F1 Heads to Miami with Toto Wolff, UAE Leaves OPEC 4/28/26

Summary

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Squawk Pod – "F1 Heads to Miami with Toto Wolff, UAE Leaves OPEC"

Date: April 28, 2026
Host: Andrew Ross Sorkin, Becky Quick, Joe Kernan, Kelly Grant
Featured Guests: Brian Sullivan, Toto Wolff, Sharon Epperson

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Episode Overview

This lively episode brings a fast-paced mix of breaking global news, the latest developments in AI and tech investing, and a deep dive into the business and philosophy of Formula 1 with Mercedes team principal Toto Wolff. In the second half, the conversation turns to practical personal finance advice and the challenge of discussing money—and even medical issues—across generations. The hosts maintain their trademark conversational, occasionally irreverent tone.

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Key Discussion Points & Insights

1. BREAKING: UAE Leaves OPEC

[01:11, 12:42]

• Headline: United Arab Emirates will depart OPEC effective May 1—an unexpected shakeup in the global oil order.
• Brian Sullivan highlights the UAE's unique diplomatic role:

  "The UAE was a critical member, not just in terms of oil partnerships, but in terms of just sort of the diplomacy itself within the group." (Brian Sullivan, 01:21 & 12:42)

• Sullivan contextualizes OPEC's complex alliances and predicts further ripple effects in oil markets, noting a 4% jump in oil prices following the news.

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2. The AI IPO Race & OpenAI’s Growing Pains

[01:30, 02:53, 04:30]

• Financial Challenges at OpenAI:
  • Missed targets on ChatGPT user growth & revenue.
  • CFO Sarah Fryer expresses concerns about affording future compute needs:

    "Fryer has told people she's worried that OpenAI may not be able to afford its future computing needs if revenue doesn't grow fast enough." (Joe Kernan, 02:53)

• IPO Dynamics:
  • Hosts discuss whether OpenAI or Anthropic will reach public markets first and implications for tech sector liquidity.
  • Joe Kernan provocatively asks:

    "Is it a zero sum game then?" (03:52)

  • Kelly Grant references Jim Cramer’s warning about how huge IPOs could "soak up" available capital, potentially pressuring existing stocks.
• AI Compute Costs:
  • Joe shares his personal $200/month spend on Anthropic, highlighting the business challenge:

    "Even at those numbers, they can't make it. This is not a profitable enterprise." (Joe Kernan, 07:01)

Memorable Banter:

• Joe gripes about Gemini's inaccuracies:

  "They may know nothing, but they're never in doubt." (Joe Kernan, 04:03)

• Conversation digresses into AI, energy, and environmental impact:

  "It's going to be a lot of computing power. So you better watch your... Don't eat any more meat and don't fart because the carbon footprint is getting..." (Joe Kernan, 10:31)

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3. Elon Musk vs. OpenAI Legal Battle

[10:49]

• Elon Musk’s lawsuit against OpenAI and Sam Altman officially moves to trial.
• Altman's firm publicly dismisses the suit as a "baseless and jealous bid to derail a competitor."

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4. Government Use of AI & Industry Fallout

[11:29]

• Pentagon inks deal for Google's AI for classified purposes; Anthropic previously balked at similar agreements, reflecting diverging stances among AI companies on working with government.

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5. Formula One: Mercedes’ Dominance, Young Stars & Changing Rules

[15:14, 17:10, 17:47]

Interview with Toto Wolff

• Strong Start to the Season: Mercedes wins all three 2026 races thus far.
• On Unexpected 5-Week Racing Hiatus:
  • Cancellations due to Middle East conflict meant high-level "politics" and regulatory maneuvering behind the scenes:

    "Four weeks break means lots of politics going on...everybody trying to tweak the regulations in their favor." (Toto Wolff, 18:44)

  • Financial impact: missed lucrative Middle East races, high jet-fuel costs, tight budget caps.
• On Kimi Antonelli, Young F1 Champ (19 years old):
  • Mercedes took Antonelli under management at age 11:

    "He showed extraordinary results in junior karting... many other teams start to take young drivers as young as 9 or 10 year olds." (Toto Wolff, 15:14 & 20:24)

  • Discusses youth risk tolerance and the normalization of 200mph speeds for young drivers.
• On Changing F1 Regulations:
  • Addresses fan complaints that F1 is becoming too much like "Mario Kart":

    "There's many people that love Mario Karts. But Formula One has always been the pinnacle of racing... and this is still what it is." (Toto Wolff, 23:19)

  • Wolff places value on data and evolving fan preferences:

