← The Rundown
The Rundown
OpenAI Wants its Debt Deals Backed by U.S. Government, Apple Plans to Integrate Gemini into Siri
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Public.com presents the rundown your daily market update in under 10 minutes. My name is Zaydadmani and today is Thursday, November 6th. In today's episode, we'll tell you what the Supreme Court is saying about tariffs. We'll also discuss the head scratching comments coming from OpenAI and another partnership between Google and Apple, then stick around to the end of the show for a shocking stat about the U.S. housing market. We got a great show for you today. Let's go. Markets rebounded on Wednesday with the S P 500 up.4% and the Nasdaq gained 0.7. Crypto also saw a nice bounce back. Bitcoin is now back above $104,000 after dropping under a hundred thousand dollars earlier this week. Now, the big headline yesterday was regarding tariff news coming out of the Supreme Court. Supreme Court started hearing arguments on whether President Trump's tariffs are legal under the International Emergency Economics Powers act, and early signs suggest the justices are skeptical. Several justices hinted that President Trump may have overstepped his authority, which means that some or even all of the tariffs that he issued under the Emergency Economic Powers act could be struck down. And if that happens, the US Government would have to refund the tariffs collected under the act, which could be over $100 billion. So yeah, this adds more to the tariff drama. Now, the justices aren't expected to make a ruling anytime soon, so this legal cloud could hang over the market for months. Just that's the theme of 2025, just more uncertainty. And I'm still not sure if the tariffs being struck down is bullish or bearish for the markets. At this point, I feel like investors have just kind of moved on, but we're gonna have to wait and see to get some more clarity. In the meantime, there's a lot going on in the markets outside of tariffs. Earnings are still rolling in and there's a big Tesla shareholder meeting this afternoon, which we're going to recap on tomorrow's episode. So make sure you guys are subscribed to the podcast and tuning in every day. To stay in the loop, let's run through some headlines, starting with OpenAI. Turns out OpenAI isn't planning to IPO anytime soon. At the Wall Street Journal's Tech Live conference, OpenAI CFO Sarah Fryer said that an IPO is not on the cards right now. That's contradicting to what CEO Sam Altman said just a couple of weeks ago. Sarah Fryer said the company is still focused on scaling their business and building out their infrastructure. Now there's still a ton of questions on how OpenAI plans to pay for all the infrastructure build out. OpenAI expected to spend more than $600 billion over the next few years on infrastructure, but the company's revenues are only around $13 billion a year. And those revenues are expected to grow, but it's still not going to be enough to pay for all the build out. So then a CFO made a very interesting comment that's getting a lot of attention right now. She said that OpenAI hopes that the US government might backstop the financing of future data center deals. Essentially, she wants the US government to help pay for the data centers for OpenAI. That comment did not go over well. You know, expecting the US government to fund OpenAI ambitions to create a technology that could potentially replace people's jobs. Yeah, I don't think people are going to be cool with that. On top of that, the US Government's budget has a massive deficit as it is. So yeah, a lot of people had a problem with her comments. She did backtrack those comments last night, but people are still upset. Now. OpenAI has a great product. I love Chat GPT. But their other superpower is just dominating headlines. You know, I'm not sure how this story is going to end, but I hope we at least get a good movie out of it. Let's stick with the AI theme and talk about a deal between Apple and Google. According to Bloomberg's Mark Gurman, friend of the show, Apple is close to finalizing a deal to pay Google roughly $1 billion a year to use their Gemini AI model to power the revamp Siri, which is expected to come out next year. Now what's interesting about this deal is that it's not supposed to be a long term deal because Apple is also working on their own model to eventually power Siri. But I guess their model isn't ready yet, so they're going with Gemini in the short term. You know, you guys know that I'm a big time Siri hater. I mean, I pretty much never use it. So I'm happ to see that Apple finally admit defeat on the lack of their AI skills and just go with Google's Gemini model. I'm still going to try to have low expectations though for the new Siri. The other thing that's interesting about this deal is that Apple is paying Google a billion dollars a year to use Google's AI model while Google is paying Apple $20 billion a year to be the default search