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David Silver, leader of the reinforcement learning research group at DeepMind, being awarded an honorary “ninth dan” professional ranking for AlphaGo.
JUNG YEON-JE | AFP | Getty Images

Computer scientists are questioning whether DeepMind, the Alphabet-owned U.K. firm that’s widely regarded as one of the world’s premier AI labs, will ever be able to make machines with the kind of “general” intelligence seen in humans and animals.

In its quest for artificial general intelligence, which is sometimes called human-level AI, DeepMind is focusing a chunk of its efforts on an approach called “reinforcement learning.”

This involves programming an AI to take certain actions in order to maximize its chance of earning a reward in a certain situation. In other words, the algorithm “learns” to complete a task by seeking out these preprogrammed rewards. The technique has been successfully used to train AI models how to play (and excel at) games like Go and chess. But they remain relatively dumb, or “narrow.” DeepMind’s famous AlphaGo AI can’t draw a stickman or tell the difference between a cat and a rabbit, for example, while a seven-year-old can.

Despite this, DeepMind, which was acquired by Google in 2014 for around $600 million, believes that AI systems underpinned by reinforcement learning could theoretically grow and learn so much that they break the theoretical barrier to AGI without any new technological developments.

Researchers at the company, which has grown to around 1,000 people under Alphabet’s ownership, argued in a paper submitted to the peer-reviewed Artificial Intelligence journal last month that “Reward is enough” to reach general AI. The paper was first reported by VentureBeat last week.

In the paper, the researchers claim that if you keep “rewarding” an algorithm each time it does something you want it to, which is the essence of reinforcement learning, then it will eventually start to show signs of general intelligence.

“Reward is enough to drive behavior that exhibits abilities studied in natural and artificial intelligence, including knowledge, learning, perception, social intelligence, language, generalization and imitation,” the authors write.

“We suggest that agents that learn through trial and error experience to maximize reward could learn behavior that exhibits most if not all of these abilities, and therefore that powerful reinforcement learning agents could constitute a solution to artificial general intelligence.”

Not everyone is convinced, however.

Samim Winiger, an AI researcher in Berlin, told CNBC that DeepMind’s “reward is enough” view is a “somewhat fringe philosophical position, misleadingly presented as hard science.”

He said the path to general AI is complex and that the scientific community is aware that there are countless challenges and known unknowns that “rightfully instill a sense of humility” in most researchers in the field and prevent them from making “grandiose, totalitarian statements” such as “RL is the final answer, all you need is reward.”

DeepMind told CNBC that while reinforcement learning has been behind some of its most well-known research breakthroughs, the AI technique accounts for only a fraction of the overall research it carries out. The company said it thinks it’s important to understand things at a more fundamental level, which is why it pursues other areas such as “symbolic AI” and “population-based training.”

“In somewhat typical DeepMind fashion, they chose to make bold statements that grabs attention at all costs, over a more nuanced approach,” said Winiger. “This is more akin to politics than science.”

Stephen Merity, an independent AI researcher, told CNBC that there’s “a difference between theory and practice.” He also noted that “a stack of dynamite is likely enough to get one to the moon, but it’s not really practical.”

Ultimately, there’s no proof either way to say whether reinforcement learning will ever lead to AGI.

Rodolfo Rosini, a tech investor and entrepreneur with a focus on AI, told CNBC: “The truth is nobody knows and that DeepMind’s main product continues to be PR and not technical innovation or products.”

Entrepreneur William Tunstall-Pedoe, who sold his Siri-like app Evi to Amazon, told CNBC that even if the researchers are correct “that doesn’t mean we will get there soon, nor does it mean that there isn’t a better, faster way to get there.”

DeepMind’s “Reward is enough” paper was co-authored by DeepMind heavyweights Richard Sutton and David Silver, who met DeepMind CEO Demis Hassabis at the University of Cambridge in the 1990s.

“The key problem with the thesis put forth by ‘Reward is enough’ is not that it is wrong, but rather that it cannot be wrong, and thus fails to satisfy Karl Popper’s famous criterion that all scientific hypotheses be falsifiable,” said a senior AI researcher at a large U.S. tech firm, who wished to remain anonymous due to the sensitive nature of the discussion.

