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Trump's Crypto Windfall, Dems' Anti-Establishment Wave, and the Supreme Court’s Big Week
Where this was said
The AI Demand Crisis: 1999 All Over Again
At 59:20 · chapter starts 53:55
The conversation turns to a detailed structural analysis of the AI investment cycle. Scott invokes Palantir CEO Alex Karp and investor Mark Cuban as independently reaching the same conclusion: token costs are untenable, Chinese open models are eating frontier model consumption, and enterprises are pulling back on AI budgets. [1] — Scott Galloway "In the dot-com crash, it went B2C first, then B2B, then infrastructure. Scott Galloway sees the same pattern now: AI application spending i…" 53:50 Scott maps the dot-com analogy carefully: in 1999, everyone invested in the application layer (Amazon, eToys, Pets.com), found insufficient demand, then piled into infrastructure (Cisco, telcos) — which subsequently lost 93% of its value. Today's sequence: AI application demand is stalling, Meta and xAI have already announced they overbuilt for their own LLM needs and are now renting out capacity, and the transition from supply crisis to demand crisis happened in roughly 30 days. The B2C names will be hit first, then B2B, then infrastructure — NVIDIA, Cisco-style. Evidence: OpenAI and Anthropic are reportedly considering delaying their IPOs.
Scott Galloway cited Meta's 72% value collapse in 2022 as evidence that even elite tech companies can suffer near-total drawdowns, a warning for today's AI-inflated valuations.
