10AM Hour: AI Trade Comes Under Fire, Bending Spoons CEO on Berkshire Investment, New Anthropic Revenue Numbers 10/15/26

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Sara Eisen (0:51)

Good Thursday morning. Welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber. We are live, as always, from Post 9 of the New York Stock Exchange. Tech stock is under pressure again. As questions grow around funding the AI buildout, we'll talk to the head of the popular DRAM ETF about this downturn. Plus, a red hot inflation reading this morning. Again, PPI, more than doubles estimates. We'll be joined by Joe LaVorgna, former Senior Counselor to the Treasury Secretary, for his take on the latest inflation readings. And also ahead, the CEO of Bending Spoons, which owns companies like AOL and Vimeo, will join us to talk about Berkshire Hathaway's increased stake in that firm, the stock up 40% yesterday on the news. And we'll discuss these new revenue numbers that Anthropic shared with investors ahead of its expected IPO next month. But guys, with all the focus on AI and debt, decided to put some charts together, just showing you why the market is a little bit concerned. Number one, this chart has been going around. This is the issuance, the supply in September. Tech companies raised $23 billion in September. That was less than half of the amount raised in August.

And this is according to Morgan Stanley and Data, and they looked at public bonds and private placement transactions.

And you can see it's kind of this decline, this steady decline, dropped from June when companies raised a record $113 billion. So there's a lot of chatter about why that is. Is it higher yields? Is it the fact that they couldn't find demand? Or, you know, it could be as simple as a lot of the, the supply was frontloaded, you know, that they just a lot of announcements came up once, as we saw in June, where it reached a record $113 billion. Or, you know, there's growing political backlash and resistance to data centers. And, you know, that could be part of the equation as well. If you look at, here's another, oh, sorry.

David Faber (2:42)

No, I don't know if that's going to be the key part, is the resistance to data centers as a result of perhaps the reluctance of credit investors to put more capital to work here. I think it, I mean, maybe, I guess, to your point, if you're delaying the data centers, you're not going to get the returns as quickly. So that's a concern.

Carl Quintanilla (3:01)

Yeah, but that was Pimko's point yesterday, is that it's not necessarily about the moratorium. It's the longer permitting. It's the more community outreach friction and getting deals to close.

David Faber (3:11)

Right. That's the problem.

Sara Eisen (3:12)

Not as easy. And by the way, what we just showed is the additional interest rates. I mean, the amount of it, it's not necessarily that investors are pushing back on the supply, but they're definitely charging more. You know, they're demanding a higher premium.

David Faber (3:24)

The cost of capital is going up.

Sara Eisen (3:26)

Correct.

David Faber (3:26)

I cited a few things. Again, I don't have the exact pricing, for example, in the SpaceX bond deal, that huge deal, but I've heard it was as much as 9%.

Correct me if I'm wrong, but that's the number I'm hearing. Anthropic did something last week that was in the double digits, 5 billion, and then you've got Broadcom out there in the market for huge amounts of capital for all this chip stuff involving Anthropic and OpenAI, 60 billion, and again, the borrowing costs are going up, Sara, and that's a concern.

Sara Eisen (3:51)

The perception of risk there.

I guess part of it is maybe this question that investors are asking about whether all the heavy investment will generate the kind of returns, especially in an era of political opposition. That was my point.