>> ttd trade desk. >> thank you, steve weiss. >> leidos i'm i'm going with it. staying with it. >> farmer jim. >> astrazeneca strong start to the year. >> jenny harrington. >> devon energy with oil above 70. it's wildly profitable. >> all right i will see you on the closing bell. we'll see what this market does between now and then. the exchange is now. >> scott, thank you very much. and welcome to the exchange i'm kelly evans, fed chair powell sounding a cautious note today about future rate cuts while he was on capitol hill. and stocks are acting cautiously too. could be partly because of that. could be the trade threats we're seeing. although the dow is now trying to turn positive, there's also the threat of a government shutdown, which is growing as democrats now consider the tactic to push back against trump and musk's cost saving efforts. we have full team coverage of all of these developments today, with elon musk at the heart of many of them. kate rooney is tracking his escalating fight against

openai. eunice yoon is in beijing, where their leadership is reminding musk, who's in charge as byd unveils its own self-driving technology. emily wilkins will have the latest on that potential shutdown and financials. jeff kilburg is here to trade it all. let's start with cnbc, which caught up with open ai leader sam altman out at that big ai action summit in paris earlier today. here's what he told us. >> musk bid for. >> open ai. >> how serious are you taking it? >> not particularly. >> not particularly. why do you think he's doing this? >> to slow down a competitor. >> and stargate. >> what about. >> the funding? >> i'm not the one who tweeted funding secured. i just actually tried to show up and, you know, build the thing. just a quick one. >> end game is what is the end game? >> i don't know, i'm curious. i think it's to slow down a competitor and try to catch up with his thing, but i don't really know. >> yeah, but you're doing well, right? >> to the degree anybody does. yeah. >> good job to the reporter chasing him down there. sam altman also posted this sassy

message on x saying, no thank you, but we will buy twitter for $9.74 billion if you want. just kind of moving that decimal point there, kate. he's acting like he's trying to not even take this seriously, but there are some reasons why he may have to do tell. >> yeah kelly. that's right. so this is a very unwelcome headache in the eyes of openai, as you could hear from sam altman there. it could stall plans for the company, which was co-founded by elon musk as a nonprofit to become a for profit. and musk has already sued to block openai's restructuring. he also has this competing ai startup. we should mention at this point, it is his latest attack on sam altman. i did just speak to a source, kelly, close to all of this, who confirmed that the musk team never actually submitted an official takeover offer to openai's board. this did come through a press release from musk lawyers yesterday. typically, there would be a more formal direct communication, so that could complicate things a little bit here. altman did just tell reuters in paris, quote, it's ridiculous. the company is

not for sale, he said. it is another one of musk's tactics to try to mess with us. other investors involved here, they're very loyal elon musk allies and personal friends names like antonio gracias, gavin baker, ari emanuel. so that's worth noting. and then people close to this group speculate the deal could be a couple of things. it could be both a genuine offer and a way to get into altman's head. it all comes as openai is looking to close this mega $40 billion funding round led by softbank kelly. >> why do you say, though, that they might have to take musk's offer more seriously. >> because of the fiduciary duty? it's such a gray area because of their corporate governance. kelly. but typically if this were a private company, the board would have a duty to say, we need to do what's right in the eyes of shareholders. they're offering a slice of the company. so it's not really apples to apples to say it's, you know, $300 billion company. but this is way below that. they're saying that fair market value for the nonprofit, a certain arm of this whole

conglomerate would be worth basically $100 billion. so in a traditional scenario, the board would need to consider this. but then you add in the fact that this is technically still governed by a nonprofit. so they have a little bit more leeway to say, well, yeah, it might be the highest price, but it's not in the best interest of artificial general intelligence for humanity, which has sort of been their tagline. so it is vague in terms of what they would actually need to do and what that fiduciary duty looks like. but that is why we were saying, yeah, they actually in a, in a normal times in a traditional corporate structure, they would actually have to take a serious look at this. >> no, it's a great point. i appreciate you illuminating that. we're going to talk to dan primack about it a little later on. kate, we'll let you go for now. appreciate it. kate rooney with the latest. meantime, shares of china's ev leader byd are at an all time high today as the company unveils a new self-driving feature reportedly developed with deep seeks ai help. they could ratchet up competition with tesla. eunice yoon has more for us, eunice, thanks, kelly. well.

