1 00:00:00,960 --> 00:00:04,557 Bring in show music, please. 2 00:00:04,640 --> 00:00:07,117 >> Hi, I'm CNBC producer Katie Kramer. 3 00:00:07,200 --> 00:00:11,197 Today on Squawk Pod, Palunteer CEO Alex 4 00:00:11,280 --> 00:00:13,997 Karp, a big interview that starts with a 5 00:00:14,080 --> 00:00:16,477 new partnership with chipmaker Nvidia. 6 00:00:16,560 --> 00:00:20,077 What aligns me with Nvidia and I think 7 00:00:20,160 --> 00:00:24,397 is what the c [music] technical customers want which is control over 8 00:00:24,480 --> 00:00:28,477 their compute, their models, their data stack and their alpha 9 00:00:28,560 --> 00:00:33,117 >> and spans to everything else he's fired up about in artificial intelligence and 10 00:00:33,200 --> 00:00:36,317 national security. >> Are we really going to outsource the 11 00:00:36,400 --> 00:00:38,637 battlefield of this country to the 12 00:00:38,720 --> 00:00:40,527 consensus view in Silicon Valley? 13 00:00:40,610 --> 00:00:43,757 [music] That is effing insane. 14 00:00:43,840 --> 00:00:47,997 Then what happens when two daughters of Congress forge a friendship across the 15 00:00:48,080 --> 00:00:52,237 aisle? New children's book authors, Ellie Godheimer of New Jersey. Just our 16 00:00:52,320 --> 00:00:53,677 dads [music] have always been friends. 17 00:00:53,760 --> 00:00:57,597 Forced Sarwell to go to a bipartisan workout group most mornings when we're 18 00:00:57,680 --> 00:01:01,197 in Washington DC. [music] So we've kind of trauma bonded over that a little bit. 19 00:01:01,280 --> 00:01:04,717 >> And Laura Mullen, daughter of the Homeland Security Secretary Mark Wayne 20 00:01:04,800 --> 00:01:07,037 Mullen. >> It was definitely very different than 21 00:01:07,120 --> 00:01:09,837 what you'd say [music] the normal childhood. A couple times I felt like 22 00:01:09,920 --> 00:01:14,077 Hannah Montana. Plus a mountain of disclosures about the 23 00:01:14,160 --> 00:01:17,757 president's finances. >> Ethics watchd dogss obviously are going 24 00:01:17,840 --> 00:01:20,397 to be all over this. >> Should a sitting president be allowed to 25 00:01:20,480 --> 00:01:22,557 trade [music] stocks on a regular basis? 26 00:01:22,640 --> 00:01:25,757 Should a congressman >> showing more than half a billion dollars 27 00:01:25,840 --> 00:01:28,877 in crypto income and raising some questions. 28 00:01:28,960 --> 00:01:31,277 >> We've created a system that at the 29 00:01:31,360 --> 00:01:34,397 minimum allows for the perception of 30 00:01:34,480 --> 00:01:36,637 effectively bribery. 31 00:01:36,720 --> 00:01:40,477 >> It is Wednesday, July 1st, 2026. Squawk 32 00:01:40,560 --> 00:01:42,717 Pod begins right now. 33 00:01:42,800 --> 00:01:47,757 >> Stand back by in three, two, one. Cue up please. 34 00:01:47,840 --> 00:01:52,077 >> Good morning everybody. Welcome to Squawkbox right here on CNBC. We are 35 00:01:52,160 --> 00:01:56,077 live from the NASDAQ market site in Time Square. I'm Becky Quick along with Joe 36 00:01:56,160 --> 00:02:00,397 Kernin and Andrew Ross Sorcin. And here we are, first day of the second half, 37 00:02:00,480 --> 00:02:04,317 first day of the third quarter. What a first half it was for the year. At the 38 00:02:04,400 --> 00:02:09,357 halfway mark for 2026, the Russell 2000 is the standout performer for that first 39 00:02:09,440 --> 00:02:13,757 half. If year- to- date, it is up by nearly 22%. It closed yesterday's 40 00:02:13,840 --> 00:02:16,157 session at a record high once again 41 00:02:16,240 --> 00:02:19,597 above 3,000. The Nasdaq is up by 12.8% 42 00:02:19,680 --> 00:02:21,357 for the first half of the year. The S&P 43 00:02:21,440 --> 00:02:24,397 500 is up by 9.5% and the Dow is up by 44 00:02:24,480 --> 00:02:26,877 nearly 9% closing out its best first 45 00:02:26,960 --> 00:02:31,437 half performance since 2021. But if you were looking just at the second quarter, 46 00:02:31,520 --> 00:02:35,357 that's where there were some really phenomenal performances. Uh particularly 47 00:02:35,440 --> 00:02:39,917 if you were looking at technology stocks, the NASDAQ up by about 21 a.5%, 48 00:02:40,000 --> 00:02:42,317 but the NASDAQ 100, the largest 49 00:02:42,400 --> 00:02:46,397 technology companies up by 27 a.5% for 50 00:02:46,480 --> 00:02:50,397 the quarter. It's unbelievable to kind of watch. We know about the Magnificent 51 00:02:50,480 --> 00:02:53,277 7 and the performance that they've been putting in. But if you haven't been 52 00:02:53,360 --> 00:02:57,517 watching the parabolic seven stocks, that was what really took off, not just 53 00:02:57,600 --> 00:03:01,037 throughout the entire quarter, but even yesterday. All of those stocks up by 54 00:03:01,120 --> 00:03:03,917 about 6 to 12%. These are the stocks 55 00:03:04,000 --> 00:03:08,237 that you're watching. AMD, Dell, Broadcom, Intel. Flip that over. You're 56 00:03:08,320 --> 00:03:13,277 also going to be looking at Micron, Marll, SanDisk. Those seven stocks at 57 00:03:13,360 --> 00:03:17,437 this point with the gains that they saw yesterday are actually exceeding the 58 00:03:17,520 --> 00:03:19,437 MAG7's multiples for the first time 59 00:03:19,520 --> 00:03:22,317 ever. AI's winning and and the war and 60 00:03:22,400 --> 00:03:27,197 and high oil prices losing. That's the only thing I can say. I don't I don't 61 00:03:27,280 --> 00:03:31,277 know how you explain it. How long's the war almost covered the entire quarter? 62 00:03:31,360 --> 00:03:33,997 Didn't not quite but it happened right. 63 00:03:34,080 --> 00:03:37,037 >> So all this is happening with that as the backdrop and with what did oil 64 00:03:37,120 --> 00:03:41,357 prices average? They came down recently, but they had to average >> above 90. 65 00:03:41,440 --> 00:03:45,037 >> I was going to say I was going to say high 80s 90 95. 66 00:03:45,120 --> 00:03:49,837 >> So go figure. Is it got to be got to be what happened with Yeah, it's got to be 67 00:03:49,920 --> 00:03:52,717 got to be. >> Yeah. Well, and that parabolic seven, I 68 00:03:52,800 --> 00:03:56,157 mean, they they have just taken off. It was the Mag Seven that were the first 69 00:03:56,240 --> 00:03:58,557 gainers for what was happening with AI. 70 00:03:58,640 --> 00:04:02,237 Now, this is the second iteration of that. And um it's been something. 71 00:04:02,320 --> 00:04:06,637 >> We got a guy coming on in a second who is calling him the lag seven 72 00:04:06,720 --> 00:04:09,437 >> instead of the mag seven. >> We'll see what he means. Parabolic. 73 00:04:09,520 --> 00:04:12,797 >> See what he means by that. They haven't done quite as well, but we'll see what 74 00:04:12,880 --> 00:04:17,197 he means. >> Look at look at those gains. Micron up 202%, SanDisk up 24. 75 00:04:17,280 --> 00:04:21,677 >> Not lagging yet. Maybe in in recent uh >> just in the last quarter perhaps. Um if 76 00:04:21,760 --> 00:04:24,157 you look at Treasury yields this morning, because remember we do get that 77 00:04:24,240 --> 00:04:27,917 big jobs report tomorrow, a day early because of the July 4th holiday on 78 00:04:28,000 --> 00:04:29,837 Friday. You'll see right now the 10-year 79 00:04:29,920 --> 00:04:35,197 is yielding 446. The 2-year is at 417. 80 00:04:35,280 --> 00:04:37,197 Anthropic now saying the US Commerce 81 00:04:37,280 --> 00:04:39,437 Department has lifted export controls on 82 00:04:39,520 --> 00:04:43,117 its Clawude Fable 5 and Mythos 5 models. 83 00:04:43,200 --> 00:04:47,117 uh it had disabled access to those models in mid June to comply with the 84 00:04:47,200 --> 00:04:49,917 government's national security restrictions. Anthropic said that Fibble 85 00:04:50,000 --> 00:04:52,397 5 will be available to global users on 86 00:04:52,480 --> 00:04:54,957 the cloud platform beginning today and 87 00:04:55,040 --> 00:04:59,597 it says it has restored access to Mythos 5 for some US organizations to continue 88 00:04:59,680 --> 00:05:03,357 to work with the US government to expand access for more domestic and 89 00:05:03,440 --> 00:05:08,397 international partners and that's a big move in terms of uh the next stage of 90 00:05:08,480 --> 00:05:11,437 all this. Having said that, we talked on Monday just about how there was this new 91 00:05:11,520 --> 00:05:16,157 Chinese model which apparently is as good if not better uh than the fable and 92 00:05:16,240 --> 00:05:20,077 mythos model. And so there's >> at some >> we've heard that we've heard that before 93 00:05:20,160 --> 00:05:22,797 you know at certain things. Yeah. Yeah. 94 00:05:22,880 --> 00:05:26,717 I read it and it said it it very specific, right? Do you know you know 95 00:05:26,800 --> 00:05:29,757 that all this stuff uh much better than I do. But 96 00:05:29,840 --> 00:05:32,877 >> I've been, by the way, trying to see even as I'm looking I was trying to see 97 00:05:32,960 --> 00:05:36,397 whether I could get back on Fable right now, but I can't yet. Says it's still 98 00:05:36,480 --> 00:05:38,477 disabled on me. I saw it ask me. It 99 00:05:38,560 --> 00:05:43,437 asked me whether I wanted it the other day. My friend called, but uh then it 100 00:05:43,520 --> 00:05:47,197 said it wasn't available. >> It's not I mean I mine still says 101 00:05:47,280 --> 00:05:49,517 currently unavailable, >> but I had a choice of like three other 102 00:05:49,600 --> 00:05:53,357 things that I didn't know if I wanted any of those. I >> the other models. 