Morning Brew Daily — December 3, 2025

Dell Donates $6 Billion to Kids & Costco Sues Trump Over Tariffs

Hosts: Neal Freyman & Toby Howell

Overview

In this episode, Neal and Toby break down some of the biggest business stories of the day, including Michael Dell’s historic $6.25 billion donation targeting America’s children, Costco’s high-stakes lawsuit against Trump’s tariffs, inventive company bonuses to spur AI adoption, and quirky end-of-year digital trends. Their trademark wit and insight make sense of these headline stories while spotlighting their wider social and economic implications.

Key Discussion Points & Insights

1. Lunch Trends: The Fall of the “Slop Bowl”

• Slop Bowl Downturn: Chipotle, Sweetgreen, and Kava have suffered a rough year, cutting targets and losing nearly $48B in market value—about a 50% drop. Even pioneers like Steve Ells (founder of Chipotle) are pivoting, with Ells’ new concept outright banning “slop bowls.”
  Neal Freyman (00:52): “A bad year for bull slingers... slop bowl may have run its course.”
• Return of Texture: Yuppies are skipping “sad desk salad” in favor of sandwiches and tacos, reflected in real sales growth for places like Shake Shack (+5%) and Potbelly (+7%).
• Toby’s Lunch Index:
  Toby Howell (01:29): “Maybe I need to up my sandwich game though because right now too much P slop.”

2. Michael Dell’s $6.25 Billion Direct Donation — “Dell Accounts”

The Facts

• Historic Gift: Michael and Susan Dell’s $6.25B pledge will go directly to 25 million American kids under age 10 (in ZIP codes with median income ≤ $150K), at $250 per child.
• Inspiration: The donation builds on “Trump accounts,” government-backed tax-advantaged investment accounts depositing $1,000 for each newborn from 2025–2028, but Dell’s plan reaches kids born before that cutoff.
• Direct-to-People Model: Contrasts with traditional philanthropy, bypassing institutions and giving directly to beneficiaries.
  Neal: (02:57) “The Dells are writing people, which contrasts with the typical model of giving money to an institution...”

Symbolism & Background

• Michael Dell’s Philosophy: He began Dell Computers with $1,000—“If every child had that same advantage, what could they create?”
  Toby: (04:23) “He kind of made a big spiel about how if every child had that same advantage, what could they create?”
• Dell’s Influence on “Trump Accounts”: Trump credits Dell with bringing the idea to him in 2021.

Broader Impact & Analysis

• Wealth Inequality:
  Neal: (07:04) “The wealthiest 1% own almost half the value of stocks in that year. The bottom 50% own about 1% of stocks. It’s unclear whether... Dell accounts... are going to move the needle...”
• Use of Funds: Funds are largely for education or first-time home purchases; they’re more restrictive than general 529 plans.
• Future Outlook: Will employers start contributing? Unclear whether it’ll address investment inequality.

3. Costco vs. Trump Tariffs: Lawsuit Over Refunds

Context & Stakes

• Supreme Court Case: At issue is whether President Trump had power to impose tariffs under the emergency powers law—nearly $90B collected.
• Costco’s Move: Costco is suing for a refund of tariffs it’s already paid, hoping to preserve its place in line if the Court strikes down the tariffs.
  Toby: (07:51) “You can find pretty much anything at Costco these days, including a lawsuit against Trump’s tariffs.”
• Others Involved: Revlon, Kawasaki, and more have quietly filed similar lawsuits. Costco is the highest-profile retailer so far.

The “Mess” Factor

• Chaotic Refund Scenario:
  Neal: (09:06) “Justice Amy Coney Barrett even called it, quote, a mess. And so all of these companies are looking at the Supreme Court case saying… I have no idea whether I’m going to get these refunds...”
• Impact on Costco: They’re highly exposed (one-third of U.S. sales = imports; slim margins make tariffs impactful). The legal fight is a practical financial necessity.
• Outcome Depends on Process: If Customs “liquidates” the tariffs before a verdict, refunds become much harder to obtain.

4. Carrots for AI Adoption: How Companies Are Bribing Employees to Use AI

The Incentive Problem

• Big-Spender Blues: Companies invest heavily in GenAI but employees either resist (from job threat anxiety) or “hoard” AI hacks privately.
• Bic Bonus Pools: UK law firm Shoesmiths offers a $1.3M pool conditional on 1M Microsoft Copilot uses—$1,000 to every employee if target is hit.
• Spot Bonuses: Fintech Brex pays $150+ to employees who launch innovative AI projects.

“Carrots, Not Sticks”

• Peer Influence > Top-Down Training: Most effective evangelizers are employee peers who show off real use cases (rather than coercive mandates).
  Toby: (12:42) “If you find a great way to use AI, you kind of hoard that technique... The incentives don’t align there... Companies are saying... dangle these carrots.”
• Sticks Exist: Shopify’s CEO declared AI skill usage is now “a fundamental expectation of everyone... You're welcome to try [to opt out], but I cannot see this working out.”
  Neal: (14:04) “You see companies trying to dangle these carrots instead of sticks... Just look at Shopify...”

Behavioral Economics Angle

• Parallels to Corporate Wellness & Credit Cards: Paying employees for certain behaviors has precedence—AI is the new frontier for employer-driven incentives.
  Toby: (15:14) “This is not necessarily a new concept whatsoever.”