    "Through all of the demographics...the sport is in good shape. We just need to handle it...very carefully because...that’s the holy grail, the DNA of the sport." (Toto Wolff, 23:19)

• On Lewis Hamilton’s Longevity & the GOAT Factor:
  • Dismisses speculation about Hamilton’s retirement:

    "There is these outstanding athletes—the so-called goats—that just...are able to carry on in their careers longer...He said to me recently 'I think I can do this five or ten years more.'” (Toto Wolff, 24:46)

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6. Talking Family Finances: Breaking the Silence

[27:41, 28:02, 29:00]

• CNBC’s Sharon Epperson teams up with in-house financial planners to highlight the challenge but necessity of financial transparency with family.
• Striking Statistics:
  • 6 out of 10 parents say teaching teens to invest is harder than teaching them to drive.
  • 81% of adults intentionally avoid discussing financial topics with loved ones.
• Sharon urges adults to break the silence:

  “Staying silent can result in costly choices... If you're not talking to other people, you could be missing out on some strategy that would work really well for you." (Kelly Grant, 29:25)

Practical Advice:

• On Sharing Salaries with Kids:

  “I think you should tell your kids absolutely...Talk about managing the finances of the home, talk about that...mortgage, the rent, the insurance." (Becky Quick, 30:21)

  • On specifics, especially with young children:

    "I would talk about how much money I make versus what I need to spend. I make enough money for us to do this, this, and this." (Becky Quick, 30:48)

• On Using AI/Chatbots for Personal Finance:

  • Growing comfort among young adults with seeking AI-generated advice, but acknowledgment of privacy and quality control concerns.

    “19% of adults are using AI to ask them all kind of things about their finances and 90% of those people say they've been profitable." (Becky Quick, 31:33)

• Broader Taboo Topics: Echoes the need for open communication about health, as well as money, within families.

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Notable Quotes & Memorable Moments

• On the AI race and profitability:
  "Even at those numbers, they can't make it. This is not a profitable enterprise."
  — Joe Kernan, [07:01]

• On nostalgia and F1’s future:
  "We tend to be very nostalgic how great the past was...the show on the Sunday, still, still great. And all the data support that."
  — Toto Wolff, [22:20]

• On Hamilton’s longevity:
  "He said to me recently what I, I think I can do this five or 10 years more."
  — Toto Wolff, [24:46]

• On breaking financial taboos:
  "If you're not talking to other people, you could be missing out on some strategy..."
  — Kelly Grant, [29:25]

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Timestamps for Key Segments

• 01:11 & 12:42 — UAE’s OPEC departure analysis (Brian Sullivan)
• 02:53–09:00 — OpenAI’s financial woes, IPO race, and risks (Joe Kernan, Kelly Grant)
• 10:49 — Musk’s lawsuit against OpenAI goes to trial
• 11:29 — Google & Pentagon AI deal
• 15:14 & 17:10 — F1 returns in Miami, Toto Wolff interview
• 18:44 - 24:46 — Detailed F1 discussion: finances, Antonelli, rules, Hamilton
• 27:41–33:56 — Personal finance transparency, AI as advisor, talking money and health at home

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Summary

This episode blends timely global news (UAE’s OPEC exit), market-moving analysis (AI/IPO mania and liquidity crunch fears), and an inside look at elite motorsport business via Toto Wolff’s measured, data-driven approach at Mercedes. The second half offers actionable, pragmatic guidance for making sometimes-taboo conversations about family money and health more routine, with both warmth and candor.

The hosts’ rapid-fire banter and guest contributions pack the episode with wit and insight—equally valuable for investors, F1 fans, and anyone navigating big money challenges at work or home.

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Transcript

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[Joe Kernan]

Bring in show music please.

[Andrew Ross Sorkin]

This is Squawk Pod and I'm CNBC producer Cameron Costa. On today's episode, breaking news out of the United Arab Emirates.

[Brian Sullivan]

A pretty big headline for a random Tuesday morning.

[Andrew Ross Sorkin]

Our own Brian Sullivan on the UAE's decision to leave OPEC come May 1.

[Brian Sullivan]

The UAE was a critical member not not just in terms of oil partnerships, but in terms of just sort of the diplomacy itself within the group.

[Andrew Ross Sorkin]

The AI race to go public what concerns may be lurking under the hood at OpenAI and the ongoing race for capital.

[Joe Kernan]

Whoever goes public first. If you believe that Space X is going public first, first meaning a lot of liquidity is going to take more than a trillion taken out of the market and then you actually have to get into a race for who comes

[Kelly Grant]

next, anthropic or open air.

