is this not just a microsoft story and if not, what does it mean for microsoft and who else might it be relevant from an investment angle to? >> it's clearly not a microsoft story, but investors have been growing fatigued around microsoft at what we think is the wrong time. also, seven years to reach critical mass. ai is moving faster since chatgpt took the world by storm and azure is a $10 billion plus business. what's clear is no one's blinking at this point. all of the technology -- technology, the bigger risk is not participating. microsoft maybe should be opening to leadership position. >> michael, i think, i was going to say i think your note really put a finger on it as well. it was so surprising. we have this big, splashy stargate announcement. oh, by the way, openai is not going to exclusively use microsoft. then you look at shares, and to your point, the shares are higher. they get the right of first refusal. maybe that's a really important point to make here. they can say we don't want those workloads. maybe they're not as consistent or profitable. maybe we can reduce our

what details do we know about microsoft's plans? at the it hub city of bengaluru yesterday when he made these announcements and a day earlier with a highly publicised photographs of him meeting the indian prime minister to discuss more cooperation in the field of ai and after a few hours you heard announcements come out from microsoft. this has been called one of the largest investment in india and over a period of two years it is primarily going to prioritise training indian tax professionals in the field of ai and establishing multiple data centres across the country. microsoft has a significant presence in india with over 20,000 employees with over 20 , 000 employees across with over 20,000 employees across ten cities but through the investment they are also looking to train about 10 million people at least, the emissions target, that make the initial target, emissions target, that make the initialtarget, in emissions target, that make the initial target, in the field of ai. that ties in with microsoft plans for enhancing its ent

two big m's, microsoft and money. steve kovach has more on that. >> microsoft says it plans to spend $80 billion in its fiscal year which ends this june for artificial intelligence. this announcement was tucked into a microsoft post by brad smith who published it today coinciding with the new congress. he laid out for the u.s. and artificial intelligence. microsoft previously said expect $20 billion in capex spending on artificial intelligence for the rest of the fiscal year. microsoft is sharing a hard number on how much it plans to spend. to put these numbers into perspective, google spend $49 billion, amazon spent $64 billion, and meta, $30 billion. we will not get the numbers until a few weeks. by the way, that's largest and microsoft's largest acquisition ever when it bought activision for $69 billion. over half of this capex will be spent in the united states. microsoft previously said half of capex goes to compute, meaning nvidia chips. also stuff like a.i., server apps, other equipment. the rest is just the la

microsoft announces a multimillion dollar ai investment in india. we will be live there with the latest. hello and welcome. meta will end third—party fact checking on its social media platforms in the us. the company will move to a community note system and move to a community notes system similar to one elon musk�*s platform x uses. restrictions on contentious topics like gender identity will also end. ceo mark zuckerberg says this will promote freedom of speech which she hopes to prioritise overtaking misinformation. we built a lot of complex systems to moderate content. but the problem with complex systems is, they make mistakes. even if they accidentally censorjusti percent of posts, that's millions of people. and we have reached a point where it's just too many mistakes and too much censorship. the move comes as he and other tech executives have tried to improve relations with donald trump before he takes office and a day after facebook announced a trump ally dana white will be on the board. donald trump and his allies have previously criticise

microsoft. take a listen. >> look, i think the partnership with openai to us is a critical partnership. we love it. it's working. it's created a lot of value for us. and we plan to just continue forward with it. it's true that on azure, particularly, there are other models. other source models we have our small and continue to have that. customers end of the day will demand choice. that's fine. we'll support it. having the leading model on azure es good. >> this is the first step of an equitable breakup between the partnership. not that it will totally go away. the deal's intact until 20830 and they can extend from there. it shows the cozy relationship the two companies have and increasingly becoming competitors with each other, starting to open up a little bit at the same time. by the way, microsoft still heavily reliant on openai to do everything it wants to do on the consumer-facing front of artificial intelligence including sulaimon hired last year as ceo of a.i. microsoft. heavily relying o

microsoft is also pausing recruitment in a major unit in america as part of its cost—cutting plans.more. in a memo to staff, meta ceo mark zuckerberg said 2025 will be an intense year for the company as it works on building what he describes as some of the most important technologies in the world. mr zuckerberg went on to say in order to raise the performance of meta staff, the company would take steps to move out low—performing employees faster than originally planned. currently, meta employs some 72,000 people. cutting 5% of its payroll will be its first major staff reduction since it shed a quarter of its workforce in 2022 and �*23. meanwhile, microsoft has also given a signal jobs may be becoming harder to come by in the us technology sector. it told its workers on tuesday it plans to pause hiring in its consulting arm in america. this comes only a week after it announced a round of lay—offs. swetha ramachandran is fund manager at artemis investment management. why do you think meta is expecting an intense year? certainly we are all inaudible investment shows no sign of letting

