11AM Hour: FIFA President & AB InBev CEO Ahead of the World Cup, OpenAI Files to Go Public & The Street's Reaction to WWDC 6/9/26

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Carl Quintanilla (1:05)

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Sara Eisen, live at Postal 9 of the New York Stock Exchange. Today, tech and the AI trade. OpenAI files a confidential S1. Chips give up some early gains. Jensen Wong declines a Senate testimony on AI.

We're joined by one expert who thinks Nvidia is in trouble with Congress.

Sara Eisen (1:23)

Plus, the world's biggest sporting event set to kick off in just two days. But US hotels still waiting to see the tourism boom, and high prices are weighing on sales. We talk about all of it in an exclusive interview with the president of FIFA, and the CEO of World Cup sponsor, AB InBev.

Carl Quintanilla (1:38)

Apple's AI upgrade at WWDC not enough to sway Wall Street on the stock. On track for its third straight day of loss is one of the worst down names of the moment. We'll talk about why. As for the markets, lost some steam mid-session here this morning. Nasdaq down two-thirds of a percent. Ten year, a little sticky at above four and a half, but it's tech really down almost one and a half percent that is causing some trouble, along with energy down two percent plus.

Let's begin on the OpenAI story. Confidentially filing to go public, our Kate Rooney has details. Morning, Kate.

Kate Rooney (2:11)

Morning, so OpenAI did take a major step toward a public market debut, filing confidentially with the SEC for that IPO. In a blog post last night, this AI giant saying, we expect it to leak, so we're just announcing it, but very much leaving the door open to staying private. They said OpenAI has not decided on timing, called going public a complicated set of trade-offs, and this paperwork does give OpenAI the option to move quickly if it chooses to go in that direction. For now, I am told by a source, the company does also plan to let employees sell shares through a tender offer. That would be at its current valuation, which is around $850 billion, and then that would also reduce some of the internal pressure potentially to rush out to public markets. I'm also told by a source, this company could go as soon as September. That would depend on market conditions. We have also reported that OpenAI is working here with Goldman Sachs and Morgan Stanley. It does come just days before SpaceX is expected to begin trading, only a week after rival Anthropic also confidentially filed its own IPO paperwork. Anthropic was last valued around $900 billion, OpenAI, and SpaceX combined would really put this at a multi-trillion dollar IPO year when you step back. These filings, though, they are confidential. Investors are not going to see any of the financials until closer to any sort of listing. And while these are historic valuations and numbers, the cash burn, guys, is also historic. According to PitchBook, OpenAI is spending $2.20 for every $1 earned. This company, the big spending item really here is data centers and the AI build out analysts at PitchBook writing this week, OpenAI's revenue is real, but the economics are less certain. Back to you.

Sara Eisen (3:51)

So once we get more data and information on the financials, Kate, what are the key questions going to be when it comes to justifying these trillion dollar valuations?

Kate Rooney (4:01)

I would say, Sara, gross margins are the big one. There are questions over if this company has negative gross margins. It's not certain that it does. It's definitely not profitable, but the path to profitability and the business model of these AI labs, this is really going to be an entirely new asset class. The cash burn, as I mentioned, is historic. They're spending so much on the data center infrastructure and the build out on the level of which they've described as the railroad build out of the interstate highways and talked about this as an industrial revolution. The big question, is there a path to be profitable? Is this a good business model? And I think whoever gets out first, whether it's OpenAI or Anthropic, is going to have to explain that and really prove that path. And that's part of the rush to get out first when you look at OpenAI versus Anthropic here.