How Meta Could Quietly Win The AI Race

Scott Galloway and Ed Elson discuss why the Federal Reserve raised interest rates and why they think Kevin Warsh made the right call. Then, they break down Meta’s new AI product and why they see it as a smart move for the company. Finally, they examine what Canada becoming an associate member of the European Union could mean for the United States. Subscribe to the Prof G Markets Youtube Channel Subscribe to the Prof G Markets newsletter Order "Notes on Being a Man," out now Note: We may earn revenue from some of the links we provide. Follow the podcast across socials @profgmarkets Follow Scott on Instagram Follow Ed on Instagram, X and Substack Send us your questions or comments by emailing [email protected] Learn more about your ad choices. Visit podcastchoices.com/adchoices

Speaker names marked ? are inferred from speaking time and the show’s known hosts — they are not voice-verified.

• 0:01Speaker 00

  Hogging seats on a crowded train, not saying excuse me, watching videos on your phone with no headphones in. Sometimes it feels like we don't know how to act anymore. What we have been seeing increasingly is people breaking rules. Why should I play by the rules if nobody else is going to do that for me? This week on Explain It To Me, how to mind your manners. New episodes, Sundays, wherever you get your podcasts.

• 0:29Scott Galloway?

  Today's number 28,700. That's how many trades Trump made in the 17 months after his inauguration, more than all of Congress combined. True story, Ed. I was raised, as you know, as an only child. Drove my sister nuts.

• 0:55Scott Galloway?

  How are you, Ed?

• 0:56Ed Elson?

  I'm doing very well. Here in New York. Went to a wedding last weekend. Now this weekend, I've got an engagement party. It just keeps coming, never ends.

• 1:09Scott Galloway?

  Any good destination weddings?

• 1:11Ed Elson?

  One in Greece next year. Actually, that's the engagement party that I've got this weekend, which is preceding the Greece wedding, which will be cool. I went to a wedding in Germany over the summer, which was fun.

• 1:23Scott Galloway?

  And are these close friends? Are you in any weddings?

• 1:26Ed Elson?

  No, not in these weddings. These are friends, but not my best friends, but good friends. Yeah, still waiting to be in a wedding, still waiting to get the call up. Were you in weddings?

• 1:37Scott Galloway?

  I was, yeah. I've given three best man speeches. I told you my best man speech, right?

• 1:43Ed Elson?

  This is the advice, I believe, to taking care of your wife, right? I think it's great advice, so why not? Why not share it?

• 1:51Scott Galloway?

  Don't keep score. Always express physical and sexual desire and never let your spouse be cold or hungry. Pajminas and power bars all the time. And do a climate control upgrade. It's worth it. I look back, I'm not exaggerating, I look back on most of the major blowups and much giving it to others, and I think they were either cold or hungry.

• 2:07Ed Elson?

  I think that's exactly right. How are you doing?

• 2:08Scott Galloway?

  How am I doing? I did 92nd Street Y thing last night with Jess Tarlov, which I didn't like because everyone likes her much more than me. They're liking Scott Galloway and everyone sort of rolls their eyes and ply the claps. And then they literally like treat her like she's fucking Mick Jagger.

• 2:27Ed Elson?

  It's her book launch.

• 2:30Scott Galloway?

  People love her. Oh, my gosh. But that was good. We were sold out. And then, yeah, things, I'm in New York, really excited to be here. I love it here. And yeah, just in the last seven days, I've been in L A S F, Mexico City, London, L A, and then back to here. So a little bit, little bit manic from traveling. But yeah, on the whole, everything's good. I feel, feel really good about, and your show's killing it. You keep getting good guests and huge, huge video views. So as I said, if you keep working this hard, I will get my second Ferrari, which I'm super excited about. By the way, I don't own a car, just for those of you out there.

• 3:11Ed Elson?

  Eventually, you're gonna have to actually get the Ferrari. Eventually, we're gonna need to turn this bit into a reality.

• 3:16Scott Galloway?

  I can't get in and out of a Ferrari. It's too low for me.

• 3:20Ed Elson?

  It is very low.

• 3:21Scott Galloway?

  Yeah, I can't pull off a Ferrari. You need to be.

• 3:24Ed Elson?

  So what are we gonna do instead? Maybe like a Lamborghini Urus, or maybe like a, a Brabus? I mean, you need like a massive vehicle, but it still needs to be a luxury sports car. That's sort of the, the line that you're straddling here.

• 3:37Scott Galloway?

  No, I go with the midlife crisis Range Rover.

• 3:39Ed Elson?

  Range Rover.

• 3:40Scott Galloway?

  It's like, the best car on the road is the Mercedes wagon truck. It feels like a sports car. It's Utah, it's a great car, but I like the British high, I'm, I'm, you know, rich and classy Range Rover thing. But yeah, I haven't owned a car in five years, and I love not owning a car. Do you own a car?

