Scott Galloway · 45:29
The pets.coms of the world's imploded because they didn't create the demand to justify their valuations. Okay. So what's under what's under huge share right now? The ultimate consumer AI play, which is OpenAI. And then everyone... But wait. It's about b two b. So everyone shuffled into Anthropic thinking it was the enterprise market. I think that's the next one that could come from a trillion down to a 100,000,000,000. By the way, a $100,000,000,000 is what Starbucks is worth. That's not... That's still a lot of money. And then the next the next shoe to drop will be similar to what happened. Everybody got out of b two c, got out of b two b, and then they went into Global Crossing and Cisco because it's still in the ground. And then I think the next shoe to drop where I think we're gonna start to see weakness in the infrastructure players, specifically NVIDIA in later half... Later part of this year, beginning of next year. This whole... I feel as if we are literally in the the the beginning of the unwind.
Kara Swisher · 46:21
Yeah. And these data center bans or construction of them. I I think it's a good idea. Voters want this. I think it's actually good government to say, like, let's take... It's not saying no data centers. It says, let's take a year. Let's figure it out. Let's do it so that consumers don't have to pay. It's a great political message, and it's not anti innovation. It's slow the fuck. Slow your roll, dudes. Like, this is ridiculous what you're doing to our to our environment and our costs. And, you know, they try to blame things like COCAL and others. I think it's actually good governance.
Scott Galloway · 46:53
That's It's become politicized. I think data centers have become the vessel for outrage around income And I think some of the concerns around them are inflated. The notion that they're gonna soak up all the water. They're noisy. Well, of them aren't near. I I I feel that, essentially, this has become the new the new kind of, whatever it is, squeeze toy or or anger mannequin for income inequality. And then in what is the biggest brain dead brand move of that century, they decided to make the spokesperson for data centers, Kevin O'Leary. Yeah. So... But if I were a civic official... First off, these people aren't... The people approving these data centers aren't stupid because these companies, data centers don't call the fire department or the police department, and they pay property taxes. These people aren't stupid approving the data centers. What I would do if I were a local civic official is the following. I would say, we will cram through your approval. We want ten years guaranteed property taxes no matter what happens to your company. Because I think a third to half of these things aren't gonna get built, but I still want those revenues.
Kara Swisher · 47:56
Yeah. And, also, maybe some... You've gotta talk to voters about the electric bills and everything else. You know? And because it... They... The the the... I think the people who are opposing them have made very... Have done a very good job of linking them with billionaires. And, like, you're right. Kevin O'Leary looks like a fucking idiot.
Scott Galloway · 48:11
But that's math. A civic official should be able to say, we have economists and power people estimating what the increase in electricity costs will be. If those are in fact true, we need to, at a minimum, compensate consumers with the property taxes or fees you're gonna pay. And, also, I would say, a friend of mine owns a shipping company, and shipping container ships went to, like, from $30 a container to a 150 because of Hormuz. And I'm like, is there any I'm like, is there any way you can buy futures or sell futures and lock in that price for the next ten years? And he's like, I'm trying. If I were a civic official, I'd be trying to lock in the revenues and the property taxes these things are gonna pay for the... They're supposed to pay for the next ten years. Because, Kara, what I find generally in life and in business is the shit you are most worried about doesn't come to fruition. Because you start planning against it subconsciously. The shit we're... Remember y two k? How worried we were?
Kara Swisher · 49:07
You... Do you know where I was? May I tell you a short story? I was sent by the Wall Street Journal on the best night of the... Of of a New Year's for that 2,000. I had to be at Yahoo and E Trade. That was my life right then as a young reporter. I had to hang there, and nothing happened. Go ahead.
Scott Galloway · 49:22
Well... Or you you... I used to go on Bloomberg when I was going on TV there. And for fucking twelve months, we talked about the collapse of Greece and how it was gonna affect the EU. The moment you start worrying about everything, it doesn't happen. No one was worrying about planes slamming into the World Trade Center. We weren't that worried about a virus jumping the lab. And in fact, I mean, Bill Gates was. We are so worried about data centers that my view is and my thesis is that all of a sudden, we've had this incredible flipping from a supply crisis to actually a demand crisis. Everyone everyone that was supposedly gonna create all the demand for data centers is now selling their data center capacity and storage to the to the two companies creating demand, OpenAI and Anthropic. So if I'm a civic official, I'm like, bank that money now. Get their commitments because I... And, also, all the innovation is gonna go into chips and inference and compute that requires less energy. And, oh my... The most fucking ridiculous thing. Have you ever been to one of these things? The idea that we can put any semblance of one of these into space I know. Makes the Reboven look practical.
