OpenAI Wants A Government Bailout

25:03Scott Galloway:will, it's not old versus young. It's not rich versus poor. It's incumbents versus entrants. But the incumbents who are sitting on top of a company recently valued at$875 billion, it's OK. If they go to$100 billion, they're still going to be worth twice what Ford is worth. They're still going to be one of the 100 most valuable companies in the world. Companies trading at$875 billion shouldn't get bailouts. Now, you could argue that if Ford goes from$10 billion to zero and has to lay off a couple million people and middle class jobs are lost in the Midwest, okay, maybe that's at least a feasible argument for government intervention having societal implications or a positive or justification.

25:43Scott Galloway:organization, OpenAI and Anthropic, burn baby burn. If all of a sudden NVIDIA goes from being worth more than the entire German and Spanish stock market to just being worth what the French stock market is worth, okay. There's absolutely no justification for me to whip out your credit card and run up our deficit such that the current owners, the private owners of Anthropic and OpenAI shares can maintain their gains. This isn't about an existential crisis where you think we would lose millions of jobs and the very existence of this category and losing this game. This is about keeping the incumbents rich.

26:27And that is basically a curse or a virus that infects America.

26:33Scott Galloway:I have two college degrees and a bunch of homes. I'm going to make it harder for everybody else to get one such that the value of my current assets go up. No, that's not the way America is supposed to work. And the idea that we're even talking about this for companies that are, if Anthropic were in Europe, it was founded five years ago, it would be one of the four most valuable companies in Europe right now. What company that's one of the 20 most valuable companies in Europe has any discussion of a bailout? The plane is running at Mach 3 and doing just fine. Why do the pilots need to bail out?

27:09Scott Galloway:Why do we need to pay for these things? These things, say they lose 80 % of their value. Amazon lost 92 % of its value. We didn't bail them out. That's fine. That's part of capitalism. So the fact that this is even being discussed, in my opinion, is Sam Altman saying, I have no fidelity to capitalism. I did this weird fucking deal with TPG and other private equity firms that guaranteed them a 16 % or 17 % pick. All that does is start to crush the previous rounds of investors because those numbers will start to add up pretty fast. But my God, if they lose 80 % of their value, so you're saying it's only worth as much as the entire U.S.

27:50Scott Galloway:auto industry? But it's almost like they want to be systemic. They want to be. It's like they open AI has 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 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.

28:32government figure out a way to bail them out? And it's almost like none of this growth is organic. Like, give ChatGBT its credit. On a user basis, that was organic growth. People loved the product and they started using it. But they haven't figured out how to monetize it in a realistic or sustainable way. And so all of the growth that we've seen from the valuations, from the circular deals, now going to the government, all of that is basically a setup where they are artificially growing this thing and they're trying to make it so big and so core and such a part of our lives such that by the time the business truly does flounder, we'll have no choice but to say, hey, we need this thing.

29:16We're all in this together. Let's bail them out. It feels like that is the direction that they are taking, that they want to become as systemic as humanly possible. And it's like, it's honestly gross. I just can't. that seeing that headline and i bet trump is down because he basically will do anything for anyone who shows up to the white house and kisses his ass this is what we've seen time and time again

29:43Scott Galloway:it's more than just showing up to the white house what is it 93 percent of gdp growth 75 percent of earnings growth come down to these firms continued spend so just as we have convinced ourselves it make sense to spend$7 trillion on government spending with$5 trillion in receipts just to keep the good times and the sugar high coming. Trump does not want the economy to slow down, especially going into the midterms. So he will potentially be open to the notion of doing whatever's required, including pulling out your credit card to keep the music playing. But this is no different. Corporations, Mitt Romney tried to tell us corporations are people.

30:22Scott Galloway:I don't think that's true. I think the corporations, you let your thoroughbreds run, the idea is they pay their taxes, and then you try and fund a Navy and parks and snap payments and unemployment insurance for actual people. But this really is no different than, say, someone is worth$100 million, and they really like being worth$100 million, and they're really good friends with Trump, and they're really good for their community, and they spend a lot of money everywhere. I'm like, oh no, my business is shit. And I need the government to invest in my business and give me government contracts and also maybe put some of my competitors out of business, maybe give me government-backed loans such that I'm not worth just 25 million.

