Sarah Kunst, Cleo Capital managing director, joins 'Squawk Box' to discuss key takeaways from Nvidia's GTC conference this week, state of AI demand, the threat posed by China's DeepSeek, and more.

San Jose

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

Rise of AI

Nvidia has revealed new artificial intelligence (AI) chip products and partnerships at its annual GTC conference. CEO Jensen Huang highlighted the company's $150 billion AI infrastructure investments, a part of a growing global infrastructure valued in the trillions. Despite these developments, there appears to be a disconnect between the data presented by Nvidia and the sentiments of investors, who seem uncertain about the continued pace of AI investment.

Managing Director of Cleo Capital, Sarah Kunst, discussed how Nvidia is striving to maintain its leading position in the industry, where no other competitor currently poses a significant threat. Even major companies that design their chips still order significant quantities from Nvidia, which remains the leader in its field. Kunst also noted that while projects like China's DeepSeek gain attention, they do not substantially impact Nvidia's market position.

Despite the economic shifts and fluctuating investor confidence, demand for Nvidia’s AI chips remains robust, particularly among large tech companies. These organizations are not significantly concerned with transferring costs to consumers, as AI is increasingly integrated into everyday services. Additionally, the adoption of AI in various industries, such as automotive, may result in more efficient and cost-effective operations, although it raises concerns about potential job disruptions.



Nvidia unveils new AI chips

Check out shares of NVIDIA this morning. The chip maker made multiple announcements on new products yesterday as well as partnerships at the annual GTC conference. Here's CEO Jensen Hwang on welcome the street. We're building infrastructure for the world and it is very clear now that we're about one hundred and fifty billion dollars of AI infrastructure into a journey of trillions of dollars of infrastructure. And so we've got we've got a lot of A.I. to build. Joining us now Sarah Coons Clio Capital Managing Director Sarah great to have you with us. Yeah thank you. I mean according to what Jensen Hwang talks about and according to the CapEx spending plans of all the hyperscalers the A.I. story does seem to be intact. And yet there is a disconnect because you have that set of data points and then you have what investors believe and investors don't seem to believe that that A.I. spend will keep up. How do you sort of where are we. Where where's your view. Who's who's the right side. I think it's hard for NVIDIA because they're not sort of trying to stay ahead of a competitor that's kind of neck and neck. They're trying to stay ahead of their own massive success over the last few years. And it is a lot harder to beat yourself than it is to beat somebody else who's releasing quarterly numbers that aren't as good as yours. And so I think that some of it is sort of the sort of tyranny of high expectations that's hitting NVIDIA where a lot of the analysts thought that it would go up into the right forever at that exact same velocity. And that's just not how it works. And so is NVIDIA still the leader in what they do. Absolutely. Is there anybody who's like a really close second right now. No. Are even the big you know the matters of the world who do make and design some of their own chips now still ordering from NVIDIA in huge quantities. Yes. Is that going to stop. No. Did deep deep seeker get hurt. Not really. So there's nothing wrong here. It's just that we're used to a story of everything being perfect. And now it looks a little bit more normal. Why do you think investors are so hard pressed to believe the notion that deep seek is not hurting NVIDIA will not hurt NVIDIA. And the fact that more inferencing compute power is needed the better for the likes of NVIDIA. You know I don't really know. Deep Seeker is fascinating because it was sort of the most successful side up we've seen in a while. It's a good program and there are other good similar programs coming out of China and they will continue to. They'll come out of anywhere. We have smart engineers all over the world. But for some reason that really hit NVIDIA hard because people don't understand that when something is cheaper and more plentiful you know we tend to use more of it which is funny because as Americans we certainly know that to be true. Right. Gas gets cheaper. People buy bigger cars that require more gas. And so we know that sort of in our day to day lives. But these analysts I think continue to miss that when it comes to NVIDIA. And they're just having a really hard time kind of keeping the faith. There's been a real sea change in terms of the confidence being felt by by CEOs in the economy in just the past month or so. Sarah I mean the soft economic data show that sort of turn in sentiment. Consumers feel that turn in sentiment as well. And I'm wondering how that translates into how CEOs are guiding their companies in terms of the companies that you speak to and how we should translate that to the A.I. story. Yes. So you have to keep in mind that the A.I. story is unlikely to be sort of chat GPT subscriptions for consumers. The A.I. story is now when you log into any Google you know any sort of Google owned property they have that little thing or any meta owned thing. They have those little stars and they say hey do you want to make it easier faster better. That's the A.I. story. Right. And it's not necessarily that you as a consumer are going to have to decide discreetly to pay for A.I. It's going to be baked into the services that you use all the time. And so I don't think that it's as exposed to consumer. I think that CEOs certainly in tech are not feeling that. We're still seeing the preorders for NVIDIA. We're still seeing that they want that data center space. We're still seeing a ton of demand from the big tech companies and less of a focus on sort of how do we pass this cost on to the consumer directly. Because if the consumer is posting more using your product more you know more enmeshed in what you're doing that's going to accrue gains to you. And then obviously an enterprise A.I. is something that probably will replace a lot of jobs. We're already seeing that in in places like auto where you have a robot robotic arms that can sort of put cars together big pieces of cars and that over time likely reduces you know high higher cost union labor. And so when you have those abilities I think that you're less scared in the short term about spending some of that capex because long term it probably means safer more capital efficient workplaces.

