US Vice President Kamala Harris applauds as US President Joe Biden signs an executive order after delivering remarks on advancing the safe, secure, and trustworthy development and use of artificial intelligence, in the East Room of the White House in Washington, DC, on October 30, 2023.
Brendan Smialowski | AFP | Getty Images
After the Biden administration unveiled the first-ever executive order on artificial intelligence on Monday, a frenzy of lawmakers, industry groups, civil rights organizations, labor unions and others began digging into the 111-page document — making note of the priorities, specific deadlines and, in their eyes, the wide-ranging implications of the landmark action.
One core debate centers on a question of AI fairness. Many civil society leaders told CNBC the order does not go far enough to recognize and address real-world harms that stem from AI models — especially those affecting marginalized communities. But they say it’s a meaningful step along the path.
Many civil society and several tech industry groups praised the executive order’s roots — the White House’s blueprint for an AI bill of rights, released last October — but called on Congress to pass laws codifying protections, and to better account for training and developing models that prioritize AI fairness instead of addressing those harms after-the-fact.
“This executive order is a real step forward, but we must not allow it to be the only step,” Maya Wiley, president and CEO of The Leadership Conference on Civil and Human Rights, said in a statement. “We still need Congress to consider legislation that will regulate AI and ensure that innovation makes us more fair, just, and prosperous, rather than surveilled, silenced, and stereotyped.”
U.S. President Joe Biden and Vice President Kamala Harris arrive for an event about their administration’s approach to artificial intelligence in the East Room of the White House on October 30, 2023 in Washington, DC.
Chip Somodevilla | Getty Images
Cody Venzke, senior policy counsel at the American Civil Liberties Union, believes the executive order is an “important next step in centering equity, civil rights and civil liberties in our national AI policy” — but that the ACLU has “deep concerns” about the executive order’s sections on national security and law enforcement.
In particular, the ACLU is concerned about the executive order’s push to “identify areas where AI can enhance law enforcement efficiency and accuracy,” as is stated in the text.
“One of the thrusts of the executive order is definitely that ‘AI can improve governmental administration, make our lives better and we don’t want to stand in way of innovation,'” Venzke told CNBC.
“Some of that stands at risk to lose a fundamental question, which is, ‘Should we be deploying artificial intelligence or algorithmic systems for a particular governmental service at all?’ And if we do, it really needs to be preceded by robust audits for discrimination and to ensure that the algorithm is safe and effective, that it accomplishes what it’s meant to do.”
Margaret Mitchell, researcher and chief ethics scientist of AI startup Hugging Face said she agreed with the values the executive order puts forth — privacy, safety, security, trust, equity and justice — but is concerned about the lack of focus on ways to train and develop models to minimize future harms, before an AI system is deployed.
“There was a call for an overall focus on applying red-teaming, but not other more critical approaches to evaluation,” Mitchell said.
“‘Red-teaming’ is a post-hoc, hindsight approach to evaluation that works a bit like whack-a-mole: Now that the model is finished training, what can you think of that might be a problem? See if it’s a problem and fix it if so.”
Mitchell wished she had seen “foresight” approaches highlighted in the executive order, such as disaggregated evaluation approaches, which can analyze a model as data is scaled up.
Dr. Joy Buolamwini, founder and president of the Algorithmic Justice League, said Tuesday at an event in New York that she felt the executive order fell short in terms of the notion of redress, or penalties when AI systems harm marginalized or vulnerable communities.
Even experts who praised the executive order’s scope believe the work will be incomplete without action from Congress.
“The President is trying to extract extra mileage from the laws that he has,” said Divyansh Kaushik, associate director for emerging technologies and national security at the Federation of American Scientists.
For example, it seeks to work within existing immigration law to make it easier to retain high-skilled AI workers in the U.S. But immigration law has not been updated in decades, said Kaushik, who was involved in collaborative efforts with the administration in crafting elements of the order.
It falls on Congress, he added, to increase the number of employment-based green cards awarded each year and avoid losing talent to other countries.
Industry worries about stifling innovation
On the other side, industry leaders expressed wariness or even stronger feelings that the order had gone too far and would stifle innovation in a nascent sector.