103 00:05:53,440 --> 00:05:55,037 >> Yeah, you weren't reachable. No, I think 104 00:05:55,120 --> 00:05:57,037 they want money for some of them, don't they? 105 00:05:57,120 --> 00:05:59,037 >> Oh, I'm pay I'm a paying customer. So, yes, 106 00:05:59,120 --> 00:06:03,757 >> I know you are. I know you are. You're going to end up having to need one of 107 00:06:03,840 --> 00:06:07,277 those programs that looks at everything that you've paid for. You know what I 108 00:06:07,360 --> 00:06:09,757 mean? Saw something the other day. I wanted to read an article and it says 109 00:06:09,840 --> 00:06:14,077 you can get >> um 14 days free. And I was like, "Okay, 110 00:06:14,160 --> 00:06:17,357 so I can see the article, but then it said >> it automatically charges. You have to 111 00:06:17,440 --> 00:06:20,237 put your credit in ahead of your credit card ahead of time." The only thing that 112 00:06:20,320 --> 00:06:24,077 ever saves me is that my credit card every once in a while either I lose it 113 00:06:24,160 --> 00:06:28,157 or it gets stolen and then I cancel it and then all of the subscriptions have 114 00:06:28,240 --> 00:06:32,557 to track me down to say, "Give me the new credit card." And I think to do cancel it. 115 00:06:32,640 --> 00:06:35,997 >> All right. Separately, Anthropic is starting an internal drug discovery 116 00:06:36,080 --> 00:06:40,237 program as part of an effort to develop AI tools for drug makers. The company's 117 00:06:40,320 --> 00:06:43,117 head of life sciences said yesterday that the company will focus on 118 00:06:43,200 --> 00:06:46,717 discovering treatments for what they call neglected diseases that would be 119 00:06:46,800 --> 00:06:50,477 considered attractive targets for traditional pharma companies. A 120 00:06:50,560 --> 00:06:52,317 spokesperson told CNBC that the effort 121 00:06:52,400 --> 00:06:54,157 was just beginning, that they would 122 00:06:54,240 --> 00:06:58,397 share more as their work progresses. 123 00:06:58,480 --> 00:07:02,077 Shares of Nike uh falling to levels that 124 00:07:02,160 --> 00:07:06,237 uh we haven't really seen much recently from this company. It was a high flyer 125 00:07:06,320 --> 00:07:08,157 company reporting adjusted earnings of 126 00:07:08,240 --> 00:07:12,077 20 cents uh a share beating estimates 39 127 00:07:12,160 --> 00:07:15,597 of 13 cents. That adjusted number does 128 00:07:15,680 --> 00:07:18,077 uh not include 52 cents a share of 129 00:07:18,160 --> 00:07:22,797 tariff related uh gains, refund related gains. Analysts didn't include that in 130 00:07:22,880 --> 00:07:26,637 their estimates. The company said it collected more than $300 million in 131 00:07:26,720 --> 00:07:29,677 tariff refunds, revenue of about 11 132 00:07:29,760 --> 00:07:32,797 billion, topped estimates of 10.9 133 00:07:32,880 --> 00:07:35,357 billion, and North American sales of 134 00:07:35,440 --> 00:07:38,317 $4.8 billion. That was uh apparently 135 00:07:38,400 --> 00:07:43,357 below expectations. Um, China sales dropped 12% but still 136 00:07:43,440 --> 00:07:47,917 topped analyst estimates as for guidance. Nike expects earnings for to 137 00:07:48,000 --> 00:07:49,997 be flattish for the next two quarters. 138 00:07:50,080 --> 00:07:52,157 I'm doing all this trying to see if this 139 00:07:52,240 --> 00:07:55,677 is uh Yeah, it's a new low. Uh and we 140 00:07:55,760 --> 00:08:00,157 have to go all the way back to God, >> it's down sharply this 141 00:08:00,240 --> 00:08:02,397 >> probably like an 8 year low last year, >> isn't it? 142 00:08:02,480 --> 00:08:05,437 >> Yeah, it's down sharply just this last year too if you're watching. 143 00:08:05,520 --> 00:08:08,637 >> But look at the high. >> I don't know what the high looks like it 144 00:08:08,720 --> 00:08:11,437 got us somewhere around 150 >> 50 or 60. 145 00:08:11,520 --> 00:08:15,517 >> Yeah. In the market cap now for the >> Dow Dow component. 146 00:08:15,600 --> 00:08:17,197 >> I was thinking about that this morning. 147 00:08:17,280 --> 00:08:22,077 um it's going to be like under like around 45 billion and at one point it 148 00:08:22,160 --> 00:08:25,597 had to be well over 100. >> Three years down 64%. I mean they 149 00:08:25,680 --> 00:08:27,517 they've just said that their customers around the globe are 150 00:08:27,600 --> 00:08:31,037 >> they lo when they when you lose Sorcin you lose Have you bought any Nike 151 00:08:31,120 --> 00:08:33,037 sneakers? When's the last time you bought some Nike sneakers? 152 00:08:33,120 --> 00:08:34,957 >> I haven't bought any Nike sneakers in a while. 153 00:08:35,040 --> 00:08:39,837 >> I'm rooting for them. I I mean I love Nike more than anything. And that ad, I 154 00:08:39,920 --> 00:08:43,677 don't know if you remember that ad um right after the Knicks won [snorts] was 155 00:08:43,760 --> 00:08:48,477 one of the great sports ads >> in someone who doesn't watch, you see it 156 00:08:48,560 --> 00:08:52,397 online. You don't see it on TV cuz you've been see any of these ads cuz you 157 00:08:52,480 --> 00:08:56,077 saw some other ad you really like too for uh >> Oh, for Poly Market. 158 00:08:56,160 --> 00:08:58,317 >> Yeah. Where are you seeing these online? 159 00:08:58,400 --> 00:09:00,877 >> Well, that one I saw. No, the that one I saw. 160 00:09:00,960 --> 00:09:03,357 >> You're not watching TV. >> It was I do watch I was watching the the 161 00:09:03,440 --> 00:09:06,397 the game at the time. >> How many times can you watch Billions? I 162 00:09:06,480 --> 00:09:09,597 I don't understand it. Don't you know every line that's that's coming? I mean, 163 00:09:09,680 --> 00:09:11,757 and there's no commercial. >> I'm watching other things. 164 00:09:11,840 --> 00:09:14,157 >> Really? >> Yes. I'm watching. 165 00:09:14,240 --> 00:09:18,317 >> But anyway, let's root for Nike because they need to get back. What do we have to 166 00:09:18,400 --> 00:09:19,677 >> You don't have to root for Nike. 167 00:09:19,760 --> 00:09:22,237 >> And you know, I'm not I'm rooing against 168 00:09:22,320 --> 00:09:24,957 I don't have to like so many things. 169 00:09:25,040 --> 00:09:27,437 I've been rooting against I have not 170 00:09:27,520 --> 00:09:30,317 bought a Nike product in years. I won't. 171 00:09:30,400 --> 00:09:35,357 Still mad about those the cops that were like pigs on those socks. I'm still mad 172 00:09:35,440 --> 00:09:38,877 about that. Still mad about that. I'm sorry. Mad about kneeling. Mad about all 173 00:09:38,960 --> 00:09:42,157 that. >> Um, 174 00:09:42,240 --> 00:09:46,557 young man. [laughter] >> I'm I don't like that cloud. I'm 175 00:09:46,640 --> 00:09:49,277 shaking. >> Okay. Well, tell me what you [laughter] 176 00:09:49,360 --> 00:09:52,157 >> tell me what you think about this next story because there are people 177 00:09:52,240 --> 00:09:53,117 >> I need to know what you think. 178 00:09:53,200 --> 00:09:56,717 >> There are people who are who are making that that who are doing that about where 179 00:09:56,800 --> 00:10:00,237 I'm going. >> You have to tell me what how to think because I don't know. I I 180 00:10:00,320 --> 00:10:03,917 >> that's what I I've thought about this and my answer is 181 00:10:04,000 --> 00:10:07,277 >> there's a lot of Okay, I will but there's a lot of questions. I don't have 182 00:10:07,360 --> 00:10:10,317 the answers. You need to tell me how to think about this. 183 00:10:10,400 --> 00:10:11,677 >> Okay, tell the story first. 184 00:10:11,760 --> 00:10:15,837 >> So, no, here's the story. The Office of the Government Ethics released President 185 00:10:15,920 --> 00:10:17,677 Trump's annual financial disclosure 186 00:10:17,760 --> 00:10:19,597 report yesterday. It revealed that the 187 00:10:19,680 --> 00:10:22,877 president pulled in at least $2 billion 188 00:10:22,960 --> 00:10:26,317 in 2025. of his crypto-related income in 189 00:10:26,400 --> 00:10:29,917 2025 included about $515 million from 190 00:10:30,000 --> 00:10:32,237 the sale of tokens uh from the World 191 00:10:32,320 --> 00:10:34,157 Liberty from World Liberty Financial and 192 00:10:34,240 --> 00:10:37,197 another 65 million from sales of equity 193 00:10:37,280 --> 00:10:39,677 in World Liberty's holding company. He 194 00:10:39,760 --> 00:10:43,277 also received $635 million in royalties 195 00:10:43,360 --> 00:10:47,597 from Celebration Coins. It wasn't immediately clear what those coins are, 196 00:10:47,680 --> 00:10:51,597 though Bloomberg is reporting that the royalties are related to Mr. Trump's 197 00:10:51,680 --> 00:10:53,837 memecoin business. Now, he earned more 198 00:10:53,920 --> 00:10:56,877 than $86 million in legal settlements as 199 00:10:56,960 --> 00:10:59,117 well. Those included the $24.5 million 200 00:10:59,200 --> 00:11:02,237 from Meta, $16 million a piece from 201 00:11:02,320 --> 00:11:04,477 Paramount and Disney. And President 202 00:11:04,560 --> 00:11:07,117 Trump's biggest stock holdings include 203 00:11:07,200 --> 00:11:11,437 Amazon, Meta, Nvidia, and Tesla. 