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Bobby Ghosh is interviewed about the Gaza Humanitarian Crisis; Roben Farzad is Interviewed about Tariffs; Discussion over Powell's Resignation; Alyse Adamson is Interviewed about DOJ; Trump Accuses Obama of Treason. Aired 6:30-7a ET
Aired July 23, 2025 - 06:30 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
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[06:30:08]
ERICA HILL, CNN ANCHOR: Almost half past the hour now. Good morning. Nice to have you with us. I'm Erica Hill. This is CNN THIS MORNING. As we take a look at what is happening right now.
The man who admitted to killing four college students in Idaho will be sentenced today. Earlier this month, Bryan Kohberger agreed to a plea deal to avoid the death penalty. He's expected to be sentenced to life in prison without parole.
Also happening today, the state investigation begins into those deadly July 4th floods in the Texas hill country. Two major questions in front of folks here. Should more have been done before the storm? And also, was the rescue response itself quick enough? At least 135 people were killed.
The U.S. special envoy, Steve Witkoff, traveling to Europe this week for Gaza ceasefire discussions. He is also expected to visit the Qatari capital of Doha for further talks. Mediators have now been waiting a week for Hamas to respond to their latest ceasefire and hostage release proposal.
As all of this continues to play out, the desperation in Gaza is palpable. More than a thousand Palestinians have now been killed by Israeli forces since May just while trying to get food in Gaza. That's according to the U.N. It's important to note too, the entire region is now at risk of famine. The Palestinian Health Ministry says 15 people, including four children, died of starvation across Gaza in just 24 hours. Israel, thought, is denying mounting accusations that it is deliberately starving Gazans.
(BEGIN VIDEO CLIP)
BENJAMIN NETANYAHU, ISRAELI PRIME MINISTER: We're trying to get the food in. And we let food trucks in. And guess what happens when we let them in? Hamas steals the food. Takes the good chunk for itself. Then sells it at inflated prices. They jack up the prices and then they sell the food to its population, to its hungry population.
(END VIDEO CLIP)
HILL: Aid agencies have denied the supplies end up in Hamas' hands.
Joining me now to discuss, Bobby Ghosh. He's a columnist and geopolitics analyst.
Bobby, always appreciate you joining here.
When we look at where things stand, how would you put into words what is happening in Gaza in this moment, from the humanitarian perspective, as we look at this?
BOBBY GHOSH, COLUMNIST AND GEOPOLITICS ANALYST: Well, it's hard to escape the conclusion, Erica, that this is a humanitarian catastrophe that's unfolding before our eyes. And it's not just my opinion. Scores, more than 100 NGOs and humanitarian groups that have worked or are trying to work in Gaza now have come out and said that. These are independent groups. The United Nations has said this, has complained that -- or has -- has drawn attention to the growing problem of starvation there. AFP, the -- the French newswire, we -- you and I have colleagues who work there, which has -- this is an organization that has covered conflict for 100 years, and they've said they've never faced a situation like this where their own journalists, who have in other conflicts been killed in gunfire and explosions, now their journalists are suffering from likely starvation.
So -- and in the court of international public opinion, in the context of some different reporting in recent days, I've been speaking to officials in a number of other countries, and whenever Gaza have come up, they've brought up the same thing. In the -- in the international court of human opinion, to the extent that matters to the American administration, there is a common consensus now that what is taking place in Gaza is a humanitarian catastrophe. There is a tendency to blame Israel primarily for this, although Hamas also gets a share of the blame. And there is also a sense internationally that the United States is in, either by omission or commission, culpable is -- has a -- has a role to play, has not done enough to force Israel to -- to -- to do something about this catastrophe.
HILL: To that point, how much sway, how much influence do you think the United States, and specifically President Trump, could actually have with Prime Minister Netanyahu, with the Israeli government in this moment?
GHOSH: Well, Trump himself says, the president himself says that he has enormous influence on -- on Bibi Netanyahu. He boasts of it. But he has given very little evidence of it. There's not a great deal that Israel has done to show that it is willing to go along with the -- with the Trump administration's priorities. The Trump administration has been trying to get this ceasefire deal. Trump wants to be seen as a peacemaker in that particular conflict. But it seems that more and more, even in Washington, even in the White House, and we've seen some very good reporting about this in the last 24 hours, that there is a growing sense in the White House that Israel is now the main cause of crisis in the region, not just in Gaza, but across the region.
