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Kevin Paffrath, Kevin Paffrath smiles for a selfie in front of the California State Capitol in Sacramento on Friday, July 16, 2021.
Kevin Paffrath via AP

Last year at this time, Kevin Paffrath was focused on his YouTube channel, where his half-million-plus followers could tune in for daily commentary on housing, stocks and stimulus checks. It earned him nearly $10 million over the last 12 months.

Now, the 29-year-old former real estate broker is following Gov. Gavin Newsom around his home state. It’s the best way he can think of to draw attention to his unlikely effort to replace Newsom in the upcoming recall election on Sept. 14.

Paffrath is a registered Democrat and self-declared centrist who voted for Joe Biden in the 2020 presidential election. While he’s highly critical of Newsom and says he’s been a “failed leader,” Paffrath is equally concerned that the Democratic Party has no emergency plan.

Should more than half of California voters support the recall on their ballots, the next governor would be whichever of the 46 successor candidates gets the most votes, making it much easier for an outsider to win. Paffrath is one of the nine candidates listed as a Democrat, but party leaders are urging a “No” vote to the recall effort and saying voters should skip the second question asking who should be governor if the recall succeeds.

“It was mind-blowing to us that they didn’t put at least somebody in, so that way, worst case, they had a hail mary,” Paffrath said in an interview on Friday over a coffee, after attending a Newsom press event in San Francisco.

In an early August poll by Survey USA, Paffrath had the most votes in the field of replacements, with 27%. The next six candidates are all Republicans, including conservative talk show host Larry Elder and reality TV star and former Olympic athlete Caitlyn Jenner.

“We think in the last two weeks of this campaign if the recall looks more and more likely, the Democratic party will be forced to pick a Hail Mary back-up candidate,” Paffrath said. “Given that we’re No. 1 in the polls, we hope that’s us.”

California Governor Gavin Newsom speaks with media at a long-standing encampment along Highway 80 in Berkeley, California, August 9, 2021.
John G. Mabanglo | Pool | Reuters

Democrats are right to be nervous.

A poll conducted by the University of California, Berkeley, and the Los Angeles Times in late July showed 51% of registered voters opposed the recall, with 36% in favor. But among likely voters, the gap favoring Newsom’s retention narrowed to three percentage points.

The anti-recall movement has raised about $51 million, almost eight times as much as the side trying to oust Newsom. Netflix CEO Reed Hastings has contributed $3 million in support of the governor.

Donors can contribute an unlimited amount for or against the recall, but only up to $32,400 in support of any specific replacement candidate. Paffrath said he’s raised close to $400,000 and has put in about $200,000 of his own money. The average donation is $70, he said.

“We don’t have the war chest that Newsom does, so we have to do everything in our power with grassroots and social media,” Paffrath said.

For example, Paffrath paid his brother-in-law, an app developer, to build his “Meet Kevin” app. And he’s trying to get in front of the media as much as possible. Most of his ad spending is via text message to let voters know there’s a Democratic alternative.

On Friday, Paffrath hung out outside Manny’s restaurant in San Francisco as Newsom spoke inside to the press. Dressed in a navy suit with a purple tie, Paffrath made himself easy to spot for reporters. He said he’s careful not to be disruptive at the events.

“We have to combat, this ‘Oh yeah he’s a YouTuber, he’s a prankster,'” Paffrath said. “We stand there very respectfully and reporters recognize us. They talk to us.”

From San Francisco, he’s following Newsom to Los Angeles and San Diego, and possibly beyond.

How it started

The recall effort picked up momentum during the pandemic as frustration mounted about the state’s shutdown of schools and small businesses, and the slow pace of the reopening even as Covid-19 cases and hospitalizations plummeted.

Newsom critics pounced at the opportunity to highlight the worsening homeless problem and increasing crime rates while taxes and living costs remained among the highest in the country. Paffrath said he wasn’t an initial proponent of the recall and didn’t get involved until it was well underway.