204 00:11:11,520 --> 00:11:16,157 >> Right. Okay. >> So, lots of questions. Tell tell me what 205 00:11:16,240 --> 00:11:19,597 the answers are to the questions because we don't have answers to the questions, 206 00:11:19,680 --> 00:11:21,597 right? I I will tell you I'll tell you 207 00:11:21,680 --> 00:11:25,757 one other thing. He made uh 4.7 million 208 00:11:25,840 --> 00:11:28,717 from I almost contributed to that uh 209 00:11:28,800 --> 00:11:31,517 Trump watches. Okay. Trump branded 210 00:11:31,600 --> 00:11:33,437 watches. I was going to buy you one. I 211 00:11:33,520 --> 00:11:35,757 can't remember which one. Mag me, you 212 00:11:35,840 --> 00:11:39,277 know, as a so 213 00:11:39,360 --> 00:11:42,557 this is I say this a lot and and as his 214 00:11:42,640 --> 00:11:47,277 other you know people say this is how Trump rolls and it is how President 215 00:11:47,360 --> 00:11:51,037 Trump roll. He's selling watches. He's selling Trump brand watches while he's 216 00:11:51,120 --> 00:11:55,197 president. >> I think that's different than some of the >> well 217 00:11:55,280 --> 00:11:57,037 Bitcoin and other issues that his 218 00:11:57,120 --> 00:11:59,197 administration is having an impact. 219 00:11:59,280 --> 00:12:03,037 >> You have to and ethics watchd dogs 220 00:12:03,120 --> 00:12:04,557 obviously are going to be all over this. 221 00:12:04,640 --> 00:12:06,877 Democrats if if Democrats retake the 222 00:12:06,960 --> 00:12:11,917 House going to be all over looking at this. The the people in charge of some 223 00:12:12,000 --> 00:12:13,837 watchdog groups are saying there needs 224 00:12:13,920 --> 00:12:17,917 to be reform across the board in in the 225 00:12:18,000 --> 00:12:19,917 president be allowed to trade uh stocks 226 00:12:20,000 --> 00:12:21,997 on a regular basis. That's the 227 00:12:22,080 --> 00:12:25,117 discretionary. His is supposed that they 228 00:12:25,200 --> 00:12:27,837 emphasize that that's discretionary. 229 00:12:27,920 --> 00:12:32,717 >> The journal points out he he has a vast and sunundry business that Donald Trump 230 00:12:32,800 --> 00:12:36,317 does. There's there's no doubt about his sons are running it. They're not stupid, 231 00:12:36,400 --> 00:12:38,717 I don't think. and 232 00:12:38,800 --> 00:12:41,917 to go from making investments to being 233 00:12:42,000 --> 00:12:44,877 able to prove that there was quid proquo 234 00:12:44,960 --> 00:12:50,797 or influence pedalling or whether people just think if I do this I'm going to be 235 00:12:50,880 --> 00:12:52,957 in >> but is barisma the same thing with Biden 236 00:12:53,040 --> 00:12:54,957 >> that's what I mean 237 00:12:55,040 --> 00:12:59,117 and okay how about this question 238 00:12:59,200 --> 00:13:01,997 if he was not president 239 00:13:02,080 --> 00:13:04,797 would his businesses have gone up more 240 00:13:04,880 --> 00:13:07,757 or less than than what happening. 241 00:13:07,840 --> 00:13:10,637 >> Well, you tell me. Do you >> I don't know. These are my questions. 242 00:13:10,720 --> 00:13:13,357 That's why I'm asking you for the answers. 243 00:13:13,440 --> 00:13:17,597 >> So, let's start on the world uh liberty business. 244 00:13:17,680 --> 00:13:21,117 >> Yeah, because that was 15 billion, it's now 400 million or something or one of 245 00:13:21,200 --> 00:13:22,957 them. >> Okay. So, that business wouldn't I don't 246 00:13:23,040 --> 00:13:26,077 think first of all crypto regulations would have been different probably under 247 00:13:26,160 --> 00:13:30,157 a different president. The So, the opportunity for all those crypto would 248 00:13:30,240 --> 00:13:35,517 be different. Does that mean that they should not have tried to make the the the 249 00:13:35,600 --> 00:13:36,717 >> No, it's just can you benefit? 250 00:13:36,800 --> 00:13:38,797 >> The spokesperson says that the president 251 00:13:38,880 --> 00:13:42,477 has made crypto or made the United States the leading 252 00:13:42,560 --> 00:13:44,477 >> country. I understand that. I'm I'm just 253 00:13:44,560 --> 00:13:47,517 all I'm look the thing that I care about 254 00:13:47,600 --> 00:13:50,717 as an American is I would love for for 255 00:13:50,800 --> 00:13:54,797 all of this to just be no money involved with anything so you are not raising 256 00:13:54,880 --> 00:13:58,157 these questions because invariably what happens is you sit here and you say to 257 00:13:58,240 --> 00:14:01,037 yourself, are certain people making decisions for a reason? And by the way, 258 00:14:01,120 --> 00:14:06,237 it may not be that the president is making uh specific decisions to enrich 259 00:14:06,320 --> 00:14:09,037 himself, but it may be that there are other people who think that they can 260 00:14:09,120 --> 00:14:10,797 influence him. Maybe they're influencing 261 00:14:10,880 --> 00:14:13,437 him and maybe they're not. But either 262 00:14:13,520 --> 00:14:16,797 way, you then it it we sit here and we 263 00:14:16,880 --> 00:14:18,557 have to say to ourselves, what's going 264 00:14:18,640 --> 00:14:20,637 on? The UAE 265 00:14:20,720 --> 00:14:23,997 made a massive investment in world 266 00:14:24,080 --> 00:14:28,237 liberty. Would would would the UA you just said, what would have happened if 267 00:14:28,320 --> 00:14:33,197 he wasn't the president? Would the UAE have made an a massive investment uh in 268 00:14:33,280 --> 00:14:36,637 Liberty Financial? >> You have question. That's what I said. 269 00:14:36,720 --> 00:14:39,597 Questions, but no. You know what is good that there is all this disclosure? 270 00:14:39,680 --> 00:14:42,317 >> Sure. >> Amazing. >> Disclosure is good. I I think it it it 271 00:14:42,400 --> 00:14:44,797 kind of raises the question though. I think of it more of like when you were 272 00:14:44,880 --> 00:14:49,037 allowing the railroad to expand, if you had known about that, if you were going 273 00:14:49,120 --> 00:14:51,917 to make some of those changes in advance and you could buy the land along the 274 00:14:52,000 --> 00:14:54,397 way, right, >> before anybody else knew about those 275 00:14:54,480 --> 00:14:58,237 things. I I don't know. I I don't know exactly how this worked out, but those 276 00:14:58,320 --> 00:15:02,317 those are the types of questions if you have regulatory control and you also 277 00:15:02,400 --> 00:15:04,557 have the [clears throat] first mover advantage of knowing. 278 00:15:04,640 --> 00:15:06,637 >> Look, I think that I've I've I've spoken 279 00:15:06,720 --> 00:15:11,037 about very on the show with you about Nancy Pelosi and the trades and how I 280 00:15:11,120 --> 00:15:13,437 would tell you that that is I think I've 281 00:15:13,520 --> 00:15:15,597 used the word shameful. So, if you if I 282 00:15:15,680 --> 00:15:19,517 can say that about trading, 283 00:15:19,600 --> 00:15:24,237 >> what would you say about this? I don't I I'm just I'm I'm asking. That's why I 284 00:15:24,320 --> 00:15:28,557 told you that you need to tell me how to think about it because I I don't I have 285 00:15:28,640 --> 00:15:30,557 questions but I don't have answers. 286 00:15:30,640 --> 00:15:32,637 Here's >> I think the answer ultimately is that we 287 00:15:32,720 --> 00:15:35,037 have to find a way to make it such that 288 00:15:35,120 --> 00:15:39,357 our politics are somewhat immune from 289 00:15:39,440 --> 00:15:42,637 money and we've created a system that at 290 00:15:42,720 --> 00:15:46,397 the minimum allows for the perception of 291 00:15:46,480 --> 00:15:50,317 effectively bribery. That's >> what's what what what is al it's 292 00:15:50,400 --> 00:15:53,357 unprecedented. There's no doubt. What's also unprecedented, you know, I had a 293 00:15:53,440 --> 00:15:56,877 guy take office that was worth billions and billions of dollars that has a bit 294 00:15:56,960 --> 00:15:59,997 that had a business a successful business with golf courses and all this 295 00:16:00,080 --> 00:16:01,757 crap all around the world. And that's 296 00:16:01,840 --> 00:16:04,397 not going to go away either. So I I 297 00:16:04,480 --> 00:16:07,197 think the question of whether 298 00:16:07,280 --> 00:16:11,917 I mean I think definitely after his first term that that hurt his businesses 299 00:16:12,000 --> 00:16:15,437 it hurt his brand it hurt and then all the litigation and everything that came 300 00:16:15,520 --> 00:16:19,357 from and the other thing Andrew January >> if there okay there's smoke all right 301 00:16:19,440 --> 00:16:22,157 and there's whether there's fire I would 302 00:16:22,240 --> 00:16:26,877 think that there would be a zealous pursuit of any of the things that you're 303 00:16:26,960 --> 00:16:30,877 talking about especially if if Democrat >> well we also have an amalments clause I 304 00:16:30,960 --> 00:16:34,797 mean there are laws and rules rules that are supposed to prevent these. 305 00:16:34,880 --> 00:16:36,157 >> It's impossible to make these sticks. 306 00:16:36,240 --> 00:16:40,237 Someone's going to do it with this guy because he's got so many enemies. 307 00:16:40,320 --> 00:16:45,117 >> I I I wonder whether the rules have to be not just enforced, but are going to 308 00:16:45,200 --> 00:16:47,197 ultimately have to be changed, >> right? 