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Wikipedia founder Jimmy Wales on what it takes to build online trust in a world of misinformation

Elon Musk‘s Wikipedia rival Grokipedia got off to a “rocky start” in its public debut, but Wikipedia founder Jimmy Wales didn’t even have to take a look at the AI’s output to know what he expected.

“I’m not optimistic he will create anything very useful right now,” Wales said at the CNBC Technology Executive Council Summit in New York City on Tuesday.

Wales had plenty of choice words for Musk, notably in response to allegations that there is “woke bias” on Wikipedia. “He is mistaken about that,” Wales said. “His complaints about Wiki are that we focus on mainstream sources and I am completely unapologetic about that. We don’t treat random crackpots the same as The New England Journal of Medicine and that doesn’t make us woke,” he said at the CNBC event. “It’s a paradox. We are so radical we quote The New York Times.”

“I haven’t had the time to really look at Grokipedia, and it will be interesting to see, but apparently it has a lot of praise about the genius of Elon Musk in it. So I’m sure that’s completely neutral,” he added.

Wales’ digs at Grokipedia — which has its own wiki page — were less about any ongoing spat with Musk and more about his significant concerns about the efforts by all large language models to create a trusted online source of information.

“The LLMs he is using to write it are going to make massive errors,” Wales said. “We know ChatGPT and all the other LLMs are not good enough to write wiki entries.”

Musk seems equally certain of the opposite outcome: “Grokipedia will exceed Wikipedia by several orders of magnitude in breadth, depth and accuracy,” he wrote in a post on Tuesday night.

Wales gave several real-world examples of why he doesn’t have faith in LLMs to recreate what Wikipedia’s global community has built over decades at a fraction of the cost — he estimated the organization’s hard technology costs as $175 million annually versus the tens of billions of dollars big tech companies are constantly pouring into AI efforts, and by one Wall Street estimate, a total of $550 billion in AI spending expected by the so-called hyperscalers next year.

One example Wales cited of LLM’s inaccuracy relates to his wife. Wales said he often asks new chatbot models to research obscure topics as a test of their abilities, and asking who his wife is, a “not famous but known” person, he said, who worked in British politics, always results in a “plausible but wrong” answer. Any time you ask an LLM to dig deep, Wales added, “it’s a mess.”

He also gave the example of a German Wiki community member who wrote a program to verify the ISBN numbers of books cited, and was able to trace notable mistakes to one person. That person ultimately confessed they had used ChatGPT to find citations for text references and the LLM “just very happily makes up books for you,” Wales said. 

Elon Musk says Grok 3 is going to be 'scary smart'

Wales did say the battles into which he has been drawn, by Musk and by AI, do reinforce a serious message for Wikipedia. “It’s really important for us and the Wiki community to respond to criticism like that by doubling down on being neutral and being really careful about sources,” he said. “We shouldn’t be ‘wokepedia.’ That’s not who we should be or what people want from us. It would undermine trust.”

Wales thinks the public and the media often give Wikipedia too much credit. In its early days, he says, the site was never as bad as the jokes made about it. But now, he says, “We are not as good as they think we are. Of course, we are a lot better than we used to be, but there is still so much work to do.”

And he expects the challenges from technology, and from misinformation, to get worse, with the ability to use LLMs to create fake websites with plausible text getting better and likely able to fool the public. But he says they will have a hard time fooling the Wiki community, which has spent 25 years studying and debating trusted information sources. “But it will fool a lot of people and that is a problem,” he said.

In some cases, this same new technology, which “makes stuff up that is completely useless,” may be useful to Wikipedia, he said. Wales has been doing some work on finding limited domains where AI can uncover additional information in existing sources that should be added to a wiki, a use of gen AI he described as currently being “kind of okay.”

“Maybe it helps us do our work faster,” he said. That feedback loop could be very useful for the site if it developed its own LLM that it could train, but the costs associated with that have led the site to hold off any formal effort while it continues to test the technology, he added.

“We are really happy Wiki is now part of the infrastructure of the world, which is a pretty heavy burden on us. So when people say we’ve gotten biased, we need to take that seriously and work on anything related to it,” Wales said.