Andrew Ng, longtime AI leader and cofounder of Google Brain and Coursera, told CNBC he is “quite concerned about the reporting requirements for models over a certain size,” adding that he is “very worried about overhyped dangers of AI leading to reporting and licensing requirements that crush open source and stifle innovation.”
In Ng’s view, thoughtful AI regulation can help advance the field, but over-regulation of aspects of the technology, such as AI model size, could hurt the open-source community, which would in turn likely benefit tech giants.
Vice President Kamala Harris and US President Joe Biden depart after delivering remarks on advancing the safe, secure, and trustworthy development and use of artificial intelligence, in the East Room of the White House in Washington, DC, on October 30, 2023.
Chip Somodevilla | Getty Images
Nathan Benaich, founder and general partner of Air Street Capital, also had concerns about the reporting requirements for large AI models, telling CNBC that the compute threshold and stipulations mentioned in the order are a “flawed and potentially distorting measure.”
“It tells us little about safety and risks discouraging emerging players from building large models, while entrenching the power of incumbents,” Benaich told CNBC.
NetChoice’s Vice President and General Counsel Carl Szabo was even more blunt.
“Broad regulatory measures in Biden’s AI red tape wishlist will result in stifling new companies and competitors from entering the marketplace and significantly expanding the power of the federal government over American innovation,” said Szabo, whose group counts Amazon, Google, Meta and TikTok among its members. “Thus, this order puts any investment in AI at risk of being shut down at the whims of government bureaucrats.”
But Reggie Townsend, a member of the National Artificial Intelligence Advisory Committee (NAIAC), which advises President Biden, told CNBC that he feels the order doesn’t stifle innovation.
“If anything, I see it as an opportunity to create more innovation with a set of expectations in mind,” said Townsend.
David Polgar, founder of the nonprofit All Tech Is Human and a member of TikTok’s content advisory council, had similar takeaways: In part, he said, it’s about speeding up responsible AI work instead of slowing technology down.
“What a lot of the community is arguing for — and what I take away from this executive order — is that there’s a third option,” Polgar told CNBC. “It’s not about either slowing down innovation or letting it be unencumbered and potentially risky.”
After the search for survivors and recovery of victims in tragic aviation accidents — like that of a UPS cargo plane shortly after takeoff from Louisville Muhammad Ali International Airport in Kentucky last month — comes the search for flight data and a cockpit voice recorder often called the “black box.”
Every commercial plane has them. Aerospace giants GE Aerospace and Honeywell are among a few companies that design them to be nearly indestructible so they can help investigators understand the cause of a crash.
“They’re very crucial because it’s one of the few sources of information that tells us what happened leading up to the accident,” said Chris Babcock, branch chief of the vehicle recorder division at the National Transportation Safety Board. “We can get a lot of information from parts and from the airplane.”
Commercial aircraft have become very complex. A Boeing 787 Dreamliner records thousands of different pieces of information. In the case of the Air India crash in June, data revealed both engine fuel switches were put into a cutoff position within one second of each other. A voice recording from inside the cockpit captured the pilots discussing the cutoffs.
“All of those parameters today can have a very huge impact on the investigation,” said former NTSB member John Goglia. “It’s our goal to to provide information back to our investigators who are on scene as quick as we can to help move the investigation forward.”
This crucial data can also help prevent future accidents. A crash can cost airlines or plane manufacturers hundreds of millions of dollars and leave victims’ families with a lifetime of grief.
But in some circumstances black boxes were destroyed or never found. Experts say further developments such as cockpit video recorders and real-time data streaming are needed.
“The technology is there. Crash worthy cockpit video recorders are already being installed in a lot of helicopters and other types of airplanes, but they’re not required,” said Jeff Guzzetti, aviation analyst and former accident investigator for the Federal Aviation Administration and NTSB. “There’s privacy and cost issues involving cockpit video recorders but the NTSB has been recommending that the FAA require them for years now.”
