Amazon CEO's AI Message, Tesla Slides on Musk-Trump Feud, Fed's Powell Talks Tariffs 7/1/25

SPEAKER_1 (0:00)

Fidelity Trading Dashboard brings live data, news, and charts into one screen, so you can build and place trades better. Start for free at fidelity.com/tradingdashboard. Investing involves risk, including risk of loss. Fidelity Broker Services, LLC, member NYSE, SIPC.

SPEAKER_2 (0:16)

Introducing the new Dell AIPC, powered by the Intel Core Ultra Processor. It helps do your busy work for you, so you can fast forward through editing images, designing presentations, generating code, debugging code, summarizing meeting notes, finding files, managing your schedule, responding to Jim's long e-mails, leaving all the time in the world for the things you actually want to do. No offense, Jim. Get a new Dell AIPC starting at 69999 at dell.com/ai-pc. How those ahead, stay ahead.

Jim Cramer (0:47)

It's Jim Cramer here. You're listening to the opening bell of CNBC Squawk on the Street. Don't miss a minute of the action.

David Faber (0:55)

Good Tuesday morning. Welcome to Squawk on the Street. I'm David Faber alongside Jim Cramer. And we're live from Post 9 at the New York Stock Exchange. Carl enjoying a morning off. Let's give you a look at futures as we get ready to start trading. One half hour from now. You heard Becky, of course, talking about how we're looking. And we are looking for a slightly down open at this point after, of course, a very strong record breaking market run recently. Our roadmap this morning begins with big tech and AI strategy. Apple reportedly looking at OpenAI or Anthropic to power Siri. Amazon's Andy Jassy telling Jim that it's the most transformative technology of our lifetime. Plus, it is the first trading day of July, the S&P and the NASDAQ both, of course, I just mentioned have touched record highs. And coming off, what were their best quarters in over a year? Tesla this morning, one of the worst S&P stocks pre-market.

It would be on pace for what would be its sixth straight negative day. This has Elon Musk and President Trump trade barbs. Barbs, very nice. Good word, guys. Barbs, once again. Yeah, Elon's most recent saying, oh, I could escalate, but I'm not going to right now.

Jim Cramer (2:08)

Yeah, no, it's an antipiece.

David Faber (2:09)

Yeah.

Jim Cramer (2:10)

Yeah.

David Faber (2:11)

He's holding back. So tempting to escalate this. So, so tempting, but I will refrain for now.

Jim Cramer (2:16)

But when you talk with him, did he ever say, listen, it could get bad one day?

David Faber (2:22)

I think the expectation and obviously, these two gentlemen have already had a very heated exchange. We've discussed in length was that at some point, the relationship might break down. Clearly, the Big Beautiful Bill is the center of that. But Jim, love to start off this morning and we'll get to Musk, perhaps, and XAI, which has completed a big fundraising. But love to start off with sort of developments around AI. According to Bloomberg, for example, Apple considering using technology from Anthropic or OpenAI to power a new version of Siri, that would potentially sideline what are some of the in-house models. As I just mentioned, XAI raising five billion in debt, five billion in equity, and that will go towards all those GPUs that they're buying, build that huge cluster in Memphis or add to it, and we'll get to that a bit.

Jim Cramer (3:11)

I'm frankly trying to match, as we say, the Bloomberg story with Apple. I would point out that there is a...

Andy Jassy said something to me that made me realize where you and I are on this. He said, you know, the people like working with the robots, and the robots kind of like working with people. And I'm thinking to myself, when will we get to the point where we had the right, when they have the ability to reason? And all this is about reasoning. And Andy Jassy took humburs, I felt, with the statement that I made, well, that the big gating factor is how much it seemed like to him that Nvidia costs. He said, no, Nvidia is a great partner. But this is all about this jump from dumb machines to machines that have personality and have reasoning abilities. So this is where you said it would get to. And it got there much faster.

David Faber (4:13)

Well, I'm not sure we're there yet. I mean, there's an interesting story in the Journal today about Amazon and their use of robots and how much it has increased in so many of the distribution facilities. And they make the point that it hasn't displaced jobs, but it certainly has slowed hiring by Amazon because they just don't need as many people any longer. But they also have pointed out that it's created new jobs, so to speak, as sort of people are robot overseers in a way, which is interesting. But over time, there will be fewer people hired conceivably in those roles as they are replaced by robots who are able to do more and more specific tasks and complicated tasks. For a long time, they couldn't really do this, and now they're sort of grabbing, but now they obviously can.