309 00:16:47,280 --> 00:16:49,437 >> And the question is, is there going to be an appetite for that? 310 00:16:49,520 --> 00:16:53,357 >> That's what that's what the ethics guy said that we got to we got to look at 311 00:16:53,440 --> 00:16:58,317 the way everything is right now and we got to like make sure that all these loop. 312 00:16:58,400 --> 00:17:00,797 >> Well, look, we've had basic conversations. is it goes back to the 313 00:17:00,880 --> 00:17:05,357 the the trading story and we've not, you know, here we are sitting around saying 314 00:17:05,440 --> 00:17:07,117 that we're not investing in, you know, 315 00:17:07,200 --> 00:17:09,917 doing what we do or the folks at the SEC 316 00:17:10,000 --> 00:17:13,517 uh don't don't uh invest in stocks. 317 00:17:13,600 --> 00:17:17,597 >> I bought like a couple of Bitcoin seven years ago and you're still telling me 318 00:17:17,680 --> 00:17:22,477 that that my opinion is based on me buying that and it isn't. I mean, 319 00:17:22,560 --> 00:17:26,877 >> look, the the the point is >> I s actually I didn't say that. I sold 320 00:17:26,960 --> 00:17:29,197 90% of it below where it is now. 321 00:17:29,280 --> 00:17:33,917 >> Okay. The point is that most people at companies around the country have very 322 00:17:34,000 --> 00:17:37,277 significant restrictions on what they're able to do. If you are the CEO of 323 00:17:37,360 --> 00:17:40,557 Goldman Sachs or JP Morgan, you're limited about what you're able to do. If 324 00:17:40,640 --> 00:17:45,517 you we have lots of restrictions in most of corporate America, frankly, and lots 325 00:17:45,600 --> 00:17:49,677 of parts of the regulatory world as well. And yet, for whatever reason, you 326 00:17:49,760 --> 00:17:51,037 we're saying in the White House is different. 327 00:17:51,120 --> 00:17:54,477 >> Are you up to speed on the Ro Kana stuff? I've been seeing this stuff on on 328 00:17:54,560 --> 00:17:56,717 Twitter. I mean, he's How much is he worth? 329 00:17:56,800 --> 00:17:59,437 >> He's worth an extraordinary amount of money. I mean, it's through his his 330 00:17:59,520 --> 00:18:01,757 wife's family, but >> a lot of trading, too. 331 00:18:01,840 --> 00:18:04,957 >> But there's a lot of trading. And the question is, how how how would you like 332 00:18:05,040 --> 00:18:07,037 to limit that? I And by the way, I think 333 00:18:07,120 --> 00:18:11,997 we should try to try to limit those things or at least create systems that 334 00:18:12,080 --> 00:18:15,597 make you feel better about how how those things work. I don't, by the way, we 335 00:18:15,680 --> 00:18:20,077 should have people who have wealth uh in in Washington. 336 00:18:20,160 --> 00:18:22,157 >> Exactly. Because you don't want people who are completely unsophisticated. 337 00:18:22,240 --> 00:18:25,277 >> I'm not suggesting that we don't want that. I'm just suggesting that there are 338 00:18:25,360 --> 00:18:27,357 rules. By the way, when Jake Clayton 339 00:18:27,440 --> 00:18:30,797 went to the SEC, you know, his uh his 340 00:18:30,880 --> 00:18:34,957 his wife had worked at Goldman Sachs, stopped working at Goldman Sachs. I 341 00:18:35,040 --> 00:18:37,917 mean, I'm just saying >> cheese will be next. 342 00:18:38,000 --> 00:18:40,397 >> Coming up on Squawk Pod, Palunteer is 343 00:18:40,480 --> 00:18:43,357 teaming up with Nvidia and Palunteer CEO 344 00:18:43,440 --> 00:18:48,077 Alex Karp is fired up about the way technology works right here at home. 345 00:18:48,160 --> 00:18:50,317 >> You sound pretty angry. [music] No, the 346 00:18:50,400 --> 00:18:53,737 this is the voice of American business 347 00:18:53,820 --> 00:18:58,077 [music] that is being channeled through me. And I'm telling you, it is it is 348 00:18:58,160 --> 00:19:00,077 absolutely a problem for this country. 349 00:19:00,160 --> 00:19:04,217 >> It's the type of conversation you'll only hear on Squawkbox and the kind of 350 00:19:04,300 --> 00:19:06,637 [music] passion you'll only hear from Alex Karp. 351 00:19:06,720 --> 00:19:09,117 >> And I'll tell you, uh, we're off camera now. 352 00:19:09,200 --> 00:19:15,000 >> We're still going. >> Stay with us through this quick break. 353 00:19:18,160 --> 00:19:21,117 This is Squawk Pod from CNBC. Here's 354 00:19:21,200 --> 00:19:25,117 Andrew Ross Sorcin. >> Palanteer expanding its partnership with 355 00:19:25,200 --> 00:19:29,757 Nvidia to build custom AI systems for the US government. That stock uh 356 00:19:29,840 --> 00:19:34,637 shooting up. It's up again this morning, up almost 6% uh this week. And joining 357 00:19:34,720 --> 00:19:37,997 us right now exclusively at the table, Alex Car, Palanteer's co-founder and CEO 358 00:19:38,080 --> 00:19:41,277 and CNBC's Simodi, who covers Palunteer 359 00:19:41,360 --> 00:19:46,157 uh joins us. and uh tell us about tell us about the deal with inv there's so 360 00:19:46,240 --> 00:19:49,357 many things I think we all want to talk about but but let's get to the Nvidia 361 00:19:49,440 --> 00:19:51,597 deal first >> because because I have so much respect 362 00:19:51,680 --> 00:19:53,757 for Nvidia and Jensen Wong I'm going to 363 00:19:53,840 --> 00:19:58,797 try to keep this more adult than I usually do but the truth is if you want 364 00:19:58,880 --> 00:20:03,037 to know how this came together from my perspective it was uh it there's there a 365 00:20:03,120 --> 00:20:06,157 lot of technical issues who controls the models who controls the weights who 366 00:20:06,240 --> 00:20:08,717 controls the value of your business um 367 00:20:08,800 --> 00:20:13,277 but um you know we're on we're we're sitting on critical infrastructure 368 00:20:13,360 --> 00:20:15,597 across America, Ukraine, Israel. 369 00:20:15,680 --> 00:20:17,437 Everyone who uses LLMs on the 370 00:20:17,520 --> 00:20:19,917 battlefield runs on top of our ontology. 371 00:20:20,000 --> 00:20:23,677 Um, and our clients are just to say 372 00:20:23,760 --> 00:20:27,677 they're unhappy with the Frontier Labs is to say I'm welcome at the Berkeley 373 00:20:27,760 --> 00:20:30,157 faculty. It's like there's just a level 374 00:20:30,240 --> 00:20:35,517 of discomfort and loss of trust that also made it it really really 375 00:20:35,600 --> 00:20:39,837 >> Okay, unpack that. What do you mean by that? Well, you have Okay. So, when 376 00:20:39,920 --> 00:20:44,477 you're on when you're using large language models, they are it's like a at 377 00:20:44,560 --> 00:20:48,957 this point everyone technical realizes they're like a critical resource to make 378 00:20:49,040 --> 00:20:52,877 them valuable in an enterprise like battlefield context or regulated context 379 00:20:52,960 --> 00:20:56,477 or manufacturing. You have to have what's called an application layer. We 380 00:20:56,560 --> 00:20:59,677 we have this thing called ontology that now everyone's copying. But de facto it 381 00:20:59,760 --> 00:21:01,357 takes a large language model. It makes 382 00:21:01,440 --> 00:21:05,437 it safe and useful and precise. So safe 383 00:21:05,520 --> 00:21:08,797 because it doesn't touch your unluring data. Safe because it prevents the large 384 00:21:08,880 --> 00:21:13,117 language model from caching your data and replicating your business. Uh uh 385 00:21:13,200 --> 00:21:15,517 safe because it doesn't transfer your IP 386 00:21:15,600 --> 00:21:17,917 of how to fight secret data, top secret 387 00:21:18,000 --> 00:21:21,197 data or in in a clinical context. So the 388 00:21:21,280 --> 00:21:23,277 the general way these things were sold 389 00:21:23,360 --> 00:21:25,997 and again these people are I Sam and and 390 00:21:26,080 --> 00:21:30,717 and Daario you there's nothing more fun than debating Daario in private. So this 391 00:21:30,800 --> 00:21:32,797 is I'm not throwing shade at them, but 392 00:21:32,880 --> 00:21:35,277 something has gone completely wrong. And 393 00:21:35,360 --> 00:21:38,397 the basic view among enterprises in this 394 00:21:38,480 --> 00:21:41,677 country is I'm going to chill lax uh and 395 00:21:41,760 --> 00:21:45,437 waste my time with tokens. I'm going to get no value and they're going to get my 396 00:21:45,520 --> 00:21:49,597 IP. >> That sounds like shade though. And not just shade. It sounds like if you're 397 00:21:49,680 --> 00:21:52,077 saying these >> No, no, no, no, this is reporting. 398 00:21:52,160 --> 00:21:54,557 >> Okay. And I this is reporting that I've 399 00:21:54,640 --> 00:21:56,877 I've literally against my own interest 400 00:21:56,960 --> 00:21:59,197 called these like I'm profiting from 401 00:21:59,280 --> 00:22:01,917 this right. So the reality is you may 402 00:22:02,000 --> 00:22:04,637 not like us at my former school Hford or 403 00:22:04,720 --> 00:22:07,197 Berkeley but enterprises in this country 404 00:22:07,280 --> 00:22:09,757 trust and love us especially ones that 405 00:22:09,840 --> 00:22:14,877 are involved in critical infrastructure both public and private. Okay. So I want 406 00:22:14,960 --> 00:22:16,397 for those countries we're coming up to 407 00:22:16,480 --> 00:22:19,197 July 4th. I want those c I want for us 408 00:22:19,280 --> 00:22:24,317 and our our our our our our friends across the globe to have the very best 409 00:22:24,400 --> 00:22:28,077 tech resources. In fact, the whole secret of challenge here is the forward 410 00:22:28,160 --> 00:22:31,757 deployed model, the products that have been five years ahead. You know, you've 411 00:22:31,840 --> 00:22:35,837 been with me for a long time. Everyone everyone everyone said FDEs were 412 00:22:35,920 --> 00:22:38,877 services. They said we don't even know what an ontology is. That's the only 413 00:22:38,960 --> 00:22:40,397 thing people talk about now. It the 414 00:22:40,480 --> 00:22:42,957 secret was we delivered the best things 415 00:22:43,040 --> 00:22:46,717 for the war fighters. Those war fighters 416 00:22:46,800 --> 00:22:51,197 have serious trust issues. But it's not just the word visav frontier labs. Then 417 00:22:51,280 --> 00:22:55,197 you have my enterprises in the private sector who have the same issues. They're 418 00:22:55,280 --> 00:22:59,597 like, why would they get access to my data if they're going to build my alpha? 