Two helicopters collided above Hammonton, New Jersey, and one person has died, officials say. CBS News' Elaine Quijano reports.

Hammonton

Helicopters collide in New Jersey

U.S. President Donald Trump is meeting with Israeli Prime Minister Benjamin Netanyahu in Florida on Monday (December 29) as questions linger about the future of the U.S.-backed ceasefire in Gaza.

Palm Beach

Middle East Conflict

Trump and Netanyahu to meet in Florida to discuss Gaza ceasefire

In a new show of force, China has mobilized its navy, air force, and ground troops to simulate a blockade of the self-ruled island's key ports. The military drill comes on the heels of an $11bn US arms sale to Taipei.

Taipei City

China stages new military exercises around Taiwan

U.S. President Donald Trump said he believes both Ukrainian President Volodymyr Zelenskyy and Russian President Vladimir Putin truly want peace as he and Zelenskyy met in Florida. Some experts say Trump is 'delusional' if he truly thinks Putin wants peace.

Washington

Ukraine Invasion

Trump-Zelenskyy meeting ends with optimism but no deal

Although the U.S. security guarantees for Ukraine have been "100% agreed," they have a short expiration date, the Ukrainian president explained after revealing more details following his meeting with Trump on Sunday.

Florida

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China's military moved army, naval, air force and artillery units around Taiwan on December 29 for its "Justice Mission 2025" drills, as the island vowed to defend democracy and mobilized troops to rehearse repelling a potential Chinese attack.

China launches 'Justice Mission 2025' war games around Taiwan

President Trump spoke with Russian President Vladimir Putin by phone before meeting with Ukrainian President Volodymyr Zelenskyy in Florida on Sunday. Trump said he thinks both men are ready for peace.

Trump meets with Zelenskyy, insists Putin is ready for peace

Far-right politics have pushed further into the mainstream across much of Europe. Populist parties, even in opposition, are shaping national debates on migration and the economy. The trend reflects growing voter frustration over living costs, borders and political trust.

Berlin

Far-right politics gaining influence across Europe

Ukrainian President Zelenskyy is set to discuss a new peace plan draft with U.S. President Trump in Florida on Sunday (December 28). However, fresh Russian attacks on Kyiv have left a third of the city without power, undermining local confidence.

Kyiv

Kyiv residents fear escalation amid Zelenskyy-Trump peace talks

A report has sought to catalogue some of the most significant extreme weather events of the year. UK charity Christian Aid found that heatwaves are pushing the limits of human adaptation, hurricanes and typhoons are breaking records, and droughts are devastating lives across the globe. It's all coming at a heavy financial cost.

Top 10 natural disasters cost over $120 billion in 2025, report says

Russia attacked Kyiv and other parts of Ukraine with hundreds of missiles and drones on Saturday, ahead of what President Volodymyr Zelenskiy said would be a crucial meeting with U.S. President Donald Trump to work out a plan to end nearly four years of war.

Russian drones, missiles pound Kyiv ahead of Zelenskiy-Trump meeting

French actor Brigitte Bardot has died aged 91, her foundation said on Sunday (December 28). She shot to international fame dancing the mambo barefoot in "And God Created Woman," her tousled hair and fierce energy radiating a sexual magnetism rarely before seen in mainstream cinema.

Saint-Tropez

Brigitte Bardot, France's 'legend of the century', has died

A ceasefire is now in place between Cambodia and Thailand after weeks of cross-border fighting. But with nearly a million civilians displaced and trust in short supply, the focus now is on whether the guns will stay silent.

