Squawk on the Street Amazon’s Jungle, SoftBank's Massive OpenAI Investment, Exclusive: Pres. Trump's New Energy Secretary 02/07/25
Feb 7, 2025
January's job growth surprised with softer-than-expected data, yet the unemployment rate dropped to 4.0%. Amazon's shares stumbled after disappointing cloud revenue, but they're ramping up AI investments. Big news from SoftBank, potentially investing $40 billion in OpenAI at a staggering $260 billion valuation. In exclusive discussions, the new U.S. Energy Secretary tackles topics from oil to nuclear energy, while Tesla faces challenges in China and Meta aims for a winning streak in the market.
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Market Reaction to Jobs Data
- Futures lose opening gains as yields rise on hotter than expected wage data, despite softer job growth.
- The 10-year Treasury yield approaches 4.5%, a key level, while markets react to the mixed jobs report.
Amazon's AI-Driven CapEx
- Amazon shares fall despite exceeding Q4 estimates, due to lower cloud revenue and Q1 guidance.
- The company plans over $100 billion in CapEx, primarily for AI in AWS, reflecting a broader tech trend.
SoftBank's Big Bet on OpenAI
- SoftBank is finalizing a $40 billion investment in OpenAI, valuing the company at $260 billion pre-money.
- This investment positions SoftBank as a key player in the burgeoning AI landscape and validates OpenAI's value.