NYU Stern marketing professor Scott Galloway warns against OpenAI’s anticipated IPO, citing eroding competitive advantages and negative brand perception. Galloway predicts a possible withdrawal of OpenAI’s IPO plans despite reports of seeking funding at $830 billion valuations. He points to increasing competition, including from rival Anthropic, as a major threat to OpenAI’s success.

Galloway and cohost Ed Elson discuss a downward shift in sentiment towards OpenAI, attributing it to poor brand management and negative associations with key figures like Sam Altman. Investors, including Microsoft shareholders, are expressing doubts about the company’s growth narratives and the potential return on AI investments tied to OpenAI.

Retail investors face risks in a potentially inflated IPO market where institutions and insiders may benefit from discounted access, leaving retail investors to purchase at inflated prices. Galloway warns of irrational opening prices if OpenAI, Anthropic, or SpaceX go public, calling the current IPO environment a “rigged game.”

Acadian Asset Management’s Owen Lamont sees no AI bubble in the stock market due to the lack of a giant IPO wave. Blackstone plans a significant IPO pipeline, while Goldman Sachs predicts an IPO “megacycle” with unprecedented deal volume and sizes. Generative AI was used for research, with editorial verification before publication.

This news was originally reported on Fortune.com, highlighting Scott Galloway’s concerns about OpenAI’s IPO amid shifting investor sentiment and doubts about the company’s competitive advantage and brand perception.

Read more at Yahoo Finance.: Scott Galloway predicts OpenAI could pull its IPO amid AI ‘vibe shift’ as investors ‘gag’ on Trump proximity, questionable revenue