Chinese AI labs like DeepSeek are matching American frontier capability at a fraction of the cost, and a wave of American and European challengers are building toward the same price point. Adoption is already shifting, with Chinese models taking a growing share of enterprise AI traffic. That’s a problem for OpenAI and Anthropic, which are pitching IPO investors on a premium moat that’s eroding fastest in the enterprise segments they need to dominate. CNBC’s Deirdre Bosa explains how cheap AI from competitors could derail OpenAI and Anthropic’s upcoming IPOs.

Chapters:
0:00 – 1:07: Introduction
1:08 – 4:06: China undercuts the frontier
4:07 – 6:26: American challengers move in
6:27 – 7:43: The SpaceXAI proof case
7:44 – 27:16 Full interview with Cohere CEO Aidan Gomez

Anchor and Columnist: Deirdre Bosa
Produced by: Jasmine Wu
Edited by: Matt Soto
Animations: Emily Park, Jason Reginato, Christina Locopo
Senior Director of Video: Jeniece Pettitt
Additional Editing: Erin Black

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How Cheap AI Could Derail OpenAI And Anthropic’s IPOs

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18 months ago, Google looked like it had missed the AI revolution. Now, Alphabet’s stock is up 140% over the past year and Wall Street is betting it’s one of the few companies positioned to profit from every layer of the generative AI boom. From Gemini to Google Cloud to its custom TPU chips, the company controls more of the AI stack than almost any of its rivals. This week’s Google I/O is the next big test — investors want to see whether that confidence is backed by a real product roadmap. CNBC’s MacKenzie Sigalos explains how Alphabet became the AI race’s unlikely frontrunner.

Chapters:
0:00 Introduction
2:40 Chapter 1 – Google’s AI comeback
4:55 Chapter 2 – Monetizing AI
9:29 Chapter 3 – Google’s AI future

Reporter: MacKenzie Sigalos
Produced and Edited by: Andrew Evers
Additional Editing: Matt Soto
Senior Director of Video: Jeniece Pettitt
Animations: Jason Reginato, Christina Locopo, Emily Park
Additional Footage: Getty Images, Google

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How Google Quietly Became An AI Powerhouse

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Cerebras made a monster debut on Thursday that not only placed it among tech’s biggest-ever IPOs, but was the clearest signal yet of unstoppable demand for chips to power AI, as tech giants scramble to the costly, sold-out graphics processing units made by Nvidia. Cerebras closed its first day trading on Wall Street with a stunning market cap just below $100 billion, then traded lower on Friday, sinking 10%. Founded in Silicon Valley in 2016, Cerebras makes a different type of chip than the classic Nvidia GPU, and it’s the size of a dinner plate. It’s a category of chips known as custom ASICs that are gaining traction because they excel at inference, which is crucial as agentic AI takes off. Custom ASICs are also made in-house by Google, Amazon, Meta and Microsoft, and Nvidia – thanks to its $20 billion purchase of Groq in December. Now, the Cerebras’ IPO paves the way for other ASIC start-ups such as SambaNova, Rebellions and D-Matrix. CNBC’s Katie Tarasov explains everything you need to know about the company.

Reporter: Katie Tarasov
Edited by: Carlos Waters
Senior Director of Video: Jeniece Pettitt
Animation: Jason Reginato, Emily Park

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Cerebras: What You Need To Know About The Nvidia Competitor After Blockbuster IPO

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CNBC In Other News brings you stories that missed the spotlight.

AI-driven layoffs have become a defining theme across the tech industry over the past year, with some sources estimating more than 112,000 U.S. jobs being lost to AI since the start of 2025. While major companies like HP and Amazon have often framed these cuts as a way to boost efficiency and shift focus toward new technologies, investors themselves don’t appear convinced that these layoffs will improve companies’ bottom lines in the long run.

Software companies like Twilio and Datadog are starting to prove their case as winners in artificial intelligence. Investors say the performance from Datadog and Twilio underscores how companies that can deploy AI-native solutions while also articulating their path to monetization can ease disruption fears, for now. CNBC’s Seema Moody explains.

Since 1959, the U.S. Navy’s Marine Mammal Program has trained bottlenose dolphins and California sea lions to detect mines and other underwater threats. Reporter Sophie Caldwell spoke with Scott Savitz, senior engineer at global policy think tank Rand Corporation and an expert on mine countermeasures, to understand the history, challenges and possibilities of marine mammals in the military.

While many foreign consumer brands in China, including Starbucks, Nike, and LVMH, face slowing growth and tougher competition, McDonald’s is expanding aggressively. The company plans to open 1,000 new stores a year and reach 10,000 locations in China by 2028. About half of McDonald’s new stores last year opened in China. The company also recently bought back a stake from Carlyle Group after previously selling control of its China business to Carlyle and a Chinese state-owned firm. CNBC’s Eunice Yoon looks at why McDonald’s continues to bet big on China.

Chapters:
0:00 Why AI layoffs aren’t helping stocks
3:44 How Twilio and Datadog are winning back investor confidence
6:29 Pete Hegseth says Iran doesn’t have ‘kamikaze dolphins’
8:18 Why McDonald’s is supersizing in China

Reporters: Liz Napolitano, Seema Mody, Sophie Caldwell, Eunice Yoon
Produced by: Juhohn Lee, Meline Rosales
Edited by: Andrea Miller, Erin Black, Christian Nunley
Camera by: Tasia Jensen
Animation: Emily Park, Christina Locopo
Additional Production: Charlotte Morabito
Manager Video Distribution: Divya J. Verma
Senior Directors of Video: Jeniece Pettitt, Jessica Leibowitz, Lindsey Jacobson
Additional Footage: Getty Images
Additional Sources: Scott Savitz

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In Other News: McDonald’s Bet On China, Spy Dolphins, And AI Layoffs Vs. Stocks

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When Spirit Airlines shut down earlier this month, its fleet of dozens of leased planes was left stranded all over the country. Now, the canary yellow Airbus planes need a place to go. Several pilots, like Steve Giordano, are taking aircraft back from Spirit Airlines and moving them from various airports to the deserts of Arizona. Some of these planes could be leased to other airlines, while others may be dismantled and sold for parts. CNBC’s Leslie Josephs has the story.

Produced by: Juhohn Lee, Erin Black
Reporting by: Leslie Josephs
Edited by: Meline Rosales
Animation: Christina Locopo
Senior Director of Video: Jeniece Pettitt
Additional Footage: Getty Images, Steve Giordano

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Where Spirit Airlines’ Jets Are Headed After Bankruptcy

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