A Thanksgiving week rally couldn’t put all three major indexes in the green for November. The S & P 500 gained nearly 4% for the week, while the Dow Jones Industrial Average added more than 3% — a strong enough showing for each to eke out gains for the month. It extends their streak of winning months to seven. And while the Nasdaq Composite ended the week higher by more than 4%, it wasn’t enough to overcome selling earlier in the month triggered by valuation concerns about the artificial intelligence trade. The tech-heavy Nasdaq fell roughly 2% in November, ending its seven-month winning streak. .SPX YTD mountain S & P 500 (SPX) year-to-date performance There were a couple of bright spots in our portfolio during the holiday-shortened trading week. Apple shares notched three consecutive all-time highs this week, starting on Monday and ending on Wednesday. The stock has been buoyed by positive demand signs for Apple’s iPhone 17 series. Counterpoint Research data on Wednesday showed that Apple is on track to dethrone Samsung as the world’s top smartphone maker this year — an achievement the iPhone maker hasn’t seen in over a decade. Overall, Counterpoint analysts expect Apple to capture 19.4% of the global smartphone market in 2025, compared with Samsung’s expected 18.7%. The stock rose further on Friday, closing the week with a nearly 3% gain. Broadcom secured all-time record closes during every trading session this week. The stock’s been up as Wall Street starts to see the chipmaker as an ancillary play to Alphabet ‘s growing AI dominance. As Google began rolling out its latest AI model, investors see benefits for Broadcom as a co-designer of its specialized chips, called tensor processing units (TPUs). Media reports earlier in the week of Meta Platforms considering Google’s TPUs for its data centers in 2027 added fuel to Broadcom’s run. That’s because Alphabet’s AI expansion could drive more sales for Broadcom’s crucial networking and custom chips businesses, which was a key reason the Club started a position in the stock. Shares of Broadcom advanced more than 18% week to date. Fellow chipmaker Nvidia went the other way, with shares hitting a nearly three-month low on Tuesday as those same reports highlighted how some big tech companies are looking for alternatives to Nvidia’s chips. But Jim Cramer recommended staying the course , and called the stock dip a buying opportunity for new investors. After all, Nvidia still dominates the extremely lucrative AI chip market. “The demand is insatiable for Nvidia,” Jim said Tuesday. Shares fell 1% week to date. NVDA YTD mountain Nvidia (NVDA) year-to-date performance And while we didn’t see any earnings from the portfolio this past week, Dick’s Sporting Goods ‘ quarterly report was great news for Club holding Nike . Jim called the retail stock a buy on Tuesday after Dick’s announced plans to close several Foot Locker locations during its third-quarter earnings call. “Nike is a buy off of Dick’s problems,” Jim said. Management’s remarks indicated that Nike’s relationship with the retail giant has been improving, a positive sign for Nike’s turnaround story. “They’re moving in the right direction,” Ed Stack, executive chairman of Dick’s Sporting Goods, told “Squawk on the Street,” after the company’s earnings were released. He cited a strong performance from Nike’s running line. “If you take a look at what they did with their running construct, what they did with Pegasus, what they did with Vomero, what they did with Structure, this running concept has done extremely well on the Dick’s side, and where it’s been put into Foot Locker stores, it’s done really well there too.” Nike stock jumped nearly 3% week to date. NKE YTD mountain Nike (NKE) year-to-date peformance Trades Finally, we executed two trades during the shortened holiday trading week. On Monday, the Club bought more Palo Alto Networks shares on the cybersecurity company’s overblown post-earnings decline. We saw the weakness as an opportunity, given that Palo Alto delivered a beat-and-raise third quarter that topped estimates for every single key metric. The Nov. 19 report showed that momentum in Palo Alto’s “platformization” strategy of bundling its products and services remains promising. Deals from Palo Alto make us even more bullish on the stock. The company announced plans to buy cloud management and monitoring company Chronosphere for $3.35 billion. Management’s acquisition of identity-security leader CyberArk was approved by shareholders on Nov. 13 and is expected to close in the third quarter of fiscal year 2026. “Palo Alto Networks is setting itself apart in the AI era by adding two platforms just as their respective markets hit key inflection points,” Jeff Marks, the Investing Club’s director of portfolio analysis, wrote in a trade alert. We added to our Procter & Gamble position on Tuesday, our second purchase of the consumer goods giant since starting a position on Nov. 18. The thesis: Shares will benefit from any rotation out of Big Tech and into more economically resilient companies. Basically, if AI spending lets up or the U.S. economy slows down, defensive stocks like P & G should shine. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) 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.
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.
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.”