Morning Brew Daily - Nvidia Throws $5B Lifeline to Intel & Amex Ups Annual Fee to $895
Episode Date: September 19, 2025Episode 674: Neal and Toby discuss the FTC’s suit to punish Ticketmaster after alleging it failed to combat bots. Then, Nvidia has come to save Intel as it takes a $5B stake into the company. Plus, ...Amex is upping the ante on its annual fee but promising even bigger perks for luxury cardholders. Meanwhile, cocaine use in the US is surging and Dave & Busters is struggling to attract customers. Finally, the FCC chair says it plans to continue changing the media landscape. Get a $500 match on your first $500 spent with code BREW500 at advertising.roku.com/brew Terms apply. Get your MBD live show tickets here! Presale code LETSRIDE Subscribe to Morning Brew Daily for more of the news you need to start your day. Share the show with a friend, and leave us a review on your favorite podcast app. Listen to Morning Brew Daily Here: https://www.swap.fm/l/mbd-note Watch Morning Brew Daily Here: https://www.youtube.com/@MorningBrewDailyShow Learn more about your ad choices. Visit megaphone.fm/adchoices
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Good morning brew daily show.
I'm Neil Fryman. And I'm Toby Howell.
Today, Intel and Invidia make like
Ang and Zucco going from enemies
to friends. Then AMX just raised
the annual fee on its platinum card again.
Nothing like spending money so you can
spend more money. It's Friday
September 19th. Let's
ride.
Good morning and happy Friday.
You know, I'd like to think I had a productive
week, hosted five podcasts, on boarded a new colleague, did my laundry, but then I look at someone
like Killian Jornett and think, you know, some guys just have that extra gear.
Jornett has begun one of the most extraordinary athletic feats we've seen in years,
attempting to summit the more than 60 mountains in the United States above 14,000 feet,
known as the 14ers.
But to make things more difficult for himself, because of course he is, he's going to
reach all these peaks, which span Colorado, California, and Washington, by,
foot or by bicycle. Toby, who wakes up one day and thinks, yep, going to climb all the 14ers
and just walk or bike him?
Killian Jornett does because this dude is insane. He once reached the summit of Mount Everest
twice in a single week without using any extra oxygen. He's a four-time winner of the biggest
trail run trail race in this community. It's the Super Bowl of trail running 106 mile ultra-marathon.
But I also think that it's funny that he is so nervous about the biking aspect of this because
he's a runner. He's a mountain.
mountaineer. He doesn't really like spending time on a bike. So his greatest fear is potentially,
you know, getting hit by a car while doing these bikes in between the various mountain peaks.
He also said that he attempted a similar challenge in a different mountain range and figured out
that his nutrition wasn't really up to par. This time around, he's consuming 8,600 calories a day,
which somehow doesn't feel like enough given all the activity that he's doing.
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Someone were writing a book about the chip industry in 2025. It'd be called From
bitter rivals to business partners, the Nvidia and Intel story. And the first chapter would begin
yesterday when Nvidia agreed to invest $5 billion in Intel, a roughly 4% stake in the company,
to co-develop chips for PCs and data centers. It's another surprise victory for fallen icon
Intel, which is on the comeback leg of its Kenny Powers journey. InVIDIA and Intel teaming up is
like if the Yankees and the Mets drop their bad blood in the subway series, if California had
functional subways. The two chip makers are separated by a two-mile stretch of freeway in Santa Clara,
but for decades the rivalry was dominated by Intel. Intel gave Silicon Valley its name, and as
recently as 2022, Intel did twice as much annual revenue as Nvidia. Then came ChatGPT and the AI
Data Center revolution and how the tables have turned. Suddenly, Nvidia's GPUs that had previously
been used for video games were hotter than Labuboos, and Intel had no response. Next year,
video will do more sales per quarter than Intel C's in a year, and Nvidia's worth over $4 trillion
compared to Intel's $143 billion.
But that's a lot higher than the day before for Intel, whose stock popped 22% after
Nvidia's vote of confidence.
This has actually been a long time coming.
