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User wearing Stelo CGM from Dexcom.

Courtesy of Dexcom

Dexcom on Monday announced its new over-the-counter continuous glucose monitor Stelo is officially available for purchase in the U.S.

Glucose is a type of sugar people receive from food, and it’s the body’s main source of energy. Continuous glucose monitors, or CGMs, are small sensors that poke through the skin to measure glucose levels in real time. They are typically prescribed to patients with diabetes since they can help alert users, their loved ones and their doctors to emergencies.

Stelo is primarily intended for patients with prediabetes or Type 2 diabetes who do not use insulin, though individuals without either condition can also purchase it. Users can buy a one-month supply online for $99, or sign up for an ongoing subscription at $89 a month. 

Dexcom said patients also have the option to use their flexible spending accounts and health savings accounts to pay for Stelo, according to a statement.

The company already offers continuous glucose monitors for Type 1 and Type 2 diabetes patients, but Stelo is Dexcom’s first product that does not require a prescription. While most Type 1 patients can already get insurance coverage for the sensors, Stelo is now accessible to millions of Type 2 patients who have been unable to get prescriptions or coverage. It also marks the company’s official foray into a new and potentially lucrative prediabetes market. 

Dexcom said there are more than 125 million Americans with prediabetes or Type 2 diabetes not using insulin, according to a statement. The company designed Stelo to help teach this patient population how to keep their glucose levels within a healthy range.   

“The idea is to help people, over time, learn about diet choices and habits, and how those are impacting glucose,” Jake Leach, chief operating officer at Dexcom, told CNBC in an interview. “It’s about uncovering things you haven’t seen before and then using that to create healthier habits.”

How it works

The rise of continuous glucose monitors

The U.S. Food and Drug Administration approved Stelo in March. It was the first over-the-counter continuous glucose monitor to be cleared for use, though Dexcom’s competitor, Abbott, received clearance for two similar devices in June. 

Leach said Dexcom is working with Amazon to fulfill Stelo deliveries. Users with a subscription can choose to skip or adjust their delivery date, but it will typically be scheduled at the 30-day interval from their initial sign-up. 

Stelo is worn on the upper arm and lasts for 15 days before it needs to be replaced. It’s gray, about the size of a quarter and around half an inch thick. 

The sensor wirelessly transmits data to a smartphone app. When users are getting set up, they’ll select whether they have Type 2 diabetes, prediabetes or none of the above. This helps establish their “Target Range,” which is where Dexcom wants users to try and keep their glucose levels. The target range is based on established medical standards, and most people fall between 70 and 180 milligrams per deciliter, according to the American Diabetes Association.

When they open the Stelo homepage, they’ll see their latest reading, which is updated every 15 minutes. They’ll also see a graph of their readings each day, which includes a shaded green area to indicate the target range. If they scroll down, they’ll see a summary of the time spent in the target range over time.

Everyone’s glucose levels are variable, but Stelo will send users a notification when they are experiencing a substantial spike. Glucose spikes occur when the amount of sugar present in the bloodstream rapidly increases and then decreases. This often happens after eating. 

In the short term, spikes can cause feelings of fatigue, but high glucose levels can lead to more serious health problems like diabetes, heart disease and kidney disease over time, according to the Centers for Disease Control and Prevention. This is why Dexcom wants users to try and keep their levels within Stelo’s target range. 

The tab next to the home page is the “Events” page, which is where Stelo users can log meals, activity, fingersticks or other notes. Leach said it’s most important for users to log an entry when they’re experiencing a big spike so that they can reflect on what might be causing it. 

Stelo notifies users about noteworthy spikes, so they won’t necessarily get alerted every time their levels rise. Leach said this is an intentional design choice that’s meant to call attention to the larger swings that patients experience. 

“Even for someone who has normal glucose and the occasional spike, it’ll look for the most impactful spikes and then try to engage the user around, ‘OK, what happened there?'” he said. 