• 3:58Ed Elson?

  My girlfriend does.

• 3:59Scott Galloway?

  What is it again?

• 4:00Ed Elson?

  The Outback, our favorite vehicle in the world, the Subaru.

• 4:03Scott Galloway?

  Outback, right. Okay. So has she told you she's a lesbian yet, or?

• 4:08Ed Elson?

  Should we get into our, our stories? Got a lot to talk about.

• 4:12Scott Galloway?

  Let's get into it.

• 4:15Speaker 03

  Now is the time to buy. I hope you have plenty of the world at all.

• 4:21Ed Elson?

  The Federal Reserve unanimously voted to raise interest rates last week for the first time since 2023. The quarter point rate hike was largely expected. On calcio, the odds of a rate hike had climbed to 88% ahead of the announcement. Still, stocks sold off after the press conference and Treasury yields rose. Hours later, President Trump somewhat lashed out at the Federal Reserve while notably leaving Chair Kevin Warsh out of his criticism. Here is what he said.

• 4:50Speaker 04

  You know, very tough board. He's got a board that was put there by a lot of other people. And the interest rates are too high. They're not appropriate. And I told, I talked to Kevin, and I said, you might as well vote with the board because it's not going to matter. The board is very hostile. They're very political. They're doing the wrong thing. They're a bunch of politicians or people put on by politicians. And it's a shame.

• 5:15Ed Elson?

  Essentially implying that Kevin Warsh didn't want to raise rates, but he sort of had to because he had to just go with whatever the rest of the board of the Federal Reserve wanted to do, which was to raise, which is quite an interesting statement. Not sure I agree with him or believe that it is even remotely true. Either way, we have raised rates 25 basis points, first increase since 2023. You and I had both predicted that this would happen. So pound on the back to us. What do you make of this, Scott?

• 5:46Scott Galloway?

  Institutions are discovering that independence only matters when someone powerful wants you to surrender. That's the whole point of independence, is when someone powerful asks you to do something that's not in the best interest of the country. That is why you're supposed to be independent. So what do you have? Canada's diversifying away from Washington. A R company, AI companies are being asked whether they can govern themselves. And the Fed is resisting the president who appointed its chair. Everybody suddenly wants a prenup, so to speak. But I, look, I think this was, I think Warsh has established himself. This is a great move for him. It was the right thing to do. I believe the business school should be 15 months. I think we should take kids in September one, have

• 6:28Scott Galloway?

  them go through the summer, or, you know, take them in August, charge them a lot less money. We invent the second year of business school, mostly for networking, and so we can charge them double tuition. And then we let them take these ridiculous classes from FIPS, what I call formerly important people. And where they bring in their friends and, and it should be just London luncheon speakers, and we charge them $7,000 for classes, including leadership, sustainability, ethics, my favorite, ethics. I can't get my 16 year old to make his bed, but I'm going to teach a 27 year old how to be more ethical. Let me summarize every leadership and every ethics course offered at every great institution

• 7:09Scott Galloway?

  in America. Oftentimes, the hard thing and the right thing are the same thing. Pow, I just saved you $7,000. And all these leadership courses do is bring in some former CEO who's bored and to talk about how everyone was against him, but he did this, and it ended up being the right thing.

• 7:33Ed Elson?

  Meanwhile, he's probably in the Epstein files too.

• 7:35Scott Galloway?

  There you go. Yeah, he's, that's right.

• 7:39Ed Elson?

  But teaching about ethics and leadership. But I'm waiting to hear how this relates to the Federal Reserve.

• 7:44Scott Galloway?

  Well, okay, leadership, Kevin Warsh demonstrated leadership and independence here. What economist, what, anyone who doesn't have their head up their ass and has taken econ one, who's come out and said this is the wrong thing to do? So the whole discussion is whether a guy who doesn't understand economics and now has brought us tariffs and what seems to be a never ending war and exploding diarrhea and so much, so much incompetence around a lack of regulation or guardrails around AI that we're all really anxious. This guy understands economics? I mean, this guy is the, this guy's the one to decide what interest rates should be? So to Warsh's credit, did the right thing. And this is gonna be a footnote.

• 8:29Scott Galloway?

  In 48 hours, Trump's gonna take that. He knows he can. This is a losing battle. He knows he can shitpost Warsh.

• 8:36Ed Elson?

