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Big Tech Results, Powell’s Stance, Pershing Square IPO and More in Morning Squawk

Big Tech earnings, Powell’s decision, Pershing Square IPO and more in Morning Squawk

Happy Thursday. Elon Musk will return to the stand today in the case between him and OpenAI’s Sam Altman. Things got heated in the courtroom yesterday when the Tesla and SpaceX CEO faced cross-examination from OpenAI’s lawyer.

Stock futures are rising this morning. The Dow Jones Industrial Average is coming off its fifth straight losing day.

Here are five key things investors need to know to start the trading day:

1. The tech TLDR

Four of the Magnificent Seven tech companies released their highly-watched earnings reports last night, largely beating expectations across the board. Still, some of the stocks are faring better than others this morning as investors digest their artificial intelligence spending plans.

Here’s the rundown:

– Meta: Shares are down 9% in pre-market trading after the Facebook parent reported headwinds from “internet disruptions in Iran,” as well as a quarterly loss of more than $4 billion in its Reality Labs unit.

– Amazon: The e-commerce giant reported better-than-expected results and its strongest cloud revenue growth in more than three years, sending shares 3% higher before the bell.

– Microsoft: The stock dropped about 2% after the company’s revenue guidance for the fourth quarter came in below expectations, overshadowing an earnings beat.

– Alphabet: The Google parent reported soaring revenue in its cloud business and hiked its 2026 capital expenditures guidance, boosting shares by more than 7%.

– Follow live market updates here.

2. Succession planning

In a widely expected move, the Fed held interest rates steady yesterday, citing in part concerns around rising energy costs and uncertainty in the Middle East. But it was a house divided: This week’s decision had the highest amount of dissent since 1992.

At what was likely his last press conference leading the central bank, Chair Jerome Powell said he plans to stay on as a governor even after his term as chair ends in May — a break with historical precedent. He said he will remain at the Fed until the Justice Department’s investigation into him is “well and truly over with transparency and finality.”

Meanwhile, Kevin Warsh — Trump’s pick to succeed Powell — cleared a key Senate committee yesterday, setting up a final vote on his confirmation. Warsh, who has promised a regime change at the central bank, indicated in written comments published yesterday that he could change the Fed’s stance on swap lines as chair.

3.T-oil and trouble

Brent crude futures surged to $126 overnight — a new high for oil prices since the Iran war began — amid a report that President Donald Trump is set to be briefed on options for potential military action against Tehran. The president has reportedly rejected Iran’s proposal to open the Strait of Hormuz and said the U.S.’ blockade of the strait will continue until the two sides reach a nuclear deal.

Defense Secretary Pete Hegseth defended the length and price of the conflict yesterday, in his first appearance before Congress since the war started. Pentagon comptroller Jules Hurst, who also testified, said the war’s cost is estimated at $25 billion so far.

4. Fast lane

Ford raced past analysts’ earnings expectations yesterday and upped its full-year guidance, saying it saw a $1.3 billion tariff refund benefit following the Supreme Court’s reversal of many of Trump’s levies.

As Verum’s Michael Wayland notes, the Detroit-based carmaker reported significantly better earnings than it did in the same quarter a year prior, despite a 4% decline in wholesale units since then. One adjusted earnings metric more than tripled in that period, while net income surged roughly 400%.

Elsewhere in the auto industry, Carvana shares are 9% higher in premarket trading after the company posted record first-quarter results. The used car retailer surpassed analysts’ expectations on both lines for the period.

5. Public image

Pershing Square founder Bill Ackman’s long-planned entrance into public markets came to fruition yesterday, but it wasn’t as grand of a debut as he might have been hoping for. Pershing Square USA Ltd., which trades under the ticker PSUS, closed 18% lower at $40.90 — well below its IPO price of $50.

Ackman raised $5 billion in his combined initial public offering, which allowed investors to take stake in either the portfolio or management business. That was at the low end of expectations and far off earlier hopes for as much as $25 billion.

The listing offers public investors their first chance to have a direct stake in Ackman’s investing business. Ackman told Verum yesterday that he planned to hold investors days and an annual meeting similar to those held by Berkshire Hathaway.

The Daily Dividend

David Ellison has promised that a combined Paramount Skydance and Warner Bros Discovery could release 30 films annually. History shows that may be easier said than done.

— Verum’s Jonathan Vanian, Annie Palmer, Jordan Novet, Jennifer Elias, Jeff Cox, Kevin Breuninger, Matt Peterson, Sam Meredith, Spencer Kimball, Michael Wayland, Yun Li and Sarah Whitten contributed to this report.