And for users who want to dig deeper into their glucose and understand what causes spikes, there’s a trove of educational materials in the app’s “Learn” tab. The articles are brief, sometimes only a few sentences, and they’re broken down into categories like “Stelo Basics,” “Glucose Deep Dive,” “Nutrition,” “Exercise,” “Sleep” and “Stress.”

CNBC Tests Stelo

The Stelo app

Courtesy of Dexcom

I’ve been testing Stelo since early August. On the whole, I think it’s been easy and helpful to use. 

When my monitors arrived in the mail, the first order of business was applying the sensor to my arm and pairing it with the Stelo app. I found this process very straightforward – the app walked me through what to do with clear, step-by-step instructions.   

I cleaned the back of my right arm, placed Dexcom’s applicator there, pressed the button and popped the CGM right on. It happens fast and doesn’t hurt at all. 

The monitor connects to the Stelo app via Bluetooth, and then it takes about a half hour to warm up. 

This is where I initially encountered some problems. Once my device had warmed up, I got an error message that said “Brief Sensor Issue.” The message told me not to take off the CGM, and that the issue was temporary. I left it on for the day, but by evening, I noticed some light bleeding. I decided to take that sensor off. 

I applied another CGM to my other arm, and that one warmed up and worked correctly. I’ve been wearing it ever since and haven’t had any trouble with bleeding. Leach said if users have problems with the product, they can message the chat interface on Stelo’s website to get a replacement or answer their questions there. 

Once I was all up and running with my second sensor, it was smooth sailing. 

I’ve found the Stelo app simple and easy to use. I never felt like I was being overloaded with too much data or too many notifications, and logging meals and exercise is very straightforward. Users can also choose to import their sleep and activity data from the Apple Health app or Android’s Health Connect app, which I think is a nice touch. 

If it’s your first time using a CGM, I definitely recommend reading through the articles in the “Learn” tab. I think Dexcom does a good job using plain language to explain what glucose is, what affects it and why it matters. 

The longer I wear the sensor, the more I can tell that the algorithm is tuning to me and my habits. I don’t get notifications each time my glucose spikes, but it does alert me when I’m experiencing a particularly substantial jump. The app is also beginning to pick up on my patterns. For instance, it recently told me that my glucose tends to spike between 5 p.m. and 7 p.m., which is usually around when I eat dinner. 

Most of the time, I forget I’m even wearing a sensor. It’s waterproof, so I didn’t need to worry about it in the shower. And I didn’t notice it when I was sleeping. I’d advise a little caution when pulling on long sleeves, as the sensor can snag a bit, but it’s easy to wear all types of clothes and jackets over it. 

In the short time I’ve been using Stelo, I’ve learned a lot about how my body responds to certain foods. Even small adjustments (eating carbs last, for instance) helped me reduce spikes. It’s easy to see how CGMs can serve as a valuable window into the body. If you’re looking for a simple, approachable entry to understanding your glucose data, I think Stelo is a solid option. 

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Microsoft AI chief Suleyman sees advantage in building models ‘3 or 6 months behind’

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Microsoft AI chief Suleyman sees advantage in building models ‘3 or 6 months behind’

Microsoft owns lots of Nvidia graphics processing units, but it isn’t using them to develop state-of-the-art artificial intelligence models.

There are good reasons for that position, Mustafa Suleyman, the company’s CEO of AI, told CNBC’s Steve Kovach in an interview on Friday. Waiting to build models that are “three or six months behind” offers several advantages, including lower costs and the ability to concentrate on specific use cases, Suleyman said.

It’s “cheaper to give a specific answer once you’ve waited for the first three or six months for the frontier to go first. We call that off-frontier,” he said. “That’s actually our strategy, is to really play a very tight second, given the capital-intensiveness of these models.”

Suleyman made a name for himself as a co-founder of DeepMind, the AI lab that Google bought in 2014, reportedly for $400 million to $650 million. Suleyman arrived at Microsoft last year alongside other employees of the startup Inflection, where he had been CEO.