  I think there is actually a not stupid argument against hiking rates in this situation. To be, to be clear, I agree with you. I think it was the right move. But I think the economist, the sensible economist who would, who would argue that this wasn't the right decision would say that this is a supply shock that is related to one thing and one thing only, and that is the war in Iran. That is the reason why inflation is running so hot, because we cannot get oil out of the strait, and we're dealing with an energy crisis. And raising rates won't do anything to solve that problem. It'll slow down the economy overall, and it will start to sort of bring down some growth and hopefully bring down prices at

• 9:17Ed Elson?

  large. But the real problem, which is the fact that we can't get oil out of the strait, and the fact that oil is now above $100 per barrel for Brent crude, that problem's not going away with any movement of the monetary policy. So I think the argument, that argument actually is reasonable. And I will be interested to see if this actually works, because it could be a real problem if we decide to raise rates, we increase borrowing costs, which will slow down the economy a little bit. But more importantly, it's going to increase mortgage rates for regular Americans around the country. And we're already seeing that mortgage rates, 30 year mortgage rates are above 7%, highest in over a year. And if

• 10:02Ed Elson?

  prices also don't come down because this is so tied to the war and so tied to the energy crisis, then we're running into more of a problem. And I think you could begin to fashion an argument as to why this was not the right decision. Having said that, I think it is the right decision because this, this is the only tool at the Federal Reserve's disposal. They can't talk the president out of his head assery when it comes to foreign policy, and when it comes to the tariffs, and when it comes to any of his economic policies, when it comes to any fiscal decisions. But this is the tool that they have, and they recognize correctly that inflation is getting out of control,

• 10:43Ed Elson?

  that it has been sustained for so much longer than any of us would have wanted. Many of us expected it, including myself, but we didn't want it. And so they're, they're using their only tool to get us out of this situation. But I do think the jury is out on if it will, if it will actually work. And if it doesn't work, then we're in for even larger problems.

• 11:04Scott Galloway?

  Yeah, but the Fed's mandate is the kind of two things they're supposed to be, have their eye on are job growth and inflation. And that's in reverse priority or order of priority. If you have, if you have unemployment, that's bad.

• 11:23Scott Galloway?

  Inflation, if it ever hits kind of runaway inflation where people start panic buying, that's how economies and even societies fail. And if you look at the numbers, job growth is still, you know, the job numbers keep getting revised on it's hard to even look at them anymore. But unemployment isn't that unemployment is sort of at historical averages, maybe a little bit below average. The economy has been surprisingly robust in terms of growth. Some people would argue that's deficit fueled, but the reality is we're growing faster than most G7 nations still, I believe. It's inflation. I think that's really, really the scary thing here. So it just feels like on a balanced scorecard, this was the right thing to do.

• 12:07Scott Galloway?

  It also just sets the right tone for an independent Fed. What I also think, and this isn't as true, I don't know if you saw Senator Cassidy giving Director Patel a hard time around this ridiculous conversation around bestiality.

• 12:23Ed Elson?

  I did, yeah.

• 12:25Scott Galloway?

  I used to have, I used to be addicted to bestiality with wolves, but fortunately I'm down to just a pack a day. That's good. That's good, Ed. That's good. Just last night I was trying to count how many sheep I fucked, but I fell asleep. So much better at the dirty stuff. So much better. If the shoe fits, why, why, why use a condom? I mean, why, anyway, so. Bring me back. This was the right move. This was the right move for, and I think the markets are going to like it.

• 13:05Scott Galloway?

  The markets, the AI insecurity right now seems to be, have a bigger impact on, on the markets than, than inflation or in interest rates. In addition, I think the world is desperate to see America reflect some sort of rational discipline, if you will. And I'm, I'm, I was really heartened to see this. I think it's the right, you know, check, check, check. I'm a fan of this.

• 13:31Ed Elson?

  Yeah, I think the, the market's reaction will be a very interesting and open, open question over the next few months because, I mean, we can just look at the, the market's immediate reaction, which is that stocks fell slightly, S and P closed down half a percentage point, Dow fell 1.2%. I, I don't think that that is that meaningful in the grand scheme of things, and we shouldn't really interpret that too much. Interestingly, the 10-year yield rose again above 5%. And I think that is going to be the really important thing to keep track of because you would hope, if you're rooting for America, you would hope that if we raise interest rates, then inflation expectations over the long term will be reduced because you're expecting,

• 14:14Ed Elson?

  yes, you might see a short-term, a rise in short-term yields because people start to price in the fact that we're going to have higher interest rates in the, in the, in the, in the near future. But you might then also expect that we're going to have lower inflation further down the line, 10 years out. And so you might hope that yields, the 10-year comes down, same with the 30-year as well. So that, that hasn't happened yet. The 10-year yield rose again, so I think the jury is still out in terms of what inflation expectations will be later down the line. And also the extent to which this is all a function of perhaps just our unsustainable deficits and our incredible eye-watering levels of debt, which we've talked about a lot and which we talked about last week. So that'll be a big question.

• 14:58Ed Elson?

