10AM Hour: Nvidia Ahead, Meta Settles, & PCE Comes In Hot 8/26/26

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**Carl Quintanilla** (0:54)
Good Wednesday morning, welcome to Squawk on the Street. I'm Carl Quintanilla with Leslie Picker and David Faber. Live at Postal 9 to the New York Stock Exchange, Sara Eisen's off today. Meta is in focus this morning as the company settles its social media addiction trial with California, dozens of other states. Former assistant AG Jonathan Kanter is going to weigh in on that breaking news. It is Nvidia Day and we're just a few hours away from the results that might set the tone for the entire market. We'll ask an analyst what to expect from that report.
Yet another key executive is out at OpenAI. What's behind the growing brain drain ahead of company's expected IPO?
Let's begin with the Meta settlement. The social media giant agreed to pay up to $16.7 billion to the states and will also make some changes to its apps, including daily usage limits for teens and additional tools for parents and guardians. Meta's chief legal officer calling on other social media platforms to adopt the changes too, saying in part because, quote, teens move fluidly across dozens of apps. We need an industry-wide solution. We therefore call on our industry peers, TikTok and YouTube, to implement this new framework right away. Stock did initially jump on that news before pulling back and joining us on the phone this morning is former Assistant Attorney General, Jonathan Kanter. Jonathan, it's great to have you. Appreciate the insight, especially here on Deadline. Thoughts about the settlement relative to what some of the expectations were?

**Jonathan Kanter** (2:19)
Yeah, so my initial thoughts are that the State Attorney General achieved what Congress thus far has been unable to do, which is to actually regulate social media. For years we've been talking about it, Congress has expressed a desire to do it, but hasn't been able to achieve it. This settlement, of course, the numbers are big, and obviously when you're talking about this magnitude of damages, that's quite substantial from a market perspective. What's most significant about this settlement is the fact that it imposes significant regulatory changes in terms of how it uses data relating to children, how it age-gates, how it throttles the usage for kids, struck off during school hours, and a whole range of remedies that really do look a lot more like a regulatory scheme for social media, one that most of the country has been asking for for years, if not longer. And so, while this is certainly not done, there are more cases in the queue, municipal cases and private cases. This is by far and away the most significant step forward in social media regulation that we've seen in the history of the product.

**Carl Quintanilla** (3:29)
Yeah, some of these measures are interesting. Age assurance measures, responding to reports of potentially harmful content within six hours.
This is interesting, a non-personalized feed for users under 18 You think those have teeth?

**Jonathan Kanter** (3:46)
Well, we'll see. I think the devil is going to be in the details. We're going to have to unpack this settlement. I think the biggest question in any of these settlements is compliance. It's very easy to come up with these general terms, but these are not static products. They're dynamic and they're growing.
I know there are some would appear to be robust oversight independent monitoring provisions. The extent to which those provisions and those monitoring officials are put in place vigilant and can adapt to changes will be where the rubber meets the road. We won't know for a while how effective it will be. I do think this is going to become now a floor rather than a ceiling in terms of what social media regulation could be. This will become the floor for any congressional or state regulation and oversight and it will become the floor what other companies have to agree to as well.