[Joe Kernan]

Is it a zero sum game then

[Andrew Ross Sorkin]

a different kind of race? Mercedes F1 team principal and CEO Toto Wolff.

[Toto Wolff]

We tend to be very nostalgic how

[Andrew Ross Sorkin]

great the past was ahead of the Miami grand prix. He's talking F1's ever evolving regulations.

[Kelly Grant]

We've called it Mario Kart the new rules. They're racing for it. What do you say to them?

[Toto Wolff]

First of all, there's many people that love Mario Karts. But Formula one has always been the pinnacle of racing. The fastest engines and the fastest car with the best drivers. And this is still what it is.

[Andrew Ross Sorkin]

Those big conversations plus how to talk about your family's finances with your family. It's April 28, 2026 and Squawk Pod begins right now.

[Brian Sullivan]

Stand back.

[Joe Kernan]

You buy in three, two, one.

[Kelly Grant]

Good morning everybody. Welcome to Squawk Box right here on cnbc. We are live from the NASDAQ market site In Times Square, I'm Becky Quick, along with Joe Kernan and Andrew Ross Sorkin.

[Joe Kernan]

And Open Air is reportedly having trouble hitting some internal financial targets. Companies facing increased competition from other AI services like Google's Gemini and Anthropics, Cloud and the Wall Street Journal says Sam Altman's firm missed an internal goal of hitting a billion weekly active chat GPT users by the end of last year. Firms also said to have fallen short of yearly revenue targets for chat GPT missed several monthly sales goals earlier this year. The Journal says that CFO Sarah Fryer has told People she's worried that Open Air may not be able to afford its future computing needs if revenue doesn't grow fast enough. At the same time, the report notes that OpenAI board members are scrutinizing Altman's plans to secure more computing power. Fryer and Altman said in a statement to the Journal that they're aligned, buying as much compute as they can, and any suggestion that they might be pulling back is, in their words, ridiculous. And I need another chat bot. Because on Gemini.

[Kelly Grant]

Mad at all of them?

[Joe Kernan]

No, mad at Gemini. They don't care if they tell you things that aren't true, they're going to tell you, really? The expression, they may know nothing, but they're never in doubt. And I, And I always say, wait a second, are you sure? And they go, oh, I wasn't using current information. Andrew. Which one? Give me one. Claude.

Use Claude. But let me just go back to the broader. You want to go back. Well, I think this is an important story because there's a much broader.

Because it's. Is it indicative of.

Well, no, it's the IPO story, which is there is a race going on between OpenAI and Anthropic to go public first. Whoever goes public first. If you believe that Space X is going public first, first, meaning a lot of liquidity is going to take it out. More than a trillion taken out of the market. And then you actually have to get into a race for who comes next,

[Kelly Grant]

Anthropic or Open Air.

[Joe Kernan]

And then you get into a debate over whether you believe that Open Air numbers are moving as aggressively, as fast as they would want them to be. And then you get stories like this coming out. Well, they don't really.

They're not going to raise the valuation.

[Andrew Ross Sorkin]

Valuation.

[Kelly Grant]

A lot of money. This was crazy.

[Joe Kernan]

At a zero sum game, you don't think there's enough money around.

[Kelly Grant]

That's what Kramer said last night in his opening monologue.

[Joe Kernan]

Does that make it true?

[Kelly Grant]

Well, I thought it was very interesting. His point is that, you know, right now everything looks great, but bear markets can be brought on by the Fed, which is probably not going to happen under Kevin Borish, where the Fed gets too aggressive and raises rates too quickly. But they can also be brought about by money getting soaked up. And all of these three companies will take up a lot of money. He thinks it's going to come from existing stocks that are there. And he worries a little bit about what could happen.

[Joe Kernan]

That that was kind of the zero sum idea.

There's a zero. I think there's. There is a bit of a zero sum. But even more broadly than that, if you are one of these companies, it's zero. It could be zero sum for you. And so the question all along you've

been, these numbers that have been coming out, it's like that money is just like, you can say trillion. It's easy to say billion, 100 billion. But we never really thought necessarily that that number, that those. That money is going to be there when it comes down.

