Mark Mahaney, Evercore ISI head of internet research, joins 'Squawk Box' to discuss Alphabet's stock performance, state of AI race, Meta's AI hiring freeze, and more.

The release of Open AI's ChatGPT has accelerated the development of artificial intelligence and warnings about its impact on society.

Rise of AI

Alphabet shares have reached record levels, driven by reports that Apple is exploring the use of Google's Gemini AI model to enhance Siri. Market analysts view this development as further evidence of Alphabet's leadership in artificial intelligence, noting the company's strong large language models and robust distribution platforms.

The discussion also touched on Alphabet's diversified revenue streams, including YouTube and Google Cloud, both of which are experiencing renewed growth. Despite ongoing antitrust scrutiny, analysts believe Alphabet remains competitively priced and well-positioned for continued expansion in AI and digital services.

Alphabet shares at record levels

Alphabet shares hitting an all-time high on Friday. The stock rallying into the weekend on news that Apple's exploring using Google's AI model Gemini to power Siri. Joining us to discuss Mark Mahaney Evercore ISI head of Internet Research Alphabet is his top long-term large-cap Internet stock pick. Mark great to see you. Long time no speak. So is this a big positive potentially that this is being considered for Alphabet or also revealing negative for Apple. I guess I'll take the first interpretation of those two. Well Fred it's good to see you again too. Let's see. I think it's just a it's just a small marker but it's another one that indicates that that Google is running the race. It's in the leadership position or one of the leaders in AI. And I think a couple of months ago at 160 when the stock was down there I think there were real fears that it was going to be left behind. But no look with Gemini I think they've got one of the best large language models out there. They've obviously got a wonderful distribution platform and Google the most widely used Internet asset out there. And then we've also got coming up this week almost certainly judges decision in the antitrust monopoly case. We hope that it's going to be a clearing event. It's very hard to handicap the outcome of the event. But at the end if you look at all of the A.I. companies that are out there this is the cheapest one. I mean it shades at the direct A.I. companies. This trades at 19 times earnings. And I think there's still material upside. That's why we like the stock. Do you think when the dust settles that it'll be like Google is as a search engine free for everyone to use and monetize through advertising or with the early signs on these these A.I. models is that you have to pay for them which will win out. But my guess is that they'll do a combo. I don't I would think you keep your options open and you do both. There will be people that will be willing to spend 20 dollars a month and some a lot more. But for access to the most leading edge Jenny I features and that's what they've been doing so far. I don't think it's a massive revenue stream for Google but it's a nice diversification away from advertising. And I step back and I think about that. The core catalyst on Google here remains getting the search business to sustain a double digit revenue growth which I think it can do. I don't see any evidence that it's losing any share in commercial searches. And then you've got these really nice positive assets in YouTube which is reaccelerating Google Cloud which is reaccelerating. And then I love this way more asset that just continues to grow and get bigger. And it's the lead. The leading playoff may be the most interesting physical manifestation of A.I. which is robo taxis. My quick extra question I want to ask you about that story about META putting a hiring freeze on on A.I. headcount. Is that something we expected and they'd made a decision and then they slowly make an announcement or is this a sort of wake up moment for them of oh my gosh we've massively overspent in this area. Is it incremental for you on your view on the stock or not. Not really. I'm sort of skeptical that there's been a real pullback in intensity A.I. intensity at META. Look I spent a lot of time with Amazon Google and META and I haven't seen any of those companies really materially pull back to maybe little stops and starts. But you know the lean in the spend is growing each year and it's growing aggressively because these companies are really feeling like or believe that they're getting a great return on that spend. And I think META has proved that with its revenue results and its profitability results. So I'd be I'd be shocked if they really were to start materially cutting back. They may slow down the pace from time to time but it's going to get bigger for them.

Kilmar Abrego Garcia is back in ICE custody and is facing deportation to Uganda, the Department of Homeland Security says, after he was released from criminal custody last week.

Baltimore

Abrego Garcia in ICE custody, court blocks immediate deportation

Ukrainian President Volodymyr Zelenskyy said he will meet with the U.S. and other countries this week to discuss a potential meeting with Russian President Vladimir Putin aimed at reaching a ceasefire.

Kyiv

Ukraine Invasion

Zelenskiy say he will meet with U.S., others on potential Putin talks

U.S. President Donald Trump says Chicago could be the next city to see National Guard deployment, sparking strong opposition from Mayor Brandon Johnson and Governor JB Pritzker, who argue crime is already falling and federal intervention is unnecessary.

Chicago

Trump threatens to send National Guard troops to Chicago

Four journalists working with Reuters, Al Jazeera and others were killed in explosions at a Gaza hospital. Gaza officials blame Israeli drone strikes, though CBS News has not independently verified the claims.

Jerusalem

Middle East Conflict

Four journalists reported dead after Gaza hospital blasts

U.S. National Guard troops patrolling the streets of Washington D.C. as part of what President Donald Trump said was his crackdown on crime began carrying weapons on Sunday night, two officials said.

Washington

National Guard patrolling Washington DC begin carrying weapons

In a visit to Kyiv, Prime Minister Mark Carney affirmed Canada’s support for Ukraine and committed to sending soldiers if a ceasefire with Russia is reached.