>> byd announced. >> a new strategy, which. >> it. >> believes is going to bring what affordable self-driving cars to everyone. this week, the founder unveiled the new driver assistance program, which in english is called d pilot, and in chinese, eyes of god, it allows cars to self-park and cruise on city roads with very little human help, and it integrates the in the advanced version ai from the chinese startup deep sea. in addition to that, the company said that the sales of 21 models are now already on sale or those sales have already begun only in china for now. but the real selling point is that the cheapest one is $9,600. now, tesla has yet to get its full self-driving technology approved here in china. now, separately to that, tesla announced that it is has opened its doors on a megapack battery factory. this is in shanghai, its first outside of

the united states. the company has been crediting what it described as tesla speed for the very fast rollout and build out of this plant, but state media has been adding in that its shanghai speed and chinese government officials that have really helped the rollout of that plant. kelly. yeah, $9,600. i'm thinking even with the 100% tariff now, i don't know if they have access to the us market, but, you know, that's a that's under $20,000, which would be highly competitive in this market more broadly. eunice, can you tell us more about the deep tech angle here, how that i might have helped byd develop this technology and how consumers in china perceive those vehicles to compare with tesla's offerings and those from others? well, it's still early days. a deep seek is very popular here. a lot of people have been using it, experimenting, really hailing it as an ai chat bot. as for now, byd says that this chatbot is only going to be included in the

more advanced driver assistance version. but still, there are so many different chinese companies at this point that are trying to partner with deep sea, just because of all the advancements it's been able to make. all right, eunice, appreciate it for now. thanks for staying up tonight. eunice yoon and the robo taxi competition is also heating up here at home. lyft is planning to roll out those mobile ai powered robo taxis by next year, both companies spiking on that news yesterday, although lyft is giving it back today as it gets ready to report q4 results, it's down 4%. let's turn to jeff kilburg here. jeff, you're up. you know you can come at this. let's stay for now on tesla. and kind of the ramifications of everything that's going on with the auto fight and with elon musk's kind of attention elsewhere. what would you say to investors? >> well. >> i think it's going to be fascinating to see, because i think the tesla byd conversation will heat. >> up. >> as chinese tariffs and president trump continue to. >> see that. >> ratchet up. but what's fascinating to me is that tesla is just having a. pullback here.

we are aggressively writing calls when it was above 400. so it's always been a volatile stock. so i think tesla is. >> still on track. >> but the competition, the deep sea conversation this is all going into the input. now what's fascinating to me is that nvidia is kind of not involved in this pull pullback here because of the fact that they're still buying chips. so i think we have to wait more here. but tesla is a name that i do own. i've owned it for a while. >> we will be adding. >> when it gets close to 300, because i think it has the ability to be that robotaxi, to be. >> that autonomous. >> driver that. >> we all hope for. >> yeah. on election day, which i think was november 7th, the stock was trading at 296 and we're at 333. so it hasn't fully retraced. but i know a lot of the investors are frustrated. what would you say to them or how look you're one of them. so is this because it's perceived that he is distracted by so many other battles, like we heard about one of his top sergeants, not a tesla guy, but very involved in the doj's efforts. is that part of what's going on here, or is it the competition? we just described lyft reports tonight.

>> my view. my perspective is it's. >> not the distraction he's. >> able to run all. >> these companies he has. >> for quite some time. >> but i. >> think this has been tesla's story. you have to stomach the volatility, but we still have to wait and see on how all the competition comes out. certainly the sam altman conversation, you're seeing tesla down another 5% today. so there's an. emotional component into the stock. we saw it were down under 150 just two years ago when he was getting really involved in buying twitter and getting involved in the political scene. so i think. tesla has that emotion, but i want to be an owner here. i think he continues to bring solutions to the marketplace. however, it's going to be fascinating to see how that competition really helps accelerate potentially his delivery in the robotaxi. >> for those who are sort of looking for another bandwagon to jump on, maybe they are, maybe they aren't. you know, waymo, obviously that's part of google a little bit harder to bet on. would lyft be attractive to you for that or other reasons? are you listening for anything in particular tonight. >> so lyft. >> i'm only looking at this as a short term trade. kelly. if you look at lyft in itself, it had 28 rounds of venture funding

before its ipo, about $5 billion they raised. they raised another $2.5 billion on their ipo. so they've all and raised $7.5 billion. and the market cap is $6 billion. it's 80% off. its all time high. so it's been a disaster of an investment. but i do think from a short term perspective, i know they talked about mobileye rolling out cars in 2026, 2026 is a long time away from now, but i think you can have the opportunity to buy it because of the fact they have a 24 million person user base. it would actually be a great acquisition for a robotaxi or some other autonomous driving company to put it in place. so i want to be a buy here. i'm actually using options. i'm selling puts i'm trying to sell puts right here expiring on february 21st. just next friday, kelly i'm going to collect about a dollar selling that 14 put. so if it goes below i'm happy to own lyft at $13. but if it goes back above then we're going to collect that income of a dollar. so lyft is a very volatile high beta stock. it's not a long term trade, but i think it has the

