Paramount's WBD bid, Meta's AI course correction, McDonald's value crackdown and more in Morning Squawk

In the latest developments from the business world, Paramount is making headlines with a direct approach to acquiring Warner Bros. David Ellison, CEO of Skydance, is not backing down after losing to Netflix in the bidding. Instead, Paramount has launched a $30-per-share, all-cash hostile bid aimed at Warner Bros. Discovery (WBD) shareholders. Ellison expressed a determination to "finish what we started," indicating that the company is fully committed to this aggressive strategy. Meanwhile, in tech news, the Biden administration has given Nvidia the green light to ship its H200 AI chips to certain approved clients in China, contingent upon the U.S. receiving a 25% share of the proceeds. This move, announced by Trump, also applies to other major chipmakers like AMD and Intel. Following this announcement, shares of Nvidia, AMD, and Intel experienced a notable uptick in after-hours trading. Trump noted a positive response from Chinese President Xi Jinping regarding the plan, signaling a potential shift in international tech relations. On Capitol Hill, House Democrats are establishing a new commission focused on artificial intelligence, aiming to take a leadership role as the tech industry becomes increasingly influential in Washington. This initiative coincides with Meta's significant investment in revamping its AI strategy, which has recently encountered some internal confusion. Reports indicate that Meta is shifting its focus from the Llama AI models to a new project codenamed Avocado, which may be proprietary rather than open-source, stirring discussions about the company's direction under CEO Mark Zuckerberg. In other corporate news, Apple is experiencing notable leadership changes, including the departure of its AI head and its top legal adviser. In response to speculation about his future, Johny Srouji, the company's chip leader, reassured employees that he plans to remain with Apple for the foreseeable future, despite rumors of his potential exit. Additionally, Trump unveiled a substantial $12 billion aid package for farmers affected by tariffs, sourced from tariff revenues. This plan includes $11 billion earmarked for a new Farmer Bridge Assistance program, which will provide one-time payments to row crop farmers. However, a federal judge recently ruled against Trump's ban on new wind power projects, deeming it arbitrary and contrary to legal standards. Lastly, McDonald's is tightening oversight on its franchisees, set to implement new pricing standards by 2026 as part of an effort to attract budget-conscious customers. Franchise owners, who operate about 95% of McDonald's locations, will face consequences for non-compliance, including potential penalties that could restrict their ability to open new restaurants or even terminate their agreements with the company. These developments reflect a rapidly evolving landscape for investors and businesses as they navigate challenges and opportunities across various sectors.