[06:35:03]
We keep hearing this every now and again, that Trump is caught unaware by something that Israel has done. That he did not approve of something Bibi Netanyahu has done. What we have not seen is any consequences that that brings on Netanyahu, that brings on Israel. So, we know that Trump has a lot of leverage. We very, very rarely see him use it.
HILL: Bobby Ghosh, appreciate it. Thank you.
GHOSH: Any time.
HILL: Well, President Trump is hailing what he calls a massive trade deal with Japan. The president says it is the, quote, "largest deal ever made." The deal itself includes U.S. importers paying 15 percent tariffs on Japanese goods, potentially boosting Japan's car companies over other foreign automakers.
(BEGIN VIDEO CLIP)
SHIGERU ISHIBA, PRIME MINISTER OF JAPAN (through translator): We were able to keep Japan's tariff rate to 15 percent, when it was intended to be raised to 25 percent. That is the lowest figure to date for a country that has a trade surplus with the United States.
(END VIDEO CLIP)
HILL: Not everyone, though, celebrating the news. U.S. automaker General Motors just reporting tariffs on imported cars and auto parts cost the company more than $1 billion in the second quarter of this year. GM is warning investors, tariffs could cost them another $4 billion to $5 billion by the end of the year. And homebuilders are also bracing for impact. A new report from the Canadian Chamber of Commerce warning that U.S. tariffs on Canada could send new home prices soaring by $14,000 within the next two years. Construction companies in places like North Dakota are already seeing the impact.
(BEGIN VIDEO CLIP)
PATRICK HART, CONSTRUCTION COMPANY OWNER: The big book of tariffs is changing more almost rapidly than they can print it out and understand it. So, I think the impact of not having stability in the market is really causing unease. And as we talk about the booming economy in North Dakota, that's going to hurt us.
(END VIDEO CLIP)
HILL: Joining me now to discuss, Roben Farzad. He's a business journalist and host of the "Full Disclosure" podcast.
Nice to see you again, my friend.
So, when we -- as we look at this, there have been warnings, frankly, since April 2nd about what the impact would be on businesses, on consumers with these tariffs. Is this the first indication that they're starting to kick in? ROBEN FARZAD, HOST, "FULL DISCLOSURE" PODCAST: You're going to see
more and more of it because the supply chain, after all, is so globalized. And as companies, publicly traded companies have to come out and fess up to this, there's going to be a kind of a drip, drip, drip of this. It's not all pegged to April 2nd. I mean people initially feared the worst. There was the element of "TACO," you know, tariff and chicken out or whatever it is, or we're going to negotiate or extend these things. And then the market started yawning it off generally.
But as these companies come out and as the inflation numbers come out for the balance of the year, it's a constant reminder that this actually happened.
HILL: There's also the question about the trickle down here when it comes to the price of goods, right? So, maybe you don't have to buy a car. Maybe you don't need your car fixed. Maybe you're not building a home, right? So those may not be as important to you. But the -- but the everyday consumer items, when and how should consumers be bracing for that?
FARZAD: Oh, yes. A --
HILL: Because, in some ways, I think for folks it's starting to feel like, is this the boy who cried wolf? Am I actually going to feel it?
FARZAD: You walk into a Walmart, as I've said before, it's one of the largest trading partners on the planet. If it was a nation, I mean, it would be one of the top ten nations in terms of trade. That's -- that's -- you've gotten that benefit. You can walk into a Walmart and get a 4K TV for $200, $250, an iPad. Think about all the clothes. Think about all the exotic fruits that you could get that we don't grow in the United States. Those are now susceptible and vulnerable to tariffs. And you will feel that in a very price conscious environment at a Walmart.
Certainly we're hearing it from people, home builders, sheetrock, lumber, timber, the stuff that we import from Canada that we took for granted from Canada and Mexico can no longer be taken for granted.
HILL: What are you watching in this moment? What do you think is next?