opportunity as it's beat up today on this news to deliver on the earnings. >> yeah it's down about 4%. all right stay there jeff if you would. we're going to turn back to washington where democrats are now threatening a government shutdown over musk's d.o.j. group. emily wilkins is on capitol hill. emily, a shutdown would probably be exactly what republicans would want. i don't know. >> that's the interesting. thing here, kelly. >> democrats really have to. >> walk a fine line because on. >> one. >> hand. >> senate republicans, they are going. >> to need democrats to help them fund the government. >> past march 14th. >> you need. >> those. 60 votes in the senate. >> and look, democrats don't. >> necessarily want. >> a government shutdown, but what they are. having is these growing frustrations with trump's dismantling of agencies that congress approved funding for just a few months ago. here's house democrat chair pete aguilar earlier today. >> there is. and i said this last week. there's very little. >> appetite to. help republicans when. >> we don't. >> trust that. >> donald trump. >> is going to spend. >> the resources that. >> we've allocated.

>> with elon. >> musk and his. >> unelected friends running. >> through and. >> combing through the. >> federal system. we don't. >> have those. >> assurances. >> so you can hear a lot of the frustrations there with trump's actions. and senate democratic leader chuck schumer, he has actually preemptively blaming republicans for any shutdown, saying that they are the ones who are currently shuttering a number of agencies. >> let me repeat when there's talk about a shutdown, republicans are already shutting down large parts of the government. democrats do not want to shut the government down. >> now, currently, top republicans and democrats are working to meet and to work on that package to keep the government funded past march 14th. yet they haven't agreed on the first step of how much each section of the government is going to get, making it likely that once again, we're going to be seeing a last minute scramble. kelly. >> all right. and we have about

a month. emily. is that right? >> that would be it. it's the end of day on march 14th. and remember that the house at least is off next week. plus they are trying to get through that major package of trump priorities in both the house and the senate. so a lot going on right now. >> indeed. emily, thanks very much. emily wilkins, let's turn back to jeff kilburg here. jeff, i love this line where you think with everything going on, the markets would be you can't keep them down. they were up yesterday. they're trying to fight back into positive territory today. and you say they're dancing between the raindrops. >> they are. and if you look at all of the global macro headwinds, it's fascinating to see the market continues to get bought. it has momentum. what's interesting has been a risk on barometer bitcoin. bitcoin is up nearly 100% since the insinuation of president trump when the election happened. so it will be fascinating to see what's the catalyst that brings markets back. as we sit here hovering on the s&p 500, less than 1% from all time highs. so the leadership, the broadening out that's all a catalyst. but could it be bitcoin breaking under $90,000 back to where it came from. down to $68,000 to

really have people reconsider their exposure. we talk about the mega cap. the mag seven names continue to lead, but right now, meta is poised to have its 17th straight day. i'm running out of hand, fingers and toes to count on how many straight days medic can have. >> yeah, so i think that's a great point. you know just the resilience overall the vix is below 15. like you said bitcoin kind of is where it is. there's just no sign here of really broad concern. there has been some rotation though. you mentioned there's certain areas like healthcare like financials you know that weren't as strong that are stronger. and tech in january was the only down sector. >> and that gives me the cautious optimism that you are seeing some brightening out. you're seeing earnings growth in some of these sectors that were widely dispersed last year, like a health care finally signs some life of investors coming back. but i think it's going to be interesting as we continue to see people collectively owning the same names, not just domestically. kelly. it's globally. so what will be that catalyst? but it feels like the s&p 500 wants to push higher

until it has that pullback. so i look at the vix option. premiums are really revealing the fact that no one has any trepidations of anything on a 30 day forecast. so we'll have to see how this comes out. but right now it feels like the markets are pricing. if i hear animal spirits one more time, it's kind of like you're hearing animal spirits as much as you hear ai right now. but we are seeing a lot of this forward pricing mechanism, which the stock market is potentially pulling forward the rest of 2025. in my curious catalyst, kelly, is when does i overspend? when does the capex overspend the mag seven flip and become a negative? because right now it's celebrated every day. the more you spend on ai. >> yeah. no. and on semi i think had some disappointing results which just reminds you of what this whole cycle and the semis and the economy would look like if i didn't come along at exactly the right time post covid. you know, i was just going to say, jeff, what do you think the market's message is to the president then? in a weird way, because we remain in kind of solidly bullish territory, does that give him more credence to move ahead with the tariffs and the retaliatory? because,

you know, it's nothing like the tarp moment right? in 2008 where we were down 7%. >> i think right now the market is showing patience and giving him a little grace. but what's fascinating to see that initial reaction when he sped up the tariffs potentially on canada, mexico and china, we saw. >> a. >> jerk reaction. well, we've recovered that. we're back above that in the s&p 500. so if anything, it should embolden the president to get this tariff or be tougher on these tariffs now because if the market pulls back 5%, that's not going to be a blemish this early in his presidency. so anything is going to give him a little more confidence to be a little bit tougher. >> yeah i think it's a message of warning potentially, or just realization of what the next few weeks could bring. jeff, thanks. appreciate it today. jeff kilburg joining us. coming up, chair powell telling lawmakers today that with a strong economy and a solid labor market, there's no rush to lower rates. but our next guest is brushing that off and still expects four rate cuts this year. he'll join us next to make his case. plus, shares of coke having their best day in more than two years on an

earnings beat driven by strong demand in china, in brazil and here in the u.s, it's up 7% year to date, while pepsi, doctor pepper and monster are all lower. we'll dig into the divide and the impact of tariffs across this whole industry. that's coming up on the exchange. coming up on the exchange. >> this is the exchange on [ car engine revving ] (♪♪) (♪♪)