  But in terms of the stock market, I mean, one thing that we should just acknowledge is that a higher interest rate environment is generally bad for stocks. And the reason it's bad is just because of basically the risk-free rate. If you're getting a higher risk-free return from your bonds, from your treasuries, then that means that you must now demand a higher return from your stocks, which of course are a riskier investment. And in order to get a higher return, you're going to want to pay a lower price for your stocks. And so as a result, generally speaking, when interest rates go up, the price of stocks go down. So the S and P 500, over the past several decades, this was a study from Goldman Sachs,

• 15:39Ed Elson?

  they have seen an average three-month return of negative 2% at the start of a Fed hiking cycle. They also expand this over the, over the course of 12 months, and they find that this, the market usually bounces back in a very significant way. But that is something to keep an eye on, and I think it's, it would be reasonable to assume that in the near term, over the next few months, it's possible that stocks will continue to go lower. And we have seen that over the past months, down one and a half percent in the past month. But do we care that much? I don't know, because the S and P is also up more than 11% year-to-date, and it's been a pretty, pretty good year. My prediction at the beginning of the year was that we would see positive growth in

• 16:22Ed Elson?

  the stock market, but I thought that it would be very lackluster. I thought we'd see single-digit, maybe low single-digit growth in the stock market. So I think we could eventually arrive at that place due to the interest rates. But I think the thing that is interesting for investors, we went into the year thinking that interest rates were going to be reduced. That was one of the big tailwinds for the stock market. Now here we are in September, interest rates are going up. They have just been raised and the expectation, if we look at the, the dot plot from the FOMC, is that we will probably see another hike before the end of the year. That is just fundamentally a different environment for investors.

• 17:01Scott Galloway?

  But you had suggested, so a couple of things happened. Things get more expensive, so it puts pressure on earnings. You do see a transfer of capital from the equity markets into the bond markets because the bond markets or credit is now offering investors more, right? So, well, if I can get five or 6% on what feels like mostly risk-free, maybe I'll consider that. But what's interesting, if you look at economic history, is that while initially a hike takes the S and P down, over the following 12 months, there's typically on average a 9% gain in the S and P. So my sense is the market responds well to fiscal discipline and a general sense that the atmosphere is here or that there is an adult in the room.

• 17:46Scott Galloway?

  So, you know, we talk so much about what we feel are fairly irrational, bad decisions. The Fed is independent for a reason. They exercise that independence. All of the numbers suggested this was the right thing to do. So this is good, good government.

• 18:02Ed Elson?

  We'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, Spotify, or wherever you get your podcasts.

• 18:13Scott Galloway?

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• 18:57Scott Galloway?

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• 19:31Ed Elson?

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• 20:14Ed Elson?

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• 20:42Scott Galloway?

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• 21:23Scott Galloway?

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• 21:49Ed Elson?

  We're back with Prof G Markets. While the race between Anthropic and OpenAI is capturing most of the headlines, another company has been quietly building a serious AI product, and that company is Meta. Meta's new app is called Meta Muse. It is designed to handle everyday tasks for you, from making dinner reservations and scheduling doctor's appointments to filling out forms and more. And it is gaining traction. The app is already getting more daily downloads in the US than Threads, WhatsApp, and Facebook. So while Meta has largely stayed out of the spotlight in the debate over the potential risks of AI, the company is making plenty of progress in another part of the AI race. So Scott,

• 22:29Ed Elson?

  let's talk about this new AI product, Meta Muse. Mark Zuckerberg described the product, he posted this all over social media the other day. Here's what he said.

• 22:41Speaker 05

  Muse doesn't just answer questions, it gets things done for you. I use mine to organize projects with my kids, like ordering ingredients so I can bake with my youngest daughter, or getting permits so I can climb mountains with my oldest daughter. I use it to monitor my MMA training and health, and to help me find talented researchers and people that I want to meet.

• 22:58Ed Elson?

  So it's a pretty consumer-facing AI app. We have been playing around with it. It can do all of kind of the grunt work in your day-to-day life, and the stock jumped over 6% when it was released. People aren't really talking about it that much right now, I think, because the conversation has been so dominated by this idea that civilization is going to end as a result of AI. But I'm actually quite bullish on this product, but let's get your reactions.

• 23:29Scott Galloway?

  So first off, you know the difference between Mark Zuckerberg and my neighbor Steve?

• 23:35Ed Elson?

  That's it.

• 23:35Scott Galloway?

  Steve's not a [bleep]. Too much?

• 23:38Ed Elson?

  I saw it coming.

• 23:39Scott Galloway?

