e-commerce sales up 21%. i like this one. >> focus on that and farmer jim >> vertex. it's spent a lot of this year consolidating but today set a new all-time high. it's clearly going higher from here >> you guys have a good day. i'll see you on "closing bell. "the exchange" begins right now. is thank you, spot. welcome to "the exchange." i'm kelly evans. here's what's ahead this hour. we didn't get a recession, but the market is behaving as though we just came out of one. that's how our market guest sees it, and he sees opportunities because of that. he brings three names he likes and we'll talk commodities and what's going on there. here comes nvidia. our trader is watching a very specific level, and she's prepared to make a move. she'll tell uswhat she expects that move to be today. with microsoft's backing ai tudors across the country for free

fresh off that stage at microsoft build to tell us how they'll use it, and why it will make a difference in the classroom and why it should play a role at all. let's check the markets with mr. dominic chu. dom? >> so ms. kelly evans, what we are seeing right now is a market that is very stable, almost as if you can make a case that it's waiting on nvidia, right so that's how critical this report is going to be. the markets right now are generally flat the dow down about 30 points, to 39,842 the s&p 500, 5319, just down two measly points, down about five basis points overall and just to give you an idea of the trading range, we were up two at the highs oh it have session and down nine at the lows, so maybe that wait and see part of the story there. the nasdaq composite, relatively flat, down nine whole points to 16,822 so, again, very stable one place we are not seeing stability, a lot of volatility is in vaccine makers

moderna, one of the best performing stocks in the s&p, up 11%. novavax, up 11%. pfizer catching a bid. some traders attribute this to news headlines out of australia of their first confirmed case of avian flu, driving some interest from traders and speculators about what these vaccine makers may or may not be doing with regard to that front so that's the reason why -- partly the reason some of these vaccine makers are going higher on that. we'll see if these moves are indicative of the fundamental story. and the thing we do know that we are watching for sure is nvidia. those shares are down fractionally, about one half of 1% $949 and change right now. the earnings event main event arguably of the entire season, this is driven so much of the performance in the s&p 500, and the nasdaq 100, that things are really going to hinge a lot about what it says and what the market reaction is kelly, the latest update, the

options market pricing what could be a plus or minus 7.5% move in those shares that is relatively speaking, less volatile than it has been on earnings day. back over to you >> that's true looking forward it to. dom, thank you very much, dom chu. copper is on pace now for its worst day in more than a mont, but year-to-date, still up 25%. silver is up 30%, gold up 25%. and gold has closed at a record 23 times so far this year. my next guest is turning to precious metals as one area where you can still find value joining me now is co-head of global value team and portfolio manager at first eagle investments. matthew, great to check in with you again. welcome. >> great to see you, kelly >> what do you make of the fact -- we have the precious metals and the cyclical metals, more industrially sensitive ones, all rising in tandem, albeit with copper sitting out today. what do you think is going on here >> not only have we seen

cyclical commodities like copper rising at the same time as potentially defensive commodities like gold, we're seeing risk assets doing well. look at what the s&p has done in terms of its multiple. look at what credit spreads are relative to what they were six, seven months ago at the same time that gold is making new highs so we're seeing conflicting signals between assets that are defensive. one of the reasons this may be what we're seeing here is not the usual turn of the cycle. what we might be seeing is accumulative effect of the growth in government debt. what i would refer to as the nominal rebasing of the economy. the price of everything is up. you know, and that's the key issue here >> let me dive into that for a second a lot of people are trying to figure this out. is what you're saying the fact that all commodities are rising in price just the fact that the color is being debased because of the hi-def sits we're

running? >> that's what i'm saying. at the end of the day, as you issue a new government debt, and there's been a lot of government debt issuance since 2019, all that is is a promise to create more money in the future unless there's a plan to pay that debt off over time. i don't see one of those plans on the horizon so the cumulative effect of these large deficits and the growth and the stock of government debt has been to raise the nominal high water mark of the economy to increase prices across risk assets and potential hedge assets >> i'm glad you put your pinger on that, because it explain why is high prices, no one feels that great about it or feels like it's going that far look at real estate and prices there. people say look at the dollar. the dollar is strong relative to other currencies but the other currencies themselves are only being compared with other currencies, so we have to look to reals s

