Tesla CEO Elon Musk said on Friday that he plans for his newest venture, the artificial intelligence startup xAI, to collaborate with the automaker both on the “silicon front” and on the “AI software front.”
Musk also said, during Friday’s live audio session on Twitter Spaces, that xAI will use Twitter data for training the “maximally curious” artificial intelligence systems and products he hopes to build there. Musk did not specify whether and how much Twitter will charge xAI or his other companies for its data.
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When Musk led a buyout of the social media venture in October 2022, Twitter took on $13 billion in new debt. The company has struggled to juice its subscription revenue, and has been sued by ex-employees and vendors for non-payment for completed work or severance.
Several of the other companies where Musk was a founder or serves as CEO, including Tesla, SpaceX and The Boring Co., have done business together for years. Some of their transactions have been disclosed in Tesla financial filings with the U.S. Securities and Exchange Commission.
On Friday, without citing evidence, Musk alleged that “Every AI organization on Earth” had used Twitter’s data for training, “in all cases illegally.” It was not clear which laws would have been violated by others’ data scraping. Earlier this month, Twitter sued four unknown parties for data scraping in Texas.
Twitter implemented rate limits on the social media platform in recent weeks because, Musk claimed, it was “being scraped like crazy.” He said, “We had multiple entities scraping every tweet ever made, and trying to do so in like, basically a span of days. So — this was bringing the system to its knees. So we had to take action.” He apologized for the inconvenience of the rate limiting.
In light of widespread use of Twitter data by AI software developers, Musk said, “I guess we will use the public tweets — obviously not anything private — for training as well, just like basically everyone else has.”
Twitter’s data set appeals for “text training,” and “image and video training,” Musk said. However, he specified that AI systems need more than human-created data and he was hoping that xAI could follow in the footsteps of Alphabet-owned DeepMind’s Alpha Zero, a computer program that achieved a masterful level of play in three games, chess, shogi and go, after training by playing these games against itself.
A Tesla fan and promoter, Omar Qazi (known as Whole Mars Catalog on Twitter) asked Musk a few questions about how he plans for xAI to work with Tesla during the Spaces event. Among other things, he asked whether xAI would potentially use Nvidia- or Tesla-made silicon for data processing.
Musk said, “That’s sort of a Tesla question. Tesla is building custom silicon. I wouldn’t call anything that Tesla’s producing a ‘GPU’ although one can characterize it in GPU equivalents.” He then spoke about Tesla’s in-vehicle hardware, which enables the company’s advanced driver assistance systems to work in its cars. The systems are marketed as Autopilot and Full Self Driving capability in the US.
Tesla has been promising fans a robotaxi, or self-driving vehicle, for years. At that time, Musk said a cross-country demo with a Tesla car would be possible without a single human intervention by the end of 2017. In 2019, Tesla raised billions of dollars with the promise of a million robotaxi-ready Tesla vehicles on the road in a year. So far, none of Tesla’s vehicles are capable of operating without a human driver ready to steer or brake at any time.
Musk said on Twitter Spaces on Friday that Tesla’s hardware 4, which is shipping in now, is “three-to-five times more capable than hardware 3,” and promised “hardware 5” would come along in a few years and would be “four or five times more capable” than its current version.
The CEO also discussed Dojo, a supercomputer Tesla is developing for AI machine learning and computer vision training purposes. Tesla uses video clips and data from its customers’ vehicles to improve existing software, or develop new features.
Musk said that the eventual AI language model that xAI will presumably develop won’t be “politically correct.” The CEO, who has repeatedly attacked “woke” or progressive values, said “I think our AI can give answers that people may find controversial even though they are actually true.”
The Tesla CEO said that xAI will need to develop technology that “understands the physical world and not just the Internet,” and he thinks that Tesla’s driving data will help it on that front.
Walter Isaacson, the author of an Elon Musk biography coming out later this year, asked Musk about Optimus, a humanoid robot Tesla is developing with the aim of using it in manufacturing. Musk said that the robot is still in its “early stages” and his team needs to find a way that users will be able to easily turn it off.