More than ever, Microsoft counts on relationships with other companies to grow.

It gets AI models from San Francisco startup OpenAI and supplemental computing power from newly public CoreWeave in New Jersey. Microsoft has repeatedly enriched Bing, Windows and other products with OpenAI’s latest systems for writing human-like language and generating images.

Microsoft’s Copilot will gain “memory” to retain key facts about people who repeatedly use the assistant, Suleyman said Friday at an event in Microsoft’s Redmond, Washington, headquarters to commemorate the company’s 50th birthday. That feature came first to OpenAI’s ChatGPT, which has 500 million weekly users.

Through ChatGPT, people can access top-flight large language models such as the o1 reasoning model that takes time before spitting out an answer. OpenAI introduced that capability in September — only weeks later did Microsoft bring a similar capability called Think Deeper to Copilot.

Microsoft occasionally releases open-source small-language models that can run on PCs. They don’t require powerful server GPUs, making them different from OpenAI’s o1.

OpenAI and Microsoft have held a tight relationship shortly after the startup launched its ChatGPT chatbot in late 2022, effectively kicking off the generative AI race. In total, Microsoft has invested $13.75 billion in the startup, but more recently, fissures in the relationship between the two companies have begun to show.

Microsoft added OpenAI to its list of competitors in July 2024, and OpenAI in January announced that it was working with rival cloud provider Oracle on the $500 billion Stargate project. That came after years of OpenAI exclusively relying on Microsoft’s Azure cloud. Despite OpenAI partnering with Oracle, Microsoft in a blog post announced that the startup had “recently made a new, large Azure commitment.”

“Look, it’s absolutely mission-critical that long-term, we are able to do AI self-sufficiently at Microsoft,” Suleyman said. “At the same time, I think about these things over five and 10 year periods. You know, until 2030 at least, we are deeply partnered with OpenAI, who have [had an] enormously successful relationship for us.

Microsoft is focused on building its own AI internally, but the company is not pushing itself to build the most cutting-edge models, Suleyman said.

“We have an incredibly strong AI team, huge amounts of compute, and it’s very important to us that, you know, maybe we don’t develop the absolute frontier, the best model in the world first,” he said. “That’s very, very expensive to do and unnecessary to cause that duplication.”

WATCH: Microsoft Copilot beginning of a seismic shift in AI integration, says Microsoft AI CEO Suleyman

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Former Microsoft CEO Steve Ballmer says, as shareholder, tariffs are ‘not good’

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Former Microsoft CEO Steve Ballmer says, as shareholder, tariffs are 'not good'

President Trump’s new tariffs on goods that the U.S. imports from over 100 countries will have an effect on consumers, former Microsoft CEO Steve Ballmer told CNBC on Friday. Investors will feel the pain, too.

Microsoft’s stock dropped almost 6% in the past two days, as the Nasdaq wrapped up its worst week in five years.

“As a Microsoft shareholder, this kind of thing is not good,” Ballmer said, in an interview with Andrew Ross Sorkin that was tied to Microsoft’s 50th anniversary celebration. “It creates opportunity to be a serious, long-term player.”

Ballmer was sandwiched in between Microsoft co-founder Bill Gates and current CEO Satya Nadella for the interview.

“I took just enough economics in college — that tariffs are actually going to bring some turmoil,” said Ballmer, who was succeeded by Nadella in 2014. Gates, Microsoft’s first CEO, convinced Ballmer to join the company in 1980.

Gates, Ballmer and Nadella attended proceedings at Microsoft’s Redmond, Washington, campus on Friday to celebrate its first half-century.

Between the tariffs and weak quarterly revenue guidance announced in January, Microsoft’s stock is on track for its fifth straight month of declines, which would be the worst stretch since 2009. But the company remains a leader in the PC operating system and productivity software markets, and its partnership with startup OpenAI has led to gains in cloud computing.