Carney in Kyiv pledges support, possibly troops for Ukraine

The Pickett Fire is growing in California's Napa County, prompting new evacuations as it threatens homes and wineries. The flames, fueled by scorching temperatures and dry conditions, are being battled by hundreds of first responders.

Napa Valley

Evacuations ordered in California as heatwave fuels wildfire

Democrats are pushing back against President Trump's plan to send the National Guard to more cities, including Chicago, New York and Baltimore, as troops continue to patrol Washington, D.C. State and local leaders say they have crime under control.

Democrats slam Trump's plans to send National Guard to more cities

Beef prices are at record highs with the average price of a pound of ground beef topping $6. Lisa Rozner reports on what's causing prices to soar.

Why U.S beef prices are soaring

A defiant Ukraine marked its independence from the former Soviet Union Sunday amid more fighting with Russia. Chris Livesay reports on how world leaders joined in, voicing their support.

Ukraine marks its Independence Day as war with Russia continues

The boats are produced by unknown Turkish companies and are then sent disassembled in multiple shipments to avoid suspicion in what authorities say is for the sole purpose of trafficking migrants across the English Channel.

Sofia

Inflatable boats used for migrant trafficking seized

Less than 24 hours after he was released from jail, Kilmar Ábrego García was told that U.S. immigration officials plan to deport him to Uganda. The Salvadoran national, who has been living illegally in the U.S. since about 2011, was wrongly deported to his home country earlier this year.

Maryland

Kilmar Abrego Garcia told he may be sent to Uganda

Erik and Lyle Menendez remain behind bars, their hopes for release dashed by two separate parole boards more than three decades after murdering their parents. Elise Preston reports.

Los Angeles

Erik and Lyle Menendez denied parole

Tourism in Las Vegas is slumping this summer, costing the city billions. That could signal trouble ahead for the U.S. economy. Andres Gutierrez has new details.

Las Vegas

Las Vegas tourism slumps this summer, signaling trouble for U.S. economy

Texas Republicans took a victory lap after an early morning vote Saturday that sought to give their party an edge during the 2026 midterms. Democrats in Texas plan to challenge the legality of the new congressional map, saying it dilutes the power of minorities.

Austin

Texas Republicans take victory lap after redistricting vote

Israel has called the United Nations' declaration of famine in parts of Gaza an "outright lie," but multiple U.N. bodies, more than 100 humanitarian groups, and several of Israel's own allies have warned for months that the war is causing starvation among civilians.

Tel Aviv-Yafo

Israel denies U.N.'s declaration of famine in parts of Gaza

U.S. President Donald Trump says he will impose sanctions on Russia if it fails to reach a peace deal in Ukraine within two weeks. But Ukrainian President Volodymyr Zelenskyy says Russia’s ongoing attacks on his country show that President Vladimir Putin is not interested in peace.

Putin’s not interested in peace talks, Zelenskyy says

Lyle Menendez was denied parole late Friday night following a day-long hearing in California, just one day after his brother Erik's parole appeal was also rejected. The brothers have been in prison since 1996 for killing their parents in what they say was an act of self-defense.

Both Menendez brothers denied parole

At least five people are dead and dozens are injured after a tour bus traveling from Niagara Falls flipped over on the New York State Thruway near Pembroke, New York.

Pembroke

Western New York bus crash kills at least five people

Federal agents searched former Trump adviser-turned-critic John Bolton's home on Friday morning. President Donald Trump denied knowing about the investigation, which is related to his handling of classified documents.

Bethesda

FBI raids former Trump adviser John Bolton's home, office

The FBI searched former national security adviser John Bolton's house in Bethesda, Maryland, early Friday morning, the bureau confirmed to CBS News.

FBI raids former Trump adviser John Bolton's home, D.C. office

Kilmar Abrego Garcia, the Maryland construction worker deported to El Salvador and then returned to the U.S. on smuggling charges, has been released from prison in Tennessee, his attorneys say.

Nashville

Kilmar Abrego Garcia released from jail in Tennessee

A bus with more than 50 people on board rolled over in New York and several deaths are being reported, officials confirm. CBS News' Jericka Duncan reports.

Tour bus crash in New York causes 'several fatalities'

Attorneys general in 14 states and Washington, D.C., accuse TikTok of designing its app to keep users hooked. Court-released edited video shows some company staff discussing the toll it can take on children and teens.

TikTok faces lawsuits over mental health risks

A parole board rejected Erik Menendez's request for release, saying he has not shown proper remorse for killing his parents 36 years ago. His brother, Lyle Menendez, faces his own hearing today (August 22).

Erik Menendez denied parole after California hearing

Russia carried out one of its largest aerial attacks of the year on Ukraine. The strikes killed at least one person and injured 15, marking Russia’s third-largest drone attack and eighth-largest missile assault this year.

Russia launches largest strike in weeks on Ukraine

The U.S. is sending three warships to the waters of Venezuela as part of a major counter-narcotics operation, a White House official confirms. CBS News senior national security correspondent Charlie D'Agata reports.

Alphabet shares at record levels

Breakdown

See The Full Story

Rise of AI