don't forget, you can catch us anytime, anywhere. Listen to and follow these squawk on the street opening bell podcast. I can't control the bond market. What I can do is try to get people to slow down and think. Because my job in the financial markets for 30 years was to be outside the door. Here, here to the door when policy was being made sometimes for with myself over the transom. And think like what policy makers going to do should do can do. And now that I'm in the room and what I meant by I in the house is that I have superior information. Like people could ask, obviously the Japanese would have liked for us to intervene in the end at some point. Anytime since January, why did we do it then? People should sit back and ask themselves that. Treasury Secretary Besson to Axios over the weekend saying he cannot control the treasury market. But arguing that yields would come back down over time. I certainly haven't though since he initially said bet against me.

22:37No, they're bet again today, which means we're going to see if they turn like they did on Friday. I actually didn't mind this. I thought it was quick that he admitted he was wrong. Now did he say David, you know, I shouldn't have said it. No, that does take a bit of that. It's such a leap of faith to say, you know what I got just completely wrong. But at least he owned up the fact that it was such a mistake. Meanwhile, here we are at 5.303 percent on the 10 year. There were those, I think, who come on our airs at 5.25 as the market, which the market starts to really suffer. What do you think? Well, look, I think housings, but now I'm going to be at a 50-year-low return. I was going to be a remake of house. We're building houses a little less than we have, but we have 50 percent of people. It's an important thing to see. I don't want to pronounce it dead, but it's open. We'll talk about what it might mean. Less building, rental, CPI in a few minutes.

23:38Let's get the opening bell here. That's the big board on Wall Street. It's a first day motor. You know, a breast cancer awareness month. At the N.J. time Square, C.C. was back in Florida. The New York Times celebrated its 10 year old and its C.B.O. in Chicago. University of Canada, Canada. A university based in Mexico, Jim, as we start the week above 7700, which has sort of been a mental line in the sand. I'll tell you what, it's now 10 percent bond, maybe. I think that what we saw on Friday was a little similar. We had the interest rates actually open higher, and then interest rates went lower, and the stock market stowed with that. And then interest came back a little bit. The market's a state strong. David, it is very difficult to keep your eye on the market when your eyes seem to be on oil and oil interest rates, because they're much more powerful right now. Right. Obviously, we've got a strengthening dollar as well, in part because of the rates where you've seen there,

24:38and concerned about French borrowing costs right now. It's not Greece at all, in any way. But it's obviously far larger as well, in terms of its bond market. And there's this under, you know, undercurrent in France, is capitalism work. I mean, the questioning of capitalism is something that I find very daunting. Although in Brazil, there's thinking, hey, the other way, it works, so maybe there's just a lot in play, but you know, call them when I hear the 10-year fail and auction fail. I want to see an actual auction fail. You do? I don't want to hear, but I don't hear that they're bad. That would be a good fail. No, no, I meant that this is more, it's not as dire as people think. And David mentioned Greece, you don't even get that good return yet. I mean, like, well, maybe ours is really bad. I mean, of course, looking at these charts that shows, rates have been moving up worldwide. But that's not just for US phenomena. So what I'm saying is that we've seen that out of France, but I think in some ways, because I think there's a question about socialism,

25:42and the socialism is in the air here, too. And I think a lot of us once again thought that the issue would be Democrat, first public, didn't have to, did not be extreme a public in versus extreme Democrat, whether they agree with each other. Well, maybe it's because as the journal writes today, the top one-tenth of one percent of the wealthiest among us, own 15% of national wealth. Well, that is... You hear it endlessly when you get away from the world that we're in, where you begin, you know, you just hear the terminology gawk, as if it's not funny anymore. It's just what, what could be a molecule gawk? It's an issue. Yes. Well, yes. Yes. It's an issue. The concentration of wealth and power in the hands of very few. Right. And facts are continued debate about AI. That also conceivably will be something,

