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Trump's Truth Social statement left unclear which of his conditions are already part of a deal that negotiators are working on to pause the U.S.-Iran war. View More

watch nowVIDEO1:3801:38Trump lays out Iran deal demands, says he’s about to make ‘final determination’Squawk on the Street President Donald Trump ended a meeting in the White House Situation Room without announcing his final decision on whether to approve a deal to pause the three-month-old Iran war, an administration official told CNBC on Friday afternoon.Trump earlier Friday said on Truth Social that he would be making his "final determination" during that meeting, after listing everything that Iran must do for him to approve a deal.It was not immediately clear from Trump's post which of his make-or-break conditions are already part of a preliminary agreement that U.S. and Iranian negotiators are working on to pause the war.Iran "must agree" to never have a nuclear weapon, and the Strait of Hormuz must be "immediately open" to unrestricted shipping traffic, with no tolls being imposed, Trump demanded in the Friday morning post.He also said the retaliatory U.S. naval blockade against Iran in the Gulf of Oman "will now be lifted," though it was unclear if he meant that step would only be taken if the prior conditions were met.Trump also stated that enriched material buried at the site of last year's attacks on Iran's nuclear facilities will be "unearthed" by the U.S. "in close coordination and conjunction with the Islamic Republic of Iran, plus the International Atomic Energy Agency, and DESTROYED.""No money will be exchanged, until further notice," Trump added. "Other items, of far less importance, have been agreed to.""I will be meeting now, in the Situation Room, to make a final determination," he said.Oil prices fell following Trump's post. Deal text disputes The exact terms of the deal being discussed are unclear. Iranian state news outlet Fars after Trump's post on Friday pushed back on the president's assertion, saying it "raised issues that contradict the provisions of the agreement's text."Despite Trump's reference to a toll-free strait, there is "no such clause in the text of the agreement," Fars reported in a translated Telegram post, citing "informed sources."The draft deal in discussion also contains no reference to Iran dismantling or destroying its nuclear materials, according to the Fars post.Fars also asserted that "the most important part of the agreement" is "the immediate payment of $12 billion of Iran's frozen assets." Iran will refuse any further negotiations unless that payment is made, per Fars.The White House did not respond to CNBC's questions about Trump's post and the Fars rebuttal.A White House official on Thursday confirmed an Axios report that the U.S. and Iranian negotiating teams had reached a 60-day memorandum of understanding that would extend the ongoing ceasefire and set up nuclear talks.That memorandum would also lift restrictions in the strait and specify that Iran must remove all mines from the waterway within 30 days, while the U.S. would lift its blockade accordingly. Addressing Iran's highly enriched uranium and enrichment goals will be top priorities during the 60-day window, according to the Axios report. The draft would also tee up negotiations on sanctions relief and the release of frozen Iranian funds. State of strait Trump's latest signal of progress toward a U.S.-Iran peace deal contrasts with recent economic and military clashes between the countries, as well as continued anti-U.S. posturing from Iranian officials and state media.The Pentagon said Thursday morning that Iran had launched a ballistic missile toward Kuwait and deployed attack drones in and around the strait. Iranian media reported late Thursday local time that the country's armed forces fired missiles at unidentified targets.The U.S. Treasury on Wednesday and Thursday announced new sanctions against Iran, including a batch targeting Tehran's new effort to exert control over transit through the strait.Iranian officials, in X posts published prior to Trump's statement Friday morning, appeared defiant toward the U.S., touting their ties with their Middle East neighbors including Oman, a recent target of Trump's threats.Oman has reportedly been in talks with Iran about charging vessels transiting the Hormuz Strait, the vital global oil-shipping route that has been largely blocked by Iranian threats since the war began.Trump, at a Cabinet meeting Wednesday, said that "Oman will behave just like everybody else, or we'll have to blow 'em up." On Thursday, Treasury Secretary Scott Bessent warned Oman that the U.S. will "aggressively target" anyone involved in "facilitating tolls" for the strait.A social media account attributed to Iran's parliamentary speaker Mohammad Bagher Ghalibaf, in a translated X post Friday morning, offered a cryptic but aggressive readout of the status of the talks."We seize concessions not through dialogue, but with missiles; in negotiations, we merely make them understand," Ghalibaf's account wrote."We have no trust in guarantees or words—only actions are the measure. No action will be taken before the other side acts," the post said. "The winner of any agreement is the one who is better prepared for war from the day after."Iranian Foreign Minister Abbas Araghchi posted that he spoke with his Omani counterpart and "expressed Iran's solidarity with Oman in face of any threat."Read Trump's full post:Iran must agree that they will never have a Nuclear Weapon or Bomb. The