Now we're talking, we're going back to this sort of circular question about these commitments and whether these companies are going to have enough money on the other side to match the commitment. Yes, but, but interestingly enough, I do think one of the major shifts in the last call it four months has been the growth of Anthropic actually, which if you look at their numbers, you'd say to yourself, maybe they have, they haven't invested enough. And you could even argue not have not. And you could even argue that OpenAI perhaps hasn't. I mean, one of the things that keeps happening. Look, if you talk to people in the business about, you know, we keep talking about Mythos being held back and all this. One of the reasons that Mythos is a complicated product is because it takes shocking amounts of compute power. And I mean shocking. I'm not sure they're going to be able to. Actually, some of these models, as they get more advanced, it makes it even harder and harder to make it profitable if you keep the pricing where it is.

Right.

I'm paying, I think right now, $200 a month on anthropic. About $200 a month. Some people pay $200. $200 a month. The average person is paying either zero or paying $20 a month. And even at those numbers, they can't make it. This is not a profitable enterprise.

[Kelly Grant]

But which is why open. I shut down the video and this is.

[Joe Kernan]

Well, I think that's part of why, of why but so there you get into this whole question mark about sort of who's going to go first. And if you believe that OpenAI is now struggling, what happens to, to those investments?

[Kelly Grant]

Open Air is not publicly traded right now, but SoftBank is. And SoftBank was down pretty substantially. And in.

[Joe Kernan]

Are you in danger of being throttled all the time? Throttled constantly. And that's part of the other problem. So on Open I'm paying only 24. At one point I been on. I was on their 200 plan. What are you writing Back down to the, to the $24 plan.

Right.

[Brian Sullivan]

Another.

[Joe Kernan]

And when you're at $24, you will get throttled if you are, if you are not using it. I mean if you're using it too much.

[Kelly Grant]

And the reason that you pay $200, what do you get out of that?

[Joe Kernan]

Remember right now I'm just experimenting with it so I can understand what's happening. But I've been building apps, I've been change making things. I've been trying all building apps for while.

But you didn't build my app.

I did not build your app.

You suck. I mean $200.

Yeah.

You're not building my conservative.

Your conservative media app. You've built it yourself, my friend.

[Kelly Grant]

What app did you build?

[Joe Kernan]

I built all sorts of. Literally I will build something almost every day. I built a. I have a daughter, you all know named Sydney. And we built a. I like a. Do you know Duolingo is. Yeah, we built a sort of duolingo style math app for third graders.

[Kelly Grant]

Really?

[Joe Kernan]

A singer?

Not. Do not do a Lipa. You guys. It's hard.

I know.

[Kelly Grant]

All right.

[Joe Kernan]

It's hard for you.

We make it difficult. So you know, we are going to have someone on in a little while named Paul Meeks who knows about tech. Supposedly. Yes. But what he's saying is he up to this point he hasn't been asking to see the other end of things where everything starts paying off and work. And it's just been. The build out has been bullish for everyone. He's starting to think we need to see some, some payoff. And you're saying we're not really seeing any payoff yet?

Well, no, I'm saying I think there is going to be traffic stuff. I think there. But it's some of the cloud stuff. I mean on some of this, like if you're using Codex launching Beatty right now, that's a pretty great situation. I will also say the image generation on ChatGPT 5.5 literally came out in the Last week. Outrageous. So there are things that are kind

of, what, what do you.

That are kind of unbelievable. So.

But you should. I don't think any of us should be surprised that it's going to take a lot of computing power because it's, it's very average. It's a lot of it at least. I was just using the. I know. Rudimentary. I know I am. And that's going to stay that way.

I understand it's going to stay that way.

But I can imagine in knowing how you are, I can imagine that you need a lot more computing power to become real AI and sentient. I don't even know what that means anymore. Right. Or even decent at being agentic is no better than it was. I still need to talk to a carbon based life form to get, you know, any decent, you know, answers or planning. So it's going to be a lot of computing power. So you better watch your. Don't eat any more meat and don't fart because the carbon footprint is getting. All right, go ahead.

[Kelly Grant]

All right, now I understand what you're talking about. Carbon footprint.

[Joe Kernan]

Well, yeah, all of this is antithetical.

[Kelly Grant]

Yes.

[Joe Kernan]