. >> openai, it shifts away from microsoft. plus, e! shares are plunging right now as it slashes its. >> full year outlook. >> as its soccer games disappoint. and later, a cnbc exclusive with the us head of santander bank. it is thursday, january 23rd, 2025. >> you're watching worldwide. >> exchange right. >> here. >> on cnbc. good morning. thanks so. >> much for being. >> here with us. >> i'm frank hollins. >> get you ready for. >> the trading day ahead. we begin, as we always. >> do. >> with the. >> check of u.s. stock. >> futures after the. >> p 500 hit an intraday record. >> the nasdaq. >> just 1%. >> from its own. all time high. taking a. >> look. >> you see a pullback here in the futures. >> right now in. >> the. >> red across the board. >> the s&p. >> down about. >> a quarter. >> of a. >> percent or 12 points. the dow. down fractionally right now about 15 points. the nasdaq. >> the hardest hit. >> down about 97. >> points right now just. >> about a half of. >> a percent right now. >> we want to take a look at the s&p 500 premarke

by the way, microsoft not suffering.ck is p but oracle is the biggest beneficiary, as we have discussed throughout the morning thus far. guys, let's get to netflix. >> microsoft there was a key no. they're still saying it's good. i don't know. >> who is saying what's good? >> i'm questioning how good microsoft is ever since benioff did this. he is out there slacking. >> he has been questioning the effectiveness of copilot in terms of alienating people in the workplace for some time. you want to talk a little netflix stocks up 13%. now $420 billion market value. why do i mention that? because netflix market value is equal to that of disney and paramount and warner bros. discovery and comcast. you want to roll them all up, all the streamers, they don't equal or netflix's. they added over 18 million subscribers. they are raising prices again and they say, listen, you know what? it wasn't any one thing that we aired during the quarter whether it was jake paul and mike tyson fight or the nfl games, it wasn't any one thing. it

brad: microsoft -- marc: microsoft has disappointed a lot of customers with copilot. the reason why is you can read the gardener analysis, you can read a lot of the media. i am sure you are big copilot user. brad: i try to moderate my use. marc: you are like most people and you do not use it. thank you for making my case. the point of it is is all copilot is is repackaged chatgpt. in a chart of the most 20 used apps on the internet, openai was at the top, copilot was not on the list. i just retweeted it. when you look at that, why is it , it is not offering any value. agent force is what ai was meant to be, the ability to give a customer the value of artificial intelligence. that is why i was excited to bring him to the show, excited davos has deployed it and we can show customers this is a great opportunity. yesterday we were in a session with the royal bank of canada and just deployed for their wealth management. their ability to scale and compete against the big u.s. banks is augmented because they are using agent force. that is very exciting for them. their ceo da

microsoft is not commenting on this either.the first trump administration in 2020, bloomberg did report microsoft was looking at acquiring tiktok operations back then, when the first pressure around divesting over security concerns was arriving. oracle was reportedly looking at it, too. the stargate project was being announced, donald trump said he would be open to elon musk buying tiktok. we know there are other players involved as well who have made bids and it seems that is what donald trump's preference is, a bidding war he said he thinks bidding wars result in the best deals. as for what that ultimately looks like, that remains unclear. what he was clear on is that he does not want china involved in whatever happens here. china is going to have some say in that. caroline: will the u.s. government have involvement? >> he has talked about this 50% ownership structure sharing equity with united states, but it remains unclear whether that could be done by the april 4 deadline. there's also a question around whether antitrust c

here's what i think happens nvidia, microsoft, apple, google they double down and say you didn't openource model you're not charging and we could do the same thing. it is open source they can see what's going on and how to adapt their models to do something very similar. the paradigm shift all the a.i. uses a supercomputer a.i. the observation i were deep seek separated into experts and says one is an expert on this topic in this topic so it can compute much faster and not be on all the time, i think that's a model that's going to change the paradigm shift for sure. stuart: we need you for the hour, please stay. trump had a very busy weekend very busy week, on friday he toured the damage in north carolina than los angeles then he went to nevada where he made a pit stop at a casino in vegas the crowd loved it. >> they broke out in chance. >> usa, usa, usa, usa. [cheering] >> he walks over to the crowd table and he shouts back at the crowd, no tax on tips reopening his campaign promise as he works with congress to figure out ways to include an impending tax package that is what he will

microsoft said 80 billion. we'll be talking a lot about that with our guest coming up later in the show. all right. we do want to look at treasuries right now taking a look at treasuries. the ten year the benchmark coming in at 4.53% actually moving lower. over the past week, we've seen an easing of bond yields over the last week. a lot of people thought that some of the proposals from the president would actually lead to. a spike in bond yields. we'd be talking about that as well. david zervos from. jefferies coming up later in the show. and we want to touch on energy oil coming off a losing week, taking a look at the oil market right now. fractional gains wti just below. $75 a barrel again up fractionally. brant crude just just around 7870 a barrel up about a quarter of a percent as well. and we got to take a look at bitcoin. we saw bitcoin under some pressure in recent days. right now trading below 100,000 again. >> at about. >> 99,260 a coin, down about 5.5% right now. remember bitcoin does trade around the