Hormuz Strait must be immediately open, no tolls, for unrestricted shipping traffic, in both directions. All water mines (bombs), if any, will be terminated (we have removed, through detonation, numerous such mines with our great underwater mine sweepers. Iran will complete the immediate removal and/or detonation of any mines that are left, which will not be many!). Ships caught in the Strait due to our amazing and unprecedented Naval Blockade, which will now be lifted, may start the process of "heading home!" Say HELLO to your wives, husbands, parents, and families from me, your favorite President! The enriched material, sometimes referred to as "Nuclear Dust," which is buried deep underground with virtually collapsed mountains, caused by our powerful B2 Bomber attack 11 months ago, sitting on top of it, will be unearthed by the United States (which, it is agreed, is the only Country, along with China, with the mechanical capability of doing so!), in close coordination and conjunction with the Islamic Republic of Iran, plus the International Atomic Energy Agency, and DESTROYED. No money will be exchanged, until further notice. Other items, of far less importance, have been agreed to. I will be meeting now, in the Situation Room, to make a final determination. Thank you for your attention to this matter! President DONALD J. TRUMPThis is breaking news. Please refresh for updates. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Higher energy costs can force consumers to raid their savings and lean more on debt to cover expenses. View More

watch nowVIDEO5:5305:53Pain at the pump adds up: Rising concerns about higher gas prices impact on spendingSquawk Box Americans have spent nearly $450 extra per household on rising energy costs during the Iran war, according to an analysis shared exclusively with CNBC's Steve Liesman.The average household has shelled out $447.19 for additional fuel-related expenses since the conflict began on Feb. 28, data from Moody's Analytics found. That's cumulatively cost American consumers nearly $60 billion as gas prices and airline fares have surged.Moody's data puts a dollar amount on a portion of the economic pain Americans are feeling as the war reaches its three-month mark. Higher energy costs can force consumers to raid their savings and lean more on debt to cover expenses."Unless the war ends soon, financially pressed consumers will have no option but to turn more cautious in their spending, threatening the already soft economy," said Mark Zandi, Moody's chief economist. If prices stay at current levels, the average household could take a hit of almost $2,000 at the one-year mark of the war, Zandi said.Roughly half of the increased energy spending so far comes from higher gasoline prices. The average unleaded gallon in the U.S. cost about $4.39 on Friday, up more than 47% since the start of March, according to AAA.Pricier diesel, which is used in vehicles like delivery trucks and boats, has resulted in more than $20 billion in additional expenses for consumers. The price of diesel has similarly jumped roughly 47% since the beginning of March to around $5.52 a gallon, per AAA.Consumers have given up nearly $10 billion as a result of rising costs for jet fuel. Airline fares climbed more than 20% in April compared with 12 months ago, federal government inflation data shows. That nearly $450 impact more than erased the boost of $384 per household from bigger tax returns this year under President Donald Trump's "big, beautiful bill," according to Moody's. Most of the benefits from larger tax cuts have already been exhausted, Zandi said.Goldman Sachs said it expects higher energy prices to "erode" consumers' spending power through the rest of 2026. It should specifically hamper lower-income households that spend a larger percentage of budgets on food and energy, the bank said.Costco saw "record-breaking" gas volumes at the end of its fiscal quarter as drivers sought out its lower-priced fuel, the wholesaler said Thursday. McDonald's CEO Chris Kempczinski warned this month that consumer spending — specifically among lower-income cohorts — "may be getting a little bit worse" as energy prices pinch pocketbooks. Turning to savings, debt Consumer spending rose 0.5% from March to April, according to government figures released Thursday. But other data points show that isn't necessarily coming from discretionary funds.Income growth came in flat for April, missing the consensus forecast among economists for a 0.4% increase.The personal savings rate fell to 2.6% in April, one of the lowest readings since the global financial crisis. It's far off highs above 31% seen in 2020, signaling that consumers have continued to spend through pandemic stimulus and rainy-day stashes amid inflationary pressures.American credit card debt came in at $1.25 trillion in the first quarter, up close to 6% from a year ago, the New York Federal Reserve said this month. That's near the all-time record set at the end of 2025."Consumers are increasingly facing an income squeeze, which is forcing them to use savings, credit and wealth to sustain their spending patterns," said Gregory Daco, chief economist at EY-Parthenon. "What we're seeing is, essentially, the use of savings to offset weak income growth."— CNBC's Steve Liesman and Betsy Spring contributed to this report. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The DOJ has faced strong criticism for the creation of a $1.8 Anti-Weaponization Fund which could compensate allies of President Donald Trump. View More