Apparently, the White House approached Nvidia nine months ago and said, hey, we want you
to get involved with Intel a little bit.
Right now, the U.S. sees Intel as still a very strategic asset in this chip war that it's
waging against China. They need someone to be able to fabricate chips here. And so they think by
getting Nvidia, who is the kingmaker now in this industry involved, it's going to increase Intel's
chances. It also is a great deal for Intel or for Nvidia because they are not locking themselves
into having their chips made by Intel, which would not necessarily be good because, again, TSMC is still
kind of the best in the world out there. Intel is still lagging behind. But what they do get is
access to PC chips, which is just another way for Nvidia to kind of expand its kind of share
in this market. Right now, they focus on GPUs, which they're really good at crunching the numbers
for training these large language models, but they're not so good at PC chips. So not only are
they not locking themselves into an exclusive deal with Intel by any means, they are getting
access to a new market as well. And it's curious that the U.S. government would be kind of brokering
this deal going to Invidian saying, we want you to invest in Intel. You know, that doesn't seem,
That is not typical for the U.S. government to play that particular role, but it's gone far beyond that in terms of its involvement with Intel.
Just a few months ago, it took a 10% stake in Intel worth about $9 billion.
It's Intel's largest shareholder right now.
And Intel stock has risen, so it's been a pretty good investment for the U.S. government.
That stake is now worth $14 billion, up from up $5 billion on paper.
So the government is up 50% on its investment in Intel.
Obviously, they are also putting the thumb on their scale by talking to Invidian saying, hey, let's invest.
There is also a big investment from SoftBank from Japan, which invested $2 billion into Intel.
And what Intel needs right now is capital.
They're bleeding cash.
They lost $3 billion last quarter.
They need to build up their manufacturing operations to compete with AMD, which is a domestic chipmaker in the United States, and to compete with TSMC, which is in Taiwan.
So they've got a lot of building to do, and they need a lot of fresh capital.
It seems like they are getting that, and it's a big win for CEO Lipbutan.
It is just crazy, though.
Let's go back to 2022.
Intel's revenue was two times that of Nvidia.
It just feels like a lifetime ago at this point.
Now, Nvidia is on pace to make more money per quarter than Intel does annually.
So it's just been a complete reversal in the fortunes of these two companies that are just so poetically separated by just a small stretch of road.
Moving on, American Express has released an upgraded version of its credit card design.
for people who use summer as a verb,
raising the annual fee on its platinum card
from $695 to $895 a year.
The card also now comes with $3,500 in annual perks
up from about $1,500 before.
Outside of having a nice metallic clang
when you drop it for dinners,
those perks include $400 in dining credits through Rezi,
$600 in hotel credits,
$300 towards Lulu Lemong Gear,
and $200 in Uber rides.
Amex thinks its laundry list of incentives justify its chunky annual fee.
Then again, the high fee may be a feature, not a bug.
All four major credit card issuers, Amex Chase City and Capital One have refreshed their premium cards this year.
The Chase Sapphire Reserve raised its fee to $795 this summer and leapfrogged Amex in the process to steal the title of Pricious Card.
With yesterday's announcements, Amex once more returns to the top of the heap where it can give off that luxury vibe it is after.
However, consumers may be reaching their breaking points soon, despite the advertised $3,500 in sugar being passed their way.
Online forums are full of complaints calling the platinum a coupon book because so many perks are difficult to access or take full advantage of.
The value is real, but only if you're organized enough to use it.
Neil, like many status symbols, maybe it's more about the status of actually having the card than the math of breaking even.
Amex absolutely can't stand it when another card is more expensive than it.
Go back to 1958.
There were all these credit cards out there.
And when Amex introduced its first card that year, it set the annual fee at $6, which was $1 more than the competition.
You're absolutely right.
They were also the first company to introduce airport lounges in 2013.
So they want to be seen as the pioneer in this field.
They want to be seen as the most exclusive card of all these exclusive cards.
and they're doing that by jacking up the cost of this card to $895 a year.
And they're also actively trying to court younger spenders, Gen Z, and Millennials.
They are their fastest growing customer base.