“I think that disruption is very hard on people, and so the decision to do something for which disruption was inevitable, that needs a lot of popular support, and nobody could game theorize exactly who is going to do what in response,” Ballmer said, regarding the tariffs. “So, I think citizens really like stability a lot. And I hope people — individuals who will feel this, because people are feeling it, not just the stock market, people are going to feel it.”

Ballmer, who owns the Los Angeles Clippers, is among Microsoft’s biggest fans. He said he’s the company’s largest investor. In 2014, shortly after he bought the basketball team for $2 billion, he held over 333 million shares of the stock, according to a regulatory filing.

“I’m not going to probably have 50 more years on the planet,” he said. “But whatever minutes I have, I’m gonna be a large Microsoft shareholder.” He said there’s a bright future for computing, storage and intelligence. Microsoft launched the first Azure services while Ballmer was CEO.

Earlier this week Bloomberg reported that Microsoft, which pledged to spend $80 billion on AI-enabled data center infrastructure in the current fiscal year, has stopped discussions or pushed back the opening of facilities in the U.S. and abroad.

JPMorgan Chase’s chief economist, Bruce Kasman, said in a Thursday note that the chance of a global recession will be 60% if Trump’s tariffs kick in as described. His previous estimate was 40%.

“Fifty years from now, or 25 years from now, what is the one thing you can be guaranteed of, is the world needs more compute,” Nadella said. “So I want to keep those two thoughts and then take one step at a time, and then whatever are the geopolitical or economic shifts, we’ll adjust to it.”

Gates, who along with co-founder Paul Allen, sought to build a software company rather than sell both software and hardware, said he wasn’t sure what the economic effects of the tariffs will be. Today, most of Microsoft’s revenue comes from software. It also sells Surface PCs and Xbox consoles.

“So far, it’s just on goods, but you know, will it eventually be on services? Who knows?” said Gates, who reportedly donated around $50 million to a nonprofit that supported Democratic nominee Kamala Harris’ losing campaign.

— CNBC’s Alex Harring contributed to this report.

WATCH: There will be many LLM winners, says infrastructure investor Morrison

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AppLovin can offer TikTok ‘much stronger bid than others,’ CEO says

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AppLovin can offer TikTok 'much stronger bid than others,' CEO says

Piotr Swat | Lightrocket | Getty Images

AppLovin CEO Adam Foroughi provided more clarity on the ad-tech company’s late-stage effort to acquire TikTok, calling his offer a “much stronger bid than others” on CNBC’s The Exchange Friday afternoon.

Foroughi said the company is proposing a merger between AppLovin and the entire global business of TikTok, characterizing the deal as a “partnership” where the Chinese could participate in the upside while AppLovin would run the app.

“If you pair our algorithm with the TikTok audience, the expansion on that platform for dollars spent will be through the roof,” Foroughi said.

The news comes as President Trump announced he would extend the deadline a second time for TikTok’s Chinese-owned parent company ByteDance to sell the U.S. subsidiary of TikTok to an American buyer or face an effective ban on U.S. app stores. The new deadline is now in June, which, as Foroughi described, “buys more time to put the pieces together” on AppLovin’s bid. 

“The president’s a great dealmaker — we’re proposing, essentially an enhancement to the deal that they’ve been working on, but a bigger version of all the deals contemplated,” he added.

AppLovin faces a crowded field of other interested U.S. backers, including Amazon, Oracle, billionaire Frank McCourt and his Project Liberty consortium, and numerous private equity firms. Some proposals reportedly structure the deal to give a U.S. buyer 50% ownership of the company, rather than a complete acquisition. The Chinese government will still need to approve the deal, and AppLovin’s interest in purchasing TikTok in “all markets outside of China” is “preliminary,” according to an April 3 SEC filing.

Correction: A prior version of this story incorrectly characterized China’s ongoing role in TikTok should AppLovin acquire the app.

WATCH: AppLovin CEO Adam Foroughi on its bid to buy TikTok

AppLovin CEO Adam Foroughi on its bid to buy TikTok

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