419 00:22:59,680 --> 00:23:02,637 Why wouldn't I control the weights? Why would And that's where you get this 420 00:23:02,720 --> 00:23:06,077 partnership. What what aligns me with 421 00:23:06,160 --> 00:23:09,277 Nvidia and I think is what the c 422 00:23:09,360 --> 00:23:11,277 technical customers want which is 423 00:23:11,360 --> 00:23:14,557 control over their compute 424 00:23:14,640 --> 00:23:20,157 their models their data stack and their alpha. They want to know they own the 425 00:23:20,240 --> 00:23:22,957 means of production. It's not being transferred to someone else. They're not 426 00:23:23,040 --> 00:23:27,277 interested in some fake deploy code that somehow is deploying tokens that 427 00:23:27,360 --> 00:23:31,677 transfers the alpha to a third party and the jig is up. So we have to figure out 428 00:23:31,760 --> 00:23:34,237 a way both pro both our our products are 429 00:23:34,320 --> 00:23:38,717 agnostic. We we we now sell a product to customers that allows you to switch from 430 00:23:38,800 --> 00:23:42,957 model to model because and we're completely agnostic but we need to 431 00:23:43,040 --> 00:23:47,677 rebuild trust and that trust is going to happen where everyone gets to ask ask 432 00:23:47,760 --> 00:23:52,557 and answer basic questions. Who owns the data? Where is it cached? Are the 433 00:23:52,640 --> 00:23:56,877 prompts secure? Is this being transferred to you? Are you being comp? 434 00:23:56,960 --> 00:24:01,117 Okay, if it was so valuable, let's say I can make you a billion dollars tomorrow, 435 00:24:01,200 --> 00:24:05,437 wouldn't I say, I'll make you a billion dollars and I want 30%. Why are they 436 00:24:05,520 --> 00:24:07,117 charging for tokens if it's so valuable? 437 00:24:07,200 --> 00:24:08,957 >> So then, Alex, if the key from what I'm 438 00:24:09,040 --> 00:24:12,397 hearing you say is a secure Americanborn 439 00:24:12,480 --> 00:24:17,997 open-source model, how quickly can your model compete with the frontier AI 440 00:24:18,080 --> 00:24:20,877 and aentic AI >> test? Okay. what what I am claiming 441 00:24:20,960 --> 00:24:23,357 obviously slightly true but slightly 442 00:24:23,440 --> 00:24:27,197 self-centered is it's the model plus an 443 00:24:27,280 --> 00:24:29,997 application layer plus compute it is 444 00:24:30,080 --> 00:24:33,197 really all three so in our jargon it's 445 00:24:33,280 --> 00:24:37,437 the value the reason okay just look at our financials the reason why everyone 446 00:24:37,520 --> 00:24:39,597 is chillaxing with bad financials and 447 00:24:39,680 --> 00:24:42,237 growth with losing money is the client 448 00:24:42,320 --> 00:24:45,117 refuses to pay the true cost the two 449 00:24:45,200 --> 00:24:49,997 places that actually make money like profit free cash flow are our 450 00:24:50,080 --> 00:24:52,077 application layer called ontology and 451 00:24:52,160 --> 00:24:54,637 compute. Okay, what I am not just 452 00:24:54,720 --> 00:24:59,677 claiming we can take an open model and in the classified or non-classified 453 00:24:59,760 --> 00:25:01,517 context get it to the point of a 454 00:25:01,600 --> 00:25:05,037 frontier model but a you control the 455 00:25:05,120 --> 00:25:08,717 weights. So what is the true cost? Not just what you're paying. The true cost 456 00:25:08,800 --> 00:25:11,917 is not just is what you make minus what 457 00:25:12,000 --> 00:25:16,237 you lose. Meaning the value of your business. But we can get the the 458 00:25:16,320 --> 00:25:21,517 frontier application to be exactly the same as a frontier model without the 459 00:25:21,600 --> 00:25:25,037 risk of transferring the alpha of your business to another. By the way, you 460 00:25:25,120 --> 00:25:29,117 could do this with a frontier closed model too. But then the clients have to 461 00:25:29,200 --> 00:25:32,957 be able to ask and answer very basic questions. Are you keeping the data? Are 462 00:25:33,040 --> 00:25:36,957 you going to enter our business? What do you are in the classified context when 463 00:25:37,040 --> 00:25:41,837 the do department of war goes to you and says I need this application do they get 464 00:25:41,920 --> 00:25:45,437 to control the weights to do it or do you get to control the weights? Are we 465 00:25:45,520 --> 00:25:49,277 really going to outsource the battlefield of this country to the 466 00:25:49,360 --> 00:25:51,997 consensus view in Silicon Valley? That 467 00:25:52,080 --> 00:25:56,957 is effing insane. And by the way, every single enterprise in this country in 468 00:25:57,040 --> 00:26:00,317 private, a lot of them don't want to speak in public because it get out it 469 00:26:00,400 --> 00:26:03,917 gets outsourced to the neurode divergent crazy person that apparently is on 470 00:26:04,000 --> 00:26:07,277 drugs. The one thing I don't do uh it it 471 00:26:07,360 --> 00:26:09,357 okay so that's my role. But I'm telling 472 00:26:09,440 --> 00:26:12,237 you in this country at every single 473 00:26:12,320 --> 00:26:14,797 enterprise I deal with they these people 474 00:26:14,880 --> 00:26:19,277 are livid. They're like I am paying for tokens that create no value. These 475 00:26:19,360 --> 00:26:22,557 people are stealing the weights and alpha of my business and they're 476 00:26:22,640 --> 00:26:26,717 creating a wealth tax that does not help the poor. It just punishes starts with 477 00:26:26,800 --> 00:26:29,677 the billionaires. Every single person at this table is going to be paying a 478 00:26:29,760 --> 00:26:32,237 wealth tax only to punish us. And the 479 00:26:32,320 --> 00:26:34,797 reason for it is because these models 480 00:26:34,880 --> 00:26:39,677 have been completely over irresponsibly overs. And the sale is it's dangerous 481 00:26:39,760 --> 00:26:43,037 for everyone, which is why I can give it to all your adversaries, but I can't 482 00:26:43,120 --> 00:26:46,717 give it to the Department of War or I can't safely give it to an enterprise in 483 00:26:46,800 --> 00:26:50,957 this country without being certain that the alpha of that business could 484 00:26:51,040 --> 00:26:53,757 transfer to this model tomorrow. I.e. I have no business, no job. 485 00:26:53,840 --> 00:26:56,477 >> You sound pretty angry. No, the this is 486 00:26:56,560 --> 00:26:59,997 the voice of American business that is 487 00:27:00,080 --> 00:27:04,477 being channeled through me. And I'm telling you, it is it is absolutely a 488 00:27:04,560 --> 00:27:06,237 problem for this country because we are 489 00:27:06,320 --> 00:27:08,957 on the cutting edge of every single AI 490 00:27:09,040 --> 00:27:11,677 technology. But if you're going to 491 00:27:11,760 --> 00:27:16,477 triply oversell something and the and by the way, the enterprises are just tired 492 00:27:16,560 --> 00:27:19,197 of it. >> But by the way, just a minute. I want 493 00:27:19,280 --> 00:27:23,437 you everybody watching this to test what I'm saying, especially investors who 494 00:27:23,520 --> 00:27:25,677 think somehow this is working. Pick up 495 00:27:25,760 --> 00:27:29,197 the phone and call a CEO in private, not 496 00:27:29,280 --> 00:27:31,197 in public. Every single person here can 497 00:27:31,280 --> 00:27:36,237 do this. Call two or three and say, "Mad Man Karp is on TV saying we're livid." 498 00:27:36,320 --> 00:27:39,117 I'm not going to quote you. You know, I won't quote you. You have a history. And 499 00:27:39,200 --> 00:27:42,157 see, they're twice as liid as me. Like, 500 00:27:42,240 --> 00:27:46,557 >> so if you're right though, does that mean that we are living in some kind of 501 00:27:46,640 --> 00:27:50,077 terrible AI bubble and that we're going to in in a quarter or two or three 502 00:27:50,160 --> 00:27:54,957 quarters from now, we're going to hear that big enterprises are canceling their 503 00:27:55,040 --> 00:27:59,597 subscriptions to these products or that the buildout is going to slow because 504 00:27:59,680 --> 00:28:01,597 >> this is this is the tragedy of it. The 505 00:28:01,680 --> 00:28:06,317 reality of compute plus ontology plus 506 00:28:06,400 --> 00:28:08,797 model changed the is changing the course 507 00:28:08,880 --> 00:28:12,237 of history. it. Ask the Ukrainians, ask 508 00:28:12,320 --> 00:28:15,917 the Israelis, ask our Department of War, ask the enterprise that are working. We 509 00:28:16,000 --> 00:28:18,637 do not have to oversell what we have. We 510 00:28:18,720 --> 00:28:23,037 have and it's all being built in this country basically except for the open 511 00:28:23,120 --> 00:28:26,077 models, which is a real thing coming from China, except for Nvidia open 512 00:28:26,160 --> 00:28:28,557 models, which are world class basically. 