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is in no hurry to lower interest rates. and a semiannual senate testimony today. it continues tomorrow. but my next guest expects four yes four rate cuts this year. wishful thinking. or will we all come to realize the state of affairs? barry knapp is director of research at ironsides macro. barry, i appreciate that you're sticking with this. people have been chucking out their forecast left and right and saying maybe it's going to be no cuts. >> well, there's. >> a little. >> bit. >> of complexity. >> to all this because it doesn't imply significantly my forecast doesn't imply significantly easier policy, something. >> you and i have been discussing. >> for three years is how suboptimal the fed's tightening process was by passively unwinding their balance sheet after that was their primary mechanism for easing and aggressively raising the policy rate they made. they kept policy easy for investment grade, longer term fixed rate borrowers, but they tightened policy sharply for floating rate, high yield borrowers,

households living paycheck to paycheck. and so they created this really weak underpinning to the small business part of the economy. they had an inadvertent rebalancing of that over the course of that easing from september through december. so that rebalanced a little bit. the yield curve inverted. it took some of the pressure off small business. although we saw from the nfib survey today that there's still a financing problem for small businesses. so my idea here through the rest of the year is that we get another 50 basis points of rate cuts because of the fed's mandates, because of inflation coming down. all we need is to keep on the current trend of core cpi or pce of 2/10 of a percent, and core cpi falls from 2.9 to 2 three five or so. >> but a lot of people bury some other economists. i shouldn't say a lot. a quorum of other economists thinks that, if

anything, inflation could start to pick up again in the next few months for various different reasons, but that we're not seeing enough of a disinflationary impulse to keep prices that contained throughout the economy. >> well, i think they're focused on the wrong factors. i mean, we had the only reason that inflation firmed up in the fourth quarter is because energy prices stopped falling and goods prices, which are still negative, stopped falling as well. but the biggest driver of the inflation metrics at least, is rents or rent of shelter. any of the housing related measures. and that lag impaired measure has finally cooled off. so that is going to put downward pressure on core inflation. these other factors are not even as big a weight in the index to get a big pickup in inflation. furthermore, you know, a lot of people have cited short term inflation break evens, right? the market implied inflation, inflation from the treasury market and the two year part of the curve and the five year part of the curve. but the back end is not moving. so that curve is

now deeply negative, which is exactly what happened in april of 22, which is essentially forecast the peak of inflation in 2022. so i don't think inflation is going to be the issue here. and where i was really going with 100 basis points is those inflation metrics come down. that should allow the fed to start cutting a bit, probably twice. but the real issue is in the back half of the year when treasury secretary bessant has to start extending duration a little bit, issuing fewer bills. and the fed. that would allow the fed to continue with quantitative tightening through the balance of the year. so actually tighten conditions on the back end a little bit, even though they're targeting the ten year. and that's what i wrote about this week right. the title of my note. but that allows them to bring the short term rate down. and now you've got much more balanced policy between small businesses, large businesses, investment grade credit and high yield companies. and it's just a much more equal distribution of

policy. >> so to get sort of tactical about it, one of the areas that you're more bullish on lately is actually the financials. and this has been a little bit in the news between the demise of the cfpb. and also powell was asked about some of these concerns about the us banking system during his testimony today. take a quick listen. >> i think bank accounts overall across the economy are safe. yes. we've still got deposit insurance at the fdic and the banking system is well capitalized and safe. >> and while we may take that, may take that for granted. why do you think from an investment point of view, barry, the banks, which have had a really good run, get more attractive here? >> the whole basel risk based capital framework has been an abject disaster for the banking system. it led to the rise of private credit. some might think that's a good thing, but it certainly moved the risk out of the banking system. they put prohibitive capital charges on banks investing in the private sector and facilitated turning. and i think i had this quote with you once before, cal

