Name: Andrew Ross Sorkin On Affordability, What Happens If The AI Bubble Bursts, And Paramount vs. Netflix
Uploaded: 2025-12-10T16:56:14.000Z
Duration: 9 min 6 s
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The superlative

My next guest tonight is a best selling author, financial columnist for the New York Times and co anchor of Squawk Box on cnbc.

The imperative

Please welcome back to THE Late Show, Andrew Ross Sorkin.

1929 Inside the greatest Crash in Wall Street History and How it Shattered a Nation.

We're going to talk about things, you know, things.

We got a lot of things going on right now.

Last week, as I was talking about it earlier, we learned about the proposed Netflix, Warner Brothers.

Everybody thought that Paramount had the inside track.

And the Netflix comes in with this huge cash offer of $82.7 billion.

And now Paramount is launching a hostile bid for $108 billion.

There's 26 more Ilions that they could have used on this show anywhere, anywhere.

They could have fed the homeless now and Jared Kushner somehow involved.

And Saudi and Abu Dhabi and Qatari sovereign funds.

Why is there, why so much money from them?

Look, you got two major players in Paramount on one end and Netflix on the other that desperately want to own the library that is Warner Brothers Discovery and hbo.

And so it's just for the intellectual property.

Paramount is a slightly different animal.

They also want to own the Food Network and all of the linear properties that come with it.

There's both of these bids are little apples and oranges in a way, but

they're both fighting over effectively the same thing.

And this is now going to be a combination of a follow the money story in terms of who's going to ultimately pay the most.

And it's also a follow the 1600 Pennsylvania Avenue story because this president has already declared, it's really the first time we ever seen this, that he's going to be involved in the decision making when it comes to the regulations and whether one bidder effectively his deal gets allowed to happen or not.

There is relatively low unemployment at 4.4%.

And yet so many people feel like the economy is not good right now.

Only 36% in recent polls say it's a good economy.

The plurality of people in polls blame Trump for things being too expensive.

Why are things relatively good on paper but bad for the people?

Look, I think when wages don't always keep up with inflation, when products cost more, and

especially because everything's relative, it's like, what did somebody think cost six months ago or a year ago or two years ago?

And how often do you show up at the supermarket or, I took a cab across town today, and

The point is that when you see these kind of numbers and they are surprising because it's a lot more than it was a year or two or three ago, you say to yourself, this doesn't feel good.

There's a lot of concern right now about that.

I'm not saying it is, if it is a bubble, what survives this bubble?

Because during, like, the housing bubble, when the bubble burst, there were still houses.

During, like, commodities bubbles, like silver and gold, late 70s, there was still silver and gold when it was over.

Because it seems like everyone's racing to be the winner of this.

The bubble is putting money into all these different corporations who are actually kind of supporting each other by buying from each other.

If this bubble bursts, what's going to be left over?

Just some chips somewhere out in the desert and a lot of electrical bills?

So, look, I think there's hundreds of billions of dollars coursing through the economy right now via the AI bubble.

It's people constructing these data centers.

And those people are going out and hopefully they have jobs and they're buying stuff and watching shows like this, and

people are advertising to them to go buy more stuff.

So this is having a real effect on the economy.

The question is, if the bubble bursts and all of these AI companies, which don't make enough money right this moment to pay for all of the stuff they're committing to go do, if that doesn't work out, if the math doesn't add, the problem is not going to be that we won't have AI in the future, and

it's that there's going to be a moment at which banks won't lend anybody money because they'll be on the hook for all of this.

These tech Companies will scale back, people will lose their jobs, they won't be spending money, and

then it will filter out to the rest of the economy.

Has any of these companies made any money?

Look, Google makes an enormous amount of money, Amazon.

Well, the AI branch of each of like, you know, Google's got their AI.

Everything is if they technically, if they stopped investing in more and newer and better AI, they probably actually could make money.

The problem is that they are in an arms race.

And technologically there's a place they're all trying to rush to get to.

So they have to keep spending more and more and more money.

And then we all are going to be using more and more of these services and therefore requires more and more power.

That's where the economic problem becomes.

Okay, I don't know if you've heard about this book, but

you got a new book here called 1929 Inside the Greatest Crash in Wall Street History and How It Shattered a Nation.

What happened prior to 1929 that created the greatest crash?

And do you see any of those factors today?

Well, look, the 1920s arguably created the modern society we live in today and are very similar in many ways to today.

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Andrew Ross Sorkin On Affordability, What Happens If The AI Bubble Bursts, And Paramount vs. Netflix

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