31:05Scott Galloway:Is that a good use of the government's money? So if OpenAI or Anthropic lost 75 % of their market cap, they'd only be worth as much as Uber or Adobe or Charles Schwatt or Amgen. But because this run-up, this sugar high has been fueled by this new technology and the unbelievable expectations there, this would be the absolute worst thing for our economy that we could do is to decide that these thoroughbreds that are amazing companies and worth a ton of money need to be propped up. It would be absolutely no different than picking the wealthiest hundred Americans and saying, we're going to use the credit card and the debt capacity of future generations to make sure you maintain that you continue to be the top 100 wealthiest people in the world.

31:54Scott Galloway:And to a certain extent, that's what we've been doing by weaponizing housing, by weaponizing or sequestering degrees to college. Again, yet another transfer to the already super fucking wealthy.

32:10We'll be right back after the break. And if you're enjoying the show so far, send it to a friend and please follow us on YouTube and Spotify or wherever you get your podcasts.

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35:06We're back with Prof G Markets. The Trump accounts are officially live. As a reminder, this is a program that creates government-backed investment accounts for children. Babies born between 2025 and 2028 will receive a one-time$1 ,000 contribution funded by the government to help kickstart long-term savings. Michael and Susan Dell started a separate initiative for children born between 2016 and 2024, the kids who don't qualify for the federal contribution. They are providing a$250 deposit for families living in zip codes with median incomes of$150 ,000 or less. So, Scott, these accounts have officially launched.

35:49How do they work? As I said, if you're born between 2025 and 2028, you get$1 ,000 immediate into your investment account. It will be funded by the Treasury Department. This is a pilot program. If they decide it works, then maybe they'll continue it. Every account can then receive a contribution of up to$5 ,000 per year tax deferred. The money can only be invested in a qualified index fund that uses no leverage and that charges no annual fee of more than 0.1%. And then when you turn 18, it converts into a traditional IRA and it basically functions just like a retirement account. This, I think I've said it before, is the best thing the administration has done by a mile, in my opinion.

36:35I actually support this 100%. I hate that they're calling it Trump accounts and that Trump had to put his fingers on this thing because now I feel like it's been politicized and people don't want this to succeed. But it really started with Brad Gersner coming up with this thing, pushing it through to the White House, going to the White House, getting Trump to agree to it. Probably had to say that it had to be called a Trump account for the thing to even happen in the first place. Then Michael Dell comes and gets involved. There are some caveats that we can get into, but big picture, huge fan of this thing.

37:07I think this is exactly what we should be doing and what we should be using government money on.

37:12Scott Galloway:Yeah, I agree with you. I really like this in concept. A friend of mine in Los Angeles, Alex von Furstenberg, was a big fan of this. And there's been a lot of different iterations. I personally would have gone bigger. I would have gone$7 ,000, which would be, I think,$40 billion a year. And I would infantilize and I would hold it. I would force people to be in these low-cost index funds until they're 65. and essentially position it like the Chinese do, go kind of 50-year plans. I think in 30 years, what you could say is, if you gave every baby$7 ,000, by the time they're 65, based on historically market returns, they end up with a million bucks.

37:48Scott Galloway:And then in 30 years, I would announce that we're 30 years away from not needing social security. And I think interest rates would go down and this would start to pay for itself. I think we need another way to leverage the marketplace and compounding to replace the out-of-control social spending, entitlement spending that is dragging our economy down and putting too much tax on young people. Having said that, I would have gone bigger and bolder with this. Having said that, I think this is a good idea. I think the Dells should be applauded, not mocked for them doing this. Ray Dalio is doing something similar.

38:20Scott Galloway:What I don't like is the notion that we have to count on the kindness of strangers, including the Dells who are good people, but also happen to be awarded a piece of TikTok. I think that probably Elon Musk may have said, hey, I have an idea. Lean on the NASDAQ 100 and the SEC to include me and the NASDAQ 100 prematurely, unlike any other company in history. And I think I might give, you know,$10 billion,$100 billion in baby bonds. I just, I don't like depending, to me, this feels like a government program that the government should finance that's about long-term thinking and reducing entitlements over time, as opposed to just sort of this giveaway and we're depending upon the generosity of billionaires like the Dells and the Dalios of the world.