watch nowVIDEO5:1205:12How Trump's 'anti-weaponization fund' worksMarkets and Politics Digital Original Video A federal judge in Virginia on Friday temporarily blocked the Department of Justice from taking any further action to create or disburse money from its so-called Anti-Weaponization Fund as one of three lawsuits challenging it proceeds.Judge Leonie Brinkema said she would hold a hearing on June 12 in U.S. District Court in Alexandria on whether to maintain the injunction against the DOJ's $1.8 billion fund.Acting Attorney General Todd Blanche earlier this month said he was creating that fund as part of a settlement of a $10 billion lawsuit by President Donald Trump against the Internal Revenue Service for the leak of his tax records by an IRS employee. Blanche is Trump's former criminal defense lawyer.Hours after Brinkema's order a judge overseeing a lawsuit challenging the fund in Washington, D.C., federal court scheduled a hearing for Wednesday at the request by the advocacy group Citizens for Responsibility and Ethics in Washington to issue a temporary restraining order that would block the DOJ's fund from operating as that suit plays out.The fund is meant to compensate people who allege they were the victims of prosecutorial overreach by the DOJ under the Biden administration, which they and Trump have called "lawfare."Critics have called it a "slush fund" for Trump allies, including people who participated in the Jan. 6, 2021, riot at the U.S. Capitol.One of the plaintiffs in the lawsuit, who on Thursday had asked Brinkema for the injunction and expedited briefing on blocking the fund, is Andrew Floyd, a former federal prosecutor who said he was fired last year for his work prosecuting Jan. 6 defendants. US President Donald Trump looks on during a press conference about the conflict in Iran in the James S. Brady Press Briefing Room of the White House on April 6, 2026, in Washington, DC.Saul Loeb | Afp | Getty Images The other plaintiffs are Jonathan Caravello, a university professor who said he was baselessly arrested in 2025 while protesting an immigration raid in California, and the city of New Haven, which the Trump administration sued for acting as a so-called sanctuary city for immigrants.Brinkema, in her order, enjoined the DOJ from "taking any further action pursuant to the creation or operation of the Anti-Weaponization Fund, which includes the transferring of money to the Fund; the consideration of any claims submitted to the Fund; and the disbursing of any funds from the Fund." Read more CNBC politics coverageMichael Dell courted Trump early. His company has reaped rewardsTrump DOJ ‘lawfare’ fund temporarily blocked by judge as suit proceedsBondi defends handling of Epstein files to House panel Brinkema, in a pointed footnote in her order, wrote, "It is important that the status quo be maintained until plaintiffs' pending Motion has been resolved."Brinkema said that was "especially" important because the plaintiffs had alleged that DOJ's lawyers were "'unable ... to provide assurances of how long [the] status quo would last' and declined plaintiffs' request that the government commit to not transferring money to the Fund or processing or paying claims until at least June 19 to allow for less compressed briefing in this case."A number of Trump allies have already said they want compensation from the fund."The Department remains extremely confident in the legality of the Anti-Weaponization Fund which is supported by ample precedent, including Obama-era settlements," a DOJ spokesperson said in a statement. "We will not allow the policy preferences of judges to interfere with our efforts to provide restitution to victims of lawfare," the spokesperson said.Skye Perryman, the lead attorney for the plaintiffs in the suit and the CEO of the group Democracy Forward, called Brinkema's order "a really important win.""The president has no authority to create the fund, but there's also a range of constitutional problems with this fund, beyond the lack of authority and separation of powers," Perryman said during an interview with "Chris Jansing Reports" at MS NOW. "The fund itself, the way it's been described, it clearly violates the First Amendment," he said. "It seeks to penalize, or it seeks to prioritize some people as opposed to other people. It is a violation of the equal protection clause [of the U.S. Constitution]. It is operating in a very arbitrary fashion and contrary to law, which is another federal law that they have violated under the Administrative Procedure Act."Senate Minority Leader Chuck Schumer, D-N.Y., in a post Friday on X said, "Of all Trump's corrupt schemes, his insurrectionist slush fund is one of the most depraved.""This ruling is an important win — but the fight is far from over," Schumer wrote. "Democrats will keep fighting in the courts and in Congress to make sure this $2 billion giveaway to cop beaters, criminals, and MAGA cronies never sees the light of day.— CNBC's Kevin Breuninger contributed to this article.Correction: The other plaintiffs are Jonathan Caravello, a university professor who said he was baselessly arrested in 2025 while protesting an immigration raid in California. An earlier version misstated the circumstances of Caravello's arrest. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

AI is costing far more than companies expected, forcing CFOs into a new trade-off between tokens and humans and posing a risk the market hasn't priced in. View More