5. Year-in-Review: Wikipedia Trends, YouTube & Music Recaps

Wikipedia’s Most Viewed Articles, 2025

• #1: Charlie Kirk — 45M views, driven by his assassination (Sept 10) and 40% from outside the US.
• Other Top 10: Donald Trump, Zoran Mamdani, Pope Leo, Ed Gein (serial killer featured in Netflix’s “Monsters”).
• “Deaths in 2025” was #2, as always a top-viewed, ever-updating page.
  Neal: (18:27) “Deaths in is pretty much the most reliable Wikipedia page to exist… never been below number three... constantly updated...”
• Complex TV Shows Drive Wiki Traffic: Shows like “Severance” spark more Wikipedia searches due to viewer confusion—“the second screen effect.”

YouTube Introduces Annual Video Recap

• Users can view personalized stats on their most-watched content—“a knockoff of Spotify Wrapped,” but likely less viral since viewing is intentional.

Toby’s Top Videos:

• Golf swing tips, basketball “strategy” videos, and Catan strategy (his most-watched YouTuber: “Dandy Drew”). Toby: (21:42) “My top channel was a Catan YouTuber who goes by the name of Dandy Drew. So I kind of had a good sense because unlike music where things are just kind of shuffling in, you're usually being pretty intentional about what you choose to watch on YouTube...”

Apple Music’s Yearly Recap

• Top Song: “Rose” by Bruno Mars; all top 5 tracks were released in 2024, signaling a slower music year in 2025.
• Top Artist: Drake.
  Toby: (23:38) “The top artists. I don’t know if you’ve ever heard of this guy… it was Drake actually. What an upset.”

6. San Francisco Sues Big Food Over Ultra-Processed Products

• Who’s Being Sued: Coca Cola, Kraft, Heinz, Nestle, Kellogg, Mondelez (Oreo maker), and more.
• City’s Claim: Ultra-processed foods are blamed for public health costs; SF has a precedent of winning big settlements in tobacco, lead paint, and opioid lawsuits. Neal: (24:43) “San Francisco isn’t giving up on its crunchy granola soul. The city sued 10 food giants... first government lawsuit of its kind anywhere around the country.”

The Political Landscape

• Bipartisan Support: Growing national momentum for crackdown on ultra-processed foods, reminiscent of the anti-tobacco shift; some states already banning dyes/additives in schools. Toby: (24:43) “No matter what your political affiliation is... people are rallying around this idea that these are... on par with something like the tobacco industry.”

7. HBO’s “Mad Men” 4K Mishaps

• Technical Blunders: Released episodes out of order (notably, episode 6/7 swap); “barf machine” and crew visible in high-def scenes due to changes in aspect ratio. Neal: (26:18) “You can see this guy with a little machine and a tube standing in the background... just kind of having barf come out of his mouth... They got that all out in post production. But when Mad Men sent the tapes to hbo, something got... crossed...”
• Not the First Time: Fans recall the notorious “Game of Thrones” coffee cup error.
• HBO’s History: Irony here—HBO once passed on "Mad Men," but now airs it with embarrassing errors.

Notable Quotes & Memorable Moments

• Toby, on Michael Dell’s donation (04:23):
  “He kind of made a big spiel about how if every child had that same advantage, what could they create?”
• Neal, on the Supreme Court tariff refunds chaos (09:06):
  “Justice Amy Coney Barrett even called it, quote, a mess.”
• Toby, on AI resistance at work (12:42):
  “If you found something that just magically makes your job better... you don't necessarily want to go to your boss and say, hey, I'm only working a fifth as much as... Jerry over there.”
• Neal, on TV-induced Wikipedia binges (18:27):
  “Deaths in is pretty much the most reliable Wikipedia page to exist. It has never... been below number three...”

Timestamps for Major Segments

| Segment | Timestamp | |-------------------------------------|------------| | Slop Bowl Downturn | 00:52 | | Dell’s $6.25 Billion Donation | 02:57 | | Symbolism & Trump Account Origins | 04:23–05:35| | Wealth Distribution Context | 07:04 | | Costco Sues Over Tariffs | 07:51 | | “Tariff Mess” at Supreme Court | 09:06 | | Company AI Incentives | 11:25 | | The Carrots vs. Sticks Debate | 12:42–15:14| | Wikipedia’s Most Viewed | 17:23 | | YouTube & Apple Music Recaps | 21:27–23:46| | San Francisco vs. Ultra-Processed | 24:43 | | HBO’s “Mad Men” 4K Errors | 26:18 |

Tone & Style

The episode maintains a clever, conversational energy, punctuated by cultural references, running jokes, and the candid banter Neal and Toby are known for. They ground complex topics in accessible analogies and tongue-in-cheek asides, while pulling no punches on the big stories shaping business, tech, and society.

For Listeners Who Missed This Episode

This episode is packed with deep dives: a seismic shift in billionaire giving, a legal battle that could shake international trade, how companies are desperately trying to make AI stick, digital trends that define how we consume information, and the pitfalls of messing with TV classics. Both newcomers and longtime listeners will find food for thought—and plenty of ways to sound informed at the water cooler.