26:42putting a great deal of power in the hands of a handful of people. Right. And it's not the way we're going to be controlled by the government. Well, I mean, when you look at history, broadly, that's not been, we've not been an hourly-barable society, been much more aware of. The CEOs didn't make that much more say that people who work on it. Only 300 times or so. Yeah, I mean, I think I can go back to work. There are not more 300 times. Just go back to the Reagan presence. Yes. The Reagan was very much against what's happened. Was he? Yes, he was. It was been warm once, read me the beginning of a speech. And I said, oh man, you're really out there. No, I was actually being a president of Reagan's speech. Jen, we mentioned all the upgrades today. You talked about wells. But EL, while they're here, hog, we mentioned Miele. Yes, what's going on here? Miele. Hog has the other mechanism to come back. They've got a new product coming. Yes, they order. They've got management in the change. And there was a lot of room.

27:42So it was a good brand. Bill Lauer, how many years have he sent him to the right thing? For one breast cancer. He's just been a stalwart. I can't tell you, David, how many people out there doing quiet things were not pounding the table, quietly trying to cure this horrible disease. And he's probably at the forefront, I think. Yeah. Guys, we mentioned there was some deal making. There was a smaller deal. We're going to have a CEO on later from Seattle Robinson. But there was also a large software deal that the French company, back to Schneider, did for PTC software. We're talking $23 billion. Purchased price represented over 42% in terms of a premium to where the stock closed. And they took an issue between five and six billion euros worth of new equity, financed as well for another $16, $17 billion of new debt. It's interesting in the sense of it is being seen

28:42as sort of industrial AI. Yes. Schneider are very involved in the data center side of things, in terms of producing for power production and things of that, and a large industrial company, of course. But now they're moving into the sort of design, engineering, manufacturing. And it apparently is the data, not just the software itself, but the data that is part of this acquisition that is, they see is very important. And they're talking about a big revenue synergy number, I think as much as $800 million in revenue synergies, you can see what it's doing with Schneider. They're paying, I think, 23 times. That's not insignificant multiple. Why translation? It could have a positive impact on different names in our market as well. But that's so true. And I wonder, I guess, in the auto desk, or some of these kinds of names, I haven't even taken a look, but there is that translation at least going on, given from their market to ours as well. Well, when I was out in Dreamforce, Mark Benioff, the CEO,

29:42open once we'd spent some time with companies. And I try to spend enough time with, it's hard. There's so many. He's always urged me to spend time with Schneider. He said, why? Well, because we tend to be very anthropocentric about who really does a lot of AI, physical or otherwise. And he felt that Schneider was at the lead. And PTSD has been out there for a long time. Boston based company 1985, with 30,000 customers. I know. So the other side of the argument would be, oh yeah, Claude's going to eat their business. And so now they want to sell. And these guys are buying, you know, they obviously view it very differently clearly and see real value here. What's the data and context? Data with you and what they can do in terms of integrating that business? When you were away, I started thinking, oh my, I would come into the quarter. And there's no one talking M&A. And is it just frozen because of the war or earth? And here's a French company. And we know French is under France, under part.

30:43Who just takes the step. Yeah. Can we have any hope at all on some search of M&A? Sure, we can have hope. I can't tell you it's going to happen. The bankers are always trained when they're talking reporters, even ones they've known for a very long time to sort of say the pipeline's looking good. Well lawyers tend to be a little more straightforward. But I think things are fairly active. Whether they get to the finish line gem is always the key question. And rates may have an impact certainly on deals that require great deal of debt. You know, cross-border is always difficult. Any trust is weird right now. You just don't know. But usually it's not seen as a huge gating issue. And we're going to talk to Jonathan in the next hour about all that environment. Yeah. Jonathan, canter form ahead of obviously. Oh, I'm sure of DOJ. Come us up. I'm not a DJ. I mean, but I've been, the other thing is IPOs. I mean, we're transfixed about the idea of anthropic.

