Prof G Markets: OpenAI’s $90 Billion Valuation, FTC Takes on Amazon, and The Recession is Coming

OpenAI Valuation

OpenAI's valuation has surged to between $80 and $90 billion, making it the third most valuable private company globally, trailing only SpaceX and Bytedance. Scott Galloway suggests that this valuation might represent the peak of the AI hype cycle, noting that significant market cap gains since the pandemic have been AI-driven 1. He humorously critiques OpenAI's nonprofit status, questioning why authors like himself aren't compensated when their works are used by generative AI 1.

I think it's just crazy that these guys call themselves a nonprofit. Ed, we need to start a nonprofit and see if we can get a valuation of $90 billion on it.

--- Scott Galloway

Galloway's insights highlight the tension between AI's rapid valuation growth and the ethical considerations surrounding intellectual property use.

   

Amazon's AI Investment

Amazon's strategic move to invest $4 billion in Anthropic, a generative AI startup, underscores the competitive landscape of AI partnerships. Scott Galloway views this as a beneficial deal for Anthropic, especially in light of OpenAI's recent valuation surge 2. He likens the current AI market to a dance where companies are rapidly partnering up to secure their positions 2.

It's literally like the lights are about to come up and it's like, okay, if I'm going to find anyone to take home, it's now or it's never.

--- Scott Galloway

This investment also ties into FTX's previous stake in Anthropic, which could yield significant returns amid the ongoing AI valuation frenzy 3.