Kimberly-Clark to Buy Kenvue, Amazon-OpenAI Deal, November Markets 11/3/25

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Jim Cramer (0:45)

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.

Carl Quintanilla (0:53)

Good Monday 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. We kick off the month of November with futures pretty solid. Tens of billions in fresh M&A. Day 34 of the shutdown, busy week of earnings and elections, 10-year 411 We're going to get to this massive Kimberly-Kenvue deal in a minute. But first, Mackenzie Segalos with some news on the AI arms race. Hey Mack.

Mackenzie Segalos (1:17)

Hey Carl. So OpenAI has signed a $38 billion infrastructure deal with Amazon Web Services, marking its first contract with the cloud leader and the clearest sign yet that it's no longer relying solely on Microsoft for compute. Now under the agreement, OpenAI will immediately start running workloads on AWS, tapping hundreds of thousands of Nvidia GPUs across US data centers. It will begin with existing capacity, then expand over time with AWS planning to build out new infrastructure specifically for OpenAI's use. I spoke to Dave Brown who heads up compute and machine learning services at AWS, and he stressed to me that unlike some of the $1.4 trillion in compute deals that OpenAI has signed lately, this capacity is already live, not just a future looking partnership. Now until January, Microsoft was OpenAI's exclusive cloud partner. That later shifted to a right of first refusal, which expired just last week. Microsoft did reaffirm its role with the $250 billion commitment from OpenAI to keep scaling on Azure. Now by comparison, the AWS deal is smaller, but arguably more consequential, signaling a strategic shift toward a multi-cloud future. OpenAI has also signed with Google and Oracle. Guys?

Carl Quintanilla (2:29)

Mac, appreciate that. McKenzie Sagal is with news regarding OpenAI and Amazon. Jim, that didn't take very long.

Jim Cramer (2:35)

No. Well, five days ago, Amazon was considered to be an also ran, that Amazon Web Services was no longer pitiful, almost giant basically versus everybody else. Now suddenly we discovered that not only after that great quarter that they just reported where AWS is actually growing 17.5 to 20 percent. Well, let's just take the growth rate up even more. David, this stuff is happening so fast and OpenAI is everywhere. There was an amazing Brad Gershner, terrific interview with Sam Altman.

David Faber (3:06)

And Satya Nadella this weekend on his podcast. It makes me jealous. I mean, he's obviously a cheerleader, Gershner, but he asks interesting questions and gets, we should actually play one of the answers from Sam.

Jim Cramer (3:18)

Do we have one shortly if we can?

David Faber (3:20)

I mean, obviously this all takes place after the recapitalization of OpenAI only less than a week ago in terms of Microsoft owning now, what is a 27 percent stake worth a little over about $135 billion based on the current value of OpenAI and so many other things of value that do accrue to Microsoft. McKenzie mentioned the 250 billion Azure deal. There is also revenue splits and a lot of other potential benefits, much of which they discussed during the podcast we just mentioned. But there was an interesting interchange, guys, in terms of at least Brad Gershner asking the question that so many of us have asked, which is simply, man, Sam, your costs are quite significant going forward. And while your revenue growth is amazing, will you be able to meet all of those costs? And Altman, you got a little testy.

SPEAKER_2 (4:12)

Take a listen.

Brad Gershner (4:15)

I think this single biggest question I've heard all week and hanging over the market is, you know, how can the company with 13 billion in revenues make $1.4 trillion of spend commitments, you know? And you've heard the criticism, Sam.

SPEAKER_2 (4:31)

We're doing well more revenue than that. Second of all, Brad, if you want to sell your shares, I'll find you a buyer. If your revenue is growing steeply, we are taking a forward bet that it's going to continue to grow. And that not only will Charter BT keep growing, but we will be able to become one of the important AI clouds that our consumer device business will be a significant and important thing, that AI that can automate science will create huge value. So, you know, there are not many times that I want to be a public company, but one of the rare times it's appealing is when those people are writing these ridiculous, OpenAI is about to go out of business and, you know, whatever. I would love to tell them they could just short the stock, and I would love to see them get burned on that. We might screw it up. Like, this is the bet that we're making, and we're taking a risk along with that. A certain risk is if we don't have the compute, we will not be able to generate the revenue or make the models at this kind of scale.