FARZAD: I -- it's amazing, this kind of -- this, you know, 1980s "Dynasty" episode between Trump and Chairman Powell. This is a guy he picked as his Federal Reserve chief, as his central banker. And now he's out there calling him a numskull. I mean, as I've said yesterday, this is a great first world problem to have, that you have record markets, the economy is still growing, but you're not exactly building this guy up in case of a crisis or a steep economic decline where the Federal Reserve's credibility is paramount to everything else. And you should not be speaking with two different voices or saying that this guy is a dead man walking. He's going to be out of a job in less than a year. I think that is so dangerous, and it takes so much for granted.
HILL: Roben, always good to have you with us. Thank you. FARZAD: Thank you, Erica.
HILL: Well, to resign or not to resign? That's the question, you just heard Roben mention, of course, Federal Reserve Chair Jerome Powell. Well, as President Trump considers removing him before his term ends next year, there's a question of whether he might resign. Well, Powell may now have one of the president's key advisors in his corner.
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SCOTT BESSENT, TREASURY SECRETARY: I know Chair Powell. There's nothing that tells me that he should step down right now.
[06:40:04]
He's been a good public servant. You know, his term ends in May. If he wants to see that through, I think he should. If he wants to leave early, I think he should. But I think there's a real chance here for him -- for his legacy to be that he rightsized the non-monetary policy functions of the Fed.
(END VIDEO CLIP)
HILL: So, that after Treasury Secretary Bessent and Trump had called for an internal review of the Fed over efforts led by Powell to renovate its aging D.C. headquarters. Of course, you'll remember that getting a lot of focus.
Respected economist Mohamed El-Erian, in a post on X, has just called for Powell's resignation, writing that if Powell's goal "is to safeguard the Fed's operational autonomy, he should resign."
The group chat is back.
This was remarkable for a number of reasons, not just because, again, well respected economists, hearing him come out. We heard last week, we heard from Republican senators, we heard from Jamie Dimon, basically all putting a warning out there to Donald Trump after there had been this meeting in the Oval Office and he was floating the idea of, oh, you know, should I -- should I maybe fire Jerome Powell? And then he said, oh, it's highly unlikely, right? The markets were very happy to hear him say that. There had been a 38-minute dip into the red prior to those comments.
But the fact that you now have a Mohamed El-Erian saying, yes, Jerome Powell should step down. You covered economics for a long time.
NOEL KING, CO-HOST AND EDITORIAL DIRECTOR, "TODAY, EXPLAINED" PODCAST: Yes.
HILL: It's shocking in this moment.
KING: It is so unexpected that I think it is worth considering seriously, Mohamed El-Erian --
HILL: Considering that Powell stepped down. KING: Yes.
Mohammad El-Erian's argument, a very well-respected man, is that, as long as Powell is in that spot, President Trump is going to continue launching investigations into the Fed, into the, you know, the renovations in the building, but into other things as well. And if the Fed wants to avoid the kind of political investigations that we've seen in so many other aspects of American government, Powell must leave and someone else must take over. And essentially what he's saying is, Trump will look away. Trump -- Trump will stop the investigations.
It's incredible that he said it. I don't know that Trump would. But, you know, Mohamed El-Erian knows his stuff.
HILL: It's -- it's -- it's fascinating because, you know, the context that you put it in, right, that this would somehow preserve the independence of the Fed. There's also the question of, whether he steps down or whether he finishes his term, who the next person appointed by Donald Trump will be, and how much of a loyalty test there will be for that person. Not to the independence of the fed, Charlie, but to Donald Trump.
CHARLIE DENT, EXECUTIVE DIRECTOR, ASPEN INSTITUTE CONGRESSIONAL PROGRAM: Well, first, I have a lot of respect for Mohamed El-Erian, too. I just happen to think he's wrong on this one.
It looks like, if Powell were to resign, it would appear that he has succumbed to political pressure and that would undermine the independence of the Fed. The markets would likely react badly. The bond market probably wouldn't do well. Question the full faith and credit of the United States and -- and the reserve, the U.S. dollar as the reserve currency. It's a problem.
And, of course, whoever Trump would replace Powell with would likely be much less independent than Powell. So, I just can't think of anything worse than messing around with the Fed right now because of the potential impacts on its independence and the markets and the broader global economy.
HILL: Well, and to that point, right, the -- the full faith and standing, right, the credit of the U.S., that was exactly what we were hearing from lawmakers last week. Republican lawmakers, where they were -- when they were saying, not only is this going to tank the market, but there are those legitimate concerns about what this means moving forward for the United States.