31:43But where's the 12,000, 15,000? Where's the ones where I just would have expected at this moment we get? And how much of it is that people, the companies can stay private longer. But there are, I mean, anthropic is, listen, at a value that could approach $2 trillion. That would be the largest IPO of all. I mean, as big or bigger than SpaceX. And then there are names like Endscale. You heard of this, you know, that are people are wondering, is it going to come or not? Or when there's meta for whatever reason? And it has, that's Muse, and that's the look that that's enterprise over a consumer. That is doing quite a good job. And the success of Muse, which has powered that stocknet with better performance than Alphabet, Amazon, or Microsoft on the year. Well, this Muse is a very powerful product. And I think a lot of people feel that it helps you become more productive. Now, Carl, there's been so many sources that just say, you know, individuals should have been more productive.

32:47They want the coffee maker on. Individuals, small companies, they needed, because they just, they're just like, okay, lose. And they don't know how to do the things that they need to. And Muse apparently is very good at telling you the trick you're pitfalls. And I really like that. That's one of the things I think that is so, a powerful that the small businesses are usually useful. Yeah, there's been some anecdotal, I guess you'd call them reviews of people who have been using it. And then now some of their services have been interrupted. I don't know whether that's about websites getting smart to Muse or blocking it. But interesting, the other, a couple other tidbits. One is that there's some analysis that maybe Snapdragon power some of the Muse hardware, which would be good for Qualcomm. Yes, in Qualcomm, I did win a big contract with China. I got to give them that. But I will say that I have been having Muse Muse and having businesses that use Muse Muse. It's a way to go. I didn't know. I was sure I had it when I was running the restaurant. Because there were so many things that I did not know who go wrong.

33:47And there was no one to talk to. Right. So now you'd have somebody to talk to. Well, and no, no, I got rid of the restaurant. You do. I have no one to talk to. Thanks to, can we talk about some of the tools you're using to find new distribution markets? Well, example. We use, it's really interesting to try to figure out what your social media should be by using a professional, which is the Muse. Yeah. You hire someone and they don't know as much as Muse.

34:50And they're also, they want benefits. Next, you know, you're pamphled in with the guy. But you got Muse. I'm never buying dinner from Muse ever. No. And Muse is working 24-7. It's funny you mentioned that guys because we did build a chart thanks to the daily shot of non-farm payrolls since GPT was released. Have you seen versions of this chart? Do we drag it over to the deep lock? Just to remarkable. Because we talk about, oh, is there a labor disruption within AI? Yes. There's the doc. That's when Chat was released. And this is what IT sector of NFP has done since. And yet you would hear the argument that more software engineers are being hired as we had all been talking about the death knell for being a computer scientist. I don't know. But again, there are very different views on this chart. Bill Gates has a apocalyptic view, I think it's fair to say, and what's going to happen to employment when cognition is no longer a scarce resource.

35:54Will you not intrigued by when Gents and Wong talked about the long division? But Gents and Wong, as many others, believes that more jobs will be created without a doubt. So many people will be empowered to do things they otherwise could not do. Or how about Jonas saying he doesn't really drive anymore? It's all FSD for him. Hey, yeah. Jonas doing some very quality work. But that was a significant difference. By the way, look at SpaceX stock, which is now across the $162 threshold. You know, standing all of that, selling that we talked about. Basically, at this point, you can ignore when the lockups expire. They don't seem to have a particularly long impact on the stock. So short-term. Do you see the money they're making from colossus by renting that out? Yes, colossus. The success of Starship. The release of some V3 satellites, what that's going to mean for Starlink. And then orbital data centers. You know, the reports that he's starting to move on mirroring. Elon's starting to move some of his best engineers more on the orbital data center side. I can't come soon enough, right?