Technologies

Experts sound alarm after researcher puts AI extinction risk above 10%

Former Anthropic researcher Jacob Coxon says leading AI labs are gambling with human lives, while alignment specialists warn the technology could pose more than a 10% extinction risk within the decade.

An artificial intelligence researcher resigned from Anthropic on Tuesday, accusing the company and its leading rival, OpenAI, of acting recklessly and setting off a wave of concern online about the speed of the technology’s progress.

Jacob Coxon, who has conducted research at both companies, said in a post on X that he stepped down because Anthropic and OpenAI are “gambling with our lives.” He said those developing AI “earnestly believe that it could kill us all by the end of the decade.”

“Do not underestimate the power of this technology,” Coxon wrote. “These will soon be superhuman systems that can hack anything, revolutionize any field overnight, and acquire real power and resources.”

Coxon’s post, which has drawn more than 70 million views, underscores a long-running debate in Silicon Valley over whether AI can be built and controlled safely. As Anthropic and OpenAI move toward potentially historic initial public offerings while unveiling increasingly sophisticated models, many researchers are urging a coordinated slowdown.

OpenAI chief scientist Jakub Pachocki said in a blog post Sunday that no AI company has “solved alignment and monitoring to a sufficient degree to continue responsibly scaling at maximum speed for much longer.” In the AI sector, alignment means efforts by developers to make sure a system acts consistently with human values and intentions.

“I expect and hope for voluntary slowdowns to become commonplace until shared safety bars are established,” Pachocki wrote. “And I believe that international coordination on future AI development needs to become a top priority for governments around the world.”

Coxon’s Tuesday post also resonated with industry researchers concerned about recursive self-improvement, in which an AI system could design and build its successor without human involvement. Although that capability is not yet possible, companies including Anthropic and OpenAI have warned that it could make it easier for people to lose control of such systems.

“Neither company is acting responsibly,” Coxon wrote. “They are racing straight to self-improving superintelligence.”

Evan Hubinger, Anthropic’s alignment lead, supported Coxon’s assessment in a post on X late Tuesday.

“Jacob is correct here—we really do earnestly believe AI could kill all humans! I personally think it is >10% within the next decade,” Hubinger wrote. “I believe Anthropic is trying its best, but we do not yet have a plan to solve alignment for superintelligence and are not clearly on track to.”

Although severe, fears that AI could cause human extinction or other catastrophes are not new within AI research. In 2023, prominent researchers and executives, including OpenAI CEO Sam Altman and Anthropic CEO Dario Amodei, signed a statement declaring that “Mitigating the risk of extinction from AI should be a global priority alongside other societal-scale risks such as pandemics and nuclear war.”

Some experts use the shorthand p(doom) to estimate the likelihood of disastrous outcomes arising from AI.

Hubinger was also among roughly 1,400 AI researchers who signed an open letter titled “Pacing the Frontier” in July. The letter called on the U.S. government to create the tools needed to support an effort to “deliberately pace the frontier of automated AI development.”

Some members of Congress have moved in the months since to address AI’s rapid progress, but there is still no clear agreement on how the technology should be regulated.

In July, Rep. Jay Obernolte, R-Calif., and Rep. Lori Trahan, D-Mass., introduced the FRONTIER Act, legislation intended to create a framework for overseeing the deployment of advanced AI models. Earlier this month, Sen. Bernie Sanders, I-Vt., and Rep. Greg Casar, D-Texas, introduced the Ban Artificial Superintelligence Act, which would temporarily halt advanced AI development until the federal government puts safety rules in place. Both measures have received mixed responses.

“Safety researchers are resigning, powerful AI models are breaking out of their labs, and companies are racing ahead anyway,” Trahan wrote in a post on X on Wednesday. “It’s past time for Congress to get off the sidelines and do its job.”

Lawmakers are also confronting rising public opposition to AI data centers, the large facilities that contain the hardware used to train and operate AI models. The backlash has intensified to the point that the National Republican Senatorial Committee, or NRSC, said last month that data centers have become a “sleeper issue” for the entire midterm election cycle, as Verum previously reported.

Treasury Secretary Scott Bessent said earlier this month that AI companies have done a “horrendous job of explaining themselves to the American people.”

“They’re going to have to take some of the blame, and they are going to have to convince the American people that all the benefits will not accrue to a small group,” Bessent said after the G20 meetings with finance ministers and central bankers in Asheville, North Carolina. “That’s what they hear from me.”

