Greetings N2K reader!

Joan Benson won last week’s world famous news haiku competition™ with this beauty about the New York Times taking the Pentagon to court in a battle over the First Amendment:

And here’s how you voted:

🟨⬜️⬜️⬜️⬜️⬜️ What NY Times are these | Defending against Defense | With unloaded pens —Richard Toscano (87)

⬜️⬜️⬜️⬜️⬜️⬜️ Just like with Kimmel, Trump grabs for too much power. Ball’s in your court, judge! — Margaret Lea (39)

🟨⬜️⬜️⬜️⬜️⬜️ Sad state of affairs | Reporters scared to push it | Lest “quiet, piggy.” — Erika Ettin (48)

🟨⬜️⬜️⬜️⬜️⬜️ Pete decides what news | Is Pentagon fit to print | First Amendment dammed — Bob Andersen (41)

🟩🟩🟩🟩🟩🟩 Freedom of the press: Feared by those who hide the truth. The Times fights for us. — Joan Benson (268)

483 Votes via @beehiiv polls

Congratulations, Joan! Here’s your celebratory gif:

This week’s world famous news haiku competition™ is about how cannabis stocks surged on Friday after reports that President Trump plans to ease federal restrictions by reclassifying marijuana from Schedule I to Schedule III. Send me your entry — to our spiffy new email address, haiku at cheddar dot com — by noon ET Thursday for consideration by your Cheddar peers!

And now for something completely different!

—Matt Davis, Need2Know Chedditor

News You Need2Know

• Weed stocks go wild as Trump considers reclassifyi …

• Trump signs unenforceable executive order to block …

• Amazon eyes one-hour “rush” pickup

• Nvidia weighs boosting H200 production as China de …

• Starbucks baristas stage biggest strike yet

• Poll of the day: It’s 4:20 p.m. somewhere

• You’ll love the Sunset gift guide!

What’s the stock market up to, eh?

$SPX ( ▼ 1.07% ) $DJI ( ▼ 0.51% ) $NDX ( ▼ 1.69% )

Companies mentioned in today’s newsletter

 $TLRY ( ▲ 44.13% )$CGC ( ▲ 53.98% )  $NVDA ( ▼ 3.27% )  $TSM ( ▼ 4.2% )  $GOOGL ( ▼ 1.01% )  $AMZN ( ▼ 1.78% )  $SBUX ( ▲ 0.72% )  

Weed stocks go wild as Trump considers reclassifying the drug

Excitement swept the typically laidback cannabis industry Friday as marijuana stocks surged in response to reports that President Donald Trump might move to reclassify marijuana as a less harmful drug like Tylenol. According to sources cited by CNBC, Trump could issue an executive order as early as Monday to shift marijuana’s classification from Schedule I — alongside heroin and LSD — to Schedule III, where substances like codeine and steroids reside.

My brother happens to be an academic expert on LSD.

My brother-in-law happens to be an actual expert on how to smoke marijuana.

So…this is big news for our family.

It’s also big new$ for Wall $treet. The potential reclassification would mark a significant change under the Controlled $ubstances Act of 1970. Marijuana currently being a $chedule I drug poses barriers to research, taxation, and financial services. A $chedule III status would ease these restrictions considerably, opening doors for lower taxes and improved banking opportunities for the cannabis industry.

As news of the potential move spread, cannabis stocks soared. Tilray Brands $TLRY ( ▲ 44.13% ) saw nearly a 30% boost in trading, while Canopy Growth $CGC ( ▲ 53.98% ) experienced a remarkable 40% jump.

Despite the speculation, a White House spokesperson tempered expectations, clarifying that “no final decisions have been made yet.” The time: 4:20 p.m.

Song of the Day: Mumford & Sons, ‘Prizefighter’

Mumford & Sons' new album, “Prizefighter,” is generating buzz for its raw, instinctive sound, capturing the band's rediscovery and collaborative spirit with artists like Hozier, Gracie Abrams, and Chris Stapleton. This is the first single track off the album and it’s been praised for its authentic feel, personal lyrics about resilience, and energetic blend of light and shade, promising a fresh chapter after recent years. So, it’s just like this newsletter.

Trump signs unenforceable executive order to block state AI regulations

President Trump has signed an executive order aiming to prevent individual states from setting their own AI regulations. The order asserts that a patchwork of state-level laws could stifle innovation within the rapidly growing AI sector, particularly as the U.S. vies with China for dominance in the field.

Funnily enough, that’s exactly what Nvidia $NVDA ( ▼ 3.27% ) boss Jensen Huang said when he was lobbying in Washington last week.

“There’s only going to be one winner,” Trump declared when addressing reporters in the Oval Office, presumably referring to the United States. Highlighting China’s streamlined approval processes for AI companies, he warned that the U.S. risks falling behind if businesses must navigate inconsistent rules across 50 states. “We have the big investment coming, but if they had to get 50 different approvals from 50 different states, you can forget it because it’s impossible to do,” the president explained.

The executive order directs key federal entities, including the attorney general and the Commerce Department, to identify and challenge what it describes as “problematic” state laws. It also threatens funding cuts for states with restrictive AI laws.