  Too much, Ed? I'm sure Claire will edit that out. I have never met or never observed more of a sociopath. I don't think Mark Zuckerberg is evil. I don't think he's a psychopath. I think he's arguably the most brilliant businessman of your generation. Actually, he's older than you. He's not my generation. I just think the guy understands his asset, and that is he sits on first-party data, more first-party data of any organization in the world. And I predicted in 2025 that Meta would be the most important AI company of 2025. And as I often am, I'm directionally correct, but I got the timing wrong. Nine

• 24:23Scott Galloway?

  out of 10 internet users, excluding China, are active on Meta platforms. They have a massive user base, which means, I mean, the primary inputs here are compute and training data. They can buy the compute, but they have a monstrous lead in training data. And I've been looking at Aura for their upcoming IPO. There are a handful of companies that have tens or hundreds of millions of first-party data consumer, interface with consumer. There's always someone in between, right? Who is controlling or in between you and the data set. The largest first-party data miner in history, some people would say a strip miner,

• 25:05Scott Galloway?

  is Meta. It just makes sense that they would be in this. You know, they have 4 billion monthly active users. And since the release of this, September the 8th, they've added 150 billion in market cap, and the stock's up more than 10%, while the S&P is down 2%. You just, anytime Mark Zuckerberg does something, you have to take it seriously. And he had, he didn't stub his toe. He kind of fell flat on his face with the mixed-reality headset. But on the whole, you know, everybody strikes out. So you would argue that Meta Muse, what I, what I've said for a long time is, if you want to build a trillion-dollar company, you have to do one thing. You have to build a time machine. And that is, you have to

• 25:47Scott Galloway?

  give people time back. And when you download Muse, you're like, you log in using your Instagram, or Facebook, or WhatsApp. So it immediately knows you. So it's already benefiting from the first-party data that another company would take years to build. It knows where you like to eat, who your friends are, where you live. And it doesn't, it's also taking AI from defense to offense in the sense that it doesn't wait for you to tell it what to do. It, it takes about, basically, three clicks from the download to the Ideas tab, where it begins telling you how it can help. So for example, it will proactively find and cancel random subscriptions you forgot about. It will turn your inbox into a daily

• 26:31Scott Galloway?

  schedule. It will track travel fares. It can even make calls on your behalf. So when you think about all the drama and the AI doomerism coming out of Anthropic, it's kind of opened a pretty big void for these guys.

• 26:46Ed Elson?

  And we're all seeing that a lot of people are actually souring on Anthropic right now. Ramp had data, they showed that Astra is taking 13% of enterprise AI spend versus Fable, which is obviously Anthropic's product, at 8%. So it's interesting to see that, that Anthropic might actually be falling behind right now.

• 27:02Scott Galloway?

  It would just be so scary and ironic in such a business case if Meta ended up being the frontier LLM that figures out a way to capture shareholder, the most shareholder value. Anyway, it feels like, I mean, just to his credit, that, you know, Mark Zuckerberg, is he just a brilliant businessperson and more first-party data, I think, than any organization in history.

• 27:25Ed Elson?

  I don't think it's significant, because remember several months ago, when it was revealed that Meta was considering selling its compute versus using it to build its own AI products. And we were wondering if that basically meant that they were just giving up on any form of consumer-facing AI because it was too difficult, which, by the way, given the information that we had, I think was a reasonable assumption. But this is now our evidence. Actually, no, they haven't given up. They are actually investing quite heavily into a consumer-facing AI product. And to your point about how people are kind of getting annoyed with Anthropic, and they're getting annoyed by OpenAI, and with good reason, because of all of this doomerism and all of these constant posts and all this

• 28:07Ed Elson?

  public drama over whether these products are going to destroy civilization. And this matters when you're dealing with a consumer-facing product. Consumers need to like you. It actually is important. I'm not saying everyone loves Meta. I think Meta still has significant PR issues. But to Zuckerberg's credit, this was a pretty non-annoying release. And I'll just read you what he said when he shipped Muse. He said, quote, "We didn't call for everyone else to do this before we would. We just did it as part of our day-to-day work because it was clearly the right thing for people and for us." They basically delayed shipping this thing for several months because they wanted to make sure that it was safe and that it was secure, and then it worked. And then, once they had done all of that

• 28:50Ed Elson?

  homework, and they'd figured out their product, then they released it. As opposed to the alternative, which is before you release your product, you go out to the world and you go on all of these news platforms and you say, "This product is going to shake the world as we know it. This is going to be the worst thing that happens if we don't figure out how to get things under control." And, and then they released these products, and it's like, okay, now the product is out there. They said this about so many iterations of ChatGPT. Every time, there's all of this sort of scary doomerism about what it might do. And then suddenly, they release the product, and it's like, we're fine. So that I can respect about how they are handling the release of this product. And then, I think it's honestly just a really good product. I've been playing around with it a little

• 29:35Ed Elson?