KRISTEN SOLTIS ANDERSON, CNN POLITICAL COMMENTATOR: And think about things like the bond market. I mean that -- sort of going topsy turvy is what caused Trump to back off of some of this tariff stuff early on. It does seem to be that he is still listening to adults in the room from time to time, and frequently when it really matters on stuff like this.
I'm very glad that Scott Bessent is our Treasury secretary. I'm very glad that he's going on Fox and he's saying those things that, look, there are things you can do to reform the Fed, to right size it, to make sure that it is focused squarely on its important mission. But if Chairman Powell wants to stay, I hope that he stays. I think that's the right message.
HILL: We'll see. We've got, what, ten months? Where are we now? October. Someone do the math for me.
(CROSS TALK)
HILL: Thank you.
All right, a lot more ahead here on CNN THIS MORNING. Ahead after the break, he calls it the weave. Is it a weave? Is it a distraction? Maybe it's a choose your own adventure. President Trump deflecting on Epstein now to call out former President Obama.
Plus, chocolate lovers, I hope you're sitting down for this one. Why the price of one of your favorite sweet treats could be going up.
We're back with the group chat after this.
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[06:49:01]
HILL: Forty-eight minutes past the hour now. Here's your morning roundup.
Today, the Florida driver involved in a violent traffic stop is set to speak out for the first time. So, the video, which he recorded back in February, has gone viral. It shows officers dragging him out of his car after they broke his window, punched him in the face. Officials say he was pulled over for not wearing his seatbelt and not having his headlights on. Things escalated after he asked why he was stopped. I do want to warn you, this video is disturbing.
(BEGIN VIDEO CLIP)
UNIDENTIFIED MALE: Can you call your supervisor?
UNIDENTIFIED MALE: All right, go for it.
UNIDENTIFIED MALE: Exit the vehicle now! Exit the vehicle! Show me your hand.
(END VIDEO CLIP)
HILL: The driver was ultimately arrested for possession of marijuana.
Transgender women are no longer allowed to compete for U.S. Olympic or Paralympic games in the women's categories. That change in policy refers to President Trump's temporary executive order, which was titled, quote, keeping men out of women's sports. The U.S. Olympic and Paralympic Committee says it has an obligation to comply with federal expectations.
[06:50:04]
Your KitKats, your Reeses, they're all about to get a little bit more expensive. Hershey says it's raising prices, saying that will be in the lower double-digit range. Why, you ask? High cocoa prices, tariffs and climate change. The company says they are all to blame.
Interim U.S. Attorney Alina Habba's future as New Jersey's top prosecutor in doubt after a panel of judges voted against keeping her in that role, and then appointed one of her subordinates. But quickly, after that happened, U.S. Attorney General Pam Bondi actually fired the replacement, saying in a statement on X, the Justice Department, quote, "does not tolerate rogue judges, especially when they threaten the president's core Article II powers."
Alina Habba, you may recall, was previously one of President Trump's personal attorneys. You would often see her speaking for the president on TV. Her term ends on Friday.
Joining me now, former federal prosecutor Alyse Adamson.
OK, so let's just pull back and let's look at the facts of this first.
Number one, there's this panel of judges, right? So, this is what they're supposed to do. It's my understanding, correct me if I'm wrong, that it is not unprecedented that this would happen. It is rare that they would not recommend that she stay in that role, not unprecedented. Is it, as it has been referred to by the deputy AG, Todd Blanche, is this an activist move in your view?
ALYSE ADAMSON, HOST, "AT-LYSE YOU HEARD IT HERE" PODCAST AND FORMER FEDERAL PROSECUTOR: Yes. And so, that's a very good question. First of all, you're absolutely right, that while it's unusual, it's not unprecedented. And we can't forget that the Senate had already signaled, Senate Democrats, that Habba was not going to be confirmed. So, leaving her to continue to lead this office, when we knew essentially she was a lame duck, it wasn't going to happen, I think kind of undercuts this entire narrative that this is an activist panel.
So, look, let's just think about this. Desiree Grace was Habba's number two. This is somebody hand-selected by Alina Habba. This is not some kind of liberal leftist, which is what Todd Blanche had said in his statement. She's also, reporting says, as a registered Republican. This sense -- seems like a sensible choice to fill this vacancy that -- that occurred because Habba was not going to be confirmed.