engine on the iPhone. So I wonder if it's a sign that these state of the art AI models might not be as economically valuable as some were expecting. You know, you're starting to hear that AI models might just be a commodity, so it might not be a good business now. I think Apple still wants to develop their own state of the art AI model to power everything because they like to do everything in house. But yeah, it's definitely something to keep an eye on. I mean, these AI models cost tens of billions of dollars to train, and Google's only getting $1 billion a year from Apple. Let's talk about some stocks making moves today. Figma stock is jumping this morning after the design software company beat on Q3 earnings estimates and raised its full year outlook. Revenues for the company came in at $274 million, which topped estimates with sales up 38% year over year. The big driver for Figma last quarter was their new AI design tool, Figma make, which helps users instantly generate app interfaces using generative AI. CEO Dylan Field said that 30% of their largest customers, those who spend over $100,000 a year, are now using Figma make on a weekly basis. So that's a pretty strong adoption curve for a product that launched just this past summer. So investors were pretty excited about that. Figma stock is up around 4% in reaction to the earnings. If you zoom out though, Figma stock is still down more than 60% from their IPO peak. Now, sticking with the winners here, Snap stock is surprisingly up this morning after beating on revenue estimates and announcing a major new AI partnership with Perplexity. This AI deal is worth $400 million, and Perplexity's chatbot will soon be built directly into Snapchat's inbox starting next year. Snap CEO Evan Spiegel said it's part of their plan to make Snapchat a platform where leading AI tools can connect with users in a creative and trusted way. Not going to lie, I don't really get what the vision is here, but the market seems to like it, and Snap stock is up nearly 20% this morning in reaction to this news. Now on the flip side, DoorDash is getting cooked this morning after the company missed earnings and they told investors they plan to spend several hundred million dollars over the next year to build out a new global tech platform. The rumor is this platform might be a point of sale system, kind of like a square or a clover on top of that. DoorDash closed on their $3.9 billion acquisition of Deliveroo, which expands them into the UK market and they also showed off an autonomous delivery robot called dot. But you know, investors aren't loving all the spending from the company and As a result, DoorDash stock is down more than 10% this morning. And finally we got Duolingo. Their shares are plummeting after the company's forecast for bookings came in below expectations. Duolingo says they're focusing less on monetization and more on improving the learning experience for their users, and investors did not that Comment Shares are down nearly 25% this morning at the time of this recording. Let's wrap the show with a fun fact. The average age of a first time home buyer in the US just hit a record high of 40 years old, according to new data from the national association of Realtors. What's crazy about this stat is that the average age of a first time home buyer was 33 just four years ago. In fact, the average age of a first time homebuyer was early 30s for most of the last 40 years. But since 2021 the average age has shot up. And this stat is just the latest example of how unaffordable the housing market has become in the US over the last four years. The median price of a house in the US is now around $415,000, which is up more than 50% since 2019. And you add in the fact that mortgage rates are now more than double what they were from just a couple of years ago. Pretty much everyone in their 30s is getting priced out from buying. A housing market in the US is such a mess and there's so many downstream economic impacts from it as well. We might have to do a deep dive about it. It's a little depressing, but it is very interesting. Well all right guys, that's the rundown for today. Hope you guys enjoyed today's episode. If you did and you have like 8 extra seconds, consider giving us a 5 star rating on Apple, Spotify, YouTube, wherever you listen to your podcasts. And if you are listening on Spotify, don't forget to vote in today's Spotify poll. Leave us a comment on Spotify. All that engagement really does help us out and it helps other people find the show. By the way, it's my last day in New York. I'm headed back to Houston tonight, so I will be back in my normal recording studio starting tomorrow. I'm looking forward to that. You know, it is a little challenging recording in a hotel room. If you guys saw my setup right now, you would laugh. Thank you guys again for listening. Watching and commenting. Shout out to Mike and Connor for all the work behind the scenes and we'll see you guys back here tomorrow.