Tesla showed off a design for a humanoid robot called Optimus at its AI day in September 2022. Tesla executive are expected to share updates on this and more on an earnings call next Wednesday.
Photo illustration of the YouTube TV logo displayed on a smartphone, with the YouTube logo in the background.
Nurphoto | Nurphoto | Getty Images
Content from The Walt Disney Company, including channels like ABC and ESPN, was removed from Google‘s YouTube TV on Thursday after the two companies failed to renew a streaming contract.
“Despite our best efforts, we have not been able to reach a fair deal, and starting today, Disney programming will not be available on YouTube TV,” the platform said in a statement Thursday.
More than 20 channels, including ABC and ESPN, and Disney content recordings would be removed from YouTube TV, the company said.
The two sides had been engaged in negotiations but were unable to reach a new distribution agreement before their existing contract expired Oct. 30 at 11:59 p.m. Eastern time.
Disney did not immediately respond to a request for further comment. The mass media and entertainment conglomerate was the first to warn about the potential content removal last week.
In a Thursday statement on its official blog, YouTube argued Disney had “used the threat of a blackout on YouTube TV as a negotiating tactic to force deal terms that would raise prices on our customers,” and that Disney was now following through on that threat.
“We will not agree to terms that disadvantage our members while benefiting Disney’s own live TV products,” YouTube TV said in a post on its help center webpage. Disney’s live TV offerings include Hulu + Live TV and Fubo.
“We know how disruptive it is to lose channels you enjoy, and we’re committed to continuing to work with Disney to reach an agreement,” YouTube said in its statement, adding that if the content is unavailable for an extended period of time, the company will offer members a $20 credit.
YouTube TV pays broadcasters to stream their channels and has been engaged in several tense negotiations over contract renewals in recent months.
Last month, content was nearly removed from YouTube TV before the companies reached an agreement after a temporary extension, preventing shows like “Sunday Night Football” and “America’s Got Talent” from being pulled.
The recent clash between Disney and YouTube has an added twist, after YouTube hired former Disney distribution executive Justin Connolly earlier this year, prompting Disney to file a breach-of-contract lawsuit.
Connolly has recused himself from the discussions, CNBC previously reported, according to the people familiar with the process.
YouTube is the top U.S. media distributor by audience engagement, capturing over 13% of TV watch-time in July, according to Nielsen. It is also on track to be the biggest media company by revenue in 2025, beating Disney, analysts at MoffettNathanson told CNBC.
Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC. Versant would become the new parent company of CNBC upon Comcast’s planned spinoff of Versant.
Talk about a monster quarter. Apple delivered a great September quarter Thursday evening, even as iPhone supply was constrained by strong demand. The stock really got going after the company’s strong forecast for the holiday quarter. Revenue in Apple’s fiscal 2025 fourth quarter, which ended Sept. 27, rose 8% year over year to $102.47 billion, outpacing the $102.26 billion consensus estimate compiled by LSEG. Earnings per share of $1.85 increased 91% (or 13% when excluding a one-time charge in the year-ago period), exceeding the $1.77 consensus estimate, according to LSEG. AAPL YTD mountain Apple YTD Shares of Apple jumped as much as 5% in after-hours trading to around $285 before cooling off to around $278. The stock, which got off to a horrible start in 2025, has jumped roughly 30% in the past three months, as of Thursday’s close. For the year, it has gained more than 8% — and earlier this week, it joined the $4 trillion market cap club. Bottom line In addition to reporting a September quarter record for sales earnings and operating cash flow, the higher margin services segment set an all-time revenue record across all geographic regions. Overall, Apple set September quarter records in all regions – the Americas, Europe, Japan, and the rest of Asia-Pacific – except Greater China. While Greater China sales were down in the quarter, much of that was due to iPhone supply constraints. On the post-earnings conference call, CEO Tim Cook stated that he expects to see the region return to growth in the current quarter. Apple’s consolidated gross profit margin also exceeded the high end of management’s prior guidance, expanding by 70 basis points sequentially and nearly 100 basis points, or 1 percentage point, year over year, thanks to a favorable sales mix that came despite a $1.1 billion tariff-related cost headwind. Why we own it Apple’s dominant hardware and growing services businesses provide a deep competitive moat and plenty of bundling