“Because Silver et al. are speaking in generalities, and the notion of reward is suitably underspecified, you can always either cherry pick cases where the hypothesis is satisfied, or the notion of reward can be shifted such that it is satisfied,” the source added.

“As such, the unfortunate verdict here is not that these prominent members of our research community have erred in any way, but rather that what is written is trivial. What is learned from this paper, in the end? In the absence of practical, actionable consequences from recognizing the unalienable truth of this hypothesis, was this paper enough?”

What is AGI?

While AGI is often referred to as the holy grail of the AI community, there’s no consensus on what AGI actually is. One definition is it’s the ability of an intelligent agent to understand or learn any intellectual task that a human being can.

But not everyone agrees with that and some question whether AGI will ever exist. Others are terrified about its potential impacts and whether AGI would build its own, even more powerful, forms of AI, or so-called superintelligences.

Ian Hogarth, an entrepreneur turned angel investor, told CNBC that he hopes reinforcement learning isn’t enough to reach AGI. “The more that existing techniques can scale up to reach AGI, the less time we have to prepare AI safety efforts and the lower the chance that things go well for our species,” he said.

Winiger argues that we’re no closer to AGI today than we were several decades ago. “The only thing that has fundamentally changed since the 1950/60s, is that science-fiction is now a valid tool for giant corporations to confuse and mislead the public, journalists and shareholders,” he said.

Fueled with hundreds of millions of dollars from Alphabet every year, DeepMind is competing with the likes of Facebook and OpenAI to hire the brightest people in the field as it looks to develop AGI. “This invention could help society find answers to some of the world’s most pressing and fundamental scientific challenges,” DeepMind writes on its website.

DeepMind COO Lila Ibrahim said on Monday that trying to “figure out how to operationalize the vision” has been the biggest challenge since she joined the company in April 2018.

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Broadcom earnings, Lululemon CEO steps down, ‘fibermaxxing’ and more in Morning Squawk

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Broadcom earnings, Lululemon CEO steps down, 'fibermaxxing' and more in Morning Squawk

FILE PHOTO: A Broadcom logo and a computer motherboard appear in this illustration taken August 25, 2025.

Dado Ruvic | Reuters

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. Chip types

The S&P 500 and Dow Jones Industrial Average surged to new closing highs yesterday as investors dove into old-economy and blue-chip stocks. The Nasdaq Composite sat out of the rally, as an 11% drop in shares of Oracle catalyzed the latest wave of worry about artificial intelligence spending.

Here’s what to know:

  • Oracle shares snapped a seven-day win streak and notched their worst day since January, as the company’s earnings left traders questioning the company’s AI investments.
  • That left a bad taste in investors’ mouths on AI more broadly, with key players such as Nvidia, CoreWeave and Micron also sliding in Thursday’s session.
  • But as AI stocks faltered, investors put money to work in more cyclical names like financial institutions and insurance providers.
  • This morning, shares of Broadcom are down nearly 6% before the bell despite the company beating expectations on both lines yesterday.
  • The semiconductor company told investors that it expects its current-quarter AI chip sales to double from a year ago. It also revealed that its mystery $10 billion customer was Anthropic.
  • Hundreds of miles from Wall Street, President Donald Trump last night signed an executive order establishing a single national regulation standard for AI that curbs states’ regulatory power.
  • Follow live markets updates here.

2. Turning a new leaf

A customer shops in a Lululemon store on April 03, 2025 in Miami Beach, Florida. 

Joe Raedle | Getty Images

Another day, another CEO departure: Lululemon announced yesterday that CEO Calvin McDonald will step down at the end of January. He will be replaced in the interim by two executives while the Canadian retailer searches for a permanent successor.

Lululemon reported better-than-expected earnings for the third quarter, but, as CNBC’s Gabrielle Fonrouge notes, the company has been underperforming for more than a year. Shares of the athleisure retailer are up more than 9% this morning.

Costco also surpassed Wall Street’s forecasts for its first quarter, boosted in part by e-commerce growth. The warehouse club said Black Friday was a record-breaking day for its digital business.

