Squawk Pod: “AI Commission in the House, Reaction to Chip Sales in the GOP” Episode Date: December 10, 2025
Hosts: Joe Kernen, Becky Quick, Andrew Ross Sorkin
Guests: Jay Clayton (U.S. Attorney, SDNY; Former SEC Chair), Rep. Josh Gottheimer (NJ), CNBC reporters

Episode Overview

This episode dives into the pressing issues around AI policy and legislation in Congress, the political reaction to chip sales to China, and safety and affordability in New York City. With interviews and panel discussion, the hosts debate economic policy, AI regulatory frameworks, national security, and urban law enforcement, offering insight into both partisan divides and areas of potential bipartisan consensus.

Key Discussion Points & Insights

1. Federal Reserve Chair Speculation

Timestamps: 02:24–04:40

• Ongoing speculation over President Trump’s pick for the next Federal Reserve Chair (Kevin Warren and Kevin Hassett mentioned as frontrunners).
• Debate on whether the Fed Chair will follow political pressure to cut interest rates.
• Market skepticism about Hassett’s possible appointment:
  Andrew Ross Sorkin (03:27):
  “Kevin Hassett is not universally loved by hardcore traders, hawkish types... there’s a lot of consternation.”

Notable Quote

“But there’s one person who knows and he may, he may not even know. He may change his mind from time to time, too.”
— Joe Kernen (03:18)

2. Nvidia AI Chip Sales to China & Political Backlash

Timestamps: 04:54–09:38

• The US will allow Nvidia to sell H200 AI chips to China, albeit with a security review, sparking bipartisan concern about national security.
• Suggestions that China could rapidly close the AI development gap using these chips.
• GOP members like Sen. Lindsey Graham and Sen. Josh Hawley express doubt, warning China could reverse-engineer Nvidia’s technology and compete with the US.
• Contrasting view: Some lawmakers, e.g., Sen. Mike Brown, see this as an opportunity for continued US technological leadership, as the H200 is not Nvidia’s top-line chip.

Notable Quotes

“China was almost entirely parasitic on US technology.”
— Sen. Josh Hawley, via Emily Wilkins (07:11)

“Nvidia should be under no illusions. China will rip off its technology, mass produce it themselves, and seek to end Nvidia as a competitor.”
— Republican-led House panel (reading, 08:39)

“For now, [the sale] is not our best chips, but at the same time, it allows our companies to control the rails on which developers actually get used to putting in their products.”
— Jay Clayton (08:09)

3. Media Mergers, Colbert, and the Paramount-Netflix Bidding War

Timestamps: 09:44–13:01

• Conversation about the Netflix/Paramount merger saga and the role of AI in the media bubble.
• Andrew Ross Sorkin recounts his recent “Late Show” appearance, ranging from market bubbles to media deals and the fate of late-night host Stephen Colbert.

Memorable Moment

“Would you prefer to have Netflix as a buyer? … Once you bring it just to the shareholders. I don’t think Mario Gabelli, for better or worse, is going to sit there and say, I think this is a better buyer.”
— Becky Quick (12:31)

4. National & New York City Affordability and Safety

Timestamps: 14:21–24:56
Interview with Jay Clayton

National Economic Priorities

• The Trump administration’s focus: energy, health care, housing, and education cost.
• Discussion of inflated housing costs due to overregulation and delayed permitting.
• Education cost drivers: “We sell a whole bunch of things adjacent to education that we make people buy.” (Jay Clayton, 21:27)

New York Housing and Crime

• NYC’s affordable housing crisis: $750,000 per unit to build due to regulations (Jay Clayton, 14:32/21:45).
• Open-air drug markets in public housing, the persistent impact of COVID-era policy changes, and low detainment rates for repeat offenders.
• Tension between city, state, and federal law enforcement over prosecutorial discretion, especially regarding gun crimes and immigration (ICE enforcement).
• Praise for NYPD; concern about New York’s bail reform and its impact on public safety.

Notable Quotes

“There are housing projects in the city that have open air drug markets. We are going to target those and bring them to an end.”
— Jay Clayton (25:33)

“When a person is brought before a judge... risk to the public is not a factor you can consider. Okay, that’s the law in New York. 99 out of 100 New Yorkers... say that can’t be right.”
— Jay Clayton (27:11)

5. Presidential Influence on Mergers & AI/Media Competition

Timestamps: 31:43–35:54

• Debate on whether it’s appropriate for the President to signal involvement in high-profile mergers (e.g., Paramount-Netflix), transparency vs. arm’s length norm.
• Jay Clayton expresses concern about possible market concentration in AI:
  “If we have only one AI provider, that scares the heck out of me. It really does.” (34:00)

6. Congressional AI Commission and Bipartisan Hurdles

Timestamps: 44:30–50:18
Interview with Rep. Josh Gottheimer (NJ)

• New Democratic commission to shape AI policy after a failed attempt at bipartisan committee renewal.
• Gottheimer supports federal preemption in AI regulation but wants child safety and consumer carve-outs.
• Broad agreement on the need for “guardrails” around deepfakes, child safety, and usage transparency.
• Ongoing congressional work on tracking and monitoring AI chip exports.
• Bipartisan concern about maintaining US leadership in AI, particularly regarding China.

Notable Quote

“A lot of us, in a bipartisan way have been working together on AI legislation—whether you’re talking about related to energy, you’re talking about deepfakes... child safety, there’s actually plenty going on.”
— Rep. Josh Gottheimer (48:51)

On Industrial Policy & Tariffs

• Gottheimer critiques across-the-board tariffs on China as detrimental for US consumers, leading to heated exchanges with the hosts.

Other Highlights & Memorable Moments

• Stephen Colbert’s Name:
  Becky Quick tells an anecdote about once mispronouncing Colbert’s name during a New York Public Library event. (13:19)

• Pop Culture Interlude:
  Enthusiastic banter about Sylvester Stallone’s multi-decade film stardom and “Tulsa King” (39:55–42:41).

Important Timestamps

| Segment | Time | |----------------------------|-------------| | Fed Chair Speculation | 02:24–04:40 | | Nvidia/China Chip Debate | 04:54–09:38 | | Jay Clayton on NYC Safety | 14:21–24:56 | | Presidential Role in Mergers | 31:43–35:54 | | Rep. Gottheimer on AI Policy | 44:30–50:18 |

Tone & Takeaways

The discussion is lively, a blend of informative and combative (“Politics is such a dirty business,” Sorkin quips at one point). The episode highlights partisan divides but also repeated calls for pragmatic, bipartisan approaches on issues like AI regulation and national security. Jay Clayton brings a direct, at times blunt, law enforcement-focused perspective, while Rep. Gottheimer stresses problem-solving and the need for timely legislative action. The hosts inject humor and pop culture references, keeping the mood dynamic even as they tackle weighty national debates.

Overall, this episode provides a robust window into how Congressional leaders, financial pundits, and former regulators are thinking about artificial intelligence, national economic priorities, and the fraught intersection of politics and technology as 2025 draws to a close.