“The reason I think folks are frustrated is we pay our taxes, then we look up to see what our government is doing for us with the services we’re paying for,” he said. “And we see people dying on the street. We see blight. That’s why people are leaving.”

Paffrath, who lives with his wife and two young sons in Ventura, about 70 miles from Los Angeles, has made addressing the homeless issue his top agenda item. His proposal is to build new emergency facilities and lease commercial and office buildings, including many that have been vacated during the pandemic, to set up mass spaces with cots and small rooms, supported by staffing from the National Guard.

His aim is to get all of California’s 160,000 homeless people off the streets in 60 days at an eventual cost of $10 per person per day, covering food, medical support and bathrooms.

Paffrath has equally ambitious — some may say outlandish — goals for new types of “future” schools, a system of underground tunnels to alleviate traffic problems and the building of Las Vegas-style casinos as part of a plan to fully legalize gambling.

He also recognizes the existential threat posed by fires and droughts. He advocates spending on controlled burns and a pipeline from the Mississippi River to double water flow to the Colorado River. When it comes to solar plants, he wants to incentivize companies to stay in California rather than going elsewhere.

“I’m tired of hearing about Tesla building solar panels in New York and Nevada,” he said. “Those should be in California.”

$10 million on YouTube

Paffrath’s fans are used to hearing him opine on such matters. He now has almost 150,000 Twitter followers and 1.7 million on YouTube. Regular topics include interest rates, the crypto economy and politics.

Paffrath got his start in real estate a little over a decade ago by teaching people how to invest in the market. He became a broker and started buying property, then took his teaching experience and market knowledge to YouTube. By 2018 was making enough money — a couple thousand dollars a day — to let his broker license expire and to get out of sales.

At the coffee shop on Friday, he pulled out his phone and navigated to his YouTube earnings dashboard. Over the past year, the page showed, his ad revenue on the site topped $3.5 million. Affiliate revenue and money he makes from courses on building wealth brought in an additional $6 million or so, he said.

Kevin Paffrath on the campaign trail
Ari Levy | CNBC

But his focus now is on politics. Paffrath said he’ll run in 2022 even the recall is unsuccessful or if another replacement candidate wins. That’s as far out as he’s projecting.

“I don’t want to be a career politician,” he said. “I want to fix California.”

He also wants to assure Democrats that he’s not just using their party label because it gives him the best chance to win. With a legislature that’s three-quarters Democratic, he said it’s important to start on things that the majority cares deeply about, like the homeless problem.

Control of the U.S. Senate could also be at stake. Dianne Feinstein, the state’s senior senator, is the oldest member of the chamber at 88. She’s not up for reelection until 2024, and questions have been swirling around whether she’ll retire before then.

If so, the governor would get to pick her temporary successor. The Senate is currently at a 50-50 split, with Vice President Kamala Harris in position to cast deciding votes when needed.

Paffrath made it clear he would pick a Democrat.

“I’m not going to burn the party,” he said. “I don’t want people to think that just because I’m a recall candidate I’m going to go in there and do what Republicans say they want to do, start cutting things and throwing around the furniture. It’s not going to work. You’ve got to respect the legislature.”

WATCH: California Gov. Newsom faces recall

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Chinese EV players take fight to legacy European automakers on their home turf

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Chinese EV players take fight to legacy European automakers on their home turf

Xpeng CEO He Xiaopeng speaks to reporters at the electric carmaker’s stand at the IAA auto show in Munich, Germany on September 8, 2025.

Arjun Kharpal | CNBC

Germany this week played host to one of the world’s biggest auto shows — but in the heartland of Europe’s auto industry, it was buzzy Chinese electric car companies looking to outshine some of the region’s biggest brands on their home turf.

The IAA Mobility conference in Munich was packed full of companies with huge stands showing off their latest cars and technology. Among some of the biggest displays were those from Chinese electric car companies, underscoring their ambitions to expand beyond China.