3. Wish upon a bot

Disney CEO Bob Iger and OpenAI CEO Sam Altman appearing on CNBC on Dec. 11th, 2025.

CNBC

Mickey Mouse, meet ChatGPT. Disney announced a $1 billion equity investment in OpenAI yesterday. Under the agreement, users on OpenAI’s Sora video platform will be able to make content that features the entertainment giant’s copyrighted material — including more than 200 characters across the Disney universe.

Disney CEO Bob Iger told CNBC that the deal gives the company “a way in” to AI and will help it further reach younger consumers. OpenAI CEO Sam Altman said there will be limits on how Disney characters can be used in Sora videos.

Yesterday also marked OpenAI’s 10th anniversary. CNBC’s MacKenzie Sigalos takes you through the company’s transformation from a small, nonprofit research lab to the booming business it is today.

Get Morning Squawk directly in your inbox

4. Tanking plans

A satellite image shows the very large crude carrier (VLCC) Skipper, which British maritime risk management group Vanguard said was believed to have been seized on December 10, as well as another vessel, off Port Jose, Venezuela, November 18, 2025.

Planet Labs | Reuters

After the U.S. seized a tanker off Venezuela’s coast, a White House official told CNBC yesterday that Trump is willing to do it again. White House Press Secretary Karoline Leavitt also said that the tanker will be taken to a U.S. port where the oil it carried will be seized.

CNBC’s Lori Ann LaRocco found that the tanker in question, identified as the “Skipper,” had hid its location on multiple occasions since last year. Data suggests it has carried sanctioned oil from Iran and Venezuela since 2022.

5. Fiber optics

Smartfood Fiber Pop and Sun Chips Fiber snacks.

Source: Pepsico

Mover over, protein. Fiber is increasingly stealing the spotlight as shoppers focus on their gut health.

Data shows 22% of consumers listed high fiber content as a top-three factor when shopping, compared with 17% four years ago. On social media, the kids are calling it “fibermaxxing.”

As a result, companies such as Coca-Cola and Nestlé are rolling out fiber-focused drinks, CNBC’s Laya Neelakandan reports. PepsiCo also told CNBC that it’s planning to launch high-fiber versions of Smartfood and SunChips next year.

The Daily Dividend

Here are some stories we’d recommend making time for this weekend:

CNBC’s Sean Conlon, Jordan Novet, Tasmin Lockwood, Jennifer Elias, Kif Leswing, MacKenzie Sigalos, Gabrielle Fonrouge, Melissa Repko, Ashley Capoot, Kevin Breuninger, Spencer Kimball, Lori Ann LaRocco, Justin Papp, Eamon Javers and Laya Neelakandan contributed to this report. Josephine Rozzelle edited this edition.

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AI-led tech slide extends into third day as Oracle, Nvidia, fall in premarket trading

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AI-led tech slide extends into third day as Oracle, Nvidia, fall in premarket trading

U.S. artificial intelligence names were in negative territory in premarket trading on Friday, extending losses into their third day.

Oracle was 0.9% lower in premarket trading, paring earlier losses which saw it fall 1.3%. Nvidia shed 0.7%, Micron fell 0.9%, and CoreWeave was down 1.3% at 5:16 a.m. ET.  

Broadcom, which reported a strong quarter on Thursday, was last seen down 5%.

The share price of cloud computing and database software maker Oracle plummeted on Thursday, ending the session around 11% lighter after revenue earnings missed analyst expectations on Wednesday.

Oracle plunges on weak revenue

It dragged other AI-related names down with it despite a record-breaking rally elsewhere on Wall Street, suggesting investors are rotating out of tech into other parts of the market.

The tech-heavy Nasdaq Composite fell 0.26% on Thursday, despite the Dow Jones Industrial Average and S&P 500 hitting fresh records at the end of the session.

Despite booming demand for Oracle’s artificial intelligence infrastructure, it posted mixed results this week. Revenue came in at $16.06 billion, compared with $16.21 billion expected by analysts, according to data compiled by LSEG.

It followed widespread speculation around the long-term health of the company, with investors cautious about its reliance on debt to execute its AI infrastructure build-out. The broader industry’s circular dealmaking has also raised eyebrows.