opportunities. Management’s net cash-neutral strategy provides confidence that free cash flow will continue to fund dividends and buybacks. Competitors: Samsung, Xiaomi, OPPO, Dell , and HP Inc. Most recent buy : April 8, 2014 Initiation : Dec. 2, 2013 While iPhone sales grew 6% to $49.03 billion, they did come up short of expectations. However, Cook noted that it was due to a lack of supply for several iPhone 16 models and newer iPhone 17 models, as demand is very strong. Perhaps most importantly, management guided current quarter (fiscal 2026 first quarter) revenue to be well above expectations, with Cook saying on the post-earnings conference call that December quarter revenue will “be the best ever for the company and the best ever for iPhone.” It’s clear the iPhone 17 is seeing a ton of demand – and the massive installed base of active devices, which did indeed hit a new all-time high, is driving continued growth in services. Given the iPhone momentum and management reaffirming that a new, smarter artificial intelligence Siri will debut in 2026, we continue to think that the best thing members can do with shares of Apple is “own them, not trade them.” We are, therefore, increasing our price target to $300 from $240. We are, however, maintaining our 2 rating, as we wait for a better price level to upgrade shares back to our buy-equivalent 1 rating. Products highlights Products revenue achieved a September quarter record, driven by growth in iPhones and Macs. While growing more than 5% to $73.72 billion, Product sales did miss expectations. Apple’s installed base of active devices reached yet another all-time high. It was a September quarter record for the iPhone despite supply constraints, as the device achieved September quarter records in Latin America, the Middle East, and South Asia. In India, iPhone sales reached all-time highs. It was an all-time high for the iPhone’s active installed base and a September quarter record for upgraders. Mac sales, driven by strength in MacBook Air, were up in all geographic segments, with CFO Kevan Parekh calling out strong double-digit growth in emerging markets. The installed base for Mac also reached a new all-time high, with nearly half of all buyers being new to the product line. Mac sales increased 12.7% to $8.73 billion in the quarter. iPad installed base also reached a new all-time high. September quarter record for upgraders, with over half of buyers being new to the product. Sales for the iPad were flat at $6.95 billion. Sales in the Wearables, Home & Accessories segment dipped slightly to $9.01 billion but beat estimates. They were driven by growth in the Apple Watch and AirPods, both of which saw their installed bases reach all-time highs. Apple Watch upgraders also set a new September quarter record. Services highlights All-time revenue record for the Services segment – up 15% in the September quarter to $28.75 billion. All-time revenue records were realized in advertising, App Store, cloud services, music, payment services, and video. All-time highs were realized for both transacting and paid accounts. Outlook Apple doesn’t provide formal guidance. However, we did get some exciting commentary about the current quarter. As Parekh noted on the call, this outlook assumed no change in global tariff rates or policies and no change in the macroeconomic outlook, which has been worsening. December quarter revenue is expected to increase 10% to 12% versus the year-ago period, a whole heck of a lot better than the 6% the Street was anticipating, according to LSEG. If realized, it would mark a record quarter for the company. iPhone revenue is expected to grow at a double-digit rate year over year, which would also amount to Apple putting up its best quarterly iPhone results ever. Mac sales are seen up against a difficult year-over-year comparison, given the launch of the M4 MacBook Pro, Mac Mini, and iMac in the year-ago period. Services revenue is expected to grow at a year-over-year rate similar to what Apple reported for all of fiscal year 2025, which was about 13.5%, ahead of the roughly 12% the Street was looking for, according to FactSet. Gross margin for the December quarter is expected to be between 47% and 48%, exceeding expectations at the midpoint, despite an estimated $1.4 billion tariff-related cost headwind. Operating expenses are expected to be between $18.1 billion and $18.5 billion, higher than expected; however, acceptable in our view as Apple is ramping up investments in artificial intelligence. Capital allocation Apple ended the September quarter with $132 billion in cash and marketable securities. Excluding debt, net cash was $34 billion. During the quarter, Apple returned $24 billion to shareholders, including $3.9 billion in dividends and equivalents and another $20 billion via share repurchases. (Jim Cramer’s Charitable Trust is long AAPL. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
SpaceX’s Starship rocket 38 launches during the 11th test flight on October 13, 2025 as seen from South Padre Island in Texas.