39:08Scott Galloway:So, but again, I moved to my glass half empty pessimism. On the whole, I think this is a really good idea. I like the fact there's a income cap on it. I like the fact that it's leveraging, you know, the greatest, as Einstein was credited with saying, but actually didn't say, the greatest force in the universe, and that's compound interest. So I agree with you. I think generally speaking, it's a really good idea. Yeah, just to go through what that money will become, that first$1 ,000, if we assume 10 % annual growth, which is the S &P's average over the past several decades, by age 18, that will be worth$5 ,500.

39:45But if you contribute$1 ,000 a year, then it will be worth$50 ,000 by the time you're 18. And if you contribute to the maximum$5 ,000 a year, it'll be worth a quarter of a million by the time you're 18. So, I mean, it's just hard to argue with the numbers there. That would be amazing. The problem, and I found myself violently agreeing with you again, is that a lot of people seem to see this and see the Dell's contribution, which is spectacular. Take nothing away from them. They seem to see this as the catch-all solution to the problem of inequality in America. That instead of taxing people and instead of going in some direction close to a billionaire tax, we can get into what actually is the right solution.

40:39But instead of taxation, we rely on voluntary philanthropy. We tell rich people, we're not going to take your money, but please, please, pretty please, will you invest billions of dollars into these child investment accounts? And to be fair, some people have. The Dells have done it. Ray Dalio did it. He committed$75 million to kids in Connecticut. Brad Gerstner's done it. He's committed$250 to every child under five in Indiana. That's great. However, we were also told that this was going to create a landslide of donations, Brad came on the show and he said, you watch, everyone's going to do this.

41:21I said, is Zuckerberg going to do it? He said, yep, Zuckerberg's going to do it. So far, only six individual donors are on record having committed to the Trump accounts. It's Dell, it's Dalio, it's Gerstner, it's Harold Hamm, it's Nicki Minaj, and then it's an anonymous donor in San Francisco. Elon has not given anything. Zuckerberg hasn't given anything. Bezos hasn't given anything. I mean, if you were to put Elon, Sergey Brin, Larry Page, Jeff Bezos together, and they gave away 5 % of their wealth, they could fund this program for nearly two decades. And they haven't done it. And so I'm completely with you.

41:56If we're thinking that this is the solution, that this is how we're going to redistribute the wealth, this is how we're going to get the money back into the hands of the American people so that we don't see this crisis of faith in the American system so that young people no longer believe not only in America, but in capitalism itself, this is probably not going to do it. Unless we see some waterfall and everyone starts investing in these Trump accounts, then, yeah, let's not wait on Elon Musk to suddenly, like, find the charitable bone in his body and give it all back to the children. What we've seen so far is he doesn't really want to give much away at all.

42:35Scott Galloway:Depending on the kindness of strangers to fund the well-being of our kids when they get older is a little bit like thinking, oh, Sheryl Sandberg wrote a book on gender equality. She couldn't come up with a business model that results in teen girls cutting themselves. This is the government. We elect people. And by the way, this just wouldn't be that hard to fund. Here's an idea. The top tax rate is 37%. You make over a million dollars a year. There's no capital gains deduction that goes to 20 % or 22.8. It's 37%. Oh, and by the way, that 37 % tax rate is alternative minimum tax. We had that brilliant woman, Ray Madoff, on our podcast.

43:13Scott Galloway:She blew my mind with the following stat and the framing. Everybody thinks the biggest expenditure is entitlements at$1.5 trillion Social Security. I think Medicaid's 1.2. The military is now 1.5. Our interest on our debt's$1 trillion. She said, no. The biggest expenditure is a$2.3 trillion expenditure, and it's the following. It's the money we give back to corporations and wealthy people in the form of tax loopholes. And it just blew my mind what a genius framing that is. And that is we don't need to raise tax rates. We just need to enforce them. And the government should be giving every kid$7 ,000 and then infantilize them and say, nope, can't touch it till you're 65.