assets to give us a sense of what real value is >> things we can't print, and that's the key one of the things that's been confusing investors is there is a sense that we're coming out of this slowdown and we have years of growth ahead of us. strange things can happen in an economy, but i would make the observation, kelly, that we're coming off very low levels of up employment, and the rate is starting to drift higher we're not doing what you usually expect coming out of a recession. we're not coming off of high levels of unemployment with the rate drifting lower. so we look more like a slow stall zone, closer to the peak of a cycle so i think investors need to not be complacent in this backdrop >> would you go so far as to say that you could buy copper here, even into an economic slowdown i want to just mention, there are some smart traders on the buy side who would say that's what we're going to do >> look, i'm not so smart to

know exactly how these things are going to play out. if you thought they were going to be an economic slowdown, you would opt for a potential hedge, such as gold or treasuries, something of that nature and in fact, it's interesting to note not only have precious metals broken out on the upside here, but we still have an inverted yield curve so those -- i think the people interested in copper that i speak to are key minded executives focused on the more secular demand transfer of copper given the electrification of the grid. and so, you know, that's a more secular argument opposed to a short term cyclical argument >> even for you, there's a way to play it through corporate america. ch robinson, and others, there's ways of playing these trends that aren't just the commodities themselves for those that say what about the fact that long-term rates are fairly contained the 30-year is not at 8% yet

if all of these prices are rising because of the deficit and debt situation, how do you explain interest rates being fairly stable? >> let's not forget that interest rates have broken out on the upside, up from a 40-year down trend this has been a meaningful development. and these trends, when they occur, often tend to play out over decades and so there has been a structural shift in the direction of travel for interest rates. i think that needs to be the one in mind. in the short term, the reason the long end of the curve is being contained is that we have seen wage growth year over year moderate we have seen as i mentioned before, up employment rates tick up at the margin, and we have seen that fiscal stimulus, as large as it is, already touching the margins. the fiscal deficit is off peaks, the rate of government expenditure growth has moderated, so maybe these are some of the forces at work that explain having more sort of a muted level.

so let's not forget one other risk, and that is that over time, high interest rates can beget high interest rates. what do i mean by that the government today, even though it's running 6% or so deficits is only paying 3% interest on its debt if, over time, they're going to have to roll that debt to 5% rates, which is going to put up pressure on the deficit again, in addition to all the defense spending and mandated spending so you can get shifts where high interest rates will lead to higher interest rates, particularly if investors start to feel those challenges are intractable. >> i think that's right. the deficit is expected to be 2/3 of interest costs, so we're already in this trap, already bigger than defense and other outlays, and there's not a lot of room to cut defense like we did in the '90s i appreciate the way you laid it out. thank you for joining us we'll check back in soon >> thanks, kelly

meanwhile, the consumer picture is increasingly murky. shares of target are lower, as the ceo cites continued soft trends in discretionary categories my next guest knows a thing or two about headwinds. i took the brooks brothers after they filed for bankruptcy in 2020 brooks brothers ceo joins me now. >> hi, kelly >> what a journey. as your reward for navigating this, now you head into a period that can be very complex to say the least. >> absolutely. i think it's been interesting. we did have a strong quarter the first quarter was very good for us we're seeing from the consumer they are buying closer to needs. so weather has had a tremendous impact for us in the first quarter. the other thing -- >> in a good way, meaning if they need -- >> if the weather turns, they're out there buying a spring product. if the weather is colder, they

go to outer wear so we're seeing that pattern happening. the other thing that's happening for us as a brand, we have an incredibly loyal consumer. two out of three customers is a loyal consumer that consumer is spending more when they come into our stores so we're seeing higher conversion when that customer comes in >> it's fair to describe your typical customer as fairly affluent, higher income. >> sure. what is is the prognosis for how you expect their spending, what do you think that looks like for the rest of the year, are you concerned? >> we're planning the business conservatively one of the things that's happened is many of you know, coming out of covid, we had a lot of supply chain disruption i think we cleaned that up and the supply chain is smoother than ever. so if the trends accelerate, we're able to chase into those businesses so i think the one thing that's very interesting is the consumer is willing to pay for quality