Gabriel V. Cardenas | Afp | Getty Images
SpaceX said it has pitched NASA a “simplified mission” to put astronauts back on the moon following criticisms over delays by Sean Duffy, the space agency’s acting administrator.
In a company blog post out Thursday, Elon Musk’s aerospace and defense contractor said: “We’ve shared and are formally assessing a simplified mission architecture and concept of operations that we believe will result in a faster return to the Moon while simultaneously improving crew safety.”
Earlier this month, Duffy said in an interview on CNBC’s Squawk Box, that SpaceX was behind schedule on building its lunar landing system for NASA’s Artemis III mission and that the agency would reopen the landing contract for that mission to competitors such as Jeff Bezos‘ rocket maker Blue Origin.
A NASA spokesperson in an email to CNBC said that the agency “has received and is evaluating plans from both SpaceX and Blue Origin for acceleration of HLS production.”
“Following the shutdown, the agency will issue an RFI to the broader aerospace industry for their proposals,” the spokesperson said. “A committee of NASA subject matter experts is being assembled to evaluate each proposal and determine the best path forward to win the second space race given the urgency of adversarial threats to peace and transparency on the Moon.”
NASA had previously said that SpaceX and Blue Origin would have until Oct. 29th to propose new ways to speed up the project.
Musk initially responded to Duffy by posting to his social network X, “Sean Dummy is trying to kill NASA!” In another post, Musk wrote: “The person responsible for America’s space program can’t have a 2 digit IQ.”
SpaceX’s massive Starship has flown 11 test flights so far, uncrewed. The last two flights were deemed successful, but the company has not yet shown all the in-orbit refueling capabilities it requires before embarking on the Artemis III, manned lunar mission.
Blue Origin has been developing a lunar lander for NASA and has received about $835 million from the space agency since their contract began in 2023. The company plans to launch a smaller scale version of their lander, known as Blue Moon Mark 1.
Meanwhile, China is aiming to land its astronauts on the moon by the end of the decade.
In September, in an all-hands meetings with NASA employees, Duffy told his staff that he was irked by “shade thrown” on the space agency at a Senate hearing in which some attendees doubted that the U.S. could put astronauts back on the Moon before China could land its astronauts there.
Besides its lunar mission, China also announced it is sending a new crew to its orbiting lab, the Tiangong space station, this week. China built this space station after it was excluded from access to the International Space Station due to U.S. national security concerns.
SpaceX is paid when it achieves different milestones under its NASA contract for the HLS (human landing system integrated lander).
According to USA Spending, which tracks federal contracts, NASA has already paid approximately $2.7 billion to SpaceX for the “design, development, manufacture, test, launch, demonstration and engineering support” of the HLS. The agency is obligated to pay around another $300 million for milestones SpaceX achieved, and Musk’s company stands to earn a total of $4.5 billion (or another $1.5 billion) from the HLS contract if they achieve all milestones.
SpaceX today said, in their company blog post, that they “self-funded” 90% or more of the program, which would imply they have spent over $30 billion already.
As CNBC previously reported, some NASA employees have been required to work without pay for the space agency during the federal government shutdown if their jobs support Artemis missions.
SpaceX and Blue Origin did not immediately respond to CNBC’s requests for comment.