microsoft, amazon, key names biggest contributors to the upside.in on ai infrastructure as we look ahead to jensen huang's keynote later today. bitcoin also on fire. $102,000, still off the record high but clawing back some new year's eve losses. let's dig into a company that is not traded, tiktok, and its darker side. there is a lawsuit in the state of utah alleging tiktok has long known is popular video livestreams encourages sexual content including streams exploiting and grooming minors. tiktok discovered through an internal investigation tiktok live facilitated money laundering and allowed viewers to buy and sell drugs and fun terrorism. this is all this after we get more detail on a lawsuit brought by utah and other states. we have yet to see the details. what have you learned? >> to your point, it has taken a lot of time for this to come to light. i reported on tiktok live and some of the issues you cited in 2022. we are now early 2025. the platform is much bigger now. it is much more far-reaching. there are much more younger demographic on

and the second is that 0penai in collaborating with microsoft is tempting to monopolise the industry.when elon musk was at 0penai, he was one of the original co—founders, leaked e—mails have shown that he himself was pushing 0penai to become a for—profit, to make it easierfor 0penai to raise money, for example. in terms of background, i think that it is more about elon musk trying to basically undermine a direct competitor. elon musk has since started his own ai company so targeting 0penai's restructuring is a useful way of bogging them down legally. in terms that second argument in terms of monopoly, i think actually that elon musk is absolutely right, even though i am not necessarily sure about genuine his intentions are. microsoft has invested about $30 billion in 0penai, has the right to the majority of 0penai's profits and has privileged access to 0penai's technology and that has enabled microsoft to be take an early lead and becoming increasingly dominant and also to prevent 0penai from competing with it directly and so i think from a fair competition perspective, that is concer

microsoft up .50%. however, tesla and meta in the red. the group is rising 3.5% with tesla and meta outperforming. take a look at the moves right now yesterday. meta platforms up 4%. tesla up 8%. mag seven up.5%. combined, the group gained $550 billion in market cap yesterday alone. biggest one day gain for that group since november of 2022. over two years ago. we want to look at bonds. bonds are a major influence on the market. they pulled back after the inflation report. the ten and 30-year falling. the 20-year back below 5%. the benchmark at 4.66%. the 30-year declining at 4.87. 20-year, 4.9. we do have to talk about the dollar. pull back on the news as well. closing fractionally lower yesterday. it is on pace for the first losing week in the last seven weeks. treasury secretary pick scott bessent talking about the world currency and prepared statement for the irmation hearing. we will have more coming up in this half hour. we want to do a check of bitcoin. almost rallying to 100,000. $99,142. pulling back .75%. litecoin up 10%. ethere

maria: thank you so much great to talk to you good to see you brad smith microsoft stay with us we'llight james, it isn't. car, where are we going? we're here. (♪) surprise!!! the future isn't scary. not investing in it is. car, were you in on this? 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 the way i approach work post fatherhood, has really trying to understand the generation that we're building devices for. here in the comcast family, we're building an integrated in-home wifi solution for millions of families like my own. in the average household, there are dozens of connected devices. connectivity is a big part of my boys' lives. it brings people together in meaningful ways. . >>> . maria: welcome back. we are wrapping up live coverage at world economic forum from davos, switzerland president trump will address in a speech in two hours 11:00 a.m. eastern questions from big came executives bank of america, among others live in davo

microsoft, meta, magnificent seven. microsoft, meta. tesla. _ magnificent seven. magnificent seven. microsoft, meta, tesla, apple are - magnificent seven. microsoft, meta, tesla, apple are all- magnificent seven. microsoft, | meta, tesla, apple are all due to report this week. the tech giants are being powered on a wave of ai enthusiasm but also expectations of tax cuts and a lighter touch regulation from the trump administration. however they have been ploughing huge sums into artificial intelligence and investors are going to want to see the results of that coming through sooner rather than later and given high valuations are the could be volatility again if results don't meet expectations.— again if results don't meet expectations. thank you so much, expectations. thank you so much. see _ expectations. thank you so much, see you _ expectations. thank you so much, see you soon. - around the world and across the uk, this is bbc news. just a day after a visit from president trump, rain arrived in california, bringing some relief but also fresh concerns to the resi

so i think the focus is going to be on microsoft next week, and especially that microsoft azure cloudide for acceleration. will that e is ai trade? we think it will. >> so you know i think a lot of investors in these names are torn between going, okay, i'm just sticking with the mag seven. this is the only sure thing in the market. and between thinking, nope, i'm going to get in and it's going to be the peak and i've missed the whole run and it's time to rotate into energy. >> yeah, i think when you look at the larger stocks, the mag seven. but you know, within that, if you look at microsoft, you look at google, you look at meta, you still have quite reasonable valuations on some of them. and especially on the enterprise side, you could see revenue growth accelerating here. so i mentioned microsoft with azure. you know they should do 32% growth in that fiscal q2. and maybe guide for 3,334%. so we're getting that acceleration likely to come through as capacity comes online. you also have microsoft 365 copilot their enterprise product. they're in the office suite. again feedback's been