513 00:28:28,640 --> 00:28:33,197 Um, that it's all being built here. We do not have to overhype. We do not have 514 00:28:33,280 --> 00:28:36,637 to overhype it to the point where we're going to have wealth tax punishing, 515 00:28:36,720 --> 00:28:39,677 >> right? If if they're charging the enterprise three times as much as they 516 00:28:39,760 --> 00:28:42,397 should be >> and then and then they have to pull back 517 00:28:42,480 --> 00:28:44,637 on that that changes the math of all of this. 518 00:28:44,720 --> 00:28:47,997 >> Who's the they >> like >> they are the the large language models 519 00:28:48,080 --> 00:28:51,037 which by the way impacts your partner Nvidia because they 520 00:28:51,120 --> 00:28:55,117 >> sorry I'm talking about the they the enterprises that power this country as 521 00:28:55,200 --> 00:28:59,277 the most important thing. You're talking about the they as Frontier Labs and 522 00:28:59,360 --> 00:29:03,117 Silicon Valley. That's great. I'm focused on the enterprises of this 523 00:29:03,200 --> 00:29:07,037 country. hyperscalers following this I well you know I it it it depends what 524 00:29:07,120 --> 00:29:10,157 they're selling that's very very downstream from us we're completely 525 00:29:10,240 --> 00:29:12,557 agnostic we prefer a world where there 526 00:29:12,640 --> 00:29:15,037 are more hyperscalers where there's all 527 00:29:15,120 --> 00:29:19,757 sorts of new hyperscalers Elon Nvidia we like that world why do we like the world 528 00:29:19,840 --> 00:29:23,357 the same reason when you go online and there's you know there's 50 times kinds 529 00:29:23,440 --> 00:29:27,277 of coach you get to pick the one you like but what is happening among the 530 00:29:27,360 --> 00:29:29,757 most technical players is they're saying 531 00:29:29,840 --> 00:29:32,717 I want something I own this is my 532 00:29:32,800 --> 00:29:37,277 business. I want to own the GPUs. I want to own my data. I want to own the model. 533 00:29:37,360 --> 00:29:40,717 I want to control the alpha. >> So, is that creating more more 534 00:29:40,800 --> 00:29:43,997 opportunity for Palunteer? Are you already seeing the government cancel 535 00:29:44,080 --> 00:29:46,237 contracts with Anthropic and Open AI and saying we want to work? 536 00:29:46,320 --> 00:29:48,957 >> I'm not here. I'm literally not here to 537 00:29:49,040 --> 00:29:53,277 talk about what's going to happen to a very important business in the country 538 00:29:53,360 --> 00:29:55,357 except for obviously to some extent 539 00:29:55,440 --> 00:29:58,397 mine. In my business, we have much more 540 00:29:58,480 --> 00:30:01,117 demand than we can supply. That's like 541 00:30:01,200 --> 00:30:05,757 and and by the way, it may be somewhat maybe I may be the crazy person that 542 00:30:05,840 --> 00:30:10,077 still only cares about free cash flow, but we have more business than we can 543 00:30:10,160 --> 00:30:12,397 apply and we have look if you just look 544 00:30:12,480 --> 00:30:16,157 at our financials you can see like a uh 545 00:30:16,240 --> 00:30:20,077 two years out you can see 15 18 billion in free cash flow. So, are you 546 00:30:20,160 --> 00:30:22,717 frustrated by the stock's performance over the last 547 00:30:22,800 --> 00:30:26,797 >> You know what? I've been at this for 20 years. We've been at this talking this 548 00:30:26,880 --> 00:30:30,397 when we first started talking, people are like, "Is this a services company? 549 00:30:30,480 --> 00:30:33,277 Is it worthless?" >> Yeah. The the the markets are 550 00:30:33,360 --> 00:30:36,157 short-term, very fickle, and also quite 551 00:30:36,240 --> 00:30:39,357 frankly where I would throw some shade, 552 00:30:39,440 --> 00:30:41,917 what investors actually understand tech. 553 00:30:42,000 --> 00:30:45,917 >> They think because they're very high IQ and they understand certain things, they 554 00:30:46,000 --> 00:30:49,597 understand what they're using. Basically the fault of investors is typically I 555 00:30:49,680 --> 00:30:51,517 use it therefore it's valuable. Yeah. 556 00:30:51,600 --> 00:30:55,037 What an enterprise uses that's doing complicated manufacturing or 557 00:30:55,120 --> 00:30:59,197 pharmacological research or putting a bomb on or bringing special forces 558 00:30:59,280 --> 00:31:01,837 people home safely very different than what you're using. 559 00:31:01,920 --> 00:31:04,397 >> Do you think if you if you're a pharmaceutical company or you're the 560 00:31:04,480 --> 00:31:06,397 government should you not be therefore 561 00:31:06,480 --> 00:31:10,557 using anthropic or an open AI without 562 00:31:10,640 --> 00:31:14,237 your layer on top? I mean is that is would you say that's dangerous for them? 563 00:31:14,320 --> 00:31:18,157 Yeah, you you look first of all honestly the one thing that I am slightly 564 00:31:18,240 --> 00:31:20,317 frustrated about these these when when 565 00:31:20,400 --> 00:31:24,157 when open AI or anthropic especially are 566 00:31:24,240 --> 00:31:28,077 talking about critical infrastructure it only is being used in our product my 567 00:31:28,160 --> 00:31:30,317 product and there's a reason for that 568 00:31:30,400 --> 00:31:33,517 these things are very very valuable what 569 00:31:33,600 --> 00:31:36,317 what what they have done it building 570 00:31:36,400 --> 00:31:39,117 models is world historic and just so you 571 00:31:39,200 --> 00:31:41,197 see I'm not throwing shade Dario is a 572 00:31:41,280 --> 00:31:44,397 literally historic figure and He he came 573 00:31:44,480 --> 00:31:47,117 from behind and he's now number one. 574 00:31:47,200 --> 00:31:50,157 Almost no one in the I I've been in business whatever you want to call I do 575 00:31:50,240 --> 00:31:53,997 for a long time. Never seen anything like this. Okay. So the reality is 576 00:31:54,080 --> 00:31:57,597 critical infrastructure does not run these models without an application 577 00:31:57,680 --> 00:32:01,837 layer. In almost all cases and maybe it won't be all cases someday that 578 00:32:01,920 --> 00:32:05,357 application layers are ontology. That's a fact. And there's a reason for it. 579 00:32:05,440 --> 00:32:08,637 It's not that as you know some people love me some people hate me. They're not 580 00:32:08,720 --> 00:32:11,437 buying they're not buying it because of that. they're buying because these 581 00:32:11,520 --> 00:32:15,757 things have to be made safe. And the I I'm going to trust you. You should trust 582 00:32:15,840 --> 00:32:18,397 me because I've never lied BS thing that 583 00:32:18,480 --> 00:32:21,117 just doesn't cut it at this level. And 584 00:32:21,200 --> 00:32:24,157 and enterprises are run by the shrewdest 585 00:32:24,240 --> 00:32:28,717 American enterprises are run by the shrewdest, most widely intelligent 586 00:32:28,800 --> 00:32:32,637 people on the planet. If you think they're going for that, you can go try 587 00:32:32,720 --> 00:32:36,797 to sell me like my my parents still want me to get a job as a faculty member at 588 00:32:36,880 --> 00:32:40,397 Berkeley. Go try to get me a job at Berkeley. I'm very qualified. It's not 589 00:32:40,480 --> 00:32:44,077 happening. >> Do you agree with the notion of the most 590 00:32:44,160 --> 00:32:46,877 robust powerful AI models should be 591 00:32:46,960 --> 00:32:51,277 withheld from the public due to cyber security risks? Look, philanthropic open 592 00:32:51,360 --> 00:32:54,557 you really have to make the one of one of the things we're really trying to get 593 00:32:54,640 --> 00:32:58,717 the west to do is move away from like not liken. These are very technical. 594 00:32:58,800 --> 00:33:01,757 What does the model do? Who is restricted to do? I would say it is a 595 00:33:01,840 --> 00:33:05,917 loser to restrict something from the government because you don't agree with 596 00:33:06,000 --> 00:33:09,677 how the government fights war and then open it up to the world including our 597 00:33:09,760 --> 00:33:13,597 adversaries. Go sell that to the American people where they already don't like you. 598 00:33:13,680 --> 00:33:15,197 >> You have a lot of data that you look at. 599 00:33:15,280 --> 00:33:18,637 Do you think China is getting better at AI? How is the gap? 600 00:33:18,720 --> 00:33:22,237 >> There are two there are two relevant tech centers on two and a half. America, 601 00:33:22,320 --> 00:33:27,517 China, Israel. Those are the tech centers of the world. And we like I 602 00:33:27,600 --> 00:33:30,557 spent half my life in Europe. I want Europe to be relevant. the re and and 603 00:33:30,640 --> 00:33:34,477 Sweden has a real tech scene. There's you have to be can't just like you know 604 00:33:34,560 --> 00:33:37,517 but the relevant tech centers uh we are 605 00:33:37,600 --> 00:33:39,997 we have a peer-to-peer adversary in 606 00:33:40,080 --> 00:33:42,557 China. China has lots of advantages 607 00:33:42,640 --> 00:33:45,037 including quite frankly we have to find 608 00:33:45,120 --> 00:33:49,597 ways to make these models raise the standard of living for every America and 609 00:33:49,680 --> 00:33:53,437 we need a sense Americans need to have a sense it's not just the people at this 610 00:33:53,520 --> 00:33:56,477 table people watching it getting rich and there are real issues there and we 611 00:33:56,560 --> 00:33:59,997 have and then we have left and right far 612 00:34:00,080 --> 00:34:03,997 left far right gone completely nuts you would think that the greatest problem in 613 00:34:04,080 --> 00:34:06,157 the world if you were on the far left is 614 00:34:06,240 --> 00:34:11,277 somehow it's like if things work it's evil and bad By the way, I've been 615 00:34:11,360 --> 00:34:14,717 wholesale kicked out of my own party because I warned that this was going to 616 00:34:14,800 --> 00:34:17,197 happen on the left and it is happening. 