Kara Swisher · 50:33
I know. Reboven. Like, you know, my favorite person... Everyone should follow him. Jan Lakun on the date... Data space centers makes me laugh. There's part of me that I gotta say, Jan, good one. Good one. Space centers... Data centers in space. Like, I'm like, what? Load of crap, but I love you for trying it. It's like having the... You know, we were supposed to have 50,000 Optimus Primes in our home this year. Do you have one yet?
Scott Galloway · 50:58
Oh, no. I mean... But hold on. Let me ask my robot.
Kara Swisher · 51:00
Yeah. Yeah. Exactly. I think we will. By the way, I think we will eventually.
Scott Galloway · 51:05
We're gonna have... You think it's gonna be Jetsons? You think we're gonna have a robot?
Kara Swisher · 51:07
Eventually. But we'll be dead. It doesn't really matter. But, yes, I do. I think My
Scott Galloway · 51:12
Filipino nurse Manny is cheaper than a robot. He has softer, gentler hands.
Kara Swisher · 51:16
Alright. Okay. But someday, you may be taken care of by a robot. Anyway, but I like the fact that they just lie through their teeth about something, and lie is very creative. Anyway, one more quick break. We'll be back for predictions.
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— Predictions segment begins —
Kara Swisher · 53:20
Okay, Scott. Let's hear a prediction. Like, what what is your prediction? Besides, I'm gonna make a prediction. Odyssey is gonna, like, blow
Scott Galloway · 53:27
Yeah. The That's a pretty safe one.
Kara Swisher · 53:29
I gotta tell you. No. But I think, like, way more than people think. Yeah. It is really that good. And I think people are... Again, just like they were with smaller movies like Obsession and Backrooms, they love getting in the theater when something's worth it. This one is worth it. I think it's gonna blow out well beyond what people think the blowout's gonna be.
Scott Galloway · 53:47
I like it. I'm gonna see it. I'm excited that you liked it.
Kara Swisher · 53:50
Yeah.
Scott Galloway · 53:51
So my prediction is that OpenAI is gonna buy Sierra and make... Install Brett Taylor as CEO.
Kara Swisher · 53:57
Oh, great idea. I I... Did I say this to... Who said this to me? Someone asked me who I thought was... Should be CEO of
Scott Galloway · 54:04
You you you I said the seed. You said Bret Taylor.
Kara Swisher · 54:07
Yeah. Okay.
Scott Galloway · 54:09
Look. The the most successful companies don't stop at the platform. They own the application layer. Apple didn't stop at iOS. It created the App Store.
Kara Swisher · 54:17
Explain what Sierra is for people who don't know. It's his new startup.
Scott Galloway · 54:20
So it's essentially... They're in the application layer for AI where they're one of the best enterprise AI products. And they're they're... Essentially, they they are of evaluation of 4 to 5,000,000,000. OpenAI supposedly were the 800, call it 500. So for 1% of the company, they get a CEO. And right now, Brett Taylor is probably... They need to bring in an adult that calms the markets. And OpenAI does... If OpenAI does, in fact, have the best model, Sierra has one of the best enterprise AI products. Brett That's a great idea. And Brett Taylor is arguably the best enterprise software operator of his generation right now. And as these foundation models get cheaper, intelligence will commoditize. So the scare asset won't be IQ. It'll be customer relationships, workflow integration, and enterprise trust. And that's essentially what Sierra's offering.
Kara Swisher · 55:09
Can I also say he can go toe to toe with Elon? He's the one who got Elon. Remember? Elon tried to pull out of the deal. He was he was the chairman.
Scott Galloway · 55:17
He forced him to close.
Kara Swisher · 55:18
Forced him to close.
Scott Galloway · 55:19
He said, there's companies worth three. You wanna pay 44? Sign here, here, here, and here. And, oh, remember me? You're the guy that signed these documents. You're closing.