and value and doesn't seem to have price resistance when you offer that quality and value equation the other piece that we're seeing is, 2022-'23, as there was this mass return to the offices, people were buying that white shirt and that navy suit and now customers are coming back and saying, give me more fashion. i want something different and i think that's where we're really doubling down as we look at the fall in spring '25. >> lulu lemon, those shares are down what's happening in terms of the fashion mix? ath athleisure, is that over is there a sea changing? >> we just launched our performance line this quarter, it's doing tremendously well i think consumers really love the technical fabric, and that aspect of athleisure, but then putting it into more cleaned up silh silhouettes. so it's an area that i think we can continue grow and develop.

>> you're also very mall based i don't know if you can see that as a blessing, a curse, and simon has been an investor through all of this. >> we have 100 stores with simon. >> what does the mall presence look like in the years to come, is it status quo or should we expect big changes >> we want to continue to open more stores in malls we believe in brick and mortar the suiting is the foundation of the brooks brothers business and that process happens best live, right? our online penetration is relatively low but when you go to purchase a suit you want that store experience and you get that in our stores >> i'm looking back to see this company filed chapter 11 years past, sold for around $320 million. can you talk about what annual sales are now at this point? >> as a brand globally, we're nearing a billion dollars. and we are back to 2019 levels in the u.s

so that is tremendous for us but the mix of the business is completely different when we first purchased the business less than 20% to have business was what i consider casual sportswear. now it's 42% >> wow >> slim fit represents 45% of our business it was under 15% when we got here so we've made tremendous progress i would say modernizing a 200-year-old brand >> is simon trimming their position as a sign of success or a sign of what >> i think for simon, there's two components there's an ip side and holding side to it >> where will brooks brothers be in a couple of years, and if we face a recession, is it just, okay, bring it on? do you plan for anything like that now or no >> i think we continue to have opportunity in store growth. we have continued opportunity from a product perspective i think this performance piece

can really scale i'm excited about the women's business i think we have tremendous opportunity there. we're launching a measure for twim's in the fall, which i think there is a lot of space there. there's other verticals like uniform and wholesale we're exploring. >> ken, again, i have to applaud you for lead thing business through a pandemic and out of bankruptcy coming up, will nvidia once again crush expectations or is the bar just too high? with the stock up 10% this month, we'll look how to position into tonight's print. and one of our guests says we have a foot on the gas and the brakes for the ev industry, and for them to stand a chance, something needs to change. we'll tackle that ahead on "the exchange." ♪(voya)♪ there are some things that work better together. like your workplace benefits

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tripling revenue to $24 billion. i don't know if that's ever been achieved in history, but the real question, can they beat the whisper and keep the market and the shares going or are you popog i -- positioning for a downside shift? >> nvidia, we've seen a major gap last quarter so that does bode well for bullish traders. but i will tell you that we have -- of course, this is the most highly anticipated report, and the move could be priced in. when i look at the price, we have an implied move in the options market of about $72. so for me, with the stock sitting at $950, i think it's relatively conservative to target $1,000 a share. so i am going to be placing some bullish trade there is in the options market but i also think it's worth having a hedge in watching the support levels on the downside

>> so you would be leaning towards a bullish strategy here, because we heard from jeff killburg, who said i'm focusing on that $850 level, thinking it can't live up to the hype. >> when you look at the stock and what you can do with the options market, what i like to do is i would place conservative bets at price targets. so i'm going to be placing some bullish butterflies with a $1,000 and often times a bearish butterfly as a hedge, as well. i'm looking at the $880 price target, so i think that is a critical support zone. but i'll tell traders if we get a surprise in nvidia and we see that this move is already priced in, where you need to be concerned is if it's down, probably about more than $100 a share because that expected move is $75 so once we get especially, you know, below $850, that would be

a spot where i would say, you know what? i wasn't wrong, this move was priced in, and we need a hedge -- well, you needed a hedge previously on this stock, right? >> i will move on. we'll find out in a couple of hours time what nvidia has to say. we should mention synopsis they're spinning off a software unit into a $2 billion deal. analysts keeping an eye on how to reinvest those funds. do you have a trade on this one, danielle >> yes, kelly. i like this stock because it's incredibly consistent. this company regularly beats estimates. we have seen the company trade higher on a regular basis, as well if you look at a weekly chart pattern, we have a nice trend, a bullish squeeze. and i think that ultimately the stock can trade up into $660, $700 but with the expected move over earnings, it's only about $42. so a relatively conservative price target with this stock is around $600 a share.