So, the judges were doing their job. This is within their core scope of their authority. There is precedent for this. And if the Department of Justice doesn't like it, then they can then persuade the president to name another replacement that is ultimately going to be confirmed after their nomination. That is how this should be handled, not firing this number two, who essentially did nothing wrong.
HILL: Well, so to your point then, is that move by the attorney general, Pam Bondi, is that an activist move? ADAMSON: So, also a good question. What I can say is, legally, it
seemed like this was an unlawful termination because while the attorney general, by statute, does have the authority to appoint an interim U.S. attorney, they do not have the authority to fire one. Only the president does. And it's my understanding that it was actually Pam Bondi who fired Grace and not the president.
So, some may call that activist. I definitely say it is questionable, unlawful. And now, you know, put it colloquially, it's a very messy situation in New Jersey.
HILL: Yes. So, we'll -- we'll maybe hang the, watch this space sign, on that story for the moment.
Turning to what we are expecting today. So, Bryan Kohberger set to be sentenced. This is expected to last for some time because, of course, there will be a number of victim impact statements. But he will have the opportunity to address the court to speak. How often, in a situation like this, does someone like Bryan Kohberger take that opportunity?
ADAMSON: That's an interesting question as well, Erica. Not very often. In my experience, as a former prosecutor, I saw really two scenarios where defendants would be speaking at their sentencing. It's if they were actually showing contrition. They were very sorry for what they did. We have no indication that Kohberger is actually showing any remorse.
He pled guilty because he didn't want to die. All of the attempts to take the death penalty off the table failed in his case.
The other is to kind of throw themselves on the mercy of the court, hoping for leniency in a sentence. That is not going to happen here either. He has now pled guilty to the brutal murder of four individuals. He is facing four consecutive life sentences. That was the plea agreement. The judge is not bound by that agreement. But it is highly unlikely he is going to get anything less than life in prison without the chance of parole.
So, he doesn't really do himself any favors. In fact, it might harm him if he says the wrong thing. And I think that is a distinct possibility here, given this operative set of facts.
HILL: All right, we'll be watching that. You're going to stick around with us for our next group chat here.
So, when the going gets tough, maybe you could blame Obama. It seems to be -- that is one of the tactics being tied by President Trump. He has used it in the past, of course. Now, because Jeffrey Epstein, a story that shows frankly undeniable staying power is still with us, the president appears to be pulling a familiar page from that playbook, looking to deflect and distract.
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DONALD TRUMP, PRESIDENT OF THE UNITED STATES: After what they did to me and whether it's right or wrong, it's time to go after people.
The leader of the gang was President Obama. Barack Hussein Obama. Have you heard of him? He's guilty. It's not a question. You know, I like to say, let's give it time. It's there. He's guilty. They -- this was treason.
(END VIDEO CLIP)
[06:55:08]
HILL: The group chat is back with us.
I want to pull -- my colleague, Stephen Collins, who always has brilliant analysis for us, overnight writes, "the Justice Department and the head of the U.S. intelligence community are now openly operating as fully weaponized tools to pursue the president's personal political needs in a degradation of a governing system meant to be an antidote to king-like patronage."
Could they still, Alyse, actually go after the former president, despite the lack of actual evidence here?
ADAMSON: Could they go after him in an open investigation and cause a distraction? Yes. Will anything actually happen to Barack Obama? No. Because these allegations are absolutely absurd.
Treason is a real crime actually defined in the Constitution, which requires one either levying war against the government or adhere to one's enemy by giving them aid and comfort, which means overthrowing -- attempting to overthrow the government, or actually materially aiding an enemy. None of that happened.
This is all based on this 2016 election claims, which has been investigated time and time and time again. There is simply no evidence that Barack Obama committed treason. And as the teaser just stated, this is a hail Mary attempt at diverting attention from the Epstein files. And I think it's ultimately going to fail once again because this is what happens when people care about actual facts and the truth, and the MAGA right wants the truth out of the Epstein files.
HILL: This is -- so you have the former president speaking out, releasing a statement through his office. And I'm paraphrasing part of it here, but basically saying, I don't normally comment on things like this, but now I'm going to. And going on to say the "claims are outrageous" and the "bizarre allegations are ridiculous, and a weak attempt at distraction."