on monday did by the use microsoft state stuff. the approach a of the 1937 militaristic, japan started a full scale invasion of china. the invading army was rapidly advancing towards the capital of the republic of china. of the dies, the city of nazi leaving behind the burned down villages and thousands of the dead . on december 13th, the japanese occupied son z and states real massacre. for 6 weeks, the invaders exterminated the civilian population. they carried out mass executions, rates, women, and were engaged, been merciless robbery. ruthless competition of 2 officers of the imperial army grocery. at the my guy and 2 yoshi no doubt, gain particular notoriety. they competed with each other as to who would be the fastest to kill $100.00 chinese with us. or this monstrous competition was widely reported in the japanese press. the non being massacre claims the lives of about 300000 people and became one of the largest crimes against humanity in the world history. after world war 2, manufactures advance of the address of the phase

on the microsoft front,certify for the government. calling about security after the security breach in the emails by chinese heart attack . microsoft is facing legal investigations and challenges related to its stake in openai. not the only notable names, by the way, donating to the inauguration. openai ceo is donating $1 million. uber is donating $1 million and the ceo is donating $1 million himself. that's a taste of it. robinhood and other names we talk about are also donating to the inauguration. of course, you have to talk about elon musk. he spent over 2 on $200 million get trump elected. frank. >> the intersection with d.c. and wall street. big business in the white house. something very interesting. steve kovach from the nasdaq. thank you. >>> coming up on "worldwide exchange," the one word every investor has to hear today. >>> why the new grand theft auto has the top stock pick for 2025. we will reveal that when "worldwide exchange." don't go anywhere. (vo) what does it mean to be rich? maybe rich is less about reaching a mag

finishing off on microsoft, down just under 4%.ve made behind sam altman and openai. no question whether they will continue that relationship, but they have spent $500 million compared to the theoretical $600 million from deepseek. i emphasize the word there, the kite that is being flown. we need proof. jonathan: meta and microsoft reporting on wednesday. that becomes a must watch later this week. lisa: how do they justify where they are spending. talking about how much they transfer to other areas that could potentially give them more payback. i want to say, the level of trolling out there, a plus. one asked what does deepseek do differently? it forced chatgpt to explain why deepseek was preferable. the reason why people are looking at deepseek. jonathan: interesting how long this took to become a market event. lisa: there were different chinese developers talking about this seven months ago, but it goes to the point we were talking about. i don't want to call this a squirrel because it is potentially a game changer. there are thi

microsoft is a 19% customer of nvidia. we also know that microsoft is working with the likes of broadcom to do us can tonsil con. -- to do custom sill cob. i think people are getting sick of the pricing power. and then i go to today, there's a story out that, you know, i think it was information, they're going to spend $80 billion on infrastructure buildout. that's not all chips, that's a whole host of other things, okay? so, let's see what that does. and the wisconsin data center they're building out, they have stopped the second phase of the buildout. why? they said the recent changes in technology have caused them to kind of reassess the design of the facility. so, i guess if you start to see some push-outs in the builds of these data centers, if you start to see a slowdown in capex, which we're not going to get until the end of this month, i think there's a lot of moving parts, but microsoft is a great barometer. >> i have a question. microsoft saying they're not chip constrained anymore, why is that concerning -- >> b

do we therefore see microsoft have to cut its prices. do we see revenue profitability of these providers, in. >> i think that's a good question. i would say we don't know why openai and anthropic will release next. in those times there are so many innovations market is moving very quickly. they have something that's really exciting to be launched. so that's number one. number two, a lot of times this is a fast volume or aggressive model that has a ceiling in terms of what it can do. openai with their model and i think there's a lot of innovation that will happen. at the end of the day there's ecosystem building in the enterprise, that also factor into it. i think the market for llm's can be more diverse than people are giving credit for. caroline: is this a buying opportunity to stack up on nvidia even more? tony: long term you think of the technology trends. i don't think just because there's one model this more efficient that people will say we will just stop here. at the end of the day everyone's racing towards agi and looking to cont

microsoft has been a focus lately.art of the year? >> yeah. >> i think that what we're seeing. >> is, you know. >> going forward, there's a big focus on ai still. and, you know, there's a view that who has the most immediate gains in ai. and i think that you're seeing that, you know, meta continues to be kind of out in front with their build outs. i think you see microsoft being pretty front footed, especially from here, you know. and so i think that, you know, when you see look at apple like i think that some of their features are going to be on a slower rollout. so that's why you see more of a divergence. in addition, some softer macro in china that's probably, you know, creating some more softness in the iphone. so i think that that's probably the setup here going you know into into next year is like there's still a focus on ai and like who has kind of those features and core competencies there. >> right. what do you think of this stargate news this week. how does it move the needle and where is the effect going to