43:55Scott Galloway:And by the way, within 20 or 30 years, the debt in the bond markets are going to go, wow, in a few decades, which will go fast. They will no longer need Social Security. And you're going to see interest rates go down on everyone's credit card bill, auto loan, everyone's mortgage will go down, and this thing will pay for itself. But we need to—but you know what this feels like, Ed? It feels like the mayor of Bogota donates the land, but we need Pablo Escobar to pay for the grass and the nets. No. If it's a civic stadium and it's good for the people, it's the government's responsibility to tax everyone equally.

44:34Scott Galloway:And then not for podcasters to say a good billionaire, bad billionaire. I'm sick of like waiting on their better angels. I don't think I don't care if they're good or bad people. I just want them to pay their fucking taxes. And then we elect people who decide what to do with the money. Plus, the new argument from a lot of these guys is that philanthropy in general is bullshit, and that the truest form of philanthropy is starting a company that's super valuable. Like, just to quote Musk, he said, quote, SpaceX, Tesla, Neuralink, and the Boring Company are philanthropy. If you say philanthropy is love of humanity, they are philanthropy.

45:12There was a Twitter account that made this ridiculous post. They said that McKenzie Scott's donations were, quote, making the world a worse place.

45:20Scott Galloway:He said that. Well, he responded, yes. So he co-signed that statement because they've got it in their heads that Mackenzie Scott is woke, liberal, the rest of it. And they've said that the billions of dollars that she has given away is making the world a worse place. So, I mean, if they really want us to count on them to, as you say, find their better angels redistribute the immense wealth that they have accumulated over the years and give it back, they're not doing a very good job of selling us that they are actually going to do that. Because so far, all we've seen is that it's not just that if you give your money to the government, it's waste, fraud, and abuse.

46:02They're saying that if you give money to a non-profit or a foundation or a charity, it's waste, fraud, and abuse. Because the charities are now woke. And the charities are libtards. So this is the problem. It's like, at a certain point, I'm sorry, but I have to assume that if you're worth a trillion dollars and you can barely find it within yourself to give back a fraction of a percentage of your net worth, I don't believe that you have any interest in the Commonwealth or the well-being of anyone. And now you're arguing that the companies that you built are the philanthropy, that you've now done your part.

46:40So you can no longer make the argument, and I keep on hearing people make it, people who support, really who are just against wealth taxes and against billionaire taxes in all forms. They say, this is the way to do it, voluntary philanthropy. Stop making that argument because no one believes it. No one thinks that these people are actually going to go through with it. Apart from a handful of great guys like Dale and Dalio and Gerstner, they are in the minority, at least so far.

47:11Scott Galloway:You're being a little bit unfair. It's not like they're cutting off aid to HIV positive mothers such that hundreds of children—oh, wait, never mind. Never mind. I hate that I'm laughing at it. Let me be very harsh right now and invite a lawsuit that'll be dismissed in court. The thing that will mark this era is that the world's wealthiest man is killing the world's poorest children. So folks, if you're waiting on the better angels of these people to show up, and that's what our government is dependent upon, don't hold your fucking breath. Tax them, and then elect good people who come up with systemic ways to address these issues.

47:51We'll be right back. And for even more markets content, sign up for our newsletter at profgmarkets.com.

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49:24We're back with Prof G Markets. Bending spoons went public on the Nasdaq last week. Oh, did it? Did it now? And it is off to a strong start. It raised$1.68 billion in its U.S. debut and shares jumped 40 % on their first day of trade and closing at$40.50. sense. The Italian company has built its business by acquiring underperforming software companies, cutting staff and improving profitability. Its portfolio includes well-known brands such as Vimeo and AOL. Not really sure how well-known those companies are anymore. Either way, many have compared its strategy to private equity companies. But most importantly, Scott, you called this one last week.

50:07You said you were expecting a very strong first day pop, the strongest we've seen, stronger than SpaceX, which indeed it was. Let's play the clip.