75% of new platinum gold cards accounts were opened by Millennials or Gen Z.
Millennials now account for 30% of spending across Amex's total credit card portfolio.
So it is definitely leaning into this idea of it being a status symbol.
One aspect of the card that does separate from the rest,
There's some limited edition drops where you can add, you know, designs on top of it.
So it's almost becoming an accessory even more so than actual something that you swipe to, you know, spend money with.
So it's just fascinating that their approach is let's go premium.
Let's be top of the heap always.
Let's court these younger people because they're clearly, you know, the spending base that we want to attract.
It's true that all these rewards and cash back and credits and things like that can be, you know, extremely confusing.
You mentioned a bunch of these benefits, but just when you break it down, it makes your money.
your headspin a little bit because that $600 hotel credit is available in two,
$300 installments over six months period. The $400 dining credit through Resi is also
parceled out quarterly. The $200 Uber credit is limited to $15 a month, except for December
when it comes with an additional $20. Like, you need a notebook, you need an AI to like track
this all for you. So they are actually, they kind of understand this. And they're rolling out
a specific app and dashboard on their website to help you track all of
these things. I don't know whether people will use it, but they are kind of acknowledging the problem of
how confusing it can get to claim these $3,500 in rewards, because when they say something like that,
I think, well, there's no way I'm actually getting all of those because that is a full-time job.
I do wonder, too, if the rationale behind jacking the price up to almost $900 is the fact that
so many people have been complaining about their Centurion Lounge being overrun. It used to be this
very premium place. Now you go in there and it feels like all the exclusivity.
is gone. I've never actually been in one. So this is just hearsay of what I'm saying right now.
But maybe if they're saying, all right, it doesn't feel as exclusive anymore, let's jack it up and see what that does to these crowded airport lounges. So maybe that's something they've been hearing and are trying to address with this price hike as well.
Got to get the riffraff out. I know. Moving on yesterday, the FTC sued ticket master in its parent company, Live Nation, in a blockbuster lawsuit, accusing the company of engaging in illegal ticket resale tactics. Every part of the ticketing process is
under scrutiny from the exorbitant fees at checkout to the bots that steal your chance to see Lady Gaga
at MSG, with the agency even accusing companies of tacitly working with scalpers, allowing them to jack up
prices in the secondary market. The FTC claims ticketmaster is triple dipping, which outside of being a
delicious Chili's appetizer combo, means charging fees to brokers on the primary market, fees to brokers on the
secondary market, and of course, applying fees to the consumers who ultimately purchase the tickets on the
secondary market. The FDC says that this behavior violates both the Better Online Ticket Sales
Act, aka the BOTS Act of 2016, which bans bots from bulk buying tickets and the FDC Act,
which prohibits deceptive conduct. The complaint says in the internal review by the company
showed that just five brokers own 6,345 ticket master accounts that held 246,000 tickets.
Each violation of the Bots Act can carry a $53,000 fine, and with literally millions of
bought resold tickets under the microscope. Ticketmaster theoretically faces hundreds of billion
dollars in penalties. Neil, it's hard to think of a more unpleasant process than trying to buy
tickets to go see your favorite artists. The heiress tour and the legions of pissed off swifties
it created was a tipping point, but these alleged practices are something I know a lot of you all
listening have come into contact with. Now the FTC is taking the company behind the unpleasantness
to court over it. If there's one thing that red and blue America can agree on, and it's not
much these days, it's that ticket master wields too much power in the live ticketing market
and should be brought to heal last year, the Biden administration's justice department,
sued Live Nation and antitrust action, accusing it of operating a legal monopoly,
wants to break up its control of Ticketmaster. Remember, Live Nation bought Ticketmaster,
and then together, the two combine up to 78% to 80% of the live ticketing market.
And it doesn't matter whether you're the Trump administration or the Biden administration,
they're saying that that is too much and it is abusing its power by collecting all of these fees.
What they're saying is that the incentives are aligned such that Live Nation or Ticketmaster
is going to look the other way when all these bots come and scalp all these tickets
because when they charge higher prices, then that means higher fees for Live Nation and Ticketmaster.