Bangkok

Thailand and Cambodia agree on ceasefire to end weeks of deadly fighting

The storm that hit the Northeast this weekend dropped up to a foot of snow in some areas. New York City saw its highest level of snowfall in nearly four years, and the region's three major airports experienced significant delays and disruptions.

New York

Powerful winter storm brings heavy snow to Northeast

For approximately 10 hours Saturday, Russia attacked the Ukrainian capital city of Kyiv with about 500 drones and 40 missiles. The attack comes one day before before Ukrainian President Volodymyr Zelenskyy meets with President Trump in Mar-a-Lago. Elizabeth Palmer has the latest.

Russia launches massive attack on Ukraine ahead of Trump-Zelenskyy meeting

Prime Minister Mark Carney and Ukrainian President Volodymyr Zelenskyy met today in Halifax to discuss economic aid amid the Russia-Ukraine war. This comes ahead of Zelenskyy’s plans to meet with U.S. President Donald Trump to discuss a peace deal.

Halifax Regional Municipality

Canada announces $2.5B in aid for Ukraine

President Trump said Thursday's strikes on Nigeria targeting ISIS were set for Wednesday but were delayed to Christmas Day for symbolic reasons. Mr. Trump claimed the Nigerian government is failing to protect Christians.

Washington D.C.

Trump says timing of Christmas Day strikes in Nigeria was intentional

The latest attack comes as presidents Zelenskyy and Trump prepare to meet in Florida on Sunday amid ongoing efforts to end the war.

One dead many injured after Russia launches massive attack on Kyiv

According to the Chinese foreign ministry, the sanctions entail freezing the companies’ assets in China and banning individuals and organisations from accessing them.

Beijing

China sanctions 20 American companies over arms sales to Taiwan

Somalia reacted angrily Friday (December 26) after Israel formally recognised the northern region of Somaliland as an "independent and sovereign state" -- the first country to do so. U.S. President Donald Trump said he opposed U.S. recognition of Somaliland in an interview with the New York Post.

Somaliland

Somalia denounces Israeli recognition of Somaliland

Thailand and Cambodia agreed to an "immediate" ceasefire on Saturday (December 26), the two countries said in a joint statement, pledging to end border clashes that killed dozens of people.

Buri Ram

Thailand and Cambodia agree to ceasefire

Somaliland, a territory of more than 3 million people in the Horn of Africa, seceded from Somalia more than three decades ago, but it hadn't internationally been recognized as an independent state by any country.

Israel becomes first country to recognize Somaliland

Some of the stabbed victims remain in serious condition. A 38-year-old man was arrested for alleged attempted murder at the factory, authorities said.

Mishima

At least 15 injured in chemical attack, stabbing at Japan factory

Israeli President Isaac Herzog said he was shocked by the "horrific killing spree" and pledged Israel would reinforce its security.

Jerusalem

Palestinian man kills two in car, knife attack in northern Israel

Munitions factories are expected to expand capacity and build new plants as the regime in Pyongyang intensifies weapons development and furthers its ties with Russia.

Pyongyang

Kim Jong-un orders North Korea to boost missile production in 2026

The United States launched airstrikes on Islamic State targets in Nigeria's Sokoto State on Thursday. Nigerian authorities denied Trump's claim of mass killings of Christians amid mixed reactions to the U.S. intervention.

Abuja

Nigeria confirms cooperation with U.S. strikes on IS targets

Ukraine's President Volodymyr Zelenskiy said on Friday (December 26) he planned to meet with U.S. President Donald Trump soon and that a lot could be decided before the New Year as Washington pushes diplomatic efforts to end the war with Russia.

Zelenskiy: 'A lot' can be decided before New Year ahead of Trump talk

The United States carried out airstrikes against ISIS militants in northwest Nigeria at the request of Nigeria's government, U.S. President Donald Trump and the U.S. military said on Thursday, claiming the group had been targeting Christians in the region.

U.S. launches 'deadly' airstrikes in Nigeria targeting ISIS: Trump

Official results show Asfura edged out his main rival Salvador Nasralla by less than one percentage point. Marred by delays and fraud claims, the Honduran election continues Latin America's shift to the right.

Tegucigalpa

Honduras: Trump ally Nasry Asfura wins disputed presidency

Several people were killed in Southern California when severe storms with heavy rain caused mudslides and flooding, which was made worse in areas affected by wildfires in January.

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Rise of AI