essentially turning large banks into government bond funds. that's what financial repression is all about. and so a weakening of that basel framework will allow banks to again be prominent in private sector lending and drive dynamism, capital formation and the stuff that raises productivity over time, as opposed to having them facilitate excess government spending. >> well, it sounds great for the economy. maybe not as good for the long end of the yield curve, but which goes back to your point. do you want to leave us with a kind of comment on that? listen, it's pretty significant for the treasury secretary to say not so much. we don't care what powell does, but our real focus is getting ten year yields down. tell tell us more about how you think that happens or if it happens. >> sure. all roads lead to lower government spending. since 1981, government spending has averaged 20.5% of gdp. that's that's the median rate under the first trump administration. it's 24%

on its way to 25. if we keep producing an extra 2 trillion of treasuries every year, there's no way to get the back end down. so treasury secretary did the right thing by not extending duration yet. but if the whole big, beautiful reconciliation bill does get spending on a path to 20.5% or so of gdp over trump's entire term, that will allow all that easing of pressure. the treasury can then turn it, turn it out. the fed can unwind their holdings and the market will stabilize. do you think the bill would do? >> being what i don't understand, though, barry, is like that. bill at best is just trying to keep the costs of extending the tax cuts down. i don't i don't see how it meaningfully bends the curve. >> so the tax receipts have averaged the median rate of tax receipts as a percent of gdp has been 17.1% since world war two. a myriad of different tax structures, really high marginal rates, low margin, marginal

rates. that's what we get as a percent of gdp. it's spending. that's the problem. it was 17. >> how are they really going to get that down. every proposal i mean if anything that they're going to have that spending go up because of all the tax breaks on tips and all the rest of it. >> no, but that's that's not that's not spending. >> i guess you could say that's the revenue side. fine. but do you really see. >> the side. >> with medicare? i mean, maybe they do something with medicaid, but they're really going to make a meaningful change on the spending side. >> oh, absolutely. they can a lot of it has to do with work requirements eligibility. you can't. you look at the medicare. the cbo report came out last night. right. and it showed you the growth of medicare, medicaid. you know, they're growing at seven, eight, 9% per year. sure. our population is aging and we put more people on the medicare rolls. maybe we don't want to cut it back, but this this growth of these programs is just out of control. and it's not that hard to get there. that's where we were for the last 50 years. and, you know, the pandemic just created

a window for massive expansion of these programs. and they need we need to bend the curve back down and get spending under control, because there's no way we're going to collect that much in receipts and close that gap. >> that's exactly i think that's exactly right. so we'll see if they can pull it off. and to your point, if so, that's when you start to see those yields meaningfully move lower. barry, a pleasure as always. thanks for your time. barry knapp with ironsides macro coming up while elon musk and sam altman battle it out over the future of openai. europe is at risk of being left behind. at the same time, vice president vance warns about threats of overregulation. here we have all the latest from the ai action summit in paris, and what the emergence of deep and what the emergence of deep seek ehh... hmm. oh, that's very, uh... - right? - mmm... this store doesn't have agentforce, so an ai agent didn't tip off the stylist as to what i might actually wear. - yes. - oh. that's a commitment. [glass knocked] hey bud! whaddaya think? you know, people can see you out here. ha ha ha ha, yeah, yeah, right, right, ha ha.

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the past couple of minutes with mr. fogle, president trump, steve witkoff and the president's advisors, they say, negotiated an exchange that serves as what they're calling a show of good faith from the russians and a sign that we are moving forward in the right direction to end the brutal. >> and terrible. >> war in ukraine. so, kelly, a couple of items coming together here to indicate some tectonic plates kind of shifting under the surface here. one is this prisoner release. the other is the fact that we now see that vice president jd vance will be meeting with the ukrainian leader, volodymyr zelensky, at the munich security conference. and also now we see that the treasury secretary, scott bessent, is going to be going to ukraine as well. so a lot of high level diplomatic back and forth between the united states and ukraine. and now we see an exchange between the united states and russia. we'll see if that portends anything for the end of the war in ukraine. but a lot of expectation had been on the front end of the trump

administration that this is a president who's going to come in and try to strike some kind of deal between those two parties. we now do see a lot of that diplomatic maneuvering behind the scenes. kelly. >> wow, eamon, thanks for bringing that to us. eamon javers will continue to follow it and see if we learn more about what happened behind the scenes there. let's get to bertha coombs now for the cnbc news update. >> bertha kelly israeli prime minister. >> benjamin netanyahu is threatening to resume. >> fighting in gaza unless. >> israeli hostages are. >> released on saturday. >> it comes as hamas. >> threatened again. >> today to delay. >> the. >> release of three more. >> hostages. >> accusing israel. >> of violating. >> the terms of the cease fire deal. >> just days. >> before the senate judiciary. >> committee is set to. >> vote on kash patel's. nomination as fbi director. >> senator dick durbin. of illinois. >> sent a. >> letter to the justice department's. >> inspector general. >> accusing patel of secretly directing a wave. >> of. dismissals at the bureau. >> before he's confirmed. >> for. >> the job. a spokesperson. >> for patel called. >> the accusations.