Europe has become a focal point for the Asian firms. It’s a market where the traditional automakers are seen to be lagging in the development of electric vehicles, even as they ramp up releases of new cars. At the same time, Tesla, which was for so long seen as the electric vehicle market leader, has seen sales decline in the region.

Despite Chinese EV makers facing tariffs from the European Union, players from the world’s second-largest economy have responded to the ramping up of competition by setting aggressive sales and expansion targets.

“The current growth of Xpeng globally is faster than we have expected,” He Xiaopeng, the CEO of Xpeng told CNBC in an interview this week.

Aggressive expansion plans

Chinese carmakers who spoke to CNBC at the IAA show signaled their ambitious expansion plans.

Xpeng’s He said in an interview that the company is looking to launch its mass-market Mona series in Europe next year. In China, Xpeng’s Mona cars start at the equivalent of just under $17,000. Bringing this to Europe would add some serious price competition.

Xpeng steps up global rivalry with mass-market Mona EV series

Meanwhile, Guangzhou Automobile Group (GAC) is targeting rapid growth of its sales in Europe. Wei Haigang, president of GAC International, told CNBC that the company aims to sell around 3,000 cars in Europe this year and at least 50,000 units by 2027. GAC also announced plans to bring two EVs — the Aion V and Aion UT — to Europe. Leapmotor was also in attendance with their own stand.

There are signs that Chinese players have made early in roads into Europe. The market share of Chinese car brands in Europe nearly doubled in the first half of the year versus the same period in 2024, though it still remains low at just over 5%, according to Jato Dynamics.

“The significant presence of Chinese electric vehicle (EV) makers at the IAA Mobility, signals their growing ambitions and confidence in the European market,” Murtuza Ali, senior analyst at Counterpoint Research, told CNBC.

Tech and gadgets in focus

Many of the Chinese car firms have positioned themselves as technology companies, much like Tesla, and their cars highlight that.

Many of the electric vehicles have big screens equipped with flashy interfaces and voice assistants. And in a bid to lure buyers, some companies have included additional gadgets.

For example, GAC’s Aion V sported a refrigerator as well as a massage function as part of the seating.

The Aion V is one of the cars GAC is launching in Europe as it looks to expand its presence in the region. The Aion V is on display at the company’s stand at the IAA Mobility auto show in Munich, Germany on September 9, 2025.

Arjun Kharpal | CNBC

This is one way that the Chinese players sought to differentiate themselves from legacy brands.

“The chances of success for Chinese automakers are strong, especially as they have an edge in terms of affordability, battery technology, and production scale,” Counterpoint’s Ali said.

Europe’s carmakers push back

Legacy carmakers sought to flex their own muscles at the IAA with Volskwagen, BMW and Mercedes having among the biggest stands at the show. Mercedes in particular had advertising displayed all across the front entrance of the event.

BMW, like the Chinese players, had a big focus on technology by talking up its so-called “superbrain architecture,” which replaces hardware with a centralized computer system. BMW, which introduced the iX3 at the event, and chipmaker Qualcomm also announced assisted driving software that the two companies co-developed.

Volkswagen and French auto firm Renault also showed off some new electric cars.

Regardless of the product blitz, there are still concerns that European companies are not moving fast enough. BMW’s new iX3 is based on the electric vehicle platform it first debuted two years ago. Meanwhile, Chinese EV makers have been quick in bringing out and launching newer models.

“A commitment to legacy structures and incrementalism has slowed its ability to build and leverage a robust EV ecosystem, leaving it behind fast moving rivals,” Tammy Madsen, professor of management at the Leavey School of Business at Santa Clara University, said of BMW.

While European autos have a strong brand history and their CEOs acknowledged and welcomed the competition this week in interviews with CNBC, the Chinese are not letting up.

VW CEO says "when you have good competitors you have to be better"

“Europe’s automakers still hold significant brand value and legacy. The challenge for them lies in achieving production at scale and adopting new technologies faster,” Counterpoint’s Ali said.