If you really think we're going to

[Kelly Grant]

save the planet in relation to all of this. The other issue that we have going before you get to OpenAI's actual IPO. A nine person jury was seated. Musk's high profile lawsuit Against Altman and OpenAI opening arguments are scheduled to begin today at a federal courthouse in Oakland, California. Musk claims that OpenAI, which he helped found back in 2015, strayed from its commitments to remain a nonprofit lab. Among other things, he has sought to get Altman and OpenAI's president Greg Brockman both removed from their roles at the company. And in a post on X yesterday, OpenAI said this lawsuit has always been a baseless and jealous bid to derail a competitor. I don't know if you saw this post, but it got some pretty big blowback on X as well, as you might expect. Elon Musk's company. A lot of blowback and people pushing on this. And this is going to be interesting to see how this plays out with this jury. Google striking a deal to allow the government to use its AI models for classified work. That's according to the information. A report says that the Pentagon will be able to use Google's technology for any lawful government purpose. That puts it in the same category as OpenAI and Elon Musk's X AI. Earlier this year, Anthropic balked at those kind of usage conditions from the government. And of course, as you know, that led to a fallout between the company and the Defense Department. The United Arab Emirates saying that it will leave OPEC and OPEC as of May 1. The country's energy minister telling Reuters that that decision was made after a careful look at its strategies. He said the UAE is doing this at the right time without hugely impacting markets because of constraints on the Strait of Hormuz. Brian Sullivan joins us on the Squawk newsline. Brian, what are you hearing?

[Brian Sullivan]

Well, it's brand new. I mean, this is breaking news right now and this is a big change, the global oil order. It's a big change to OPEC as well. United Arab Emirates was one of the key members, one of the not firm founding but first members of OPEC joining. Actually before the UAE became a nation, it was just the emirate of Abu Dhabi. Then the UAE was created 1971. They're doing about 2 million barrels per day. So they're one of the bigger OPEC producers. They're nowhere near the level of Saudi Arabia or even Iran or Iraq. But they are critical when it comes to holding OPEC together. And I'm going to kind of give you just my inside take, having been to many OPEC meetings when they used to meet regularly in Vienna, Austria at their headquarters, which is that Salman Ahmadi, who is the UAE oil minister, he was one of the guys that would kind of bring together some of the warring parties, right? You had groups that were inside of opec, mostly Iran, that would want to always do their own thing. And Saudi Arabia and the UAE would kind of go to Iran and say, listen, we're going to give you what you want. We got to make some deals here and get this, bring everybody together. So the UAE was a critical member, not just in terms of oil partnerships, but in terms of just sort of the diplomacy itself within the group. Because everybody likes to think of OPEC as like this one group that's sort of singularly focused on the same thing. It's not true at all. You've got OPEC members from South America, Venezuela, you've got OPEC members from Africa, you've got OPEC members from the Middle east and then of course the PLUS coalition with Russia and others. So this news literally just crossing minutes ago, the UAE, which is about a 2 million barrel a day exporter from OPEC, is leaving the group. You see OPEC or oil is higher right now. I see that on the screen right there, up about 4%. It's unclear what these other priorities may be, but obviously I'm already pinging some people in the UAE and around the world to try to get more context on what is a pretty big headline for a random Tuesday morning.

[Kelly Grant]

Indeed it is, Brian. Thank you and we look forward to what else you find out on this development.

[Toto Wolff]

Tees will be next.

[Andrew Ross Sorkin]

Coming up on Squawk Pod, Mercedes Formula one team principal and CEO Toto Wolff. After weeks off amid the war in Iran, the team heads to Miami this weekend. Of course, its star driver will be there too. F1's youngest ever championship leader, Kimi Antonelli.

[Toto Wolff]

We have taken Kimmy under management when he was 11. You know, he was a tiny little boy back then and we took a bet on him. He showed extraordinary results in junior karting and you can see, you know, many other teams start to take young drivers as young as 9 or 10 year olds.

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[Andrew Ross Sorkin]

Welcome back to Squawk Pod with Jo Kernan, Becky Quick and Andrew Rossorkin.

[Kelly Grant]

Becky Formula one teams are preparing to return to racing this weekend in Miami. An unexpected break led to the cancellation of two lucrative races, one in Bahrain and another in Saudi Arabia. Because of the war in the Middle east. So far Mercedes is dominating this season, winning all three races of 2026. For more on the business of F1, the new regulations, competition, leadership and much more, we want to bring in Toto Wolff. He is team principal and CEO of Mercedes AMG Petronas Formula one team. And Toto, thank you for being here with us this morning.

[Toto Wolff]

Thank you for having me.

[Kelly Grant]

First of all, congratulations. This is a huge start to the season for you.

[Toto Wolff]

Yeah, it's good, but unfortunately only the start of the season, you know, there's 19 or more races to go and we've had a decent start but everybody's going to continue to develop the cars. Some teams are making a big step here in Miami next few days and we shall see how that pans out for us.

[Kelly Grant]

The unexpected five weeks off that you all have had because of these two races being canceled. What's it meant? And let's dig in a little more as to what this means for the season because it's not just those two races being canceled, which by the way were two very lucrative races that add up to bigger purses and bigger amounts of money for the, the teams. You're also dealing with higher jet fuel costs and while that may not seem like a big deal, you have to take all of your equipment from city to city around the world. And that does add up. And you've got a cap on how much you can spend on those things.