617 00:34:17,280 --> 00:34:21,597 Then you have on the far right like it's like on both sides you think the biggest 618 00:34:21,680 --> 00:34:25,837 problem of our society are like warlocks roaming the street building technology. 619 00:34:25,920 --> 00:34:27,357 They of course they can't understand it. 620 00:34:27,440 --> 00:34:30,317 Like they attack Palentia for the craziest. China doesn't have that 621 00:34:30,400 --> 00:34:32,957 problem. But it also doesn't have the 622 00:34:33,040 --> 00:34:37,037 creativity, ingenuity and and deep tech 623 00:34:37,120 --> 00:34:40,077 uh uh creativity we have. But the 624 00:34:40,160 --> 00:34:44,397 reality is it's not a foregone conclusion that we win that we have we 625 00:34:44,480 --> 00:34:48,397 have the biggest problem in this country on these debates is we debate these 626 00:34:48,480 --> 00:34:50,397 things as if we don't have adversaries. 627 00:34:50,480 --> 00:34:53,117 It's not actually true. It's binary. 628 00:34:53,200 --> 00:34:56,397 They will win or we will win. >> Let me ask you uh I just want to pivot 629 00:34:56,480 --> 00:35:00,717 to a slightly different conversation but related. You have been a uh proponent 630 00:35:00,800 --> 00:35:05,117 and great supporter of Israel over the years. great support of Israel and right 631 00:35:05,200 --> 00:35:07,437 now we have a ceasefire uh in in the 632 00:35:07,520 --> 00:35:10,237 Middle East which we hope holds. Having 633 00:35:10,320 --> 00:35:13,197 said that, there is a bit of space 634 00:35:13,280 --> 00:35:15,837 between where the US is now and where 635 00:35:15,920 --> 00:35:20,237 Netanyahu is on what is happening here and whether they ultimately be 636 00:35:20,320 --> 00:35:23,437 protected. And I'm curious given that and given also your relationship with 637 00:35:23,520 --> 00:35:27,037 the US government and the work you do there, how you think about that 638 00:35:27,120 --> 00:35:30,077 disconnect. the the the the the is like 639 00:35:30,160 --> 00:35:33,677 so many things. I am the most publicly 640 00:35:33,760 --> 00:35:35,757 supportive CEO of Israel and that's 641 00:35:35,840 --> 00:35:39,997 true. Uh I think Israel is a is is on 642 00:35:40,080 --> 00:35:44,077 the side of good now in private because 643 00:35:44,160 --> 00:35:48,637 I have a I'm known there to be fair. I'm probably also the most effective critic 644 00:35:48,720 --> 00:35:52,077 of like hey I didn't agree with this without going and I would be very happy 645 00:35:52,160 --> 00:35:56,317 to be more in public about that except for I think not all. There are many 646 00:35:56,400 --> 00:36:00,157 legitimate criticisms of Israel and every other country. Although I would 647 00:36:00,240 --> 00:36:04,797 say, do you want a a country that can sometimes be difficult as your partner 648 00:36:04,880 --> 00:36:08,077 or do you want a country or do you want partners that have no tech seen as a 649 00:36:08,160 --> 00:36:10,317 partner? And so like it's like in this 650 00:36:10,400 --> 00:36:13,757 world having a a fully adult independent 651 00:36:13,840 --> 00:36:17,517 aligned country that doesn't always agree with us is much better than what 652 00:36:17,600 --> 00:36:19,837 we somehow have in Europe. Like that's 653 00:36:19,920 --> 00:36:23,357 we do not want that. Yes. Okay. So um 654 00:36:23,440 --> 00:36:25,437 look, America and Israel will always 655 00:36:25,520 --> 00:36:28,077 have will never be fully aligned and 656 00:36:28,160 --> 00:36:32,877 that's totally okay. My position is they are a very important partner and we are 657 00:36:32,960 --> 00:36:36,717 proud to support them and in private you can bet your last dollar I call and 658 00:36:36,800 --> 00:36:38,077 complain about a lot of things. 659 00:36:38,160 --> 00:36:42,077 >> So what do you think of thisou or whatever deal you think is uh is on 660 00:36:42,160 --> 00:36:45,917 offer and and whatever the deal that is do you think that we are now in a better 661 00:36:46,000 --> 00:36:47,997 place than we were before? You mean in Iran? 662 00:36:48,080 --> 00:36:50,957 >> In Iran and and and visav also what you 663 00:36:51,040 --> 00:36:55,037 think it means for Israel. >> Well, look is I I don't Israel I'm going 664 00:36:55,120 --> 00:37:00,317 to leave the I'm going to leave the Israeli thing for my talking to them in 665 00:37:00,400 --> 00:37:03,597 private because I just don't think at this point it's very hard in public to 666 00:37:03,680 --> 00:37:06,717 talk about them because you just have people look they're legitimate 667 00:37:06,800 --> 00:37:09,997 criticisms of Israel. Half the people criticizing Israel just don't believe it 668 00:37:10,080 --> 00:37:14,157 should exist and that's just a fact. And so like I'm not gonna like totally play 669 00:37:14,240 --> 00:37:16,157 into their hands by saying things I say 670 00:37:16,240 --> 00:37:18,957 in private. In America, America has to 671 00:37:19,040 --> 00:37:23,597 rep his own interests. Do I think Iran's been degraded? Yes. Are are there things 672 00:37:23,680 --> 00:37:26,397 that I don't think are in the public space that would be comforting to people 673 00:37:26,480 --> 00:37:30,397 if they are? Yes. And I'll leave it at that. 674 00:37:30,480 --> 00:37:33,997 >> Wow. Pretty great. >> Thank you. 675 00:37:34,080 --> 00:37:36,877 >> Thank you. >> Thank you. Have to get up from the seat. 676 00:37:36,960 --> 00:37:38,957 Yeah. >> You know, I I I just like I feel like 677 00:37:39,040 --> 00:37:40,397 I'm going to be kicked out of the room. 678 00:37:40,480 --> 00:37:43,357 No, >> never wide ranging conversation. We really appreciate your time. 679 00:37:43,440 --> 00:37:46,397 >> No, not like your party. We want you to We want you to stay. Can you come back 680 00:37:46,480 --> 00:37:49,677 tomorrow? >> Yeah. No, I'll come back. I I really do appreciate you guys. 681 00:37:49,760 --> 00:37:52,157 >> Talk to it. >> Yeah. You know, the thing I actually 682 00:37:52,240 --> 00:37:56,797 like about you guys the most and I watch you is just that you actually, and it's 683 00:37:56,880 --> 00:38:01,277 very hard to pull this off, you actually have divergent opinions and somehow you 684 00:38:01,360 --> 00:38:03,357 guys stay together. >> This is true. 685 00:38:03,440 --> 00:38:07,037 >> We're still on camera. >> Oh, yeah. Well, great. That's true. you 686 00:38:07,120 --> 00:38:09,997 actually like it's it's honestly it's so 687 00:38:10,080 --> 00:38:14,717 boring the other stuff like and and again I get kicked out of these rooms I 688 00:38:14,800 --> 00:38:17,837 even if even if I agreed with you I would try to disagree with you it's more 689 00:38:17,920 --> 00:38:22,237 fun >> there's sea thank you for bringing Alex 690 00:38:22,320 --> 00:38:25,037 here this morning thank you for your perspective on this Alex thank you we 691 00:38:25,120 --> 00:38:29,037 appreciate it very very much thanks >> people live in echo chambers we've been 692 00:38:29,120 --> 00:38:33,117 so offended both >> what do you like 693 00:38:33,200 --> 00:38:36,797 >> it's so crazy and I'll tell you uh we're off camera now. 694 00:38:36,880 --> 00:38:41,037 >> No, we're still going. >> Let me get off camera. 695 00:38:41,120 --> 00:38:44,877 >> Coming up, >> you're like a mini problem solvers uh caucus. 696 00:38:44,960 --> 00:38:49,037 >> Close friends and daughters of frequent squat guests, Congressman Josh Godheimer 697 00:38:49,120 --> 00:38:51,357 and DHS Secretary Mark Wayne Mullen have 698 00:38:51,440 --> 00:38:58,040 written a children's book about bipartisanship. They'll join us next. 699 00:39:00,640 --> 00:39:04,637 You're listening to Squawk Pod >> and Becky Q. 700 00:39:04,720 --> 00:39:08,717 >> Welcome back everybody. Our next guests are close friends. Their parents come 701 00:39:08,800 --> 00:39:12,797 from different sides of the aisle. Their bond has actually inspired them to write 702 00:39:12,880 --> 00:39:14,957 a new children's book on bipartisanship 703 00:39:15,040 --> 00:39:17,677 in Washington DC. Joining us right now 704 00:39:17,760 --> 00:39:20,237 is Larara Mullen and Ellie Gottheimr. 705 00:39:20,320 --> 00:39:24,957 They are the co-authors of Schmo and Azie go to Washington. Larara's father 706 00:39:25,040 --> 00:39:27,197 is former Republican Senator of Oklahoma 707 00:39:27,280 --> 00:39:30,317 and now DHS Secretary Mark Wayne Mullen. 