watch nowVIDEO42:4942:49AI Tokens or humans? The new debate reshaping corporate budgetsTech Artificial intelligence is turning out to be far more expensive than anyone expected, and CFOs at major U.S. companies are now facing a brutal new trade-off: tokens or humans.That was the picture two enterprise AI CEOs at the center of the buildout described to CNBC this week. Their accounts of what's happening inside the Fortune 500 paint a sharp picture of the threat that rising costs pose to the AI trade. It's a risk the market hasn't yet recognized as it hits record highs and mints new trillion-dollar companies like Micron. The number one topic for every enterprise right now is overblown AI budgets, Arvind Jain, CEO of enterprise AI company Glean, told CNBC. "Companies are telling us that their AI budgets are getting exhausted in one month or two months, and these are annual budgets," he said.That's because the cost of AI hasn't come down the way buyers expected. Rather, it's gone up. Each new model release from the frontier labs is roughly twice as expensive per token as the one it replaced, putting enterprise AI on what Jain called "an unsustainable path right now.""This is the first time ever that I can remember that technology costs the same as people, and you're making that comparison: choose tech or people," he said. "We've never had that conversation historically, because tech is a fraction of the overall cost of any operating business."That growing AI budget, he says, is increasingly coming in lieu of future headcount growth. Arvind Jain, CEO of Glean, on SaaS Monster stage during day one of Web Summit 2022 at the Altice Arena in Lisbon, Portugal, on Nov. 2, 2022.Harry Murphy | Sportsfile | Getty Images Matan Grinberg, CEO of Factory AI, which routes engineering work across every frontier AI model,  described the shift as a defined resource allocation problem now playing out inside leadership teams. "Companies say, hey, if we could optimize one thing, is it the number of employees that we have, or is it the AI spend per employee?" Grinberg said. Grinberg said companies have moved through three distinct phases in roughly a year. The first involved boards demanding their CEOs do something about AI. Then came so-called tokenmaxxing, or using AI by any means necessary regardless of cost. In the third phase, leadership teams are reassessing their needs when it comes to premium models. "Do we need to be using Opus-level intelligence for every single task?" Grinberg said. "You just don't need to." Paying more than it pays back The root of the squeeze is that the technology works but doesn't yet pay for itself. "The way AI works today, it's very powerful, but it's very inefficient," Jain said. "The value that AI drives at this point is trailing the cost that businesses are incurring." A big part of the problem is inefficiency in picking models. Roughly 95% of enterprise AI usage is still running on the most expensive frontier models, even for tasks that could be handled by cheaper alternatives, Jain said. There's a simple fix: routing the easy work to the cheaper tier. Jain said that's the lowest-hanging fruit. "You have a 10x savings that you can actually achieve with the right model routing at the front," he said.That's also the pitch behind Factory AI, which automatically sends each task to the model best suited to it. The trick, Grinberg said, is recognizing how rarely a job actually needs the top of the line. He likened the gap between the newest frontier models to two veteran academics. "Opus 4.7 versus Opus 4.8 is like the difference between a professor who's been a professor for 13 years versus 15 years," Grinberg said. "To a lay person, it's really, really hard to tell the difference." The entire AI trade rests on the bet that historic demand will remain, with buyers largely indifferent to cost. But the view from inside the Fortune 500 suggests demand may be far more price-sensitive than the trade assumes. Read more about what the AI price reckoning means for the valuations of OpenAI and Anthropic, which have built their business models on premium pricing. WATCH: CNBC's full interview with Altimeter's Pauline Yang VIDEO11:0111:01Watch CNBC's full interview with Altimeter Capital's Pauline Yang Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Don't fight the tape. View More

Don't fight the tape. That's the message from strategists at Piper Sandler on Friday morning, and you know what, it's hard to argue with their take. "The market's price action continues to remind us of a simple mantra from the movie Maverick— 'Don't Think, Just Do,'" they wrote. "The primary trends are firmly bullish, rewarding investors who avoid over-analyzing the macro noise and instead follow the tape's leadership. By sticking with momentum leaders and avoiding laggards, investors are capturing the market's grind into new highs." Importantly, in many cases, the winners are winning thanks to earnings, not simply multiple expansion. Take a look at server maker Dell Technologies , the latest company to report a blowout quarter on the back of the artificial intelligence spending boom. If you're only looking at the price action — shares up over 30% on Friday — you could be forgiven for thinking that we're starting to see bubble behavior. However, as was the case with Nvidia from the start of its historic run following the launch of ChatGPT in late 2022 , it's not a bubble if the fundamentals back it. That is certainly the case with Dell. Wall Street has already raised its fiscal 2027 full-year earnings estimate to $16.85 a share, up from $13.12 prior to Thursday night's report, according to FactSet data. Meanwhile, estimates for next fiscal year have jumped to $20.21 a share from $15.18. That represents a 28.4% increase to FY27 numbers and a 33% increase to FY28 numbers. What that means is that, despite Friday's surge in the stock, based on a share price of $410, the price-to-earnings ratio on FY27 numbers has only expanded from 24.2 times to 24.3 times. On FY28 numbers, the stock trades at roughly 20.3 times earnings, which is actually down from the 21 times multiple we thought we were looking at Thursday before learning that the estimates have just been way too low. Put simply, the price action will have you thinking this is unsustainable. That's exactly what folks were saying about Nvidia after that legendary May 2023 earnings report , when Wall Street realized just how offside it was on the earnings tidal wave about to hit. The point is, if you're looking at these moves and thinking you need to bet against them, think again. The AI spending boom is real. We are simply now seeing Wall Street catch up to what the hyperscale CEO's have been saying: the AI opportunity is far bigger than most can imagine, and the spending on data centers and computing infrastructure is required. On this note, Dell's customer count for AI servers has surpassed 5,000, up over 50% in the last six months. Talk about broadening demand, which is something Nvidia preached when it reported last week. Nvidia and Dell are close partners, and Nvidia is a clear winner from this quarter too. We expect that will become even clearer in coming days, when CEO Jense Huang gives his keynote address at Computex in Taipei. At the same time, we're not advocating chasing a move like this in Dell -- no matter how impressed we are by the numbers. The reason to proceed with caution has more to do with market mechanics and less about the fundamentals or valuation. A lot of people just made a lot of money, and when that happens, some profit-taking should be expected. Consider: There may be some fund managers with Dell positions that now exceed an appropriate weighting thanks to these monster gains, forcing them to peel some off. This gets to the idea of why we like to trim stocks after parabolic moves. In this case, we're saying you should wait for a name like Dell to cool off before initiating a position. That can certainly make this a hard market to get money to work in, but what we can do is keep track of winners and estimate revisions, and use that to build a target list — similar to our Bullpen watchlist — that we can revisit when volatility strikes (as it always does). As for the AI stocks we already own, this is simply another proof point that for all the money made in the AI trade — whether that's in semiconductors like Nvidia, power, or network infrastructure, there is still plenty of upside left to be had because demand is off the charts. (Jim Cramer's Charitable Trust is long NVDA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

In a post on X, Elon Musk offered details about SpaceX's deal with Anthropic that weren't included in the company's IPO prospectus. View More

In this articleCRWVFollow your favorite stocksCREATE FREE ACCOUNT Elon Musk at SpaceX in Brownsville, Texas, May 27, 2025.Marvin Joseph | The Washington Post | Getty Images SpaceX filed for an initial public offering a week ago, and Elon Musk is already creating confusion.Days before the reusable rocket maker is scheduled to start pitching its story to investors, Musk took to social network X, which is owned by SpaceX, late Wednesday to explain details of the company's recent partnership with competing AI startup Anthropic. His comment included a potentially material aspect about their deal that wasn't included in SpaceX's 300-plus page IPO filing.Earlier this month, SpaceX said it was leasing unused compute capacity at its Colossus 1 data center in Memphis, Tennessee, to Anthropic. Last week's prospectus said that Anthropic agreed to pay SpaceX "$1.25 billion per month through May 2029, with capacity ramping in May and June 2026 at a reduced fee." The filing also said, "The agreement may be terminated by either party upon 90 days' notice."In his X post Wednesday night, Musk wrote, "SpaceX has not committed to leasing Colossus for years," and called the pact a "180 day lease with 90 day notice mutual cancellation thereafter." The prospectus, however, said nothing about the deal potentially ending in a matter of months. Whether Anthropic is slated to pay SpaceX $15 billion a year for the next three years or will be spending substantially less over a much shorter period represents a major consideration for prospective investors. SpaceX's total revenue in 2025 was just $18.7 billion, and selling compute capacity out of its data center adds an entirely new revenue stream, while putting SpaceX in competition with so-called neocloud providers such as Nebius and CoreWeave. watch nowVIDEO8:4308:43SpaceX targets June 12 IPO listing: Former Nasdaq CEO Robert Greifeld on what to expectSquawk Box Some investors are already leery of buying into the largest IPO on record and backing a company that's valued at over $1 trillion while burning billions of dollars a quarter. Musk's post raises further questions about the company's financial disclosures. "The odd thing is that either Musk is correct and the S-1 is materially misleading, or the S-1 is correct and Elon is up to his old hijinx," Eric Talley, a professor at Columbia Law School and expert on corporate governance, wrote in an email. "But more than that it's confusing to investors who are trying (best they can) to put a valuation on SpaceX."Anthropic declined to comment for this story, and representatives from