>> we'll move on to snowflake, as the race to develop ai overall is ramping up. jmp says, keep a close eye on snowflake's reported plans on to acquire rika ai. what would you do with this stock, danielle? >> so, kelly, traders always want to bet on stocks on the long side, but the data doesn't support it they've only beat estimates four of the last 12 quarters. half the time the stock is up, the other half it's down so this stock is a coin flip but here's the story with it it can move a lot post report. we're seeing a price in move in the options market of about 9% but 7 out of the last 12 quarters, it's moved more than 10% and generally copes going. -- keeps going so i'm telling my traders to look out for a move of greater than 10%, specifically if we can see a breakdown below $145

that's a move that you can trade post report on an explosive move >>ly let you go, but this overall sounds neutralish to me. does that describe your position on the broader market right now? >> when you look at the broader market, i am bullish obviously, we just made new highs. everything is dependent on nvidia here's the thing, if nvidia can prove that this share price is valid, then we could see those markets continue to explode higher here. so i'm focused on semiconductors and mega cap names and trading tech to the long side. >> danielle shea, appreciate your time. >> thank you >> going to be a fun afternoon still ahead, from shipping to streaming to shopping, amazon prime covers a whole lot of perks. but alexa's ai overhaul will cost extra those details are coming up. shares of tesla are lower after european sales fell in april. as chinese evs continue to gape

share. but cheaper cars object the only headwind it's facing that's next.

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welcome back president biden is slapping tariffs on china, part of a plan to help u.s. ev makers but critics warn this might not make a difference without also rolling back ev mandates here in the u.s. in fact, here's what wells fargo colin lingen told us on monday >> i think you need to put in a regulatory framework that's easier, ease back on the requirements for electric vehicles, and give them more time to put in the grassroots framework in terms of supply chain, which is one of the fundamental issues that make it difficult for the traditional automakers there's plenty of room for them to catch up. >> my next guest says the current ev policy is like having one foot on the gas, one foot at the brake at the same time james, great to have you here. welcome. >> hey, kelly, great to see you again too. >> all of this is coming up because of these tariffs being put on chinese evs and these

questions how that protects the u.s. auto industry in the short run, will they have to be more competitive in the long run to stay relevant? how can the administration most help this obviously much favored and much very important economic sector >> well, it's really a tough spot for the industry. i want to make clear that they have done everything they can to meet these requirements of the biden administration right now what we are facing is a global surge in exports of all kinds of stuff, but especially ev batteries, evs themselves all coming from china as it tries to escape its current housing crisis, as it tries to stimulate the economy. that means we're getting chinese goods of all kinds, not just direct from china but everywhere in the world that. is a challenge to the u.s. auto industry yet at the same time, we have got to reset the biden ev rules, i think. they were way too aggressive to start with everyone sees that

more importantly, i think that single state ev mandates, the so-called california waiver, is going to run into a buzz saw at the supreme court. so not only the plan not working, but we may need to come up with a new plan in the next year or two. >> interestingly, you said that -- so i assume we're referring to the "inflation reduction act," where in order to produce evs, you have to have materials sourced from u.s. suppliers, and the whole effort was meant to marshall a u.s. industrial sector around this change are you saying it's almost having the opposite effect, or there's no way that our automakers can stay competitive with china unless they can access the global supply chain and not just the north american one? >> the bet was if we provided tax credits to support the build out of an ev industry and the