And so they're saying this whole incentive system is out of whack.
Yeah. And the damning information here is that if just five brokers actually owned
6,000 Ticketmaster accounts, clearly they're running.
a bot operation there. There's no way that you can possibly manage that many tickets going
into that many accounts. So that is something that this BOTS Act is raising penalties for. And it is
just like, obviously the penalties are really, really astronomically large if every single one of those
accounts came out to over $50,000 in fines and penalties. But it also is one of those things that has
a political dimension to it. Of course, Biden went after it because it is just deeply unpopular. Trump is
going after it as well. You had Kid Rock come inside the Oval Office and start railing against
ticket resale prices that are up 500%. So this is definitely a consumer protection win that both
administrations looked at and said, this is something we can go after because absolutely no one
loves this process. All right, let's take a quick break and come back with our stock and dog of the
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Let's head to Stock of the Week, Dog of the Week, the Friday segment where Toby and I pick
one stock that read a book before bed and another that scrolled mindlessly on their phone.
I won the pre-show Birdwatching contest, spotted that elusive scarlet tanger, so I get to go
first. My stock of the week is cocaine, whose use in production has reached record levels
and minted a new drug kingpin in Mexico.
Cocaine consumption in the western United States has searched 154% since 2019 and has risen 19% in the East, according to the Wall Street Journal.
It's not just the Americans regaining their glow for blow.
The most recent World Drug Report from the UN found that cocaine is the fastest growing illegal drug market with the estimated number of users globally growing to 25 million people in 2023 up from 17 million 10 years earlier.
This trend has been lining the pockets of one particular guy, Nemecchio Meno Oseguera,
who runs the Halisco cartel in Mexico and has been called the most powerful drug trafficker
operating in the world.
After spending decades building his cartel from the ground up, Osagueras business prospects
took an invidia-level turn when the Trump administration began cracking down on the fentanyl trade,
which was dominated by the Sina Loa cartel.
Fentinal use in the U.S. has dropped since mid-2020-dinting the fortunes of the Sinalans
and limiting their influence.
Meanwhile, Osaguerra's Halisco cartel
has seen its star rise
thanks to its strangleholds
on cocaine distribution in America,
which has regained its appetite
for the drug as the memory
of the crack epidemic of the 80s
fades from memory.
This guy has a $15 million bounty on his head.
Yeah, he clearly takes security
very seriously as well.
He has all his top lieutenants
go through their call logs every week,
and then after that he has them
replace all of their phones.
So when you're running an operation
of this scale, of course,
security is of the utmost importance. But with this kind of re-embracing of cocaine in America and across
the world, we have seen prices collapsing as well. They've fallen about 50% in five years. And then
purity has been on the rise as well. So you're getting falling prices and higher purity.
Of course, it's going to regain a foothold in America and around the world, especially as
fentanyl kind of is on the downturn, given the Trump administration, extreme focus on that one.
particular drug. Now, there is a lot of cocaine coming from Columbia through Ecuador, through Mexico,
into the United States. But we Americans aren't the highest consumers per capita of cocaine in the
world. According to that World Drug Report in 2025, the two countries that consume the most
cocaine per capita are Australia and New Zealand. Three percent of people aged 15 to 64 and
Australia and New Zealand use cocaine back in 2023, which is double the proportion in the
Americas and triple the percentage in Europe.
It's also hard to just crack down on one single person.
It is kind of this super cycle at this point when you just have so many different markets and
so many different operations pumping this out into the world.
It's very hard to just find El Chapo back in the day.
You could really meaningful dent the cartel kind of ecosystem.
Now it's run like a conglomerate across multiple different states and multiple different
producers.
So definitely a tough battle if you are, you know, maybe this U.S.
drug report saying like, hey, how do we maybe stop this from happening?
It's very hard to do so these days.
Well, getting Osweira would be helpful.
The problem is this dude is held up in a mountain compound in Mexico, and getting him
is not going to be easy.
He's guarded by what is known as the special force of the high command.
