Scott Galloway

…Silicon Valley subsidizing those losses , maybe now just the taxpayers will. And maybe that's the plan. And maybe that's a good idea, because that's what the banks did in 2008. And it didn't work for some of them, but it worked out for most of them. And so you have to think, maybe they see this collapsing. And that's why they go to the government. But either way, both of these pieces of news in the same week, that's very, very bearish, in my view, and seems to indicate that this is a growing bubble that is nearing a point of maybe not collapse, but certainly massive course correction. OpenAI, I predicted this six months ago , that the biggest bailout in corporate history was about to happen, and it was gonna be the bailout of Nadella, Altman, Dario Amadei, and it would be dressed up as investment or growth. It's not, it's a bailout. If the government were to take a 5% stake in OpenAI, great, they're gonna favor OpenAI. They're going to over-regulate their competitors and under-regulate OpenAI. They're going to provide them with protection money and direct access to the White House. It's not even socialism, it's cronyism. It's like, when things are really good, we wanna capture all the gains ourselves, but when things are bad, we wanna socialize…From: this video · 6 claims mined from it

…OpenAI is essentially like a zombie child that was formed by all of the big tech companies that have become systemic to the stock market and it's like Sam Altman is trying to make the company as systemic as possible such that eventually when things go wrong we have no choice but to bail them out. It seems like this is almost all part of the design that he wants to be too big to fail. He wants for the U.S. government to own a 5% stake in it so that if anything ever goes wrong why wouldn't the U.S. government figure out a way to bail them out? Today's number, $26.2 million. That's how much the citizens of Atlanta spent on OnlyFans last year, the most of any U.S. city. Why did the scarecrow win an award? Why…From: this video · 6 claims mined from it

…of momentum from OpenAI to Anthropic, we've seen another incredible flipp ening, but this is one that is geographic. And that is free Chinese models went from 30% of AI traffic to 60% in six months. The dominant AI models are now imports. I mean, the thing that rocked the automobile industry was a product called the Honda Civic. That was sort of a slow moving train wreck over 10 years. This has been 10 weeks, GPU rates are collapsing. The hyperscalers built $300 billion of infrastructure for customers who are switching to deep seek for free. The way to describe this historically is this is the fiber overbuild of 1999. The Chinese model problem is like another problem on top of all of their other problems because I mean, as you pointed out, a lot of these large companies are now switching. I can go through a list of some of them who have switched to Chinese models. Coinbase is now using Kimi, Cursor is using Kimi, Shopify is using Kwen, Airbnb is using Kwen, Siemens is using DeepSeek, Microsoft is now apparently testing DeepSeek. And the reason they're all doing this is because the Chinese models are way cheaper. And we talked about why is that the case? Some say it's because Chinese have cheaper energy and that might be part…From: this video · 6 claims mined from it

…And when we look at our estimates, those two companies alone account for between 60-80% of the AI revenues for Amazon, for Google, and for Microsoft. And according to the information, those two companies alone make up half of the entire revenue backlog of the hyperscalers, i. e. the big tech companies. Meaning that the back-end infrastructure business only works if OpenAI and Anthropic continue to pay all this money and keep this whole thing afloat, which then begs the question, do you think they'll keep actually paying? And this is where the financials are so important, which were leaked by Ed Zitt rain, who we had on. And we learned that OpenAI made $13 billion in revenue last year. Okay, great. But they spent $34 billion. So their operating loss was $21 billion . Anthropic, we don't know the financials , but we at Prof.G. have done some estimates. We know that they made $4.5 billion in revenue last year. Based on our estimates, they probably spent around $15.5 billion. That's an $11 billion operating loss. Meaning the front-end AI business only works if the VCs continue to subsidize it to the tune of hundreds of billions of dollars . And by the way, if the hyperscalers continue to subsidize it. But if they stop doing that, then suddenly this business of building front-end AI doesn't work anymore, which means the business…From: this video · 6 claims mined from it

…bailout. And that is, according to the Financial Times, they've discussed giving a 5% stake to the US government. And so it seems as though instead of Silicon Valley subsidizing those losses , maybe now just the taxpayers will. And maybe that's the plan. And maybe that's a good idea, because that's what the banks did in 2008. And it didn't work for some of them, but it worked out for most of them. And so you have to think, maybe they see this collapsing. And that's why they go to the government. But either way, both of these pieces of news in the same week, that's very, very bearish, in my view, and seems to indicate that this is a growing bubble that is nearing a point of maybe not collapse, but certainly massive course correction. OpenAI, I predicted this six months ago , that the biggest bailout in corporate history was about to happen, and it was gonna be the bailout of Nadella, Altman, Dario Amadei, and it would be dressed up as investment or growth. It's not, it's a bailout. If the government were to take a 5% stake in OpenAI, great, they're gonna favor OpenAI. They're going to over-regulate their competitors and under-regulate OpenAI. They're going to provide them with protection money and direct access to…From: this video · 6 claims mined from it

…I tried to find shares was that the word I didn't learn as a younger man and the reason I 've been rich three times, which means I 've gone broke twice. The reason I've gone broke twice is that I didn't understand the power of diversification. And it's easy to become concentrated without even knowing it. You know, ProfG Media is essentially an American company talking about American tech. We get a lot of advertisers from AI. I am over invested in technology stocks . I am so concentrated and non-divested accidentally, "Nick, well, I'll buy some S&P funds." Well, okay, 40% of the S&P is in 10 companies now, all related to AI. So one of the reasons I like this company as a personal investment is I want to invest more in Europe. People have basically given up on Europe. Investors have basically given up on Europe and that's when you buy. And two, I want diversification out of anything American and tech related because winter is coming as Daenerys and every other person from Game of Thrones said. And then also, the labor arbitrage. What do you think a talented senior product manager costs in San Francisco versus Milan? Especially after AI. Exactly. It's not like it's child labor. I would imagine that in Milan, if you 're making 120,000 euros, actually Milan 's gone a lot in price, but I would imagine for 120, 000 euros in Milan, you can probably…From: this video · 6 claims mined from it