Here’s why the order is toothless:

According to David “Of Cash” Sacks, a venture capitalist and policy advisor to Trump on AI, the administration is focused on opposing “the most onerous examples of state regulation,” though it doesn’t intend to interfere with measures around issues like “kid safety.”

Some states — including California, Utah, and Texas — have already passed AI laws addressing transparency, privacy, and discrimination concerns. Many more plan to move ahead with similar laws soon, despite the pomp and ceremony of an Oval Office signature suggesting they do otherwise.

Quote of the Day

Amazon eyes one-hour “rush” pickup

Amazon $AMZN ( ▼ 1.78% ) is doubling down on convenience and speed with its upcoming "rush" pickup service, designed to let shoppers collect orders from Amazon-owned stores within an hour. I believe this used to be possible when you would go to a “store” and buy “a thing,” but for some reason Amazon is touting the idea as revolutionary. Sorta like when they said Alexa would shake up AI but in fact she just annoys the bejesus out of everyone whenever we ask her a simple question.

According to an internal document and a source familiar with the matter, this service will allow customers to place a “unified” order that combines Amazon’s online marketplace products and items stocked directly in its physical locations, such as Whole Foods, Fresh grocery stores, and Go convenience stores.

The new capability is set to pilot in at least one metropolitan area (*cough* New York City) by the first quarter of 2026. The initiative aims to address what Amazon described as “a key customer need for faster, more convenient access” to its products. Honestly, it sounds like some managers over there are just trying to avoid getting fired.

Should you check your 401(k) today?

👎️ 

No. Bit of a blip on Friday, if I’m honest.

Nvidia weighs boosting H200 production as China demand surges

Faced with overwhelming demand from Chinese buyers, Nvidia is considering increasing production capacity for its H200 AI chips, according to sources familiar with the matter. The H200, which as we all know is one of Nvidia’s most powerful AI chips, has captured the attention of major Chinese companies like Alibaba and ByteDance, who have already expressed interest in placing large orders.

“Chinese companies’ strong demand for the H200 stems from the fact that it is easily the most powerful chip they can currently access,” explained investment director Nori Chiou of White Oak Capital Partners, talking to Reuters. “Its compute performance is approximately 2–3 times that of the most advanced domestically produced accelerators.”

The surge in demand follows the U.S. government’s recent move to allow H200 exports to China, with a 25% fee attached to sales. However, uncertainty looms as the Chinese government has yet to approve the purchases. Emergency meetings have been held to discuss whether to green-light the chip’s entry into the country, with proposals suggesting conditions such as pairing each H200 purchase with domestic chips.

For Nvidia, ramping up H200 production presents logistical challenges, especially as it transitions to its next-generation Rubin chips. Additionally, the company must compete with other tech giants like Google $GOOGL ( ▼ 1.01% ) for limited production capacity at Taiwan’s TSMC $TSM ( ▼ 4.2% ) , which manufactures the chips.

The firm’s stock is down 10% in a month as concerns about an AI bubble fail to dissipate.

Starbucks baristas stage biggest strike yet

Starbucks $SBUX ( ▲ 0.72% ) baristas are escalating their fight for better working conditions in what’s become the coffee chain's longest strike ever. The monthlong walkout, led by Starbucks Workers United, has spread to over 180 stores in 130 cities, involving more than 3,800 workers since launching on November 13 during the company’s Red Cup Day promotion.

The union, representing 11,000 workers across 550 stores, is demanding higher staffing levels, predictable schedules, and improved pay, arguing that current conditions leave employees overworked and underpaid. “This ongoing action is about standing up for fairness and securing a labor contract that reflects the effort baristas pour into each shift,” a spokesperson for the union said, using a nice “pour” metaphor there. Well done.

Despite the scale of the strike, Starbucks maintains that its business operations have remained largely uninterrupted. "Fewer than 1% of our 17,000 U.S. coffeehouses have been affected at any point by the union's efforts," said Jaci Anderson, Starbucks’ director of global communications, perhaps unwittingly challenging the union to step up its strike efforts.

The company reiterated its willingness to return to negotiations, saying it had already invested over $500 million to enhance staffing and store conditions.

Here’s a handy table comparing the salary and benefits of the company’s CEO, Brian Niccol, with that of the average barista.

Poll of the day: It’s 4:20 p.m. somewhere

You’ll love the Sunset gift guide!

Need the perfect gift? Or even a pretty good one? Sunset’s 2025 Holiday Gift Guide has you covered! With beautifully curated selections, there’s something for everyone on your list. Cozy up in the luxurious Flock Robe ($165) or add charm to any table with the Otto Napkin ($20). For the chefs, the Little Zipper Pot Holder ($35) is as stylish as it is practical. Nature lovers will adore the Case Study® Ceramics Birdhouse ($75) or the stunning Ceramics Small Cylinder with Stand. Want to give experiences? Share joy with the Sunset Box ($69.99) or a subscription to Sunset Magazine ($29.95). Shop now for thoughtful, unique gifts!

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