They have RPG heat-sinking, shoulder-fired rocket launchers capable of piercing a tank,
and if you want to go visit him, you get hooded, and then you go on a six-hour car trip.
through terrain that is completely blasted with landmines that only are known, the locations of
which are only known by his inner circle, and then they rotate these phones every week.
So, you know, this guy has got quite a security operation.
My dog of the week is Dave in Busters because I fear its business model appears to be busted.
It reported falling sales, net income, earnings per share, and revenue in the second quarter,
pushing its stock down 11% over the last week.
At the core of its business issues is one of its core.
offerings, games. While food and beverage sales at the Giant Arcade were up,
entertainment revenue from its games, sports, and merchandise fell 3%, a dangerous sign for
an entertainment-first destination. New CEO, Tarun Lahl, laid a lot of the blame at the feet
of previous management. He says the company had been running too many promotions, confusing
customers in hurting profitability. His predecessor also eliminated TV ads, leading to a sharp
decline in brand awareness. Loll also called out an over-emperiod.
emphasis on appetizers, which cannibalized sales of higher margin entrees.
Finally, the last missed up was cutting new arcade games introductions by nearly 80%, which is a
vibe killer for customers.
Lyle says he's working to right those wrongs, refaming the headwinds not as a business model
problem because who doesn't want decent food while playing a whack-a-mole, but an operational
discipline problem, which is easier to fix.
Neil, he's working to create a dance-dance revolution at a company that has gone through
a rough couple of quarters. Yeah, it's down. Same source sales are down for 10 straight quarters now.
And same store sales declined 3%. And you're like, yeah, that's really not good in the last
quarter. But then when you look at the previous two quarters before that, it was 9.4% and 8.3%. So a
decline of 3%. You're like, oh, that's kind of okay. And it is pretty hilarious how this new CEO has
come in and just kind of blasted the previous one for making the dumbest mistakes that a corporate
CEO can make that he said they removed high revenue menu items like, you know, entrees and
pushed appetizers, sort of the opposite of what you would expect. So he's talking this big
game and saying this guy was so bad, I'm going to be so much better. And the thing, yeah,
I guess the one thing he is going for him is the expectations couldn't be lower. And the fact
that you only decline, your sales only declined three percent in a quarter is seen as good.
Well, you know, there's only up to go from here. I love David Busters.
I think it's just a great time. I mean, who doesn't want a little burger in
go sit and play a game. They're trying to invest
in a new game, though, because I can understand how
that would make customers kind of
me on the whole experience. If you walk in and you see
the same games that you saw, I don't know, 10
years ago, it's not new and it's not
exciting, so they're trying to
invest in this thing called the human crane
experience, which is when you
basically... Say no more. I know.
They like hang you from the ceiling and you
go down and you grab stuff like you are a
human claw. So it's that kind of stuff
that you need to get people out because it's just
such a competitive entertainment landscape.
right now.
Before we move on, I do want to give a bonus stock of the week because this is pretty
cool and it's actually about the stock market.
Stock market is doing extremely well.
So well, in fact, that the S&P 500, the NASDAQ 100, the Dow Jones Industrial
average and the Russell 2000 index of small cap stocks all closed at record highs in
unison yesterday for the first time since 2021.
That's not fair.
You can't pick every single stock as your stock of the week.
Fine, I'll allow it this week.
All right.
let's sprint to the finish this Friday with some final headlines.
Yesterday's headlines in public discourse were once again dominated by the shock news that ABC late-night
host Jimmy Kimmel had been suspended by Disney over comments he made about the murder of Charlie Kirk
and top Trump administration officials made one thing clear they weren't done yet.
While in the UK, President Trump defended Kimmel's suspension and said that U.S. broadcasters
should maybe get their licenses taken away by the FCC if they were too critical of him,
a suggestion that would violate free speech protections under the First Amendment.
Meanwhile, FCC chair Brendan Carr, who's played a central role in this saga,
told CNBC, quote, we're not done yet, saying Kimmel was appearing to directly mislead the American public
about one of the most significant political events we've had in a long time.
On Wednesday morning, Carr threatened regulatory action against ABC affiliates who didn't take action on Kimmel,
and hours later Nextstar, which owns about 10% of all ABC affiliates in the country,
said it would preempt his show, prompting Disney to pull the plug for now.