[Toto Wolff]

Yeah, exactly. I think first from a personal side with all the teams, it was a highly unusual situation because a four week break right when everything got started is nothing. Something we've never had. But then work continue to be big. Four weeks break means lots of politics going on, everybody trying to tweak the regulations in their favor. And then, you know, there is things we should, we need to do to make the sport even, even more attractive, particularly on the races. So that's the kind of impact on the, on the people. And when it comes to, you know, the geopolitical situation, we are all part of that. And apart from the, let's say, financial benefits of going to Saudi Arabia or to Bahrain, it is, you know, Bahrain is a legacy race for us. We've been there forever. Jeddah has put on a great show and these two races are going to be missed.

[Kelly Grant]

There is a chance that they'll be made up later in the season. At least there's talk of that at this point. Do you think that's possible?

[Toto Wolff]

Well, all depends how the situation in the Middle east continues to pan out. We have a few more races there with Qatar and Abu Dhabi and hopefully it's going to calm down a little bit. We may as well go back to one of the races or there might be another, you know, another Grand Prix that, that would step in for the

[Kelly Grant]

three races so far. George Russell won one of them. He is your long term premier driver. Kimmy Antonelli coming in and winning the Other2. He's 19 years old, the youngest ever to win a Formula One race like this. He's breaking all kinds of records, including those that have been set by Lewis Hamilton in the past. What are your expectations? How surprised are you? How sure were you that this was going to happen?

[Toto Wolff]

Well, first of all, you know, George is such a strong pillar of the team and is the one that has given direction to the team over the last, over the last few years as well. So, you know, without having the safety of having George in the car and knowing that he's going to perform, maybe, you know, taking the risk of putting an 18 year old in the car would have looked very different. But we have taken Kimi under management when he was 11. You know, he was a tiny little boy back then and we took a bet on him. He showed extraordinary results in junior karting. And you can see, you know, many other teams start to take young drivers as young as 9 or 10 year olds under management. Happens to be some Americans actually coming over too. And since then, you know, he's been doing great in karting in the junior formulas, but he's still only been 18. And I don't know how it is, you know, with you, but me with 18, I would have never sustained depression from Ron. Yeah, so it's, it's unbelievable.

[Joe Kernan]

Do you think younger drivers are willing to take more risk?

[Toto Wolff]

I think they are less. I don't, I don't think they think about it, you know, I know, that's

[Joe Kernan]

why I'm asking the question.

[Toto Wolff]

Yes, definitely. Yeah, definitely. You're in your car, you know, everything moves. You need to remember everything moves at the same speed. Like you, so everybody around. It's not like you realize how fast you go. And they've done that since they were 7 or 8 years old. So it becomes the total normality in traveling at 200 miles an hour. But they're kids and that is what we sometimes forget. That last year he had some really good moments and then some, some bad. And we said, we said it's the trajectory he needs to take.

[Joe Kernan]

You mentioned that you think that the, the sport needs to change. There are things that need to be tweaked. Both in terms of the rules that you said people are jockeying for in these last couple.

[Andrew Ross Sorkin]

So weird.

[Kelly Grant]

It's the strangest sport that you have

[Joe Kernan]

rules that change and then this idea of something that's better for the audience. What are you referring to? What is that?

[Toto Wolff]

So first of all, I don't know how it is in the U.S. american sports, but we tend to be very nostalgic how great the past was. And in Formula One it was screaming loud, 10 cylinder engines revving to 18,000. You couldn't bring any kids to the tracks because it was just single, simply too loud. The cars were fantastic to drive and lots of downforce, but there wasn't any overtaking. So this is what people, hardcore fans today look back and say, well, it wasn't that great. The truth is we have a very interesting formula that is what the younger fans love today. But it is also a formula that very much relies on the energy that the battery gives. And we have seen particularly in qualifying where you want to have flat out racing that you need to recover some of the batteries. And like I said, the hardcore fans say, well, that isn't what Formula one was before. But the show on the Sunday, still, still great. And all the data support that.

[Kelly Grant]

Yeah, there have been some complaints. I think one of one of the guys has said, they called it Mario Kart. The new rules they're racing for, what do you say to them?

