Disney-OpenAI Agreement, Oracle Tumbles, Fed After the Rate Cut 12/11/25

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Jim Cramer (1:00)

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

David Faber (1:08)

Good morning and welcome to Squawk on the Street. We're gonna start our show this morning with some breaking news from the Walt Disney Company and OpenAI, the two reaching what they're calling a landmark agreement to bring more than 200 characters to the OpenAI Sora platform, the short term, short form, excuse me, video platform, of course, that has become so incredibly popular, in part so popular that OpenAI needs ever-expanding amounts of compute, which will get us a little later to Oracle, of course, a key part of our story this morning. But as for this deal, they're seeing it on the screen. Sora's gonna be able to generate short user prompted videos and they're gonna be able to use these Disney characters. Disney characters that, of course, have been embroiled and we'll get to this in a minute in any number of disputes between the company and those who are using its IP without paying for it. Not the case here. A licensing agreement between the two companies and as well an exchange of economics. Disney going to invest a billion dollars in OpenAI at its current valuation is what I'm being told. As well as receiving warrants over the course of this three year deal. There I don't have any transparency or details in terms of where those warrants would be struck, but obviously they would allow Disney to increase its potential stake in OpenAI over time. But guys, you know, interesting to see Disney making a move like this, saying this is where the technology is going. We don't want to be left out in a sense. Despite the fact that I'm sure you could imagine that in some way it threatens certain parts, well, I don't, you know, creators and things like that. By the way, I should point out that as part of the deal, certain short form videos that are created with Disney characters will be able to be used on Disney Plus. So sort of giving a platform to those who create things as well with Sora. Now again, it is short form video. It does not include the voice of the actors behind any of these characters that we know so well. But you know, when you start thinking about it, I of course always, I always start off at the likes of Mickey Mouse, but I mean, you know, you think of Marvel, you think of Star Wars, the Simpsons, I mean, you go on and on with just the volume of characters available here for people who want to use them. Another piece of news this morning as well to share involving Disney not OpenAI is that Disney has issued a cease and desist letter to Google for its use on its short-form video platform of all of these characters, essentially what they say in part in the letter is copying a large corpus of their copyrighted works without authorization to train and develop generative artificial intelligence models and services by using AI models and services to commercially exploit and distribute copies of protected works, and they're violating Disney's copyright. So interesting timing here in terms of those two, not coincidence perhaps, deal with OpenAI, a cease and desist letter to its chief competitor, Google. In the 10 o'clock hour of Squawk on the Street, I will be joined by Bob Iger and Sam Altman for an interview discussing today's announcement.

Jim Cramer (4:25)

Wow. Okay, it changes a lot of the narrative that I've been concerned about. Remember, I've been involved with one point. I've been saying, this is business to consumer story. This is clear business to business. It's good payment. It's a very good analog of what can happen. Couple with the Google lawsuit, which is basically, listen, we're going to give you the IP.