>> false and. >> based on, quote, secondhand. >> gossip. >> and trader joe's. >> is placing limits on. >> the. purchase of eggs as prices. >> skyrocket due to supply. >> issues, the. >> grocery chain. >> will only. >> allow customers to buy one dozen. >> eggs a day. >> the policy comes. >> as a record. number of. >> chickens have died. >> in. >> a nationwide. >> bird flu outbreak. >> other stores have also put. >> limits in place, including some costco, sam's club and whole foods locations. you know, sometimes you go to those. egg shells and they're almost empty. >> kelly oh, i tried to the other night. i was looking to have some comment run out for the morning, and the local store i was ordering from had basically said everything was out of stock and there was low supply for the 1 or 2 that were left. it's an unsettling thought because eggs are so key not only to eating the breakfast, but also a lot of different recipes. and the ceo of tractor supply told us, bertha, a couple of weeks ago, that 1 in 5 of their customers is now a chicken owner because of this. wow. it's

crazy. wow. bertha, thanks. meanwhile, tech executives and world leaders are convening in paris this week to discuss ai, including sam altman, google ceo sundar pichai, french president emmanuel macron, of course, and even vice president jd vance, who made clear the trump administration's open stance to ai regulation. yeah, deirdre bosa has more details for us. deirdre, what can you tell us? hey, kelly. so we've seen so many of these big. >> shifts in. >> ai over the last few months, but something that's really been building for a few years is that the doomsayer faction of generative ai, they've been increasingly losing ground. >> to the ai. >> optimists, and that was certainly on clear display this week in paris, summed up by vice. president j.d. vance's. >> keynote earlier. >> today. >> when conferences. >> like this convene to discuss a cutting. edge technology. oftentimes i think our response is to be too self-conscious, too risk averse. but never have i. encountered a breakthrough in tech that so clearly caused us to do precisely the opposite.

now, our administration, the trump administration, believes. >> that ai will have countless. >> revolutionary applications to restrict its development. now will. >> not only unfairly benefit incumbents. >> in. this space, it. >> would mean paralyzing one of the most promising technologies we have seen in generations. >> now, those comments. being cheered on. >> by many tech. >> founders and leaders back here in the us. >> i spoke to. >> cerebras ceo. >> andrew. >> feldman earlier today. he's in paris at the summit, and he says that behind the scenes, people are unsurprisingly buzzing about the altman musk battle. he also says that there's more competition than ever, noting that the number one app in the app store this morning in france is le chat by mistral air, the ai that is an open source french ai startup that's getting a lot of attention at the summit, and it has cited deep six breakthrough earlier this year as inspiration for europe in the global ai race. and that's just speaking to another shift here

distillation and what deep sea did really sort of puts the incumbents, perhaps on the back foot, and gives some of the smaller players a better chance to catch up. >> yeah, i mean, i thought it was also interesting not only what vance said is kind of game on for the us, but macron and altman reportedly chatted on the sidelines and france's look, they have a lot of nuclear power. one of their major strategic advantages that could really power ai if they can kind of, you know, get the capital to compete at scale. and they're trying to do that, right. >> it's, you know, historically europe has maybe some would argue overregulate, but france really has for years now has made a name for itself in ai. and i think that nuclear power threat is so interesting that if they can get everything aligned, they can be a major player here and, you know, really put europe back on the map in in terms of, you know, tech dominance or competition, at least with the us and china. >> yeah, it was competition at least. exactly. deirdre thanks for now. we appreciate it. deirdre bosa. coming up could

elon musk really try to take over openai. we are digging deeper into the feud between elon musk and sam altman. and whether it all comes down to stargate. axios dan primack joins us with his take next. >> techcheck is sponsored by comcast business. powering possibilities. >> in the. >> world of investing. >> a beast lurks. >> between the numbers. some watch from the safety of the sidelines, but others saddle up and ride that one ton rowdy ribeye for all he's got. if that's you, join us on tastytrade. named best online broker for options trading. genius loves company. >> here you go. >> is there any way to get a better price on this? >> have you. >> checked single care?

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concerns. plus the lyft ceo on his company's latest results. squawk box tomorrow, 6 a.m. eastern on cnbc. >> two. >> welcome back. elon musk is escalating his feud with sam altman and altman's company, openai. in a series of social media exchanges, musk made a $97.4 billion bid for openai, which was immediately rejected by altman, who then moved the decimal point one to the left and countered with an offer to buy twitter for less than $10 billion instead. kind of is a joke. maybe not. my next guest says a chain of recent events may have gotten under musk's skin enough for him to make a move this week, but is this the last we'll hear about it? or what if musk really wants to try and take control of openai? let's ask dan primack. he's the business editor at axios. dan, it's great to see you. what do you think this is really about? >> i think. >> look what musk would like to get openai. and by it, sure. >> of course he would. you know. >> he's got a competing company. >> openai is still in. >> the us. >> the leader. >> when it comes, particularly.