SpaceX didn't respond to a request for comment.The Anthropic disclosure isn't the only one in SpaceX's filing that analysts have highlighted as less than thorough.Franco Granda, an analyst at PitchBook, catalogued an array of omissions in a report following the publishing of the prospectus."Critical disclosures are missing," Granda wrote. He pointed to "subscriber churn" as well as "unit economics" for the Falcon 9, SpaceX's partially reusable rocket, and "AI segment granularity," writing that the company didn't break out subscriptions to chatbot Grok or to X or provide details on the "utilization rate on 1.0 GW of deployed compute." Economics of AI The AI part of SpaceX is particularly challenging for investors to value. Musk founded xAI in 2023 to try to take on OpenAI in the booming generative AI market. While xAI remains a niche player in the market, Musk valued the business at $250 billion in February, when he merged it with SpaceX in a deal that gave the combined entity a valuation of $1.25 trillion. During the first quarter of this year, SpaceX's capital expenditures totaled $10.1 billion, more than doubling from a year earlier, with $7.7 billion of that tied to xAI, according to the prospectus. The AI unit, now known as SpaceXAI, recorded a $2.5 billion operating loss in the quarter.In opting to lease its compute capacity to Anthropic, SpaceX was acknowledging that its own AI models and services haven't inspired great demand and that the company isn't in a position to take advantage of its costly infrastructure. Musk said in his post Wednesday night on X that SpaceX wanted to be able to cut the deal short in case it needs the capacity. "We won't leave them hanging and will provide a reasonable off-ramp," Musk wrote, referring to Anthropic. "But if compute gets super tight I said we might need it back at some point."Ark Invest's Cathie Wood, a SpaceX bull, touted Musk's move to monetize compute infrastructure, which cost xAI billions of dollars to build. "Thanks to its deal with Anthropic, XAI, now SpaceXAI, is pivoting from massive losses at Colossus to significant profitability as a neocloud," Wood wrote after the deal was announced on May 9. She estimated at the time that the move would bring in $5 billion to $6 billion in annual revenue. That was before the IPO filing laid out an even bigger number, and well before Musk chimed in this week, effectively acknowledging that the prospectus has shortcomings.Ann Lipton, a law professor at the University of Colorado, said that as SpaceX amends its S-1 ahead of the offering it should "file the tweet with an explanation." She said by email that Musk's post does appear to contradict the filing, but that the differences may be "reconcilable.""Usually this is handled by filing an update separately with the [Securities and Exchange Commission]," she wrote.  WATCH: Could a SpaceX-Tesla merger be on the horizon? watch nowVIDEO2:2802:28Could a SpaceX-Tesla merger be on the horizon?Closing Bell: Overtime Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The increase in the fourth quarter was primarily driven by cities such as Nagpur, Jaipur, Chandigarh and Kanpur View More

Nvidia is investing billions into companies developing photonics, which industry watchers say could bring big efficiency gains to the AI sector. View More

In this articleNVDAMRVLLITECOHRSNOWGLWAMZNMUFollow your favorite stocksCREATE FREE ACCOUNT The AI boom is in many ways a hype cycle like no other. Sure, there are comparisons to draw between the dotcom surge of the late 90s and the mobile revolution of the noughties, but in terms of capital invested and lofty predictions on it causing huge societal shifts, it stands ahead of the rest. The speed of that progress comes with big hurdles. AI builders are having to grapple with constraints like access to the energy that will power the huge data centers, a memory chip crunch and, increasingly, the efficiency of transferring data between AI chips and systems. An emerging technology, known as photonics, offers a route to solving for the latter. Photonics can be used in AI infrastructure by using light to move data between graphics processing units (GPUs), memory, networking chips, servers and data centers, instead of relying on electrical signals running along copper.Some photonics tech is already in use, including in fiber optic connectivity.But much of the connectivity inside AI servers and racks currently travels along copper wires, limiting speed and increasing energy costs."One of the main bottlenecks for the performance of AI models is the speed of communication between chips and between chip servers," said Gil Luria, head of technology research at D.A. Davidson. "The faster the communication, the faster the user can get their answer or their task executed," he added. "By moving the connections between chips and between servers to optical, the performance of the models can improve significantly." NVIDIA CEO Jensen Huang speaks next to the NVIDIA Vera Rubin system at the NVIDIA GTC global AI conference in San Jose, California, U.S. March 16, 2026. Fred Greaves | Reuters Big investment The promise of photonics has seen Nvidia funnel billions of dollars into companies developing the technology.Since the beginning of March, Nvidia has announced $2 billion investments into Lumentum, Coherent and Marvell, all of which are developing photonics tech. The chip giant also said it would invest $500 million into Corning to develop advanced optical connectivity solutions, and participated in optics startup Ayar Labs' $500 million Series E funding round.Nvidia