But he couldn’t resist putting that another way, too: “We talk about errors that ChatGPT makes. Just imagine an AI solely trained on Twitter. That would be a mad, angry AI trained on nonsense,” Wales said.

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Stocks end November with mixed results despite a strong Thanksgiving week rally

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Stocks end November with mixed results despite a strong Thanksgiving week rally

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Palantir has worst month in two years as AI stocks sell off

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Palantir has worst month in two years as AI stocks sell off

CEO of Palantir Technologies Alex Karp attends the Pennsylvania Energy and Innovation Summit, at Carnegie Mellon University in Pittsburgh, Pennsylvania, U.S., July 15, 2025.

Nathan Howard | Reuters

It’s been a tough November for Palantir.

Shares of the software analytics provider dropped 16% for their worst month since August 2023 as investors dumped AI stocks due to valuation fears. Meanwhile, famed investor Michael Burry doubled down on the artificial intelligence trade and bet against the company.

Palantir started November off on a high note.

The Denver-based company topped Wall Street’s third-quarter earnings and revenue expectations. Palantir also posted its second-straight $1 billion revenue quarter, but high valuation concerns contributed to a post-print selloff.

In a note to clients, Jefferies analysts called Palantir’s valuation “extreme” and argued investors would find better risk-reward in AI names such as Microsoft and Snowflake. Analysts at RBC Capital Markets raised concerns about the company’s “increasingly concentrated growth profile,” while Deutsche Bank called the valuation “very difficult to wrap our heads around.”

Adding fuel to the post-earnings selloff was the revelation that Burry is betting against Palantir and AI chipmaker Nvidia. Burry, who is widely known for predicting the housing crisis that occurred in 2008 and the portrayal of him in the film “The Big Short,” later accused hyperscalers of artificially boosting earnings.

Palantir CEO Alex Karp vocally hit the front lines, appearing twice in one week on CNBC, where he accused Burry of “market manipulation” and called the investor’s actions “egregious.”

“The idea that chips and ontology is what you want to short is bats— crazy,” Karp told CNBC’s “Squawk Box.”

Despite the vicious selloff, Palantir has notched some deal wins this month. That included a multiyear contract with consulting firm PwC to speed up AI adoption in the U.K. and a deal with aircraft engine maintenance company FTAI.

But those announcements did little to shake off valuation worries that have haunted all AI-tied companies in November.

Across the board, investors have viciously ditched the high-priced group, citing fears of stretched valuations and a bubble.

In November, Nvidia pulled back more than 12%, while Microsoft and Amazon dropped about 5% each. Quantum computing names such as Rigetti Computing and D-Wave Quantum have shed more than a third of their value.

Apple and Alphabet were the only Magnificent 7 stocks to end the month with gains.

Sill, questions linger over Palantir’s valuation, and those worries aren’t a new concern.

Even after its steep price drop, the company’s stock trades at 233 times forward earnings. By comparison, Nvidia and Alphabet traded at about 38 times and 30 times, respectively, at Friday’s close.

Karp, who has long defended the company, didn’t miss an opportunity to clap back at his critics, arguing in a letter to shareholders that the company is making it feasible for everyday investors to attain rates of return once “limited to the most successful venture capitalists in Palo Alto.”

“Please turn on the conventional television and see how unhappy those that didn’t invest in us are,” Karp said during an earnings call. “Enjoy, get some popcorn. They’re crying. We are every day making this company better, and we’re doing it for this nation, for allied countries.”

Palantir declined to comment for this story.

WATCH: Palantir CEO Alex Karp: We’ve printed venture results for the average American

Palantir CEO Alex Karp: We've printed venture results for the average American

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CME disruption, Black Friday, the K-beauty boom and more in Morning Squawk

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CME disruption, Black Friday, the K-beauty boom and more in Morning Squawk

CME Group sign at NYMEX in New York.

Adam Jeffery | CNBC

This is CNBC’s Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.