>> on. >> the consumer facing side. of artificial intelligence. >> but i think. >> this is really a little bit of. trolling by musk. and remember, the. two sides, musk. >> and openai have. >> been in litigation. >> for a while. musk was. >> an. >> original backer of openai when it was a nonprofit, and. >> he's been making the argument that the for. profit shift he feels is improper. >> one of the theories that i've heard, dan, is that musk is doing this so that it's much more expensive for sam to try to wrest back majority control of the company. you know, by putting this number out there publicly. you know, it makes it harder for sam altman to say, okay, well, you know, for a fraction of that, you know, because is it is it microsoft with a majority control or 49% or something like that? >> yeah. >> it's about 5050. >> microsoft. >> you know, on the one hand, yes it does. >> right. >> musk has. >> it. >> seems, set a price floor. >> because for those who. >> don't know. >> openai is currently. >> has a. >> nonprofit structure and it's going to kind of split off that nonprofit board from the for profit assets. >> which basically means that sam. >> has to and his people. >> have to buy those assets from the nonprofit. what's important

to note. >> though. >> is nonprofits aren't like regular companies, right? they don't. >> have shareholders. >> the boards don't have fiduciary duties the same way. >> that nonprofit. >> that for profits do. so they don't necessarily have to, for example, take the best price, which is what we saw back when elon tried to buy twitter. >> the board. >> was kind of forced to do it and then forced to force musk into buying twitter because the price was so high. they have a lot more discretion, and sam controls that board. >> so because it's a nonprofit, they might not be forced to take that price. >> they might. >> not be right. again, there's no you're not going to have shareholders who object and bring them to court and say, wait a minute. you know, you undervalued my stock. there is no stock in. >> the traditional sense. >> but look, i mean, but is he trying to make life more difficult for altman? absolutely. and even if it just slows sam and openai down a bit, that's good for musk and for xai. >> so dan, stay with us. we actually just got some headlines out of openai from our kate rooney. kate, let's bring you in. what can you tell us? >> hi, kelly. yeah. so i did just get a memo from sam altman sent to openai staff. it is

about the musk bid you've been talking about to buy part of openai for $97 billion. he writes in part to staff for clarity, although the board has not seen anything official from elon or his lawyers, once they do intend to make clear they have no interest in this deal and cannot imagine it being in the interest of what he calls the mission. here, he says our structure exists to ensure that no individual can take control of openai. he says here, elon, referring to elon musk, runs a competitive ai company, and his actions are not about openai's mission or values. they are tactics aimed at weakening us because, quote, we are making progress. as many of you know, elon musk, he says here, this is a altman. and this statement has a long history of making claims that don't hold up. he's talking about things like donations to openai. he said they misrepresented the strategy and shifted the narratives to suit his interest. altman kelly has been firing back on twitter and in interviews today, but notable

that he says officially they have not seen anything from elon musk, only his lawyers and what's been in the press, so that the board officially has not gotten any sort of takeover proposal. but as you've been talking about as well, if they do get an offer, this could get a little bit messy. kelly, back. >> to you. thank you very much for bringing that to us again. kate rooney with altman's note to the staff of openai there. and, dan, let me just turn it back to you. in that note, he says something to the effect of he doesn't want any one individual to take control of this company, but what if he wanted that one individual to be sam? what happens now? >> well, if he did, i mean, sam's situation there is complicated, right? he doesn't own the company from an equity perspective. the way, you know, musk seems to be wanting to do or the way we traditionally think of somebody controlling a company. but he certainly controls the board. remember, you know, he was fired, you know, about a year and a half ago, and then he came back in. it is kind of his hand-picked board. so it depends on what you mean by control. >> and what did you think about the whole stargate thing when president trump announced it without musk there, and then

flattered altman with all of this praise? >> yeah. look, i mean, that had to really burn musk, right? which i think is driving this a little bit in part, right. i mean, musk is obviously very tight with the trump white house. he is physically within the trump white house. and when trump did stargate, he was kind of saying he didn't say it in these exact terms. this is more a european idea, but really saying openai is kind of our national champion in this. and musk certainly wants to nip that in the bud if he at all can. >> right. of course, he has a competing company, which is basically what do we call the company. it's ex ai, right? even though it's basically taking x, you know, using grok the model to and like using that platform to, to train the lms. is that right. >> yeah. that's correct. yeah. and they are they're definitely competitive again structured differently both from a financial perspective and even from a tech perspective. you know, open open versus closed. but they are absolutely competitors. >> all right dan for now thanks. appreciate it dan primack with axios as we follow the latest twists and turns. and coming up, it's not just eggs that are set to push the price of your breakfast higher. coffee hitting an all time intraday high recently. the prices have backed