708 00:39:30,400 --> 00:39:34,637 Ellie's father is Congressman Josh Godheimer, a Democrat from New Jersey. 709 00:39:34,720 --> 00:39:38,077 And obviously both of those gentlemen are are frequent guests right here on 710 00:39:38,160 --> 00:39:41,117 Squawkbox. Uh Larry and Ella, I I want 711 00:39:41,200 --> 00:39:45,597 to thank you both for being here today and for for coming on to talk about 712 00:39:45,680 --> 00:39:49,277 this. This is no joke. You guys are actually close friends. 713 00:39:49,360 --> 00:39:51,997 >> Yes, very close. We work out together. 714 00:39:52,080 --> 00:39:54,797 Yes, [laughter] that is. >> And how long have you two known each other? 715 00:39:54,880 --> 00:39:58,317 >> We kind of grew up together. Just our dads have always been friends. And like 716 00:39:58,400 --> 00:40:02,797 Larara was saying, we are forced against our well to go to a bipartisan workout 717 00:40:02,880 --> 00:40:06,237 group most mornings when we're in Washington DC. So we've kind of trauma 718 00:40:06,320 --> 00:40:07,677 bonded over that a little bit. 719 00:40:07,760 --> 00:40:11,437 >> Yeah. So these forced workouts that t took along the way. You all have this 720 00:40:11,520 --> 00:40:14,957 new book. It's called Shoo and Aussie go to Washington. And this is based on your 721 00:40:15,040 --> 00:40:19,117 two dogs. Yes. >> Going to Washington and seeing what it's 722 00:40:19,200 --> 00:40:22,877 like in Washington DC. What was it like kind of growing up in Washington DC and 723 00:40:22,960 --> 00:40:24,797 going there? >> It was definitely very different than 724 00:40:24,880 --> 00:40:26,797 when you'd say the normal childhood. 725 00:40:26,880 --> 00:40:31,037 couple times I felt like Hannah Montana just [laughter] like living like I'd go 726 00:40:31,120 --> 00:40:33,837 from school and then right after school we'd fly up to Washington. I'd be in all 727 00:40:33,920 --> 00:40:37,997 these amazing meetings and stuff like that. And so it definitely I got a lot 728 00:40:38,080 --> 00:40:43,117 of cool experiences >> and and and you too um again your dad's 729 00:40:43,200 --> 00:40:46,157 come from different sides of the aisle but they have formed a pretty close 730 00:40:46,240 --> 00:40:50,317 partnership and bond too. What did that kind of teach you as you were growing up 731 00:40:50,400 --> 00:40:53,757 Ellie? Yeah, I mean I think it's so amazing that our dads are able to work 732 00:40:53,840 --> 00:40:58,957 together and it really inspired Lar and us Lar and I to write this book and you 733 00:40:59,040 --> 00:41:02,157 know the idea that even though they're from two completely different sides of 734 00:41:02,240 --> 00:41:05,757 the aisle, they're able to be such close friends and work together and they even 735 00:41:05,840 --> 00:41:09,997 can find common ground to agree on and that's kind of what inspired us to be 736 00:41:10,080 --> 00:41:13,677 able to write this book and hopefully educate and have children learn that, 737 00:41:13,760 --> 00:41:16,317 you know, even if they're different from one another, they're still able to work 738 00:41:16,400 --> 00:41:20,477 together. before sec secretary Mullen before your dad was in before he was 739 00:41:20,560 --> 00:41:22,317 secretary of senate but before that he 740 00:41:22,400 --> 00:41:25,197 was in the house a lot for for years I 741 00:41:25,280 --> 00:41:29,357 how many terms yeah so that's when >> yes that's when they first started 742 00:41:29,440 --> 00:41:32,797 working together >> I got it so the Oklahoma New Jersey 743 00:41:32,880 --> 00:41:36,557 thing that didn't >> I got some questions about just growing 744 00:41:36,640 --> 00:41:38,957 up with the spotlight on your parents 745 00:41:39,040 --> 00:41:43,597 and then maybe a little on you in a way and like how did that feel all of the 746 00:41:43,680 --> 00:41:48,157 time and whether you ever had friends at school who said, "I can't believe your 747 00:41:48,240 --> 00:41:53,437 dad's doing this or they're doing that or what's happening." And I did you guys 748 00:41:53,520 --> 00:41:56,557 did you feel that or was it or are you always sort of kept separate from that? 749 00:41:56,640 --> 00:42:00,797 >> I really do a good job of keeping politics out of my relationships. And so 750 00:42:00,880 --> 00:42:02,797 with my friends, I never talk politics. 751 00:42:02,880 --> 00:42:06,557 I never talk like they obviously know who my dad is and I'm sure some of them 752 00:42:06,640 --> 00:42:10,557 don't completely like agree with everything. And so I really try my 753 00:42:10,640 --> 00:42:14,477 hardest to keep politics out of pretty much everything just to keep my 754 00:42:14,560 --> 00:42:17,197 relationships Maybe that's what we all have to do. 755 00:42:17,280 --> 00:42:20,397 >> That's Yeah, exactly. And that's why it's been so nice getting to know Lara 756 00:42:20,480 --> 00:42:24,317 because, you know, we both kind of have had very similar experiences growing up 757 00:42:24,400 --> 00:42:27,277 and we're even though, you know, our dads are so different from each other, 758 00:42:27,360 --> 00:42:31,437 we're able to talk together. But yeah, it's definitely been a crazy experience 759 00:42:31,520 --> 00:42:35,517 growing up, but one that I'm so grateful for. I've had friends say, you know, my 760 00:42:35,600 --> 00:42:39,917 parents didn't vote for your dad. And I'll just be like, okay, that's fine. We 761 00:42:40,000 --> 00:42:43,597 can just talk about something else. So yeah, that's something Lar like a mini 762 00:42:43,680 --> 00:42:48,317 problem solvers uh caucus. Was uh was your dad in problem solvers? That was 763 00:42:48,400 --> 00:42:50,477 was that around when he was in the house? 764 00:42:50,560 --> 00:42:54,317 >> Oh yeah. >> And he was with Josh along with that group. Okay. 765 00:42:54,400 --> 00:42:57,757 >> Do you guys ever get frustrated because sometimes it feels like in Washington 766 00:42:57,840 --> 00:43:01,117 not a lot gets done on a bipartisan basis. 767 00:43:01,200 --> 00:43:02,557 What What do you all see? What do you 768 00:43:02,640 --> 00:43:05,757 think about that? I see a lot of I see 769 00:43:05,840 --> 00:43:10,557 getting a really bad rep in Washington and I just see a bunch of like oh 770 00:43:10,640 --> 00:43:15,197 they're different you can't be friends basically and that's really about 771 00:43:15,280 --> 00:43:17,197 >> yeah I think that Lar and I both kind of 772 00:43:17,280 --> 00:43:21,757 saw you know we see the actual work that gets done behind the scenes but a lot of 773 00:43:21,840 --> 00:43:23,837 kids our age don't actually see that. 774 00:43:23,920 --> 00:43:26,477 So, I think what we were trying to do with this book is that before kids 775 00:43:26,560 --> 00:43:30,637 really get to social media and before they see all this fighting um that's 776 00:43:30,720 --> 00:43:33,597 orchestrated on social media, we wanted to be able to tell them, you know, 777 00:43:33,680 --> 00:43:36,397 things actually do happen. People actually work together who are different 778 00:43:36,480 --> 00:43:39,677 from each other and it's not impossible and it's something that should happen. 779 00:43:39,760 --> 00:43:41,517 And, you know, that's what's amazing about us being 780 00:43:41,600 --> 00:43:45,437 >> we wanted to show them the side that we see considering we we grew up there 781 00:43:45,520 --> 00:43:49,277 pretty much. >> And the proceeds go to help homeless families. 782 00:43:49,360 --> 00:43:54,237 >> Project Night. Yes. >> Gives boxes, night boxes to kids under 783 00:43:54,320 --> 00:43:57,597 the age of 12 that are homeless. It gives us a cured blanket, a stuffed 784 00:43:57,680 --> 00:43:59,757 animal, and a book, a children's book. 785 00:43:59,840 --> 00:44:01,437 And so, >> we thought it was really important to be 786 00:44:01,520 --> 00:44:05,197 able to help kids that um weren't as fortunate as we were growing up. And 787 00:44:05,280 --> 00:44:09,037 also hopefully provide some media and like literacy education as well. 788 00:44:09,120 --> 00:44:10,957 >> All right. Well, Ellie and Lara, I would 789 00:44:11,040 --> 00:44:14,477 just want to say we welcome you here. We appreciate what you all are doing and 790 00:44:14,560 --> 00:44:17,357 the message that you're getting out and thank you for taking the time to be with 791 00:44:17,440 --> 00:44:21,320 us. >> Thank you so much. 792 00:44:21,440 --> 00:44:23,917 And that is Squawk Pod for today. Thank 793 00:44:24,000 --> 00:44:26,397 you for listening. Squawkbox is hosted 794 00:44:26,480 --> 00:44:28,797 by Joe Kernan, Becky Quick, and Andrew 795 00:44:28,880 --> 00:44:31,117 Ross Sorcin. Tune in weekday mornings on 796 00:44:31,200 --> 00:44:33,597 CNBC at 6 Eastern or get the best of our 797 00:44:33,680 --> 00:44:38,317 TV show in an easy to listen to podcast when you follow Squawk Pod. Hit that 798 00:44:38,400 --> 00:44:42,157 follow button wherever you're listening now and [music] check us out anytime you 799 00:44:42,240 --> 00:44:45,197 want. We'll meet you right back here tomorrow. 800 00:44:45,280 --> 00:44:51,960 >> Now we are clear. Thanks, guys. Thank you guys so much.