supply chain, then that would provide the big lift that we needed but the tax credits alone are not the whole story. there are also the ev -- the epa regulations, the ev mandates the biden administration has projected that its epa tail pipe emissions could help make as many as 60% of all new cars sold in america to be evs by 2032 while that's a great goal, nobody anticipates 60% of all new car also be evs by 2032. that means the rule needs to be adjusted somehow, and more importantly, it will have trouble at the supreme court, which means the plan itself is going to be very much in doubt as we go into this election cycle. >> i wonder how this will play out. in the '80s, the u.s. big three was reluctant to see the change the japanese automakers were imposing at the time, but had to keep up and are better off for

it now is this analogous to the situation we're facing with the chinese and for an administration that wants the u.s. to be driving more electric cars, but is erecting these barriers to make the cost of imported chinese ones twice as expensive? >> it is analogous this is an industry, this is a time when the auto industry needs to make big changes. as i said, they really have gone above and beyond the show that they learned their lesson from the last time and are ready to go also, you've got to realize that the u.s. auto industry, the japanese economy, the japanese industry, like the u.s. and japan, we've got a strong confluence of interests in a global marketplace the u.s. and japan have very similar views on industrial development and industrial policy, free trade now and frankly, democracy this situation with china, where they dominate key supply chains for electric vehicles is very, very different, because china is not an ally or even an ally

that's better. china can be a strategic adversary. what's going to happen over the next few years you'll see congress continue wihat the bide administration has done is to try to force china out of the supply chain which makes sense strategically, but you're pulling the rug out of the industry. >> james, we'll leave it there appreciate your time today thank you so much. over to julia now for a cnbc news update. julia? kelly, the senate has confirmed eded that the 200th a judge under joe biden. but trump appointed three supreme court justices while biden has not had an open seat to fill. british prime minister rishi

sunak called a snap election on july 4th the decision came out as the uk reported cooling inflation the british public, however, appears braced for a change after 14 years with conservatives in power the opposition labor party has been leading in the polls for about 18 months now. mastercard says it expects to be able to find if your credit or debit card has been compromised well before it gets in the hands oh of a criminal. the company is integrating ai into its fraud prediction technology in a software update. mastercard says it will see patterns in stolen cards faster, allowing banks to replace them before criminals use them. kelly, that seems like a useful use of ai. back to you. >> before criminals even use them how would it know? interesting. julia, thank you very much speaking of which, the commerce department releasing a new framework for ai safety. we'll speak with secretary gina

ramondo. and teachers across the u.s. will get free access to ai powered assistant. the ceo joins us fresh off the microsoft build stage with all chgerern "e ails, whenth exan" tus.

welcome back my next guest says when it comes to education, ai might be more friend than foe. at the microsoft build conference yesterday, teachers across the u.s. will get free access to its ai powered assistant, thanks to funding from mike soft joining us now to discuss this is the ceo of the academy. good to see you. >> good to see you >> tell us what exactly ai will do to change the experience for teachers and students in the classroom. >> so, there's always been a dream science fiction authors have been writing about for decades that ai could be a tudor for every student, but it can also be a teaching assistant for every teacher. most teachers spend between 5 and 20 hours a week like writing

lesson plans, writing progress reports. ai can do those things, especially the frontier models, the ones that are the most computationally intensive. so we've been working on these tools for over a year now, well before even chatgbt existed, we were working on this with openai but this partnership with microsoft allows us to give these tools, which can cost a lot in terms of computation, but give it for free to teachers so now all of the u.s. teachers will have access to tools that in any other industry you would have to spend a lot on >> we're 10 or 15 years into the national experiment of having laptops in schools i think there's a lot of real questions about whether that's helped student progress or hindered it. can you make the case adding ai on top of that will be resulting in better outcomes for students going forward. >> i think not to put technology in front of the use case there are cases where

technology, and we have 15 plus studies and we're working with school districts, where they are able to accelerate some of their outcomes because of technology but there's many other cases where people bought the ipads and the laptops and they're just sitting there collecting dust and they haven't seen things move so it's important to think about how you're going to use it and then think about the tools the tools might be a pencil or ai another problem that we have had historically is we have teachers saying if only you learn this one extra thing, it might improve outcomes, but they're spread thin. what's exciting about ai with these teacher tools, yes, it is one more thing for a teacher to learn, but we can immediately show them productivity, time savings. we're working with school districts saying it's saving teachers five to ten hours a week so this is the first time we can say this is going to be less things for teachers to do. there's a learning curve, but it will save you time, not add to your workload.