microsoft afirÓ que Ás de la mitad de esa inversÓn se va a realizar en estados unidos.era mundial de la inteligencia artificial en este momento. y precisamente el gigante tecnoÓgico meta esÁ tratando de eliminar varias de sus propias cuentas generadas por inteligencia artificial... esta medida se produce despÉs de que varios usuarios, comenzaron a interactua con los robots de esta tecnoloÍa y publicaron chats con su tendencia a mentir y ofrecer informacÓn erÓnea... seÚn la empresa, esto provoÓ preocupacion por que el contenido generado por "a-i" pudiera interrumpir una funcÓn principal de las redes sociales: que no es otra que fomentar la conexÓn entre los humanos. el presidente biden le otorÓ hoy la "medalla presidencial de la libertad", el Áximo honor civil de los estados unidos, a varias personalidades poÍticas, arÍsticas y deportivas... entre los que recibieron el reconocimiento de manos de biden esÁ hillary clinton, george soros y el futbolista argentino lionel messi... maÍa molina nos cuenta lo que paÓ... el exiliado Íder venezolano edmundo el exiliado Íder venezo

openai relies on microsoft for azure, and microsoft relies on openai to make all the ai stuff it's doing >> it's a great soap opera. >> larry nelson, a big trump backer, too. >> but just trying to figure out what's going to happen with microsoft and openai. >> any news of zuckerberg over the weekend? >> never hear much from that guy. >> on deck, 00 underperforming stocks that may be worth your money. we'll tell you why, ahead. (traffic noises) (♪♪) the road to opportunity. is often the road overlooked. (♪♪) at enterprise mobility, we guide companies to unique solutions, from our team of mobility experts. because we believe the more ways we all have to move forward. the further we'll all go. >>> welcome back. it is time for your market navigator. it's about finding value among the trashy. who knows more about finding value, no matter -- >> you were going to say trash heaps. >> i was going to say dom chu is not only handsome but intelligent. >> so can a stock be so good that it's bad? one dividend focused investor is looking for entry points into three beaten up giants that pay you to wait

maria: kevin o'leary wants it, microsoft wants it.et the bidding war that president trump was talking about. southern california receiving some much needed rain this week, helping firefighters further contain the los angeles wildfires. there are new fears over mud slides and debris flows in areas scorched by the fires. increasing the risk of toxic ash runoffs. fox weather meteorologist craig herrera now with an update. craig. >> maria, good morning to you. yeah, when you look at the containment, boy, those numbers have jumped up significantly. rainfall totals 1 inch to 1.6 inches of rain. palisades fire is 95% contained. they put a nice containment line around most of it. now they work to put out the hot spots. as far as the hughes fire, 98%, eaton fire, 99% of that has been put out. you talk about the air quality. right now it's moderate for most of los angeles but if you live near some of these burned areas, you want to be careful of what is in the atmosphere. you think about everything that burned from cars, car tires, insulation,

microsoft we love that stock. i think reallocating your capital even if you miss the upside and the magnificent stocks and put in place like small caps which trail a lot cheaper probably makes a lot of sense. stuart: i'm not selling my microsoft was leave it at that. thank you very much. you have a lot of fans in florida. president jimmy carter lying in repose at the carter center in georgia. tell me what happens next. >> tomorrow morning president carter's casket will be flown to d.c. where he will lie in state in the rotunda at the capital. members of congress will pay their respects that is at 3:00 p.m. followed by the general public. thursday morning carter's casket will travel by motorcade to the national cathedral for a funeral service. president biden will give the eulogy he declared thursday as a national day morning. stuart: thank you. biden not happy with reporters asking questions about his age. watch this. >> the only thing i'm i the oldest president but i know more world leaders and anyone of you ever

elon musk takes the shine off stargate saying the ai groups involved don't have the money, while microsoft boss satya nadella touts his own ai cloud. >> all i know. is i'm good for my 80 billion. i am going to spend $80 billion building out azure. customers can count on microsoft. >> sap ceo. >> christian klein. >> calls for a. >> european plan, telling cnbc the continent needs to respond to fresh ai investment stateside. >> my hope is. >> that with. >> what everything. >> what now happened. >> in the. >> united states. >> that is certainly a wake up call. and this wake up call now. >> still, we. >> need to see proof. but i hope now also europe comes closer together and we really form a union. >> the german finance minister, jorg cookies, backs changes to berlin's strict fiscal discipline. rules in a bid to attract private investment. >> there has to be some targeted reforms to the debt brake because we have so much need for infrastructure spend on railways, on roads, on bridges, on. >> education, on 5g. >> infrastructure, etc. so a lot of public infrastructure has to be provided. >> and t

with microsoft, you know, i do know that they're doing some cuts there.y're tying it to artificial intelligence and i think the way that you have to look at this. we're cutting to make room for artificial intelligence, they are basically taking a negative moment for the company where they have to lay off and they're trying to spinette as a positive making room for artificial intelligence. for meta again i think maybe some positioning but small cuts, very small cuts within microsoft and to me that sounds more like spin than reality. >> all right. when we look at tech companies, it seems like seasonally we see layoffs and work force reductions and i know you are saying one of them is not actually a work force reduction but seasonally we seem to see these in the beginning of the year. the two companies, these are expected to be big years. where really trying to scale up the ai technology and capitalize on it. growth. so do we generally see tech companies looking to cut costs while trying to actively grow at the same time? just cultural for silicon valley. is