36:55Get him off the earth. I continue to think that younger people should be buying this stock. Yeah, Adam's got a note out today. Reiterating is overweight 300. But he has this EV to EBIT adjusted for growth. And he argues that if you use this metric, it would, even at their 300 target, would be in line with Amazon, below alphabet, and below meta. Look, I, anyone, of course, who I use Starlink, it's rather remarkable. That's not where the money is. The money is the foresight that Musk had to go to Elon. You like to go to Jensen, say, I went over the, yeah, the right, yeah. Give me a million and I'm going to work. And it worked. And for Elon was once critical of Jensen, say he was charging too much. I know. And Manantthropic came along with a need for compute as paying an enormous number, as I think alphabet also is a customer there as well. I mean, talking to one boat this morning, a hundred billion of 28 EBIT does, what they're working with for space, sex, and some possibility, so you can do the math.

37:58Not at risk. 21 times 28, something like that. Right? That's pretty good. Right? Yeah, I'm doing the math right now. I look, I think it's, I still want it to be more tragic. I just don't want to get people's expectations too. Oh, wow. Guys, I did want to end for my, what I got on my list with P-Sky, which is going to close. The deal to acquire Warner Brothers Discovery, new company going to be called Skydance. You can see the stock is down. Remember, all the equities coming in, in fact, it's in. My understanding is they're going to wire the money later today. Make sure it's all there so they can close tomorrow. Obviously, you don't want knee hiccups at all. Huge bond deal. Perhaps we haven't talked about it enough. The largest corporate bond deal of all time, helping to finance this. They had to do it at a higher price. I'm sure they wanted to, given the move up and yields we've talked about, going to cost them another much as $400 million a year in interest. They did save that ticking fee, though, almost entirely, given where they're going to close it. It hasn't ticked very much because of the agreement they did reach with the state attorneys' generals.

38:59And now it's all about, can you deliver on more than $6 billion in savings, essentially you need to? And I would expect we're going to start to hear from leadership about their goals, specifically, and then telling their shareholder base how they're going to hit those goals. Remember, peace guy shareholders now do get those warrants at 12. They're good for 10 years. They're good until 30. So that's an important component that they got as well. And the equity coming in, which is $47 billion, I've reported this, $25 billion from Saudis, of other investors, and then $22 from Larry Ellison and Redbird. That gets struck at the lower end here around $9. Where are you surprised to see an uncryzed Macauper from the talk? Yes, big hire. He will be co-CEO in uncryzed of the overall company. Ellison will be chairman and CEO. But a lot of what I'm talking about in terms of delivering on the execution on those numbers,

40:01that they have to. That's the key here. Will fall to him? Yeah, well, I remember when he came to me with the tell and said, look, the balance sheet makes a so-and-so head. He says, man, I'll fix the balance sheet and then get things going. And he did as far as he can. And I know that a lot of people feel, ultimately, jumpship by the bad of time. I think the company should go on private that we're doing so well. I do worry, David, when, if you remember, when David Zasov took over from the predecessor company and the start was at 7.8, he said, I have to sell a number of things. Has everything been sold that could still raise money? I don't know. There are other things. I mean, the problem continues to be you've got to sell things at a multiple de-ibita that would be above what your leverage ratio is and that's not easy. Certainly given the state of where cable networks are currently valued. And so I think the focus really is trying to re-energize overall. Obviously, Streamy is a key part of this, as you'd expect, and putting together Paramount Plus and HBO Max is going to be a very important component of this overall.

41:05And then they are committed to delivering as many as 30 films a year. The history of those who have bought Warner Brothers, so to speak, and delivering value for their shareholders, Carl, I think it's fair to say it's not particularly history. That's checkered. Also some examination over the weekend of the cost to ensure they're credit against default, beginning to move in tandem, the Oracle side and the Peace Guy side. Bloomberg kind of framed it as managing your Ellison risk overall. I do think that every time I think, well, hold it, maybe, or I'll quickly break out. I say to myself, what is the exposure, the Larry Ellison exposure, knowing that Larry Ellison is not someone to try to pull with? No, he is not. Oracle shares are up nicely today. $440 million market value. Well down from what was it at TIEC, a $700 billion market? You notice balance your creeping back up. You double down on that $250. I think the balance your students remarkable things,