Next Star is trying to buy a rival company for $6.2 billion, a deal that needs FCC approval
to go ahead.
Toby, in addition to these officials, seems like everyone with a social media account wait in on Kimmel.
Yeah, you're seeing a lot of other late-night hosts as well rallying around Kimmel.
Stephen Colbert said, if ABC thinks that this is going to satisfy the regime, they are woefully naive,
and clearly they've never read the children's book if you give a mouse a Kimmel.
John Stewart introduced his show as the all-new government-approved Daily Show with its patriotically obedient host.
Jimmy Fallon fake laughed overly hard at something his guest said.
But we're also seeing Hollywood rally around Kimmel as expected.
Damon Lindelof, who is the co-creator of loss and showrunner for other shows like Watchmen,
said that he won't work with Disney anymore unless they reinstate Kimmel.
Matthew Belloni from Puck News said that other talent is weighing similar options.
That is where this can spiral into something much, much larger for Disney.
of actors and directors and people from the industry turn their backs on them, that can certainly
hurt your standing. Disney CEO, Bob Eager, has a very interesting week ahead of him, a lot of big
decisions to make. Finally, let's head to the World Stone Skimming Championships in Eastdale
Island, Scotland for an update on a cheating scandal that has rocked the stone skimming world.
This year, several contestants were caught using altered stones instead of naturally formed
local ones as required by the rules. Organizers discovered
the violation after competitors and spectators notice unusually perfect stones leading to some retroactive
disqualifications. Kyle Matthews, the event's toss master, said the culprits admitted wrongdoing
immediately and accepted the decision while competitors emphasized that the integrity of the
competition remained intact and praised how quickly the issue was handled. American Jonathan Jennings
powered through the noise to become the first ever U.S. winner after skimming a record 580 feet in
total. But Neil, I am upset. If we can't entrust throwers to use stones naturally formed within the
shale quarries of Eastdale Island, then why host the WSSC at all? Name and shame those spineless skimmers
and their unnatural round stones. It's true. There aren't a lot of rules at all. They need to get this
stone from this particular island and it cannot measure wider than three inches at their widest
point these stones. And the way that they measure whether these stones fit into the three inches
dimension is they take this thing called a metal, a piece of metal called the Ring of Truth,
and they put it over the stone. And I guess they found that some were a little too perfect.
There had been doctoring going on. Apparently, it was a very polite controversy as far as
sports controversies goes. And everyone put their hand up and they all had a great time and an
American one. But this thing has become kind of big. There were more than 2,200 people at the
stone skimming championships. There's not even a car on this allowed on this island. They came from
27 countries, an American one. So this guy flew from somewhere in the United States,
somewhere to Scotland, then took a boat over to this particular island so he could skip some
rocks, or I should say skim some rocks. One thing that surprised me about the stone skimming
competition. My conception of it was that you have to, it was a measure of how many skims you get
on the water, but no, it's actually how long your stone skims before it sinks. And the one rule
is that just has to skim twice on the water.
So I'm going to go practice.
I know, I got to get the shoulder joints warmed up,
but I just want to know what Spectator was looking at a stone in midair
and goes, you know what, that looks a little round.
And then where do you find the stone?
I guess you have some in your back pocket because once you skim it,
it's down at the bottom of the lake.
So interesting controversy, but I'm glad it all kind of ended up okay.
I will say at the stone skimming championships,
there's not much to look at besides the stone skimming through the air.
So, you know, that's...
That is all the time we have.
Thanks so much for starting your morning with us.
Have a wonderful Friday.
If you have any feedback on today's show,
send a note to Morning Brew Daily at MorningBrew.com.
Let's roll the credits.
Emily Milliron is our executive producer.
Raymond Lute is our producer.
Our associate producers are Olivia Graham and Olivia Lake.
Heron makeup is climbing one 14er, and that's plenty.
Devin Emery is our president and our show is a production of Morning Brew.
Great.
So did I, Neil.
I wish you all well.
All.
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