#FinanceDaily CPI Live; only 1 hike?; Aramco HQ; $BAC fine $MS $BLK

a couple others today, but those are the big ones. With regard to the whole of them, we'll have to wait and hear the commentary. Generally, it's been a good equities, trading results, not so good on the fixed income side of things. And then, in terms of guidance, generally strong. The big news around today's reporters is Bank of America. Concurrently with their release, has also released the fact that they've been find upwards of a billion dollars for week and time money laundering controls. I think it was 1.2 or 1.3 billion dollars. And is the largest ever, I think, on that score from one respect or another. We'll see what else they have to say around all that. And then there hasn't been a lot going on in terms of crypto price activity. ETH has been holding in at around 2500 Bitcoin around 83,000. Away from the financials, AsML reported overnight, demand is for energy chips, and so forth is just outstripping demand. And so this sets up later this week, Taiwan semi that reports on Thursday. ML came in with margins of 57% very robust, and raised their guidance, and they said, at least through the end of 2028, they are sure that demand will outstrip the supply that they're able to go ahead and provide to their customers. Apparently the lag time right now is about a year out from when making an order. The big news of the morning will come with CPI. Maybe Andy will be with us by then, but if not, of course, we have other luminaries to join us to analyze the CPI at 830. But in advance of that, I think the way we'll roll this morning is see how much wood we can chop between now and 830, first to Carlo, and then to Brandon, and we'll talk about the AI spy at OpenAI, the anthropic revenue number for the quarter, the last quarter expected for investors on the private side information disclosure. Before the IPO, the latest scare tactic that has come out of anthropic in terms of saying that AI models could soon self replicate across devices. So we'll get to all that. If we have time before 830, we'll talk to Anas, and then we'll discuss CPI. So let's rock and roll this morning, welcome everybody. Carlo, good morning, anything on the crypto front, and you can just roll from that into telling everybody about what happened with the OpenAI employee employees. We don't know if it's one or a group acting together. Go ahead. Good morning, David. Good morning, everyone. Yeah, so I have to touch on the Bank of America money laundering fine because it really begs the conversation. And hey, Elizabeth Warren, if you're listening, love you to join the show and explain to me how crypto is so dangerous when it comes to money laundering. I just want to quote from that before we pivot to the AI story. This is from the Treasury's press release about the Bank of America fine. As a result of these failures, Bank of America failed to timely report to FinSEN over $5 billion in suspicious transactions with over one billion of this activity implicating national security related and other priority illicit finance risks, including suspicious transactions indicative of Chinese money laundering networks, fraud and potential trade-based money laundering with a substantial nexus to the Southwest border. So to all those who continue to chime on the anti-crypto army side, that money laundering and crypto go hand in hand and that we need to ramp down on crypto because it facilitates so much money laundering, just a gentle reminder that banks facilitate far more money laundering than crypto does and it's not even close by a long shot. The more interesting story for today is this report out of OpenAI. The arrest of this former OpenAI engineer over alleged covert recording reinforces a new trend line that's developing in criminal defense. And I get to put on my criminal defense attorney hat on the show, something I rarely get to do, but yeah, I am a criminal defense lawyer, so this is definitely in my wheelhouse. And that is how AI can not only be used to facilitate and conceal criminal activity, but it also can be used to uncover and reveal criminal activity. The long and short of this story and it's crazy is that this individual, Saudi National, who was here lawfully in the US as a permanent resident, Green Card holders in September of 2020, has a history in tech, I mean, worked with Meta Microsoft, was a founding engineer at a startup called Nash, computer science, educated MIT graduate, masters in data science from UC Berkeley. So he was probably a great addition to the OpenAI team, except until the point that he allegedly decided to plant a camera in a boardroom where OpenAI had very confidential conversations. Apparently he plugged in some kind of a recording device and then used toilet paper to conceal it in the back of a television, and that device was capturing and encrypting what it was recording. And the company, it looks like found it and they planted their own camera, and apparently according to the report from the DOJ, the perpetrator was allegedly caught going back to retrieve the camera. He also had left a bag in an open area with his belongings and in there, apparently, was another device. And when he went to go claim it at the lost and found, he got his device back, sans the camera. So this raises very serious concerns that the DOJ is taking it very serious. It is not just an illegal wire intercept case that potentially this defendant is looking at, but there are indications in the press release that this also may bleed into national security concerns because of how important AI is to this AI arms race that the United States is currently endeavored in, and how these companies, especially this foundation model companies, which are building out so fast the AI production ramp, how this could be a vulnerability to the United States, and the thing we don't know from what's been reported in the DOJ press release is where this information was allegedly being funneled to. If this was being funneled, and this is of course just complete speculation, but the concern and why this raises the national security concern is