it's how microsofts and service nows and salesforces put a.i. industries, not just a few companies that have densely benefited from the a.i. boom so far. stuart: should you buy nvidia now? >> i would say that if you were a fan of what it was doing, nothings has changed meaningfully. i think we've found great efficiency that can be added to the hardware infrastructure. i still think that these efficiencies are going to be sought with other chip makers, the broadcoms, marvells, what their doing with the hyperscalers. but i still think when it comes to physical a.i., the future of self and autonomous driving, drug discovery, some of these advanced things that go far beyond language, nvidia has the biggest moat in software, and i think they will continue to be at the leading edge. stuart: so keep buying nvidia, keep building data centers, keep building power structures to feed the electricity to a.i., keep on doing what we're doing, is that your message? >> i want to see the u.s. make sure that we are the leaders in a.i. it is important. the economi

microsoft, that was a big spender here on openai.he question is if these mag-7 companies are spending on openai or they should be spending a faster model. and apple up 3%. not affected by those concerns but really, all in all, the mag-7 also investors nervous here because of the valuations we're so high already. and there is disruption. and finally, it's not just the tech sec that's really losing today but it's also the infrastructure that powers a.i. thinking data centers, power centers. those were all down. oracle down 12%. now down over 25%, scarlet. scarlet: clearly a lot of red. thank you for highlighting all of those big movers. bloomberg's emily graffeo. so that brings us to the question. what exactly is deepseek? why is it moving markets so much today? why does it seem to be panicking investors? let's bring in rachel metz in san francisco who covers a.i. for bloomberg news. deepseek feels like it came out of nowhere. how long has there been something that has been percolating and worth paying attention to? >> this particular

i'm saying that microsoft people microsoft's on its heels. i know that you look like it's up a little, but take a look what microsoft's been year over year. microsoft's not been a winner. oracle was the winner because you know the white house. that's right. all right. but what about the future? that's i don't really care about the past. so is microsoft now. no i want january january in a way to the jan 24 i went to the okay. never mind. we're not going to get the right thing. but what i'm saying is, is that that there are other stocks besides tech. that's all i'm saying. and that yesterday was about health care. it was about health care. and it hasn't been about health care for a long time. the health care stocks, the hmos were terrific. abbott labs was the market leader yesterday. that's new. that's new. >> we're watching hca today. certainly. >> novo with. this with this. >> early 22% weight loss versus 2% placebo. >> okay. one and a half. one and a half. it's early. remember it's a one half trial. now you can make these. you can finagle li

did by b, e, you, microsoft states, those regulations are no longer relevant. and the in high system already in place is sufficient. well meta, c o here finds the over side just the months right now, just censorship on tick. tock saves it while i pull this founders other social media platforms follow the parliament's claims. a weakening of such policies, only benefits russia. parliament is deeply concerned about the recent announcements by social media companies about a relaxation of their rules on fact checking in moderation. as this will further enable rushes, this information campaign to spread around the world maps want the european commission and e u. member states to strictly enforce the digital services act in response to these announcements by metro and acts, including as an important part of the fight against russian dis information. well let's head state side now inspect the former and why you liberal studies professor, an author of google archipelago, the digital to log on the simulation of freedom. dr. michael wrecked, and while you're most welcome,

everyone kind of hates them other than microsoft. oracle would love to get more market share as it relates to, you know, the public cloud. right? who is the other one? masa son, he's so far up trump's you know what. how many times have we heard -- >> trump said how about $200 billion? he went from 50 to 100 and then trump said 200. >> i guess my point is, we could walk away. it has a nice name. it feels like infrastructure every week for four years, that sort of thing, and so why didn't nvidia not rally 10% today? why didn't dell rally? i don't think investors who are paying attention to this trade think this is particularly -- >> but oracle did rally 10%. >> look at how oracle traded the last two months or so. they started missing on their growth target for their cloud infrastructure. and so what does that tell you about the folks at the table right now? >> all right. again, we are waiting for president trump to speak. as soon as that begins, we'll bring that to you live. meantime, coming up, earnings season officially in full force

wednesday microsoft is going to report. and scott, i want to give you a little history lesson here. you don't have to go too far back. just six months ago all these hyperscalers were getting shellacked because they were saying, we're going to spend, we're going to spend, we're going to spend on capex. we don't know how much we need to spend, but trust us, we need to spend. i think there's a really demonstrative quote here. i want to play you from alphabet ceo sundar pichai in earnings call from july last year. take a listen to this. >> one way i think about it is. >> when you. >> go through. >> a curve like this, you. >> know. >> the risk. >> of underinvesting is. dramatically greater than the risk of. over investing. >> for us here. >> even in. >> scenarios where, you. >> know, if it turns out that we are over investing, we clearly these are infrastructure which are widely useful. >> for us. >> so basically saying we're going to spend we don't know how much we need to spend, but trust us, we need to spend it. then you have satya nadella over at microsoft saying kind of the same thi