CEO Jensen Huang told an audience at GTC in March that the chip giant was beginning to scale its silicon photonics tech. "The amount of silicon photonics technology capacity that we need is substantially higher than the world has today," he said. Huang added that Nvidia was starting to roll out photonics on its networking platform and GPU-to-GPU interconnect platform. Challenges But deploying new tech at scale is never a smooth process.One hurdle will be manufacturing, Alan Weckel, principal analyst at market research firm 650 Group, told CNBC. "The industry has never seen this type of demand or growth, so ramping the supply chain to match demand, especially when constrained, is challenging."Another is adapting active AI systems to photonics tech, said Luria. "The main challenge for incorporating more optical components is the need to significantly redesign the existing product roadmaps to a different configuration that substitutes copper wires for optical fiber," he said. "That may require one or two more generations of products from the likes of Nvidia in order to become more prevalent." Latest updates Snowflake posted its best day ever after boosting guidance and announcing an AI compute deal with Amazon on Thursday.French startup Mistral AI is exploring designing its own chips and may eventually develop them, CEO Arthur Mensch told CNBC.SK Hynix hit a market cap of above $1 trillion on Wednesday, with shares jumping as much as 11% as investors continued to pile into artificial intelligence-linked semiconductor stocks.Taiwan chip stocks climb after Nvidia announced $150 billion spending plans in the country on Wednesday.Blue Origin's New Glenn rocket exploded Thursday night during a hot-fire test at a Space Force launch facility in Cape Canaveral, Florida. Jeff Bezos said that all personnel were safe following the explosion. Stock of the week Stock Chart IconStock chart iconMicron has surged over the past year. U.S. memory chip maker Micron topped a $1 trillion market cap for the first time on Tuesday after shares popped 19%. The company has seen huge demand amid the memory crunch and AI boom. Its stock has increased just under 200% so far in 2026. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

The volatility spread between single stocks and the index makes a world of a difference for options traders. View More

In this article.SPX.VIXSMHSPYFollow your favorite stocksCREATE FREE ACCOUNT Traders work at the New York Stock Exchange on May 28, 2026. NYSE Forget a tale of two cities, it's two different worlds for traders in the U.S. stock market.If you're tracking index gains in the S&P 500, it's a slow and steady grind as volatility declines to the lowest since January, with the Cboe Volatility Index (VIX) touching 15.6 Thursday, compared to 35 in March when geopolitical fears drove daily whipsaw moves in the market.If you've been trading individual stocks, the roller-coaster ride hasn't stopped, and in many cases – particularly in tech names – it's only gotten crazier.Cboe's S&P 500 Constituent Volatility Index VIXEQ, which aggregates VIX-like measurements for each specific company and weights by market capitalization, is sitting near its highest level in more than a year. The spread between VIXEQ and VIX is now the widest since January 2023, as far back as the exchange's stock-specific data go. Zoom In IconArrows pointing outwardsCboe "What stands out in the current market is just how calm things are at the index level even as single stock volatility remains near a 1-year high," Mandy Xu, head of derivatives market intelligence at Cboe, wrote in an email. "Stock dispersion is extremely elevated and correlation levels have fallen to historic lows as traders switch focus from macro risks (e.g. Iran) to stock-specific catalysts such as AI and earnings."The volatility spread between single stocks and the index makes a world of a difference for options traders who make risk-reward decisions based on fast-changing prices of individual contracts.The clearest example is in the semiconductor space, where implied volatility in the VanEck Semiconductor ETF (SMH) is about 50%, near the highest in a year and more than three times higher than in the S&P 500, but still lower than many individual stocks like Micron, whose implied volatility is 101%.One implication is that the dollar amount being spent trading options on semiconductors is skyrocketing: Gross options premium traded across semiconductors tracked by Citadel Securities is 25% above the prior record from March 2024 and five times the historical monthly average, according to a message from Scott Rubner, the firm's head of equity and equity derivatives strategy.So far there's not much evidence traders think the split-volatility dynamic will change. Stock Chart IconStock chart iconCBOE Vix index, YTD Small traders have been happy to buy expensive single-stock contracts in hopes of extended rallies, which so far has mostly worked. And in index products like the State Street SPDR S&P 500 ETF (SPY), selling puts was the most popular trade Thursday: a bet that generally prefers VIX to continue dropping. Somewhere in between is sentiment on the SMH ETF, where put-buying dominates at a record level."My thought is when you're having historical disconnect like this it's more likely you get a little bit of broadening out," Noel Smith, chief investment officer of Convex Asset Management, said by phone. "I don't see things crumbling until these big IPOs — SpaceX, Anthropic, etc. — get ingested by the marketplace." Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.