that if it's going to a rogue nation, then this is essentially feeding proprietary information from one of the biggest foundational models in the United States, which could hurt the United States and the AI arms race. This is also a broader reminder before I kick it back to you, David, that AI is a great research tool, but AI is also an incredible discovery tool for lawyers, and whatever is prompted into AI, if it's not done by a lawyer who is able to cover it with work product privilege, attorney client privilege, if it's done by an individual actor, it is subject to subpoena, it is subject to lawyers getting it, and in this case, this individual thought he was clever by using his wife's AI account to prompt how to do this, how to conceal the camera, information about the schedule, information about the room, all of this now has been traced back to the wife's AI account, which is going to be used against this suspect. So he's waiting to appear for a detention hearing in the coming days to determine whether he should be released, and then thereafter I anticipate an indictment will follow this criminal complaint, and I suspect the indictment will have more than just the one count of the wire intercept. So this is a fascinating story, and I'm sure Brandon's got lots to say about this one back to you, David. Carlo, just really quickly, the two things that I find most shocking is the first is that someone who is pretty not good at this was able to kind of, he's clearly not very good at planting devices, so if someone is good at planting devices, do they have a massive compromising already and how long's that been going on for? The second thing is I think I think I read somewhere, someone can correct me on this, that his father or his uncle, they believe is a Saudi intelligence officer or former Saudi intelligence officer. So it will be fascinating to see how this is rolled back, but again, I just think it was, I think it was interesting that someone who was that incompetent could get away with it for at least a few days before open eye cotton onto it. So if someone's highly sophisticated, they may already be in the room. Any, just to answer that. It's interesting about that is you take someone who is not, quote, so sophisticated, and then you give them the amplification through AI to get more creative, to get more ingenious in how they do this stuff. Yeah, the possibilities are limitless and using AI to coach you and how to commit a crime and get away with a crime, is going to be the smoking gun that may well take this individual down. And it does open up a broader conversation because we just have the ledger exploit on the secondary resale of ledgers through a approved reseller where there was stuff implanted into the ledger that would allow compromise of the ledger device. And it resulted in an exploit of a lot of cryptocurrency. So supply chains, who you put in your inner circle and how you protect your proprietary information is certainly going to be an ongoing risk. And the sleuths and the law enforcement people on the other side have got to stay one step ahead of this because the criminals are now figuring out that AI is an outstanding way to facilitate crime. Thank you very much for the rundown Brandon. I'm going to come to you in a second. I just want to know, on us, is anyone talking about this on the ground and re-ud? Yet maybe on a season with us yet I'll ask him when he comes back. All right, Brandon, let's go. You're allowed your five minutes on this open AI craziness, but also please get to the serious nature of anthropics, third quarter financials that are supposed to be disclosed today along with the warning that AI models could soon self replicate across devices. What does that even mean and how scared should we be of that morning? Yeah, so I didn't Carla did a great job covering it. Same was Rob. Appreciate you guys going pretty in depth on that. It hasn't been officially said whether his father is a senior intelligence official. He I guess was an officer in the armed forces there. And what is maybe the more interesting aspect of it is he is an advisor in some capacity to a 16 Z the father of this young man, which a 16 Z is one of the largest venture capital funds in the world for those that don't know. US based that's Mark Andreessen and Ben Horowitz is fund and so that that is going to be I think the more interesting story that comes out of this as we find out more details. I'm not going to speculate on anything further than that just because we're going to have to wait on some details here, but that that's a really in the he has a lot of close ties and that's kind of how Silicon Valley works. It's not completely out of the ordinary that a lot of these people are connected. That's how a lot of these young guys get into jobs or get into the startup world is there connected via these funds and et cetera. So it's obviously a very competitive landscape to get those positions at open AI. You make a lot of money doing so. So a lot of the times they come through those more mentors. So it's not out of the ordinary, but I'm sure this story is definitely going to involve evolve more over the next few days and kind of excited to hear from a loss if anybody is talking about it. Now on day on the topic. I think that just the important everybody's kind of holding their breath on these numbers, right. I think we're all waiting to see what happens here. Very important. Obviously, I think it it not just for the IPO, but the entire AI industry and it seems like all of our markets as we've talked about many times. Just deeply rely on the AI industry at this point in the AI trade. So we'll see what comes out of that that I'm sure we'll get more details later today. Probably not going to be until after the show. I'm sure. Just one thing to keep in mind, you know, just because we saw the open AI article come out. I think it was last week and it talked about how they, you know, kind of miscalculated the numbers with the financial times reporting. And it was about cloud revenue and how they calculated it. And as of so far, anthropic and open AI of calculus.