people thought we were building robots and doing world models and things like this which

isn't correct and so there's been some speculation we thought look we're not being secretive

right we're just being heads down and trying to do the work but there's a certain amount when you

raise this

much money, people do get curious. If you let that just be a complete void, they'll fill it with

nonsense. So we figured we'd at least say what we're actually working on. Amazon's founder and

executive chair, Jeff Bezos, with our David Favor last hour as his new AI startup Prometheus raises $12 billion.

Good Thursday morning. Welcome to Squawk in the Street. I'm Carl Kintania with Leslie Picker here at post-9

of the New York Stock Exchange. Sarah Eisen is off today. The rising need for AI compute, Bezos tells David

they have enough, plus his thoughts on the AI jobs impact and government regulation. We'll get to the highlights.

And Iran threatening the Musk economy reportedly now treating Elon Musk's companies in the Middle East as military targets just a day before.

SpaceX makes its big public market debut here in the U.S.

A costly AI buildout. Oracle is saying it would invest 70 billion in the coming year to finance its data center plans. Shares are lowered today. Close to session lows here as investors scrutinized its spending, sustainability, and rising debt load. As for markets, trying to hang on to gains here. S&P just went red, break-even for the week. We're watching. Also, Tuesday's low, which would put you

around 72-37. We're still about 30 points above that. Also, the Dow trying to hang on to gain of 175.

Let's get more on this Oracle move with Sima Modi. Seema. This is the biggest move we've seen in

Oracle's shares in six months, Leslie. Oracle's demand story, that huge increase in its backlog in the quarter,

being overshadowed by the increasing costs of the AI buildout

and Oracle's plan now to raise $40 billion in debt and equity in 27.

Goldman Sachs says it's reinforcing concerns around the duration and funding of the AI buildout.

For context, this is the second time Oracle has announced an equity issuance to fund its data center expansion.

It's what consumed much of the earnings call last night with its new chief financial officer,

Hillary Dixon, fielding many questions on how she views CAPX, Oracle's balance sheet evolving over time.

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