[Toto Wolff]

First of all, there's many people that love Mario Karts, but Formula one has always been the pinnacle of racing. The fastest engines and the fastest car with the best drivers. And this is still what it is. So what I mentioned before, in terms of politics, you know, it's also gamesmanship, the ones that don't perform particularly well under those rules, they are very loud and saying, well, that's not what we like. The ones that do very well enjoy it, but fundamentally you need to rely on the data. And Stefano Dominical who runs Formula one, you know, says the fans love it. Through all of the demographics, traffic, not only the very young ones, but also the ones that, you know are slightly older females and men. And in that respect, the sport is in good shape. We just need to, you know, handle it like, you know, very careful because we are, you know, that's the holy grail, the DNA of the sport.

[Kelly Grant]

Lewis Hamilton worked with you for over a decade, a close friend of yours. When he left and went to Ferrari, I know it was probably really tough, but I know you stayed close to him, you're still friends with him. Johnny Herbert recently suggested that he might be facing the end of his natural career racing in Formula one. Maybe it's too soon to call for crazy things like that, but what would you say to somebody who looks at him and sees someone young like Kimmy coming up and really tearing things up? What do you say to people who have been around for longer or someone like Lewis and Hamilton?

[Toto Wolff]

You know, there is these outstanding athletes, the so called goats that just, they're just better than everyone else. And I think they're also able to carry on in their careers longer than everybody else. You see, Fernando Alonso is still a very strong driver in the U.S. you know, Tom Brady was taking it far longer than all of the, you know, other players. And I think it's the same with Lewis. And we spent a lot of time traveling together and he said to me recently what I, I think I can do this five or 10 years more. And you can see this season is going particularly well for him. He's competitive, he enjoys what he's doing. So I don't see any reason why this can carry on for a few more years.

[Joe Kernan]

You saw the movie, right? And you just described the movie, I

[Kelly Grant]

think, well, Brad Pitt.

[Joe Kernan]

Yeah.

[Toto Wolff]

So you can actually, when you look at the movie, you can race until you're 16.

[Kelly Grant]

Yeah, exactly.

[Toto Wolff]

Maybe not in reality.

[Kelly Grant]

Toto, thank you again. Congratulations on a great start to the the season. And I can't wait to see what you guys do in my.

[Toto Wolff]

Thank you for having me.

[Andrew Ross Sorkin]

Still to come on Squawk Pod talking money with your kids, CNBC's Senior Personal Finance correspondent Sharon Epperson on what you should say and when. Plus the costs of not saying anything.

[Becky Quick]

You should tell your kids. Absolutely. Talk about different things that are happening when they're younger. You're going grocery shopping.

[Andrew Ross Sorkin]

Talk about that family finance right after this break.

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[Andrew Ross Sorkin]

This is Squawk Pod.

[Joe Kernan]

You're watching Squawk Box on cnbc. I'm Andrew Osrk along with Joe Kern and Becky Quick. Parents and teens may agree about the importance of learning to invest, but talking about money and financial issues at home can often be a tough one. And Sharon Epperson is going to join us right now with some insights from some of CNBC's own financial experts about how to end up starting those conversations. Good morning.

[Becky Quick]

Good morning, Andrew. A new survey out this morning from Charles Schwab finds 6 out of 10 parents say it's more difficult to teach teens about investing than it is to teach them how to drive. But to learn about finances, we need to talk about it.

[Kelly Grant]

There's a difference between gross pay and

[Andrew Ross Sorkin]

how much you actually get to keep.

[Becky Quick]

This conversation at John F. Kennedy High School in Patterson, Jersey, is all about money.

[Kelly Grant]

The more you borrow, potentially the longer it will take for you to pay it down.

[Becky Quick]

These four journalists on staff at cnbc, Kelly Grant, Darla Mercado, Kate Doerr, and Emmy Martin are also certified financial planners passing a rigorous exam to earn that CFP designation.

[Andrew Ross Sorkin]

You're going to get an extra 4% of that 50,000 at the end of

[Joe Kernan]

the year by the match.

[Becky Quick]

They return to the classroom to speak with students about financial planning basics, a conversation that often starts at home.

[Joe Kernan]

My mom tries to push us more to save money.

[Becky Quick]

Most people learn about money management from their parents, but having these conversations with loved ones can be challenging. And I'm not going to cut short on anything because of money. 81% of adults say they intentionally avoid discussing financial topics with family and friends. Members of our CNBC CFP circle say staying silent can result in costly choices.

[Kelly Grant]

If you're not talking to other people, you could be missing out on some strategy that would work really well for you. Or you might hear from them about a mistake that you can avoid. Having this CFP allows me to see things from a 30,000 foot view. We think about what are some of the longer term implications of what we're

[Andrew Ross Sorkin]

seeing in the market and also how

[Kelly Grant]

might that fit into the bigger picture for an individual investor.