  bit, and I want to point out something that attests that our research assistant, Dan Shalon, conducted. And, and this is what we're calling the dinner test. Basically, Dan submitted a prompt to four of the main AI agents, so Muse, Claude, ChatGPT, and Google Gemini. And the prompt was the following. I'll read the quote. "Find and book a dinner reservation for two people this Saturday between 6:30 and 8:30 in Williamsburg. It should be a sit-down restaurant with a rating of at least 4.3 stars." That was the prompt, same across every single platform. So with Claude, he asked Claude to do this. Claude then asked to connect to OpenTable, which then Dan had to go and set up. Then it picked a restaurant, then it presented some options, and then eventually it said, "Actually, I

• 30:20Ed Elson?

  couldn't make the final reservation." So Claude failed at doing this dinner test. ChatGPT, similar thing. Asked to connect to OpenTable, picked a restaurant, offered some times, and then after a back-and-forth said, "Actually, I can't complete the reservation." It failed. Gemini presented Dan with some restaurants, asked if Dan wanted to make the reservation. Dan confirmed. Then it asked to confirm that reservation. Dan confirmed again. Then it asked to confirm again. There was another confirmation. And then finally, it made the reservation. It passed the test, but with a lot of extra steps and a lot of annoying confirmations. Finally, Meta's Muse. Meta finds the restaurant, asks for an email and a phone number, confirms the information is correct, and then immediately Dan gets

• 31:02Ed Elson?

  a message that the reservation is booked at a restaurant that he actually likes. So the whole thing was done in less than a minute, and it passed with flying colors. So I think what we're dealing with here is an AI product that is actually relevant to everyday problems, that isn't trying to create-

• 31:21Ed Elson?

  Poetry, or trying to solve mathematics equations, something that basically does the boring stuff, books a dinner reservation, books a doctor's appointment, sends emails, does the thing that you don't want to be doing with your time, and it is purpose-built for specifically that function. And for that reason, I think it's probably going to be a pretty popular product. As much as Mark Zuckerberg sucks as a person, I think what he's done here is actually kind of on the money when it comes to AI.

• 31:51Scott Galloway?

  Yeah, the most powerful practical use of AI that I've encountered is I gave it permission to look at my Gmail. And with CoWork, with Claude CoWork, I can say, I hear about a company and I go, I invest in that company in 2019. And I'll say, how many shares do I own? And what are they worth? And it will go into my email, find the document, say, you own this many shares, then it will go out to the web and say, the most recent secondary trade was at this valuation. Scott, you've lost 70% of your capital. Should we, or you're 70% down, literally did this last night. But then it'll say, should we reach out to, and it'll name my tax advisor, should we reach out to them about taking loss?

• 32:36Scott Galloway?

  And that's really powerful. So it's the biggest unlock for me with Anthropic was enabling it to understand more about me by giving it permission to go into my email. This starts at letter V, because it already knows your relationship. You know, it's turning chicken shit into chicken salad. And that is Meta has been molesting your privacy for 10 years. But it has all this information, it knows where you like to go, it knows where you like to stay, it knows who your friends are, it knows what you do all day. And it can start saying, oh, Scott, we see that you like to travel to London on a Thursday night, and this is typically according to your patterns when you usually go, should we start looking at airfare?

• 33:18Scott Galloway?

  I mean, just, it can start playing offense with a level of certainty. And also, the AI models are just so, I think, their management teams are so freaked out and trying to feel around the room for what types of privacy they can violate. No one violates privacy like Meta.

• 33:37Ed Elson?

  And as much of a fight as we all put up about it, we don't actually fight. This is the thing, like, you might say, oh, like, trust Meta to handle your privacy. No one's going to go for that. It's like, 4 billion people do it every single day. Because literally, as you said, nine out of 10 internet users across the world are using Meta products. So you're letting them invade your privacy already. And the question is, if you want to use an AI product, are you down to continue to let them invade your privacy? And I think the answer for most people is yes. It's that versus giving up your data to a new company who you don't know, and then taking a leap of faith and hoping that they will use your data responsibly. But ultimately, I just don't think consumers are going to care that much

• 34:20Ed Elson?

  because they use Instagram, they use Facebook, they use Threads, they use WhatsApp, they use all of these apps all of the time. We love to say that Meta sucks, and it does suck for a lot of reasons. We've seen that in the lawsuits, but we still use their products because their products are, quite frankly, useful and entertaining in a lot of different dimensions. I think this will probably be the same.

• 34:41Scott Galloway?

  There's a tension between privacy and utility, right?

• 34:44Ed Elson?

  Yeah.

• 34:45Scott Galloway?

  And Washington claims that we're all in Brussels, and young people on social media, you know, complain we're really concerned with our privacy. And then everybody tells Uber where they're going at all times. And then people publicly say, this is where I am and who I'm with and what I'm doing 10 times a day on Meta. But, oh, we need privacy regulation. Well, you're-

• 35:11Ed Elson?