“We think recent investor scrutiny on artificial intelligence’s potential and circular GPU deals can be overly punitive to key AI suppliers like Oracle,” said Morningstar Equity Analyst Luke Yang. “Oracle remains a respectable cloud provider that enjoys strong switching costs across its database, application, and infrastructure lineup.”

That said, the firm reduced its fair value estimate for wide-moat Oracle to $286 per share, down from $340. Morningstar’s moat rating refers to its assessment of a company’s durable competitive advantage.

“We lowered our long-term earnings outlook as delivering Oracle’s planned capacity on time now proved to be a harder task. However, we continue to view shares as undervalued,” Yang added.

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CNBC Daily Open: Record high U.S. stocks as investors rotate out of tech

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CNBC Daily Open: Record high U.S. stocks as investors rotate out of tech

Traders work on the floor of the New York Stock Exchange on Dec. 11, 2025, in New York City.

Spencer Platt | Getty Images

The S&P 500 and Dow Jones Industrial Average advanced on Thursday, with both hitting fresh closing records. The Russell 2000 index also ended the session at a new high, following the U.S. Federal Reserve’s quarter-point cut on Wednesday.

But if investors analyze Thursday’s individual stock movements, they will see not all is well with the AI play yet. Oracle shares plunged nearly 11%, a day after it reported weak quarterly revenue, higher capital expenditure and long-term lease commitments. Oracle’s slide dragged down AI-related names such as Nvidia and Micron.

In extended trading, Broadcom shares fell 4.5%. The chipmaker beat Wall Street’s expectations for earnings and revenue, but CEO Hock Tan appeared to have failed to address worries that their largest customer, Google, might eventually make more of its chips in-house. Rising memory prices would also pressure margins, while the company’s chip deal with OpenAI might not be binding.

That’s why the tech-heavy Nasdaq Composite fell 0.26% despite other major U.S. indexes hitting records. Putting the two together, that means investors are rotating out of tech into other parts of the market. The S&P 500 financials sector, for instance, closed at a fresh record, buoyed by jumps in Visa and Mastercard.

Even though the AI theme seems to be under scrutiny, other sectors are performing well on the back of a resilient U.S. economy — as signaled by Fed officials on Wednesday — and buoyed by interest-rate cut. So long as nothing throws a spanner in the works, looks like we’re all set for a happy holiday season.

CNBC’s Kristina Partsinevelos contributed to this report.

What you need to know today

New records for U.S. stocks. The S&P 500 and Dow Jones Industrial Average notched fresh highs on Thursday, but the Nasdaq Composite, weighed down by Oracle, underperformed and fell. Asia-Pacific markets advanced Friday, with several major indexes rising at least 1%.

Broadcom’s fourth-quarter results beat expectations. The chipmaker also saw its net income nearly double from a year ago, and revealed that Anthropic is its $10 billion customer. But shares slumped in extended trading.

Disney to invest $1 billion in OpenAI. The media giant will also allow Sora, OpenAI’s video generator, to use its copyrighted characters, under a $1 billion licensing agreement. “We think this is a good investment for the company,” Disney CEO Bob Iger told CNBC.

Reddit launches legal challenge in Australia. The county introduced a ban on social media for teens under 16, which came into effect on Wednesday. Reddit argues that the law is “invalid on the basis of the implied freedom of political communication.”

[PRO] Where will Oracle go from here? Analysts are re-looking their price targets for Oracle stock after the firm released a disappointing and confusing earnings report on Wednesday.

And finally…

Gen. David Petraeus, Former CIA Director, Fmr. Central Commander and American commander in Iraq.

Adam Jeffery | CNBC

Trump scared Europe with his national security strategy. That’s no bad thing, ex-CIA chief says

White House’s new national security strategy gave Europe a scare last week as it warned the region faced “civilizational erasure” and questioned whether it could remain a geopolitical partner for America.

The strategy was, “in a way, going after the Europeans but, frankly, some of the Europeans needed to be gotten after because I watched as four different presidents tried to exhort the Europeans to do more for their own defense and now that’s actually happening,” David Petraeus, former CIA director and four-star U.S. Army general, told CNBC’s Dan Murphy in Abu Dhabi on Thursday.

Holly Ellyatt

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