Musk's AI Prediction, Cramer's Take on Fed Rate Cuts, Amazon Chasing History 4/9/24

David Faber (0:00)

Market insight and analysis. You're listening to the opening bell of CNBC's Squawk on the Street.

Carl Quintanilla (0:05)

Good Tuesday morning. Welcome to Squawk on the Street. I'm Carl Quintanilla with Jim Cramer, David Faber at Post 9 of the New York Stock Exchange. Bit of a wild pre-market this morning, but futures near some session highs as we await CPI tomorrow. Yields somewhat well-behaved. 10 years back to 437 Our roadmap begins with a prediction from Elon Musk. He says AI will overtake human intelligence next year.

David Faber (0:27)

Also had markets are trying to shrug off lower Fed rate-cut expectations as ahead of tomorrow's key inflation data.

And Amazon's aiming for its first record close, that is the stock, since 2021 That's one day after hitting a fresh, it was fresh, Jim, that 52-week high, very fresh.

Carl Quintanilla (0:46)

Let's begin with this ongoing AI revolution and the possible concerns down the road. Last night on his social media platform X, Elon Musk weighed in on the rapid development of artificial intelligence.

Elon Musk (0:58)

My guess is that we also will have AI that is smaller than any one human probably around the end of next year. And then AI, the total amount of sort of sentient compute of AI I think will probably exceed all humans in five years.

Carl Quintanilla (1:18)

We're going to get a lot more today, Jim. Google Cloud CEO keynote at noon.

Jim Cramer (1:23)

I love Tom Curry, and I think he's going to tell you, Thomas Curry is going to do a good job. Don't call him Tom.

David Faber (1:28)

I will not.

Jim Cramer (1:29)

Here's, I spent a lot of time at GTC, this is the...

David Faber (1:34)

The Nvidia conference.

Jim Cramer (1:35)

The Nvidia conference. And we talked so much about when they're going to be smarter.

And they are already. I was surprised at what Musk said. I mean, one of the things that Jensen says is put your hundred smartest people together in a room, and it's smarter than they are. Already. It's just smarter. And by the way, anything that can be done physically, it can do better.

What?

David Faber (2:02)

You keep saying this as though it's already here. Physically.

Jim Cramer (2:06)

No, I made it up because I really have nothing to say at 902, so I'm going for it.

David Faber (2:11)

About the bartender who couldn't really make your street.

Jim Cramer (2:14)

Well, the bartender is an idiot. Bear with me. I was with the people who programmed the bartender. Bartender is going to get much better at his job. He's not using the black well.

Once he has the black well, the tie is good. What do you look at the tie?

David Faber (2:29)

All right. We've had this conversation, so I want to move on to the next one, because I've continued to ask you, when you came back, you seemed much more concerned, similarly perhaps to Mr. Musk, with what all this is going to mean.

Jim Cramer (2:40)

Bad guys.

David Faber (2:41)

But then every time I ask you, all you want to talk about is the fact that they have a robot.

Jim Cramer (2:47)

The bad guys, I think, might be able to figure out how to imitate President Obama using it, you'd hear it, and he would be saying something negative about it. And it's made up.

And it's done by the Chinese. Or whatever. Whoever wants to do it. I mean, Carl, I just…

David Faber (3:06)

Yesterday the Commerce Secretary said something about bio-weapons or something along those lines.

Jim Cramer (3:11)

But you think I heard it?

David Faber (3:13)

I know, it was hard to hear.

Jim Cramer (3:16)

I think the guts of this is whenever you say anything that what I just said, people always say guardrails. They're guardrails. Well, where were the guardrails during the great cyber hack of all our health care records?

You know, the bad guys do not… Where was the guard rules when they shut down the MGM grant? The guardrails only work if you're a good guy.

That's what I'm worried about. I think the bad guys might be able to do some things that we don't want.

David Faber (3:46)

Yes, I think that's…

I think Elon Musk shares that concern to a certain extent. It hasn't stopped him from moving forward with his own efforts in terms of AI. It is a race in many ways still. It's a race condition underway in terms of competition between Alphabet and Google, which was way ahead not that many years ago with DeepMind, but had concerns then even about the development of this technology in some areas.