Here are five key things investors need to know to start the trading day:

1. Down and out

Stock futures trading was halted this morning after a data center “cooling issue” took down several Chicago Mercantile Exchange services. Individual stocks were still trading before the bell, while the CME said futures indexes and options trading would open fully at 8:30 a.m. Follow live markets updates here.

The stock market has rebounded during the holiday-shortened trading week. But the three major indexes are still on pace to end November’s trading month — which ends with today’s closing bell — in the red. The Dow and S&P 500 are poised to snap six-month winning streaks, while the Nasdaq Composite is on track to see its first negative month in eight.

Today’s trading session ends early at 1 p.m. ET.

2. Shopping and dropping

A Black Friday sale sign is displayed in a shop window at an outlet mall in Carlsbad, California, U.S., Nov. 25, 2025.

Mike Blake | Reuters

Black Friday was once considered the biggest in-person shopping day of the year, drawing huge crowds to stores in search of bargains. But while millions are still expected to partake in the occasion, it’s not what it used to be.

Here’s what to know:

  • In the past six years, online sales have outpaced brick-and-mortar spending on Black Friday. Data shows in-person foot traffic has been mostly flat over the last few years, as well.
  • No matter where they make their purchases, shoppers are also skeptical that they’re getting the best deals.
  • As CNBC’s Gabrielle Fonrouge reports, the shift has meant a change in strategy for many of the retail industry’s biggest names. Some have started offering their holiday sales earlier in the season, while others are spacing out their promotions.
  • Deloitte reported that the average consumer will shell out $622 between Nov. 27 and Dec. 1, a decrease of 4% from last year.
  • Even as the day of deals loses its allure, AT&T found that Gen Z participates the most, while their older counterparts do their shopping closer to Christmas.

3. AI comeback

Cfoto | Future Publishing | Getty Images

Alphabet has been a notable exception to the recent tech downturn. Shares of the Google parent have surged more than 13% this month as Wall Street sees the company as an AI leader.

Alphabet began the month by announcing its latest tensor processing units, or TPUs, called Ironwood. Last week, the company launched its latest AI model, Gemini 3, which caught positive attention from Silicon Valley heavyweights.

Shares of the stock are now up close to 70% this year, making it the best-performer within megacap tech. But experts told CNBC’s Jennifer Elias that Alphabet’s lead in the competitive AI market is marginal and could be hard to hold onto.

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4. Tech’s tug of wars

Alibaba announced plans to release a pair of smart glasses powered by its AI models. The Quark AI Glasses are Alibaba’s first foray into the smart glasses product category.

Alibaba

The Alphabet-Nvidia AI race isn’t the only tech rivalry that has heated up in recent days.

Alibaba‘s AI-powered smart glasses went on sale yesterday. With its new wearable tech offering, the Chinese tech company is going up against major players — namely Meta, which unveiled its smart glasses with Ray Ban in September.

Meanwhile, Counterpoint Research found Apple is poised to ship more smartphones than Samsung this year for the first time in 14 years. Apple is also poised to boast a larger market share, driven by strong iPhone 17 sales.

5. From Seoul to Los Angeles

Carly Xie looks over facial mask items at the Face Shop, which specializes in Korean cosmetics, in San Francisco, April 15, 2015.

Avila Gonzalez | San Francisco Chronicle | Hearst Newspapers | Getty Images

American shoppers are increasingly looking to South Korea for their cosmetics. NielsenIQ found U.S. sales of so-called “K-beauty” products are slated to surge more than 37% this year to above $2 billion.

Retailers ranging from beauty product hubs Ulta and Sephora to big-box chains Walmart and Costco are jumping on the trend. On top of that, Olive Young — aka the “Sephora of Seoul” — is opening its first U.S. store in Los Angeles next year.

The Daily Dividend

Here are some stories worth circling back to over the weekend:

CNBC’s Chloe Taylor, Gabrielle Fonrouge, Laya Neelakandan, Jessica Dickler, Sarah Min, Sean Conlon, Jennifer Elias, Arjun Kharpal and Luke Fountain contributed to this report. Josephine Rozzelle edited this edition.

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