>> interesting here's what the ceo of duo lingo said, how he thinks ai will make machine learning more comfortable. here's what he had to say. >> the thing that they really allow us to do is teach conversation better. and there's many aspects of learning a language. you have to learn the vocabulary, how to read and listen, but conversation is something we werenever able to teach you with a computer, but now we can >> sal, it sounds like you're describing the ai implementation in the classroom as being off the classroom experience, things that could make teacher's lives easier like lesson plans but do you think ai will be used in the classroom setting itself, perhaps in the way he described? >> oh, definitely. to be clear, we already have over 100,000 students. next back to school will be approaching a million teachers and students in the united

states, for students to get tudoring reports, teachers and students being able to talk to ai ai will be a writing coach for the student and be able to support the teacher, so it can undermine chaeeating so there will be a ton of use cases. during the omni launch last week with openai, there's a demo with me and my son that's gone kind of viral, where he's talking to the ai, you can see what he's writing and it's acting like a tudor for him. so i agree, you're going see a lot more of that happening >> sal, thanks for joining us. we appreciate your time fresh off both of those events sal khan with the khan academy sticking with ai, leaders from 16 companies, inlosing meta, microsoft, and openai are meeting in seoul this week to discuss issues surrounding privacy and copyright issues

the commerce department is releasing its own framework for ai safety with plans for a global ai safety network here to talk more about that in an sbinterview with commerce secretary gina ramondo and morgan brennan >> madame secretary, great to have you on. you've laid out this vision this week for a safe and responsible ai innovation, doing this through the ai safety institute, signing on companies, build thing coalition. what does the ai safety institute actually do, how are you defining safety and implementing accountability? >> yeah, thank you good afternoon so, taking a step back, we all know we've been talking about ai carries exciting, life-changing potential for society. but only if we mitigate the very real dangers and so, by the way, that is necessary for adoption

safety leads to trust leads to adoption leading to these life-changing applications so we are focusing on the science of ai to develop standards which should keep it safe so what am i talking about what does adequate water marking mean we're going to develop a standard for water marking so if you see a water mark which says this is authentic or ai generated content, you can trust that we're going to be developing the standards for adequate red teaming, which is to say models have been properly tested before they're released and so on i think it's essential, it's science based, technical and will be necessary to let ai flourish >> i'm going to hone in on that word "trust. openai is one of the companies that signed on this week in seoul. it's been the subject of controversy. you've had some key executive departures in recent weeks, and the questions raised about the

fact that it apparently copied or felt it was okay to copy scarlet johansson's voice for its new chat bot can openai be trusted to revolutionize how we're working and how we're living >> so from my point of view, this is -- i'm not going to go through it company by company. there are so many ai startups, and i'm not going to comment on any individual company but the scar let johansson example or any other example you can come up with of a deep fake is the point here, right which is, we have to develop a whole new set of standards, ultimately congress will need to act such that this is enforceable. that's what we're getting to the business of doing here at the commerce department with our best scientists. we're hiring a team of leading experts, and working with our allies around the world in addition to announcing our new strategy today, we're announcing a global network a year from now, what we would

want is we would want standards around, you know, what is okay to use and not use what is how we protect this ip, et cetera, and japan, the uk, the eu, korea, we would have like-minded agreements >> and as you do mention some of those countries, what does building an international coalition or network around this actually enable, especially at a time where critics have mfor months now been arguing any kind of guidelines or regulatory oversight could stifle u.s. innovation >> it's a balance, you know, it's a balance i am as focused on increasing the pace of innovation as i am on, you know, thinking about safety they do go hand in hand. if we twwere to allow ai to get

out of hand, that erodes trust and will stifle innovation so, half of my job is investing in chips, all of ai runs on chips. i know you're going to talk about nvidia later today, i'm sure all ai runs on these gpus. so we need to move ahead as fast as possible. and also at the same time, develop -- just like cyber, for example here at the commerce department, we set forth a cyber risk management framework, which all of industry uses same with ai we need to set forth an ai safety framework so that we use it, we move faster right now, we need the world in ai but that is a good thing we talked about china in the past we talked about national security we have to run faster. right now, we need to stay in ai so it's that constant balance of going fast, out-innovating but not letting the wheels come off and protecting ourselves