50:17Scott Galloway:The best performing one-day IPO, the biggest pop of a tech company of an IPO in June is not SpaceX at 22%. There's a company being taken out by JP Morgan and Goldman Sachs. I think it's pricing next week sometime. Bending spoons, my prediction, the biggest first day pop of a tech company is going to be this little-known company out of Italy that has found all these orphaned brands that are great businesses. Ladies, watch the shoulders. Hello, ladies. Hello. Surrender to the dog. This deserves a little celebration. That's right. That's right. On audio, I think you know what he's doing. He's again taking the shirt off and rubbing the belly.

51:05For some reason, that's the celebration. Oh, my God, Ed, my nipples are hard. My nipples are hard, Ed. Reflections. How did you come up with this prophetic prediction?

51:15Scott Galloway:I don't think the greatest engineer in the world is, or the greatest designers in the world is Johnny Ivory, Elon Musk. I think the greatest engineers in the world are J.P. Morgan and Goldman Sachs. I think you just know when they're taking a company out, it's going to get at least a 20 % pop because, A, they make more money. They get their green shoe. They get their fees. every institution in the world wants in on this IPO. As a result, they do business with these companies. They get a free gift with purchase. Another way of saying this is the IPO game has become totally rigged, but it's legal.

51:49Scott Galloway:And also then they get to manage the money. And so they use AI, an incredible marketing team of people. Some of the brightest people at JP Morgan and Goldman working in high net worth. They call these people. They build an unbelievable book. They go back to the CEO and say, look, this is a once-in-a-lifetime branding event. And even though you risk some additional dilution that you wouldn't have had to have taken if you priced it to perfection, to be able to say your stock's up 20 % or is up 40 % as Benning Spoons was yesterday is worth the additional dilution. So there's all these stars and moons that line up around engineering a first-day pop of this sort.

52:27Scott Galloway:I thought this one was going to beat SpaceX because I thought the story was good. If you look at the PE, it's actually trading at a relatively modest PE. If you look at the revenue per employee, it was actually greater than meta. And I personally wanted to pimp this stock a little bit because I'm just so sick of talking about American AI companies. And I like their model. And they have a great narrative. They say that they get something like 400 ,000 applications for jobs and they hire, you know, eight people or, you know, a small point. They say they're the most selective company in the world.

53:04Scott Galloway:Some of that is spin because basically what they do with these companies is they replace a 40-year-old making$300 ,000 a year with a 25-year-old who I'm sure is very bright making$140 ,000 a year. And they essentially, like a private equity shop, clean up the back end. A lot of these companies probably overspent. But it's essentially, it kind of reminds me of the old WPP model pioneered by Martin Sorrell. And that is their ability to maintain this valuation and increase it will be their ability to find good companies trading at X, X multiple of EBITDA, and then present it to the market and get 1.3X in the marketplace.

53:43Scott Galloway:And that's what Martin Sorrell did by taking out key man risk. A little bit of synergy on the back end, not as much here. but he would basically buy these key man risk ad agencies for eight times EBITDA and then turn around to the market and he would get 12 times. It was essentially a market arbitrage or consolidation arbitrage. So it's a little bit of WPP, a little bit of private equity. I thought the small float, the excitement coming out of the SpaceX IPO and just what felt like an insanely cheap valuation was going to handily beat the 20%. And it was up, I think, 40%. It's checked back a little bit today.

54:20Scott Galloway:But I thought this was a really interesting company, neat business model, kind of beloved brands, but forgotten a little bit. Sort of the Berkshire halfway of beloved, but forgotten brands, if you will. I just liked it. You kind of sound like you own it. Do you own it? Yes, I do. Okay. I do. I didn't get as much as I wanted, though, to be honest. So there's the investor disclosure. Just to be clear, I haven't really taken a look at the stock, and I'm not recommending it, and I'm not buying it, but Scott owns it. So take that information as you will. I'm not buying more at this price. I think it's great.