[Becky Quick]

Now, talking about the bigger picture is an important conversation to have. Yet research shows many adults intentionally avoid talking about income, debt and investing with family and friends. Break the silence. You're going to find some great money conversation starters in the Money 101 newsletter. Go to cnbc.com/money101 and share the link with friends and family.

[Joe Kernan]

Okay, so I want to know, do you recommend going just open kimono. You think you should tell your kids full on the full financial situation?

[Becky Quick]

I think you should tell your kids absolutely. Talk about different things that are happening when they're younger. You're going grocery shopping, talk about that. When you're talking about managing the finances of the home, talk about that. Talk about the, the mortgage, the rent, the insurance.

[Joe Kernan]

How far would you go and how

[Kelly Grant]

young because how young you're.

[Joe Kernan]

I'm going to make it hard for you.

[Becky Quick]

Okay.

[Joe Kernan]

Your kid's going to say to you how much money do you make? Right Sharon? And what are you, what are you going to say?

[Kelly Grant]

I can telling their friends that.

[Becky Quick]

No, I do not want them telling their friends how much money I make. I think I would talk about how much money I make versus what I need to spend. I make enough money for us to do this, this and this, but I don't make enough money for at what

[Joe Kernan]

age would you tell your child that answer?

[Becky Quick]

I think definitely in high school. High school because they need to understand what the return on investment is for what they want to study to, to do. And I think it's important to understand what salaries are.

[Joe Kernan]

Okay, that different question in this great era of AI.

[Becky Quick]

Yeah.

[Joe Kernan]

Joe doesn't believe the answers are going to be any good. I think he might have a little more faith.

There's a disclaimer on him now says we're wrong a lot.

But what do you think about people having conversations about money with a chat bot?

[Becky Quick]

It's happening more and more. There was this just a study out by Wells Fargo a chance showed 19% of adults are using AI to ask them all kind of things about their finances and 90% of those people say they've been profitable. The advice, what else? What are they going to say?

[Kelly Grant]

And not to mention though, I think it's a great equalizer because there are a lot of stupid people who you can ask about your finances.

[Becky Quick]

That's true. That's true. But what's interesting is getting access to the best people who are 18, 20s, they're using it even more double the amount of, of the average. And so the only issue there is if are you concerned about all your information is out there or you know, that people are looking in there and using your information to kind of come up with their answers. But like Becky said, financial advisors disagree so much on what a client should do. So, you know, just getting that advice, it's kind of like I think I always go to WebMD or to Google something about my health, right? And then I come into the doctor and I come with a. That might drive them crazy, but I want to have some agency and know a little bit about something.

[Kelly Grant]

What you were talking about with, talking with your kids with this, it's probably talking with them about medical issues is the other big taboo that nobody talks about to our detriment. If you don't know what's coming as you age. Things that could happen with medical things, just like with finances.

[Becky Quick]

So, so, so true. And you know, having gone through medical things, I think it's so important that they know. My kids know. It's scary, you know, but they, but they understand that they need to understand and watch their health and monitor all of those things. And your financial health is the same way. It's scary. You know, you've lost your job. You're going to talk to your kid about that. You have to. I think you really do need to explain the changes that are happening.

[Joe Kernan]

For most common things, AI is pretty good for, you know, most, most things that you get are not the worst case scenario.

[Becky Quick]

But it's also a great conversation starter, right?

[Joe Kernan]

You're talking about just for money.

[Becky Quick]

I'm not for everything. You know, you look into that and it says that, but you know, you want to go to the actual sources and all that, but it's a great way to get some information and find out where you need to go to find that original source and to talk to people.

[Joe Kernan]

I'm down on doctors a little bit impossible to get a. And physicians, you know, people that are trained that you go and they're, I don't know, they're like super nurses or something. They're basically doctors and you can actually go to see them in the same week that you call, you know, for an appointment.

[Becky Quick]

Yep, yep, yep.

[Kelly Grant]

They're very good.

[Andrew Ross Sorkin]

That's Squawk Pod for today. Thank you for listening as always. Squawk Box is hosted by Joe Kernan, Becky Quick and Andrew Ross Sorkin. You can tune in weekday mornings to catch them live on CNBC for three three hours starting right at 6am Eastern. To get the best bit of that show right into your ears, follow us here on Squawkpod. Wherever you're listening now, we'll meet you right back here tomorrow. Have a great day.

[Joe Kernan]

We are clear. Thanks guys.

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