has with microsoft. that is something that marc benioff raised. >>> for those that have not been following along, will get you caught up today. we jumped into this. if you did miss the headlines yesterday, some of the world's most prominent tech leaders are pledging as much as $5 billion into building a.i. infrastructure in the united states over 4 years. the joint venture is called stargate. it is being led by open a.i. and softbank. it has partners, oracle and mg acts. this was timed with the start of the trump administration. it was announced yesterday in an official white house ceremony. >>> the world leading technology giants are announcing the formation of stargate. with that name down in your books. i think you will hear a lot about it in the future. a new american company that will invest $500 billion, at least, in a.i. infrastructure in the united states, and moving very rapidly, creating over 100,000 american jobs, almost immediately. >>> companies committed $100 billion to the venture, reporti

look at news out of microsoft today, the $80 billion data center built.f this could lead to a goldy blocks scenario for both stocks and a soft landing for the economy for that matter, stu. stuart: we love to hear that on the first full week of trading in the new year. jason katz, thanks for being here. we'll see you again a lot. see you later. looking at some movers and looking at the 10-year treasury yield just above 4.6% and citi group up 2.5%. lauren: yeah, expect big banks in general to benefit from trump 2.0 accelerating long growth and defunding funding cost and relatively stable tax rate. they say citi group is a buy. their price target is a 95 and that's a 33% upside to friday's close. stuart: a company i don't know much about and it's pay core. they are up nicely. lauren: 23%. human resources software market. there is reports of a deal with pay corp. said to be bought by the rival pay, paychex and saide done. stuart: djt? lauren: congress begins in the next hour and begin to certify the results of the next election and happens at 1:00 p.m. launla

this follows some job cuts that microsoft announced last week. according to the memo, it also instructs employees to not expense travel for any internal meetings saying they should use remote sessions instead. this follows meta saying earlier today in a memo that they will cut back on 5% of their work force. shares of microsoft down more than 1%. scott? >> okay, pippa, thank you. we will follow that. you take this as just companies getting a little leaner or something to keep in the back of your mind about cutting travel related expenses and things like that and say maybe these are the earliest signs of maybe the economy is slowing a little bit? no? >> 2025 was the year of efficiency and that's what is clearly --. >> 2.5? >> that's right. all of the companies still have massively larger head counts today compared to precovid levels. so some culling of the work force if you will, one of the headlines is we were lowering the lowest 5% of producers, i forget who that was. >> i think it was meta. >> year of efficiency 1.0. i don't read anything into

meanwhile, microsoft has also given a signal jobs may be becoming harder to come by in the us technologyt told its workers on tuesday it plans to pause hiring in its consulting arm in america. this comes only a week after it announced a round of layoffs. in aviation news, boeing says it delivered less than 350 commercialjets last year, its lowest output since the pandemic. the company has been hit by a large strike that slow down production and increased scrutiny over the safety of its planes. it was outpaced once again by european rival airbus, which delivered twice the number of planes in the same period. the us financial regulator has sued elon musk for the late disclosure of his purchase of more than 5% of twitter�*s common stock back in 2022. according to the sec, the move allowed the multibillionaire to continue increasing his stake in the firm at artificially low prices. he later purchased twitter for $41; billion, and renamed it x. in a post on the platform, mr musk accused the regulator of wasting its time when there were so many actual crimes that go unpunished. staying with bi

apple is up and microsoft, a gain of just .8%, but it's up $3.t of them coming out this morning kicking off the season. morning, taylor. let's start with jpmorgan. >> yeah. i mean, biggest fourth quarter or ever driven by trading thanks to sort of the volatile markets around trump election. jpmorgan traders took advantage of it. trading revenue was up 221% year-over-year are -- 2 1%. fixed income, your favorite, was the star. stuart: not my favorite, but it was the star. [laughter] goldman sachs. >> equity traders had their best year on record, also driven by investment banking and asset management. stuart: citigroup. >> an interesting story. now, they launched a $20 billion share buy back, but they measured one -- lowered one measure of profitability, lowered it to from previous guidance from 11-12. really confirms maybe some fears analysts have that you can't keep expenses really low when you're in the middle of a massive turn-around plan, but still the buyback helping. stuart: it sure did. blackrock. >> pulling in $640 billion in cash. both ac

a new round of layoffs for tech giant microsoft, this time targeting underperforming staff. the company says it's cutting a small percentage of jobs across several departments based on performance. we're told it will affect less than 1% of employees. back in 2023, the company laid off 10,000 employees, and in january of last year, microsoft's gaming unit slashed 1900. jobs. all right, difficult climate around the, you know, different things now in business a difficult climate. but here when we talk about the real climate, we're having a nice time. you know, it's been nice and clear and certainly but chilly. yeah. we've had thahat highressure that's helped keep the clear skie around. and also it's been keeping us dry as far as any rain chances go. well, we've been monitoring the forecast for that as well as winds here locally as well. so let's get right to a live look of how beautiful it looks right now in downtown san jose. now you also likely notice the warmth. that is also thanks to that high pressure. now we did manage to see some new record daily highs. these are prelimi