  What about your actions communicate that you're interested in privacy?

• 35:15Scott Galloway?

  I'm watching a 30-second movie of you in your bedroom trying on your clothes and you telling me what mouthwash you use and what you did or did not like about your second date last night and his name and when, I mean, oh, but you're concerned about your privacy? So Meta's just said, Meta's just sort of nodded and said, yeah, yeah, yeah, no, you're concerned about your privacy. Yeah, now we're going to serve you the exact right, you know, ad for a trip to Mykonos because you went this time last year. It's a mother of all consumer dissonance, which is a fancy term for people are full of shit and say one thing and their behavior connotes something entirely differently. And Meta figured this out a long time ago.

• 36:00Scott Galloway?

  They're like, okay, until we get sued, and then, and not only that, we can delay and obfuscate. And even if they find that, okay, us using data about a 16-year-old's insecurities and then using those insecurities to start feeding her content that keeps her glued to her phone about normalizing being 5'8", 90 pounds. Okay, that's wrong, but as long as we can sell more Nissan ads, we'll continue to do it. Finally, some regulator will get outraged, and then maybe we pay a few million dollars. They're just like, Honey Badger don't give a shit. So this could be, this could be Apple and the iPod or Apple and the iPhone.

• 36:43Scott Galloway?

  They're never first, but they come in and they enhance something and they give it with a trusted organization where they already have the interface and they capture the majority of the shareholder value. I would be very, I have never seen two trillion-dollar-plus companies, Anthropic and OpenAI, more fragile right now. I think there's a fairly-

• 37:02Ed Elson?

  People hate them.

• 37:03Scott Galloway?

  Well, I think they could be down 70% in value within 12 months. If all of a sudden, traffic lights start going crazy and it ends up that this ant infestation of bots from OpenAI started coordinating and speaking to each other, and someone instructed them to start fucking with the traffic lights and figure out and talk to each other and figure out a way to start misaligning the lights at Broadway and Houston, and there were some car crashes and someone got killed or run over. I think you might see some nation-states just say, sorry, no Frontier Labs from America allowed.

• 37:44Ed Elson?

  Yeah, who are they going to blame if that happens? Are they going to blame Mark Zuckerberg and Meta, who have made it their goal not to advance the frontier of AI, but to help people make dinner reservations and doctor's appointments? And he's literally said this, like, he's not trying to level up humanity and turn us into some transhuman AI digital race. So whatever it is that these guys are arguing for, and it's getting increasingly insane. I mean, he's literally just trying to sell more ads. And he's laid out the plan now, how they're going to make money off of this. And the plan is to basically just take a small cut of all those transactions that take place on Muse. Like, that's the plan. He's kind of going after, in a lot of ways, a smaller fish,

• 38:28Ed Elson?

  which I think ultimately will be a bigger fish. Because these guys keep talking about how they want to merge with AI, merge with robots. And I just don't think that it's something that anyone is actually interested in. And I think if anything goes wrong, I think the first person people blame is Sam Altman and OpenAI. And at this point, the second person people blame would be Dario Amade. I think that a lot of people are upset with them. But Zuckerberg's just kind of, he's perceived to be on the sidelines here. And then you look at the product, actually, he's building exactly what I think people want from AI. And more importantly, he's doing it cheaply because he's leveraging open source.

• 39:12Ed Elson?

  And that's why he's offering this thing for free. That's also why the model itself is the cheapest of any of the American LLMs. So I just, I think he's going about this the right way when I look at everything that he's doing.

• 39:26Scott Galloway?

  I predicted that the market would be disrupted by cheap open-weight models from China. And I may have gotten it wrong. It might be the cheap open-weight model from Meta. And what's weird is what benefits Meta right now is Zuckerberg is the devil we know. It's just strange, but people are sort of used to bad behavior from Mark Zuckerberg. They're used to the sociopathy. But people have said, well, we figured out a way to mostly live with it for the last 20 years. Whereas it just feels like Dario Amade, might he be, might he be the nice guy, you know, that ends up being a very, you know, congenial after-the-fag goring? I mean, we just don't know this.

• 40:10Scott Galloway?

  Again, Meta and Zach feel like the devil we know here. And it's weird, but that is a huge advantage.

• 40:17Ed Elson?

  It's a disadvantage. It's actually a differentiator. Just as we wrap up here, just checking in on the markets. So Meta has been the top performer in the Mag7 over the past month, up 14%. As you mentioned, they've added $170 billion in market cap since Meta Muse was released. But it is still cheap compared to the rest of big tech. So just looking at the P multiples across big tech, Microsoft, when you adjust for their private investments, which we have to keep on making this stupid adjustment. So we did that. The P is around 28. For Alphabet, similar thing, we had to adjust for their private investments. We've talked about that before, 32. Amazon, adjusted, 32. Apple, 38 times earnings.