“The Chinese surely are not waiting for anyone to catch-up and are making significant gains.”

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OpenAI announces new mentorship program for budding tech founders

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OpenAI announces new mentorship program for budding tech founders

Dado Ruvic | Reuters

OpenAI on Friday introduced a new program, dubbed the “OpenAI Grove,” for early tech entrepreneurs looking to build with artificial intelligence, and applications are already open.

Unlike OpenAI’s Pioneer Program, which launched in April, Grove is aimed towards individuals at the very nascent phases of their company development, from the pre-idea to pre-seed stage.

For five weeks, participants will receive mentoring from OpenAI technical leaders, early access to new tools and models, and in-person workshops, located in the company’s San Francisco headquarters.

Roughly 15 members will join Grove’s first cohort, which will run from Oct. 20 to Nov. 21, 2025. Applicants will have until Sept. 24 to submit an entry form.

CNBC has reached out to OpenAI for comment on the program.

Following the program, Grove participants will be able to continue working internally with the ChatGPT maker, which was recent valued $500 billion.

Other industry rivals have also already launched their own AI accelerator programs, including the Google for Startups Cloud AI Accelerator last winter. Earlier this April, Microsoft for Startups partnered with PearlX, a cohort accelerator program for pre-seed companies.

Nurturing these budding AI companies is just a small chip in the recent massive investments into AI firms, which ate up an impressive 71% of U.S. venture funding in 2025, up from 45% last year, according to an analysis from J.P. Morgan.

AI startups raised $104.3 billion in the U.S. in the first half of this year, and currently over 1,300 AI startups have valuations of over $100 million, according to CB Insights.

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Benioff says he’s ‘inspired’ by Palantir, but takes another jab at its prices

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Benioff says he's 'inspired' by Palantir, but takes another jab at its prices

Salesforce CEO Marc Benioff on what the market is getting wrong about AI

Marc Benioff is keeping an eye on Palantir.

The co-founder and CEO of sales and customer service management software company Salesforce is well aware that investors are betting big on Palantir, which offers data management software to businesses and government agencies.

“Oh my gosh. I am so inspired by that company,” Benioff told CNBC’s Morgan Brennan in a Tuesday interview at Goldman Sachs‘ Communacopia+Technology conference in San Francisco. “I mean, not just because they have 100 times, you know, multiple on their revenue, which I would love to have that too. Maybe it’ll have 1000 times on their revenue soon.”

Salesforce, a component of the Dow Jones Industrial Average, remains 10 times larger than Palantir by revenue, with over $10 billion in revenue during the latest quarter. But Palantir is growing 48%, compared with 10% for Salesforce.

Benioff added that Palantir’s prices are “the most expensive enterprise software I’ve ever seen.”

“Maybe I’m not charging enough,” he said.

Read more CNBC tech news

It wasn’t Benioff’s first time talking about Palantir. Last week, Benioff referenced Palantir’s “extraordinary” prices in an interview with CNBC’s Jim Cramer, saying Salesforce offers a “very competitive product at a much lower cost.”

The next day, TBPN podcast hosts John Coogan and Jordi Hays asked for a response from Alex Karp, Palantir’s co-founder and CEO.

“We are very focused on value creation, and we ask to be modestly compensated for that value,” Karp said.

The companies sometimes compete for government deals, and Benioff touted a recent win over Palantir for a U.S. Army contract.

Palantir started in 2003, four years after Salesforce. But while Salesforce went public in 2004, Palantir arrived on the New York Stock Exchange in 2020.

Palantir’s market capitalization stands at $406 billion, while Salesforce is worth $231 billion. And as one of the most frequently traded stocks on Robinhood, Palantir is popular with retail investors.

Salesforce shares are down 27% this year, the worst performance in large-cap tech.

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Salesforce and Palantir year to date stock chart.

We're seeing an incredible transformation in enterprise, says Salesforce CEO Marc Benioff

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