Arm CEO on AI Infrastructure Joint Venture, Netflix Soars, Exclusive: United Airlines CEO 01/22/25

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David Faber (0:59)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street. We'll see you tomorrow.

Carl Quintanilla (1:05)

Right now is the first Squawk on the Street.

Good Wednesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer and David Faber at Post 9 of the New York Stock Exchange. Bulls have their sights set on fresh record highs. S&Ps less than 1% away. Strong earnings from Netflix, United and Procter are a tailwind along with this AI infrastructure push from the White House. Oracle up nearly 10% pre-market. Our roadmap begins with stocks looking to build on yesterday's gains, but Jamie Dimon warns the US stock market is quote kind of inflated.

David Faber (1:38)

Netflix shares are surging this morning, this after the company beat on the top and bottom lines and of course for subscriber additions, it's raising its 2025 revenue forecast and now has over 300 million subscribers around the globe. And that big tech announcement that was made yesterday by President Trump, Softbank, Oracle, OpenAI, they're in a joint venture that will eventually invest as many as hundreds of billions in AI infrastructure in the US. We're going to talk to one of the key technology partners in that. That's Arm Holding CEO Rene Haas and that is coming up very shortly in the show.

Carl Quintanilla (2:14)

Let's begin though with the markets, Jim. I know you're looking at some of the follow-through to what this Stargate might eventually bring to all kinds of suppliers.

Jim Cramer (2:22)

Yeah, I mean, initially, excuse me, initially you see these things and you think, well, it's for show. We all know that Oracle said it's going to build, remember, they said they need a thousand data centers. You start thinking, okay, wait a second, we'll support Moss Osama. Of course, he's talking to his own book. We're going to have Rene Haas, Moss's son, Softbank's big position in that. Then you step back and you say, now, wait a second, AI is the partner here.

You see Sam Waltman up there and you think, well, wait a second, I thought he was Microsoft's guy and then he's not. Then you realize, you know what, there's something big going on here, bigger than you think, which drives Oracle up 16, not because of meme guys coming in and saying, you know what, hey, this is good for Oracle, because we already knew Oracle is going to do this. But because maybe there's a reshuffling of the Alliance and the Alliance could be in play, David.

David Faber (3:17)

Jim, that's the takeaway this morning at least. Yesterday as you watched Oracle share surge on this announcement, again, to your point, it's a big number, but I can go back and give you big numbers before. Back in September, probably something we barely covered, BlackRock, GIP, Microsoft, MGX launch a new AI partnership. I just referenced this because that was a $100 billion for data centers over time. So the numbers here over time, they're enormous, but we all know the build needs to continue to take place. But to the point you're making, Jim, what I'm hearing as well this morning is that it's seen as the end of exclusivity in terms of the financing from Microsoft for OpenAI. Now, they put a statement out in which they talk about their partnership continues and they, you know, our duration of our contract through 2030, our partnership remains in place with access to OpenAI's IP, our revenue sharing arrangements and exclusivity with OpenAI's APIs all continuing forward.

But it is Oracle now that is clearly also a partner of OpenAI into the future, I think, that has that stock moving and that has many market participants focused, not on the Stargate announcement and the numbers, but on that.