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resale shop, now with code tr20 for 20% off terms apply. >> we've seen. >> the lower. income consumers remain a. >> bit under pressure. >> from a. >> disposable income point of view, and so we've. >> had to. >> really double down on on some of our affordability options with packaging choices. but overall, the aggregate consumer demand is still pretty robust, still holding up well. >> that was coca-cola ceo james quincey earlier. they beat on the top and bottom line in their latest earnings report, and the shares are up 7% year to date, outpacing rivals. my next guest reiterated his buy rating. but will rising food and beverage costs elsewhere at some point start to pinch? joining me now is bank of america senior analyst brian spillane. brian, it's great to see you again. welcome. >> hey thanks, kelly. good to see you. >> what are they doing right. that you know pepsi's lower. we

talked about monster. some of those struggles kdp. why is coke. what have they figured out? >> you know. >> it's i think. >> the two. >> most important. >> things are. >> and james. >> i think in the clip you just you just shared. >> touched on it a. >> little bit. affordability. so small pack sizes, the. >> ability to kind. >> of dial a package type or package occasion that that really meets what's in the consumer's wallet. >> i think. >> the second thing is. >> you. >> know, coke has remained. >> committed to growing its core sparkling business. >> so marketing. >> advertising, new product innovation, like. >> they've kept pressure on the consumer. >> really through this, this whole post covid era. >> and. >> you know, i think. >> it shows up in the results. >> yeah. so, you know, shrinkflation sounds like a winning strategy basically, because like, you know, that may be what it is, but if people can only afford x, you know, portion of a of a beverage, that's what they're going to choose. there's also a tariff angle here where some think we're going to see more and more plastic bottles

and fewer aluminum ones. i'm sure that's true for them and others. >> you know, i. >> think on that. >> and that question came up on the call. and look, i think it's really a us question. more so because aluminum is a bigger part of the packaging mix here. but ultimately the consumer will decide, right. you know, the consumer that that likes aluminum cans, for whatever reason they do will find, you know, their way through again. maybe it's smaller pack types, but i'd be surprised if you're going to see a big shift from plastic to aluminum just because of tariffs, right? >> i mean, it's a more satisfying experience. i like those minis that they you know, those mini cans. they do. everyone does those. now maybe they'll get even more mini. let's talk a little bit about what's going on with grocery prices. maybe you can tell us when you have headline problems with eggs and coffee and so forth. really, really high prices for these items maybe elsewhere is a little bit more affordable. what is the net impact on the consumer right now? >> yeah, i think what we're seeing is we've gone through earnings season is, you know, it's still creating a bit of a volume headwind, right. so i

think if we look at it in absolute dollars the dollar ring is in the spend is still increasing. but i think you know what consumers get in the basket relative to that price point is still you know is still down. and i think we're also seeing consumers make some choices. you pointed out egg egg prices really high. so we begin to see some trade off between certain product categories. but i think as consumers walk into that grocery store, you know, that that headline inflation of things like coffee and eggs is definitely on their minds as they go through the cost, go through the stores. and again, i think we're just seeing more choiceful behavior in terms of what consumers are putting in the basket. >> and if we were in a broadly strong period, you'd say, okay, well, buy the whole space. you know, if prices are going up, you want to buy the people selling it, you want to buy the grocery stores. everyone's going to capture a little bit of margin. but, you know, there is pressure and maybe you can tell us, especially on the lower end consumer. lately, we keep

hearing about this. it kind of comes up anecdotally. so in that situation investors know from covid maybe you need to back away from some of these categories. so how does that come out for you in terms of the stocks? >> yeah, that's a great question because the playbook has always been you want to own these stocks with inflation like inflation has been good for these companies. and that's not been the case now. so i think as we've looked at our coverage universe within packaged food, it's very, very limited. you know i think peter galbo loves mccormick. and again, i think that's that kind of plays into a little bit to the value option. but beyond that, within packaged food, it's been relatively scarce. we do like bellring brands, which kind of straddles food and beverages because it's its protein content at a relatively good price point. but it really is skewed us more to beverages over food. >> that's so interesting, brian, thanks for joining us. we'll check back in soon. brian splaine with b of a and that's it for us. thanks for watching the exchange. i'll join brian sullivan for power lunch right sullivan for power lunch right after this quick check in time is 3:00 it's 2:55. i know. is this what he's doing now?

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name? >> is. >> and welcome to power lunch. we collectively. >> are brian and. >> kelly. >> and we. >> dive right into your. >> money and highlight some rather shocking. comments from a big dc ceo that should have every taxpayer asking. >> what did. >> he just say? >> we are also watching two big stocks with big winning streaks. meta is going for a 17th straight session. it's turned positive. it's up half a percent today. nvidia has also been up six days in a row and