42:06the companies that I follow, and they don't talk. I know that Alex is a boisterous fellow, boy internally, when you bring them in, they don't say a thing. And they've been happy, some successes of the companies that I deal with. Interesting open here. We're split between the Dow S&P. Tech is definitely helping out. Along with a little bit of consumer discretionary, watch bonds as well today. It's going to be kind of a light week for data. We'll get ISM services, FOMC minutes through the course of the week. You miss on Friday, but of course next week is the big week with CPI. We're back to have the Fed. Stay with us. Got some bargain hunting on names that are well off of their all-time highs. A B of A, UPS draft kings to buy 27. City goes to buy hog 33. Texas Roadhouse. Evercore goes to outperform 200. They've been hurt by the closets, they've been hit by the pitch. They say Evercore, they're a bowl case of 300. By 2029. You got to have that more steer.

43:07Be more steer, David. We'll get stopped trading with Jim in a minute. Let's get to Jim and stop trading. Drug stocks have been weaker really. Nothing to write home about. But, we're in, came out with this piece today. Bristol Myers, movie The Silence. Buy the whole, the Hink the most significant part is that one of the key drugs that they had, Co-Benthy, which is Nantai Psychotic, may not be adopted much in the Alzheimer's disease psychosis. That's one of the reasons why I initially liked the stock was precisely because of that indication. Sure, it's an inexpensive stock. But frankly, unless you have a pipeline that's kind of like Lily, you're going to be left behind. And I think Bristol now is going to be very much left behind. I don't think you can buy it. Interesting. At one point, wasn't Merck the best down name of the year for like five minutes? It was. And I do think that, look, I think the melanoma vaccine is something that's going to be left behind. It's something that we get some more paper on by the, I think it's October 23rd. Just to see exactly how big that market is, but I think it's going to be far larger market.

44:10People who have it and then don't want recurrence would pay anything for it. And I'm a genuine believer in having unfortunately my daughter had melanoma, she's beaten it. But you know what, when you've beaten it, it's with quotation marks. And this is why this is the fact that she would be carrying it. Merck's still number three for the year behind cat and Cisco. Jim's good to have us all back together. Yeah, together. Yeah, right. And I, I, I like the back. I would say the fourth, but when you say yes or just look at me, that's not before. I like the back. And then the fourth. I'm just not. Oh my. Good to have you back, chief. Yeah, good to be here. We'll see tonight. I was just at the eagles yesterday. I'm cheering. Sorry about that. That was a very unfortunate situation because I now I don't want to have a second abortion. It was very close. Very close. It was very close. Okay, just put it on the record there. Okay, sharing that with you and nobody else. Yeah, bad money.

45:10Six PM Eastern time. You've been listening to the opening hour of CNBC's Squawk on the Street. All opinions expressed by Squawk on the Street participants are solely their opinions and do not reflect the opinions of CNBC or its parent company or affiliates. And may have been previously disseminated by them on television, radio, internet, or another medium. You should not treat any opinion expressed on this podcast as a specific inducement to make a particular investment or follow a particular strategy, but only as an expression of his opinion. Such opinions are based upon information Squawk on the Street participants consider reliable, but neither CNBC nor its affiliates and or subsidiaries warrant its completeness or accuracy. And it should not be relied upon as such. To view the full Squawk on the Street disclaimer, please visit CNBC.com forward slash Squawk on the Street disclaimer. AI is here, transforming how we work, live, and lead. And the women I talked to aren't waiting for the future, they're shaping it. I'm Julia Borsten, senior media and tech correspondent at CNBC. This is CNBC Changemakers, where I talk with the female leaders transforming business.

46:10As AI reshapes the world. Follow and listen to CNBC Changemakers Women Leading in the Age of AI, wherever you get your podcasts.