Is that statement enough in this moment? Could it have been more forceful?
DENT: Well, I think it was enough. I mean, what's really bizarre about this whole situation, the current president is saying, we have to move on from the Epstein story because its old, but now we keep obsessing about the 2016 election, and we know what that -- the report said at the time, that the Russians did, in fact, meddle. They didn't mess with any tallies. They didn't affect the outcome. And that's what the Senate Intelligence Committee told us. And I think Marco Rubio was part of that report.
So, this is, again, it's a -- it's a wild distraction just away from the Epstein story. So, I don't think there's much here. I agree with you, I don't think that President Obama has much to worry about. But it's -- again, it's a -- I think this is just flailing around.
HILL: I'll let you weigh in.
ANDERSON: Yes, I agree. I just -- I think this is -- I think this is silly, to reopen this now almost decade old story. I'm unfamiliar with there being a great deal of new information. It does feed into Donald Trump's belief that there is a sort of deep state against him. And part of what's made this Epstein story so sticky is that this is one where now the tables have been turned, and it feels like Donald Trump has put himself in the I am the deep state position.
HILL: Yes. And here we are.
Hey, let's -- let's turn a page here and talk about what's in your group chats. I know part of your group chat is Epstein, actually, because we learned that earlier.
KING: For sure.
HILL: But in the other group chats that do not involve the Epstein story.
KING: All right, my show "Today, Explained," is doing an episode about crashing out. Do you guys know what that is? It's when you have an emotional meltdown, usually on camera, on TikTok. You just lose it. You cry and you curse. Hoda from "Love Island." Hunter Biden, arguably, a couple days ago. So, what we're looking at is, is crashing out just a gen z thing? It's not, pro tip. And why is it happening?
HILL: Is it just a gen z thing on camera, though?
KING: I mean, they're very good on camera. We know that, right?
HILL: Yes. Yes. Maybe the rest of us just crash out in the privacy and the --
KING: Right, in the toilet stall.
HILL: In the safe space of our own home.
What's in your group chat?
ADAMSON: OK, we're still obsessed with the Coldplay kiss cam. That, for us, is the story that won't die.
HILL: OK.
ADAMSON: Because like the news cycle is fast. But we -- we still want to know what happened. You know, we're waiting for the internal investigation. Like we're members of the board, essentially. Like, is the HR rep., is she going to get fired? Why were they canoodling? Who paid for this concert? There's still so many unanswered questions. I guess you could say it's our Epstein files.
HILL: Yes.
ADAMSON: So, even though it looks like the media has moved on, we have not. We're on X all the time.
HILL: So, your investigation is ongoing, and we look forward to the full report.
ADAMSON: It is.
HILL: So, you're going to bring it to us. I'm not sure what you're investigating in your group chat.
DENT: Well, let me first say, if I'm going to cry or crash, I'm not going to do it in front of you guys. And I'm certainly not going to do it on social media.
HILL: You're not going to put it on TikTok?
DENT: No. No. But my -- my group chat is pretty boring. You know, we're kind of talking about, looks like there's going to -- a good -- high probable -- high probability of a government shutdown given where the appropriations process is right now. Hope I'm wrong, but that's what we're talking about.
HILL: I hope you're wrong too, but, yes, we may be -- we may be swiftly moving toward that -- toward that.
DENT: Let's see. Yes.
HILL: All right, we're saving the best for last. No pressure.
ANDERSON: So, I think that the A.I. revolution that is coming is something that most people have not fully wrapped their heads around, about how much of an effect it's going to have in our lives. We have stories now about kids who are using ChatGPT to cheat in school, et cetera., but it is really going to completely transform the way we live. And that is why you are seeing some of these companies now give like star athlete style contracts to individual A.I. engineers to come join some of these big tech companies, because in the race to be first in A.I., the thing that is going to dominate the next decade of our lives, at least, these companies all want to be the one that gets it first and best.
[07:00:20]
HILL: All right, we'll be watching. All good group chats. Feel free to add me anytime, you guys.
Nice to have all of you with us this morning. Thanks to all of you for waking up with CNN THIS MORNING. Stay tuned. "CNN NEWS CENTRAL" starts right now.