Kara Swisher · 55:27
Right. He can go toe to toe with Elon. And, actually, it's very well liked in Silicon. Very well liked. Like, unusually well liked.
Scott Galloway · 55:34
Essentially essentially, Sierra is the Salesforce of AI. And if OpenAI wants to be more than the NVIDIA of AI, it needs to own the Salesforce of AI. So Do
Kara Swisher · 55:42
you think Sam Altman will give up the CEO ship? I'm not so sure.
Scott Galloway · 55:46
Well, this is what typically happens.
Kara Swisher · 55:48
Mhmm.
Scott Galloway · 55:49
The CEO is taking so much shit and and is seeing the valuation go down. That has gotta be fucking Vietnam minus the charm right now. I mean, I can't even imagine what it's like to be
Kara Swisher · 56:00
being liked. I'll let's say that.
Scott Galloway · 56:01
I can't even imagine what it's like to be Sam Allman. So he probably has agreed. This is typically what happens when the CEO is ten years like this and a founder. They agree to bring in a president, and then we all interview the president. And the really... The person we really like goes... Says the following. I'm not gonna be your fucking president. Make me CEO. And then we all agree to make him or her CEO. Bret Taylor isn't gonna take a president job.
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Scott Galloway · 56:24
And everyone that meets
Kara Swisher · 56:25
him did at Salesforce. Remember? He was Yeah.
Scott Galloway · 56:27
That was as a younger man joining joining Mark Benioff, one of the greatest entrepreneurs in software. Right? Yeah. Mhmm. He's his own he's his own CEO now. And so this this solves so many problems. It gives the market a sense of calm, and then an adult shows up. It's a chance for them to turn over a different leaf. It's a chance to create cloud cover to dramatically decrease the ridiculous CapEx. It's a chance for Sam to save face and be the chairman and the visionary and prepare and pretend that it was his idea, And they also get a company on the... In the application layer for 1% dilution. This makes so much... In sum, the two most... The three most acquire... No. Two most acquirable companies right now, Sonos and Sierra. But this just makes so much industrial logic. I'm I'm surprised. It may it may even be... We we may even be in the midst of it right now. But Sonos should be picked up by one of these guys looking to get into the home for scrap, but the real one here is Sierra. And it's not it's not... It's an acquihire. It makes industrial logic, but what they really need, if they announce Brett Taylor as CEO
Kara Swisher · 57:35
Yeah. Big deal.
Scott Galloway · 57:36
The the valuation of the company goes up a $100,000,000,000. They get 20 x on the acquisition price. Say they pay 10,000,000,000 for it. They get 10 x just by... With two words, Brett and Taylor. Yeah. OpenAI is worth more than a $100,000,000,000.
Kara Swisher · 57:50
Am I your muse? I think I'm your muse. Do you know that? I think I'm your muse.
Scott Galloway · 57:54
Well, you're my inspiration on a lot of levels, Kara.
Kara Swisher · 57:56
I am.
Scott Galloway · 57:57
I have
Kara Swisher · 57:57
to say.
Scott Galloway · 57:57
Yeah. There you go. Anyways I love it.
Kara Swisher · 58:00
Brett, call us.
Scott Galloway · 58:01
Sierra is gonna be acquired, and Brett Taylor, by OpenAI, Brett Taylor is gonna be installed as CEO.
— Predictions segment ends —
Kara Swisher · 58:06
No. I like it. I love it. Anyway, we wanna hear from you. Send us your questions about business tech or whatever's on your mind. Go to nymag.com/pivot to submit a question for the show or call 85551 Okay. That's the show. Thanks for listening to pivot, and be sure to like and subscribe to our YouTube channel. We'll be back next week.
Scott Galloway · 58:26
Today's show is produced by Lara Nayman, Zoe Marcus, Taylor Griffin, Todd Wiseman. Ernie and her Todd engineered the episode. Thanks also to Dubrowz, miss Severian, and Dan Shalon. Nishat Coroz, Voxmedia's executive producer of podcasts. Make sure to follow Pivot on your favorite podcast platform. Thanks for listening to Pivot from Box Media. We'll be back next week for another breakdown of all things tech and business care. Have a great weekend.
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