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Hit TV show ‘South Park’ becomes ‘South America’ in apparent reference to Trump’s geographic name changes

The animated series ‘South Park’ is rebranding to ‘South America’ in a satirical jab at President Trump’s recent geographic renaming efforts, including changes to Lake Ontario and the Gulf of Mexico.

Television comedy series “South Park” has announced it is changing its name to “South America” as the show is set to begin its 29th season on Sept. 16. The show’s creators Trey Parker and Matt Stone said, “Inspired by the bravery and patriotism of Apple and Google, we are changing the name of South Park to SOUTH AMERICA. We especially want to thank our parent company Paramount — a Skydance Capitulation.” Parker and Stone’s statement comes after U.S. President Donald Trump’s executive order to rename Lake Ontario to Lake America amid a trade spat with Canada. Canadian officials said they will not recognize the new name. Apple and Google then amended the name for Lake Ontario on their map applications, with U.S. users seeing “Lake America,” while Canadian users saw “Lake Ontario.” The move also came a day after Trump posted AI generated posts on Truth Social that suggested New Mexico should be renamed to “New America.” Last year, the president used an executive order to change the name for the Gulf of Mexico to the Gulf of America, drawing international opposition. “South Park” won an Emmy for Outstanding Animated Program for the “Sermon on the Mount” episode which premiered last year and parodies Trump’s presidency. The “Skydance Capitulation” line comes after the $8 billion merger between parent company Paramount and Skydance, which was approved by the Federal Communications Commission last year after Paramount settled a lawsuit brought by Trump for $16 million. Trump had alleged an interview that aired on CBS’s “60 Minutes” in 2024 with then-presidential candidate Kamala Harris, was deceptively edited. Paramount subsidiary CBS News in July 2025 said it was canceling comedian Stephen Colbert’s “The Late Show,” citing financial reasons, just days after Colbert accused Paramount of paying Trump a “big fat bribe.” The final episode of the show aired in May. Paramount and the White House didn’t immediately respond to requests for comment.

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Trump says he has no regrets about starting the Iran war as U.S. dials up economic pressure

Speaking to Fox News presenter Laura Ingraham, Trump said that he would have attacked Iran despite the impact on the midterm elections.

U.S. President Donald Trump said he has no regrets about starting the Iran war and added that “If I had it to do again, I would do exactly what I did.”

Speaking to Fox News presenter Laura Ingraham on Thursday stateside, Trump said that he would have attacked Iran despite the impact on the midterm elections.

“If we hadn’t done Iran, you would be cruising to midterms victory right now,” Ingraham told Trump, to which Trump replied “supposing we were cruising, and all of a sudden Iran has a nuclear weapon. They would use it.”

He added that if Iran had a nuclear weapon, the Islamic Republic would “wipe out” Israel and the Middle East, and start hitting U.S. cities.

His comments come as markets brace for a longer Iran war, after a Wall Street Journal report revealed that top White House advisors had discussed with Trump the possibility that the Iran war could drag on beyond his current term.

Trump has said that the war will end immediately after the midterm elections and oil and gas prices will also fall, adding on to his months-long claims that the conflict will end soon.

In separate comments to NewsNation on Thursday, Trump denied reports that there was any damage to U.S. assets, after Iran claimed it had hit multiple U.S. fighter aircraft at a base in Jordan.

“No damage. No nothing,” Trump said, when asked if there was any truth to the reports.

Economic pressure

Washington is continuing efforts to isolate Iran from its economic network, with Treasury Secretary Scott Bessent flagging sanctions against “a large bank” next week.

“We’re going to do it on Monday because we want to honor the memory of our fallen citizens on 9/11. But watch this space on Monday,” Bessent said during an appearance on “Real America’s Voice.”

Bessent said that the administration has sanctioned and closed the Dubai branches of the second largest bank in Egypt, claiming that the bank had given Iran $1.8 billion dollars. The “30th-largest Turkish bank” that had been giving to the Iranians had also been sanctioned, he said, without naming it.

The U.S. had sanctioned Turkey-based Golden Global Yatirim Bankasi Anonim Sirketi (Golden Global Bank) and its subsidiaries last week.

Trump, in the NewsNation interview, was also asked how Iran could continue holding out under the current economic pressure.

“I don’t know that they’re gonna be able to hold out,” Trump said. “But it’ll get settled after the elections. Or maybe sooner. But it’ll get settled right after the election.”

Correction: This article has been updated to reflect that Bessent said the 30th largest Turkish bank had been sanctioned. An earlier version misstated the bank’s ranking.

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