since then, microsoft has said it's going to make security a top priority in product development.ll of that is facing legal challenges related to its stake in open aye, which includes the lawsuit from elon musk and some federal investigations into anti-trust issues there. not the only notable names in tech, of course, donating to trump's inauguration. we already heard about open ai's ceo, sam altman donating a million dollars to the donation. uber is donating $2 million. $1 million from the company itself and another million from dara khosrowshahi, and there's elon musk, spending $277 million trying to help trump get re-elected. a lot of money from tech pouring in. i should also note robinhood and some other crypto firms as well. >> it's one of these things, they cozy up to the party in pao, in the obama years, it was that, it was trump, then biden, and now back to trump. the idea that these companies have to stand for something has given way to the real politics of, yeah, you want good relationships with whoever's in office. it feels obvious to say, but feels like a departure fro

so microsoft was a laggard last year. up 12, you know, whereas the market was up over 23%. if that's because they did a massive spend, massive cap-x spend on generative a.i. so they built out these data centers. many of them are empty or not completed at the moment, but the mantra for microsoft going forward is once they build it, they will fill it, right? is we're looking for cap-x to go down, revenue to go up and earnings to follow suit. so look out for microsoft. union pacific, another laggard. service down 7% in 2024, but this is a quality railroad that has underearned for three years, basically because they had higher costs due to labor inflation and disruptions around port strikes and hurricanes. more importantly, because trucking industry, you know, had lower rates and comparatively more unattractive, but that's going to change in 2025. trucking rates are starting to rise, so rail looks more attractive. and, of course, donald trump coming in with his pro-business, pro-economy stance which i think are going to be re

the owner of facebook and instagram come on the same day that another of america's tech giants, microsoft it would pause hiring in a major unit in america. michelle fleury reports from new york. ina memo in a memo to staff mark zuckerberg said 2025 will be an intense year for the company as it works on building what he described as some of the most important technologies in the world. mr important technologies in the world. ~ , ., important technologies in the world. , ., ., world. mr zuckerberg went on to sa in world. mr zuckerberg went on to say in order— world. mr zuckerberg went on to say in order to — world. mr zuckerberg went on to say in order to raise _ say in order to raise the performance of meta— staff the company would take steps to move out low performing employees faster than originally planned, currently meta is employing 72,000 people. cutting 5% of its payroll will be its first major start production since it shared a quarter of its workforce in 2022 and 23. meanwhile microsoft is also given a signaljobs may be becoming harder to come by and us technology sector. it told

apple, meta and microsoft. are adjusting their spend on capital expenditures based on some of the advancements? jonathan: one thing missing, february 1. annmarie: on saturday there is a potential we will get tariffs on canada, mexico or china. we might not but we could. jonathan: the weekend is a continuation of the trading week because that could be a big weekend. annmarie: we work all the time. lisa: can i just say, are you going to say let's not get to the weekend, let us get to february 1. maybe that is where we are going to be. jonathan: julian emanuel of evan corcoran. look out for that and the former kansas city fed president. how many days until the weekend? lisa: it is only tuesday. jonathan: it is the trading day of the single month or year. from new york, thank you for oomberg tv. ♪ >> trying to bounce back after a brutal monday. 30 minutes into the start of trading. i'm katie. and i'm scarlet. scarlet: bloomberg open interest starts right now. >> coming up, that trillion-dollar wipeout. black swan a

microsoft has been dead money for 11 months.t is going to be able to seize on the same old theme on ai. finally the jobs number, i do think the market craves confirmation that the jobs market and economy remains in good shape. we don't want bad news to bring in more fed easing. i think those two things will probably help fill in some of the blanks this week. >> mike santoli, thank you. appreciate it. >>> joining us right now for more on the markets as we get ready to kick off the first full week of trading in 2025 is dan niles from niles investment managing, he is the founder there. dan, what do you think about what mike santoli was just laying out, this idea about levels that need to be tested, things we're going to be pushing on? how are you feeling about the year? >> i think q1 earnings and guidance is going to be key to this because you've got a lot of things that need to get taken into account. the first big one honestly is at the end of q3 the u.s. dollar was at 1.01, it ended the year at 1.08. so you have a 7% move in tha

microsoft will spend $80 billion this year.o, the landscape is big the opportunities are sizeable >> you said there could also be scope to increase that investment if market conditions allow? how much would you eventually like to invest in the u.s. if the opportunity comes up >> well, i mean, the sky's the limit. we can risk more as much as the market takes the limitation is endless. we can use the financial resources. second phase, we can take third-party money and the platform can grow to the next level. >> you have a more than decade long friendship and business partnership with the president-elect. it is something you and i have spoken about several times in the past, but take me inside the room at mar-a-lago when you first told the president-elect that you would like to make this investment into the united states and, of course, at a time when he is resuming the presidency how did he react >> as you appreciate, he is very pro-business he liked to encourage businessmen to come to the u.s he likes his country to be open for

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