54:59Scott Galloway:Moving forward, their challenge will be to show that this model is scalable. and to their credit, I do think that, I think there are a ton. I think the list of companies that are, didn't become Airbnb or didn't become Meta, but are good companies is really long. And 88 % of their revenue is recurring. Anyway, I was really excited. I felt like this one was getting no attention and was a good company. And I kind of stumbled onto it just before it can. What I don't want this segment to be is a stock pumping segment where we're encouraging people to go buy it. That's not why I'm interested in this company.

55:41And I don't think that's why you're interested. I just want to be clear to anyone listening, like, that's not the interesting thing. And I'm not, no one's recommending this. But I think what is interesting about this company is the model. And they've said that the idea is, quote, to be a hybrid between a private equity firm and Google. And I think it's kind of, I kind of like it because they're taking this sort of creative novel strategy where they're basically, they have their own software engineers and they're going up and they're buying these companies as a private equity firm would. And then they're putting those software engineers into those companies.

56:23And so that's sort of the Google meets KKR or Blackstone thing. and it's interesting because they're kind of it's the same thing that the private equity firms would do back in the day where they say you know what we're going to do is we're going to find these unloved companies and we're going to find synergies in between them and what that was basically latin for is we're going to go in and we're going to fire as many people as is physically possible and that is basically what they're doing but they're doing it with like an ai thing it's sort of like oh we're going to use ai and we're going to streamline everything and that's a great story but in reality what they're mostly doing is firing people and crucially leveraging cheap labor in europe and that is they pay their software engineers around 75 000 a year the average software engineer google makes around 150 to 200 000 a year at met it's a little bit higher they can do that because they're italian company they can go in italy and hire these smart people and not pay them that much and, you know, do what you will with that information.

57:25You could say that, you know, like that, and I'd understand a lot of people don't like private equity firms and the fact that they just kind of go in, find these companies, gut the companies, you know, lay off all the employees and then figure out a way to fatten the bottom line. But it's a great thing for shareholders and that's kind of what they're doing. And so I think it's a good bet for those reasons, but I'm sure that they're going to get a lot of heat as well when people start to kind of realize like what it is exactly that they're doing. And that is the same thing that private equity does, the same thing that consulting firms do.

57:58They go in, they make a pitch, and then ultimately it comes down to fire as many people as possible. It's basically what they're doing.

58:04Scott Galloway:They will call it efficiency, but they're operating in the same revenue per employee a little bit better than meta. Look, I don't, I think that's capitalism. I'm not. Agreed. I'm not. I think your ability to lay off people and create revenue and margin creates more profitability and opportunity to start new companies that creates higher paying jobs. So I'm all about whatever you want to call it, creative destruction or what have you. But this company felt like at seven to eight times revenues, it felt like a buy. Now it's at 10 to 12 because of the run up yesterday. I checked back a little bit.

58:37Scott Galloway:I don't want to say it feels fully valued right now, but they're going to have to show their thesis or demonstrate their thesis that with a public currency and a list of a ton of companies like this, they can go out and kind of wash, rinse, and repeat. But in sum, I thought this was, I thought this company's business model execution and opportunity set, or TAM for lack of a better term, was not reflected and that there was so much attention given to SpaceX that people kind of overlooked this company. And also just to be blunt. When JP Morgan and Goldman take something out now, they engineer a 20 % plus pop.

59:12Scott Galloway:They do. And by the way, it's not illegal. Is it rigged? Is it unfair? Is it a transfer of wealth from retail investors who don't get much access to institutions? Yeah, it is. I'll leave it there. it's not a great place to leave it but that is that is certainly what is happening and i think that we have done a good job of making that clear just how rigged that ipo game really is a lot of people try to sort of paper over what's really happening but that is what's happening they don't usually let these ipos fail um and they price it such that it will get that pop i think when we about like, I mean, now that I know you own it, I'm going to just do a little bit of jabbing at the company.

59:59You mean like you do it my emotions?

1:00:04I think what their advantage is, I don't think of this as an AI company. I think of this as basically a private equity company. And their advantage is they're in Europe. They know how to operate. They know how to fire people. And they know how to get really top talent at really low prices. And that last piece is crucial because what they're doing is they're buying these people businesses that are run. Basically, the product is dependent on how good your engineers are. I mean, these are mostly software businesses that have gotten crushed after the SaaSpocalypse, which if you thought that the pain that we're seeing in the public markets is bad, just go wait till you see what the pain in the private markets looks like, which spells opportunity.

