Squawk on the Street The "Force" Is With the AI Trade, U.S.-China Rare Earth Dispute, ChatGPT Erotica Backlash 10/16/25
Oct 16, 2025
Excitement surges around the AI trade as Salesforce projects substantial revenue growth by 2030, while TSMC's strong quarterly results bolster optimism for semiconductor demand. A brewing U.S.-China dispute over rare earth exports further intrigues investors. The hosts delve into the controversies surrounding OpenAI's decision to permit explicit chats on ChatGPT and discuss the implications for jobs and productivity as companies adopt AI. Meanwhile, Starbucks' CEO hints at a promising valuation in China, driving stock performance.
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Rare Earth Controls Could Spur Global Backlash
- China defends its rare earth export controls and says U.S. interpretation exaggerates measures.
- Jim Cramer warns the move affects many countries and could prompt a global coalition against China.
Waller: Cut In October, But Watch Labor Market
- Fed Governor Chris Waller supports a 25bp cut in October but urges caution on further cuts until labor and inflation reconcile.
- He warns that a softer labor market could justify larger cuts, but rapid easing risks rekindling inflation.
Altman: OpenAI Won't Act As Moral Police
- Sam Altman defends allowing erotica on ChatGPT by saying OpenAI won't be the world's moral police and wants similar boundary rules to R-rated movies.
- Hosts note this contrasts with Altman's August comment about resisting short-term growth temptations that misalign with long-term goals.