>> it's like you took the question out of my mouth, because we do have nvidia reporting later today. ai is in focus in terms of the export controls you have put in place around the newest, most cutting edge chip technology and countering china, do you feel what you put in place goes far enough, especially as we have seen more regulations come out where huawei is concerned. >> every day we wake up, we reassess the threats a and the techn technologies, we reassess china's capability and decide what more should we be doing so i'm proud of the fact that i have been commerce secretary, more aggressive, more comprehensive in our approach to china and protecting our technology than anyone before. that being said, we don't know, because every day new technology is being invented, they find

ways to go around our existing controls we have to find ways to tighten them it's a daily vigilance to make sure -- and anyone listening to this who runs a company knows what i'm talking about you have to wake up every day and go at it if you want to outcompete the world, as i do, i want u.s. companies to be able to outcompete the world, it's like every day you go back at it again. >> secretary ramondo, great to get your thoughts. thank you for joining us here on cnbc >> thank you have a good day. >> thank you for bringing that to us. a key day for a lot of developments in the world of ai. coming up, this name surging 15% after uvs says it was a direct beneficiary of increasing ai-driven electricity demand we'll get some of the big movers next and stocks are taking a leg lower in the last couple of minutes, with the dow down 141 points "t ehae"s ckfthexcng iba aer this

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shares are up 200% a year, can the poster child of ai gains keep up? the closing bell overtime at 4:00 eastern on cnbc. welcome back. we continue the ai theme. amazon is ramping up its game with the leadership change, now with alexa. new reporting around the vceoi assistance future and whether it can catch up to chatgpt.

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i have a very mechanical brain. why are we not rethinking this? i am more... i'm more than who i am on paper. welcome back to the exchange. sources tell cnbc the amazon plans to give alexa and ai overhaul and add a monthly subscription. kate rooney has the report >> reporter: amazon plans to give alexa a major ai overhaul this year and at a monthly inscription to offset the cost. this is according to people familiar with amazon's plans. the sources say they're planning to unveil a new version of the now decade old voice assistant later this year. a good position alexa better to compete with some of the new generative ai chat bots out there from open ai and google.

it will not be part of the current prime subscription and the price has not been decided yet. amazon was an early mover invoice driven task, wowing consumers with the abilities back in 2014. the capabilities have not quite kept up with the leaps we have seen in ai. open ai and google announced new versions of their ai chat bots which can have two-way conversations. to go significantly deeper for what is available with alexa. people are using apple's theory for setting timers and announcing the weather. sources tell me that the new ai chat box have increased pressure on the alexa division of amazon that announced significant layoffs in november. amazon declined to comment, but they do say that the voice assistant is a priority. they did address that at the annual shareholders meeting say the vision is to build the world best personal assistant. he pointed to generative ai at

the alexa foot hole with 500 million customers. they say they are in the process of building a more expensive ai model to run under alexa. >> are they involved with anthropic? >> reporter: yes, the model for this version of alexa is their own model called titan. it's important that they are not partnering with them. the bar is so high for having these devices in your home, no chance for them to partner here, i am told it will be there. thanyou r brgik foinng that to a spirit that does it for the exchange.

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nothing gets by you james. nasdaq-100 innovators. one etf. before investing, carefully read and consider fund investment objectives, risks, charges, expenses and more in prospectus at invesco.com welcome to power lunch. we are starting with session lows. let's look at what's happening a get out to you for the release of the highly anticipated headlines. these were minutes from after three months of lousy inflation data and before a month a better inflation data. it could be a bit hawkish. the fed did discuss keeping rates higher for longer if inflation did not move sustainably toward the 2% target. they do expect that inflation would come in the medium-term,