Disney-OpenAI Agreement, Oracle Tumbles, Fed After the Rate Cut 12/11/25

Squawk on the Street

CNBC

News, Business, Investing

4.1 • 567 Ratings

🗓️ 11 December 2025

⏱️ 46 minutes

🔗️ Recording | iTunes | RSS

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Summary

David Faber led off the show with breaking news: Disney announced it will make a $1 billion investment in OpenAI — part of a three-year licensing agreement between the two companies. Hear what David, Jim Cramer and Carl Quintanilla had to say about it. The anchors also discussed Oracle shares tumbling on a revenue miss and raised capex guidance, reviving investor jitters about the level of AI spending. Also in focus: What's next for the Fed after Wednesday's rate cut, Time magazine's 2025 Person of the Year - "The Architects of AI" including Jensen Huang, Elon Musk and Mark Zuckerberg, Coca-Cola picks a new CEO, Cisco shares hit a new record high, "Faber Report" with an update on the Paramount-Netflix battle for Warner Bros. Discovery. Squawk on the Street Disclaimer

Transcript

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0:00.0	It's Jim Kramer here. You're listening to the opening bell of CBC Squawk on the Street.
0:04.7	Don't miss a minute of the action.
0:07.4	Good morning and welcome to Squawk on the Street. We're going to start our show this morning with some breaking news from the Walt Disney Company and OpenAI.
0:15.2	The two reaching what they're calling a landmark agreement to bring more than 200 characters to the Open AI SORA platform,
0:23.6	the short term, short form, excuse me, video platform, of course, that has become so incredibly
0:29.6	popular, in part so popular that Open AI needs ever expanding amounts of compute, which will get us a little later to Oracle, of course, the key
0:38.3	part of our story this morning. But as for this deal, they're seeing it on the screen. Soar is going
0:43.8	to be able to generate short user prompted videos, and they're going to be able to use these
0:47.4	Disney characters. Disney characters that, of course, have been embroiled, and we'll get to this
0:51.4	in a minute in any number of disputes between the company and those who are using its IP without paying for it.
0:57.4	Not the case here, a licensing agreement between the two companies,
1:00.9	and as well, an exchange of economics.
1:03.3	Disney going to invest a billion dollars in OpenAI
1:06.6	at its current valuation, is what I'm being told,
1:10.2	as well as receiving warrants over the course of this three-year deal.
1:15.5	There, I don't have any transparency or details in terms of where those warrants would be struck,
1:21.0	but obviously they would allow Disney to increase its potential stake in Open AI over time.
1:35.3	But guys, you know, interesting to see Disney making a move like this, saying this is where the technology is going. We don't want to be left out in a sense.
1:39.3	Despite the fact that I'm sure you could imagine that in some way it threatens certain parts,
1:45.0	well, I don't, you know, creators and things like that. By the way, I should point out that
1:48.9	as part of the deal, certain short-form videos that are created with Disney characters will be
1:57.3	able to be used on Disney Plus. So sort of giving a platform to those who create things as well with SORA.
	...

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