1:00:45They're taking advantage of that. And then they're also leveraging these engineers. But we went on the Bending Spoons Reddit thread, where the engineers get together and they talk about their problems. And to be fair, Reddit is a very negative place in general. But here was something that we saw, quote, a friend of mine worked four years at Google. Then she got a job at Bending Spoons when she moved to Amsterdam and was fired after eight months because she was not working, quote, hard enough. You have to be autistic and probably have no life in order to resist working for them. Not even Anthropic, who pays top of the market, is this crazy?

1:01:20And then someone followed up and got like 300 upvotes. Quote, they don't even pay that well. So that's kind of their advantage.

1:01:28Scott Galloway:You know who likes that environment, that culture? Shareholders. Yes. And here's the thing. You brought up something, a couple important things. One of the reasons I like this and 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. Prof G 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.

1:02:07Scott Galloway:I am so concentrated and non-divested accidentally. Think, 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?

1:02:49Scott Galloway: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 up a lot in price, But I would imagine for 120 ,000 euros in Milan, you can probably have a reasonable lifestyle. In San Francisco, you're still living with your parents. So the market is just a gorgeous thing. It is, Europe's been left for dead. And that's the reason why I think it's an economic opportunity. And I'm spending a lot of time looking at European stocks right now. Let's take a look at the week ahead. We will see the minutes from the Federal Reserve's June meeting, and we'll also see earnings from Pepsi and from Delta.

1:03:36Scott, any predictions?

1:03:37Scott Galloway:No, I'm just going to stand on my bending spoons one. I can't do much better than that. I'm going to bask in the glory of that. Oh, no, I do have a prediction. I think that Team England is going to beat Mexico in penalty kicks. Once again, this is coming out after, because we're not at Sunday night yet. So we'll find out. So just make sure you're down to do that. You might be humiliated on the day it comes out. Oh, like I don't get humiliated every day? Did you just say Reddit? Have you seen my subreddit? Oh, my God. You're so mean. I don't even go on my subreddit anymore. It's like, God, he's so old.

1:04:14Scott Galloway:God, he's fucking lame. Jesus. What's wrong with his face? I mean, it's just like, so rough. You can't read the Reddit. The Reddit people are. They're rough. We love you, but you're also a little bit unwell. That's a little bit of the problem. Oh, my God. It is rough. So, okay, make the prediction then. England wins? I'm not scared of humiliation. You want to know what my safe word during sex is, speaking of humiliation? Not particularly, but tell me. My safe word is maybe.

1:04:49Scott Galloway:This has been a good show. Anyways, penalty, Team England wins in penalties. at the Azteca Stadium, which, by the way, Mexico I don't think has ever lost at. They've never had a goal scored against them? Is that what you told me? That's what I heard the commentators say, but now I'm kind of like... I think they've lost twice, but only twice in their history. It's going to be an amazing game. It's going to be an amazing game, but I'm predicting Team England wins in a penalty shootout. Or maybe I should just predict that Team England wins. How's that? I mean, it depends how bold you want to be. It's just the pole, eh?

1:05:23Scott Galloway:I'm going to say Team England. Less upside in that. It's not a very bold one. Where do they go? Should we go to the game? Where do they go? Actually, I can't afford that. We should go to the game. Yeah, you can. Come on. Where do they go? Where do they go? I'm not sure. If they end up in New York, New Jersey. Oh, they go to Miami. How much fun would that be? It would be good. Everyone loves to roll with a dog in Miami. It would be good. I would like that. Yeah. My prediction. well i had previously made a prediction that if the ai bubble pops it will be because open ai implodes that was about a year ago i think oh it'll pop before that it'll pop well before that well no i hold i hold to that i hold to the open ai implosion my new thinking on open ai two paths for open ai either it implodes or it gets a bailout those are the two paths so that's my prediction There you go.

1:06:51Lifetimes

1:06:57You help me In kind reunion As the world turns And the dark flies

1:07:47We'll see you next time.

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