Here are five key things investors need to know to start the trading day. View More

This is CNBC's Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.Happy Friday. I'm CJ, filling in for Alex this morning. You might know me from my coverage of technology stocks on and off since 2024. My co-workers know me as the news associate that can fold a serious origami crane. Speaking of things that fly, wait until you hear where shares of Dell Technologies are headed this morning after an AI-fueled earnings beat.Stock futures are higher before the bell. All three major averages are coming off a winning session and on pace for a positive week.Here are five key things investors need to know to start the trading day: 1. Seal the deal? U.S. President Donald Trump speaks during a cabinet meeting in the Cabinet Room at the White House, in Washington, D.C., U.S., May 27, 2026. Evan Vucci | Reuters Iranian state media reported yesterday that Tehran fired missiles at unidentified targets. The latest military action came after the White House confirmed a report that the U.S. and Iran have "mostly agreed" to the terms of a deal to end the conflict, though the President Donald Trump has yet to give his final approval.Here's what to know: Oil prices settled off their highs Thursday, amid reports of a potential deal. Oil futures are more than 1% lower this morning.Brent crude has now fallen nearly 20% from its 2026 peak, while U.S. West Texas Intermediate futures are almost 17% lower for the month.Exxon Senior Vice President Neil Chapman warned yesterday that oil inventories will reach "really, really low levels" in two or three weeks, which he said will lead physical Brent oil cargoes to spike to $150 to $160 per barrel.Meanwhile, Costco said it saw "record-breaking" gas volumes in its latest quarter as drivers continued to search for cheaper prices at the pump. Following a record-setting session Thursday, all three major averages are set to log weekly and monthly gains.Follow live market updates here. 2. Inflation data A driver refuels a vehicle with regular gasoline at a Shell gas station in Albany, California, US, on Thursday, May 21, 2026. David Paul Morris | Bloomberg | Getty Images Inflation continues to pinch at consumers this spring. The Commerce Department reported yesterday that the personal consumption expenditures price index rose 0.4% last month, putting the annual rate at 3.8% — the highest level since May 2023. Core inflation, which excludes food and energy, increased 0.2% in April to hit an annual rate of 3.3%.As CNBC's Jeff Cox reports, the 12-month readings were in line with expectations but both monthly numbers were slightly below Wall Street's expectations, a sign that the recent rise in prices could be easing. Inflation's pressures are causing Americans to save less. Data from the Bureau of Economic Analysis published yesterday showed that the personal savings rate fell to its lowest level since 2022 as the everyday cost of living, as well as gas and grocery prices, outpaced paychecks. 3. In-Dell-ible earnings In this photo illustration, the Dell logo is displayed on a cell phone and computer monitor on Feb. 27, 2026 in Pasadena, California.Mario Tama | Getty Images Shares of Dell Technologies rocketed as high as 39% in extended trading after the company reported its fastest pace of revenue growth since it returned to the public market in 2018.The server maker topped analysts' expectations on both lines, reporting an 88% annual increase in revenue thanks to a flood of AI demand. Dell said it now expects $60 billion in AI revenue for the year, up from a February projection of $50 billion.As CNBC's Garrett Downs, Hayley Cuccinello and Jordan Novet report, CEO Michael Dell was an early supporter of Trump's second term. Now, his company is wrapping up its best month in years and just this week landed a $9.7 billion deal with the Pentagon. Get Morning Squawk directly in your inboxCNBC's Morning Squawk recaps the biggest stories investors should know before the stock market opens, every weekday morning.Subscribe here to get access today. 4. A tale of two namesakes American Eagle Outfitters Inc. signage on the floor of the New York Stock Exchange (NYSE) in New York, US, on Monday, Feb. 9, 2026. Michael Nagle | Bloomberg | Getty Images Thursday's slew of retail earnings saw mixed results. Shares of American Eagle are down roughly 10% before the bell after the company reported declining revenue for its namesake brand in the first quarter, despite ramping up its marketing campaign featuring actress Sydney Sweeney. Meanwhile, Gap's namesake banner saw comparable sales soar 10% in its first quarter, far past analysts' expectations. But sluggish sales at Old Navy led the retailer to cut its full-year sales outlook, sending shares down roughly 15% in premarket trading.Best Buy, on the other hand, closed up 15% in Thursday's session after it reported better-than-expected first-quarter results and a slight climb in revenue. 5. Trump Accounts President Donald Trump onstage at the Treasury Department's Trump Accounts Summit, in Washington, Jan. 28, 2026.Kevin Lamarque | Reuters Families are now able to download the Trump Accounts app, bringing the tax-deferred investing account program another step closer to its official launch on July 4.An account can be opened for all U.S. children with a social security number. Babies born between 2025 and 2028 will be eligible for an initial $1,000 deposit from the Treasury Department, and a growing list of companies and philanthropists are pledging to match that deposit for certain qualifying families. The Daily Dividend Here are some stories from this week you don't want to miss:'Blue dot fever'? What's really behind a tricky summer dynamic for live musicJob training for robots: China is getting machines ready to join the workforceSocial media is spiraling over 'date-flation'Lululemon settles its proxy battle with founder Chip WilsonInfighting, court battles could put long-hyped air taxi breakthrough in jeopardyCNBC's Official Global Soccer Team Valuations 2026: Here's how the top 30 clubs stack up— CNBC's Kevin Breuninger, Spencer Kimball, Hugh Leask, Justin Papp, Lisa Kailai Han, Kamaron McNair, Jeff Cox, Jordan Novet, Garrett Downs, Hayley Cuccinello, Gabrielle Fonrouge, Amelia Lucas, Eunice Yoon and Charlotte Morabito contributed to this report.CNBC's Josephine Rozzelle edited this edition. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.