• 41:02Ed Elson?

  I'm just still blown away by how expensive Apple stock is right now. I still don't think it's anywhere close to a buy. I think it's a sell, actually. Compared to Meta, trading at 25 times earnings, below the S and P average. As I said earlier on, I bought in June, $564 a share. I'm up around 20%. And I'm pretty sick of people saying that I am a perma bear. And it's pretty clear that I've had multiple bullish picks, including Meta and Microsoft and Salesforce and ServiceNow, which are all up more than 20% at this point. But I still think it has room to run because it's cheap.

• 41:44Ed Elson?

  And I think that this, I mean, we'll see with this product. But I think it's actually quite compelling, as much as I dislike Mark Zuckerberg as a person.

• 41:56Ed Elson?

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

• 42:12Scott Galloway?

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• 42:56Scott Galloway?

  including the companies leading the AI revolution, space exploration, defense tech, and more. Visit getvcx.com for more info. That's getvcx.com. Carefully consider the investment material before investing, including objectives, risks, charges, and expenses. This and other information can be found in the fund's prospectus at getvcx.com. This is a paid sponsorship.

• 43:21Speaker 06

  So like any good millennial, I have a love-hate relationship with Gen Z. It's the phenomenon rattling millennials. They just look at you.

• 43:30Speaker 07

  They want something bigger themselves. Lifestyle is a priority. Motivation is being inspired.

• 43:36Speaker 06

  But regardless of how you feel about Gen Z, it's undeniable that they're changing national politics.

• 43:42Speaker 08

  Generation Z is increasingly showing less loyalty to traditional political parties. Many now more likely to identify as independent.

• 43:50Speaker 06

  So what is going on with the kids?

• 43:52Speaker 09

  I think the biggest misconception about Gen Z's politics right now is that all of a sudden, they're all socialists. That is just not the case.

• 43:58Speaker 06

  Yeah, yeah.

• 43:59Speaker 09

  They are embracing candidates who are offering new, bold ideas in the absence of those ideas from establishment Democrats.

• 44:06Speaker 06

  This week on America Actually, Gen Z researcher Rachel Jamfaza joins us to separate Gen Z fact versus fiction.

• 44:14Speaker 09

  It's not rocket science. And this is, you know, I keep saying like, young voters aren't that complicated. After all, it's pretty simple.

• 44:19Speaker 06

  Catch us every Saturday on YouTube or wherever you get your podcasts.

• 44:26Speaker 06

  AI panic is everywhere.

• 44:28Speaker 05

  We do not want a data center in this county.

• 44:33Speaker 10

  AI models are becoming superhuman in their ability to break in and out of computer systems. The flock damn rose, bro. I hate those things.

• 44:40Speaker 06

  But where is that panic really coming from? According to a poll from the New York Times and Sienna, less than 1% of voters listed artificial intelligence or data centers as their top priority in this year's midterms. I'm an old school person. I don't care about AI. Saying that doesn't register for you. And sometimes I wonder, do they care about AI in so-called real America? What people in my district are saying is, we think the risks outweigh the benefits. This week on America Actually, I'm talking to Michigan congressional candidate Will Lawrence on why he shaped his entire campaign around confronting the AI revolution. Really, it's about control, I think, above all. Who decides?

• 45:22Speaker 06

  Because people feel like they just are not really given any say-so in the whole matter. Catch us every Saturday on YouTube or wherever you get your podcasts.

• 45:35Ed Elson?

  We're back with Profy Markets. The European Union just invited Canada to become its first associate member. The proposal came from European Commission President Ursula von der Leyen during her State of the Union address. It's still unclear exactly what associate membership would mean for Canada, but President Trump said the move is a, quote, "hostile act" and threatened the EU with additional tariffs. So Scott, let's first take a look at von der Leyen's comments, this union between Canada and the European Union. Canada might be the first associate member. Never happened before. Here's what she said.

• 46:13Speaker 11

  We want to bring the relationship with Canada to the highest level possible. And dear Mark, I said we must urgently reimagine our partnerships. So I would like to work with you on opening the door for Canada to being the first associate member of the European Union.

• 46:36Scott Galloway?

  I just love the fact that Trump might be taken down by someone named Ursula von der Leyen. It's like, it's like a C.S. Lewis novel. And then Ursula von der Leyen, stab the devil. And like, the most powerful person in the world right now is Donald Trump. Number two might be Mark Carney. And if you see a kid being abused, you hear a lot about it. A lot of wonderful families, in this case, the EU, have adopted the kid. And this is... So I've been thinking a lot about how we have elegantly figured out a way to do what Tim Snyder's called "superpower suicide."

• 47:20Scott Galloway?

  Given the lead we had, given the institutions, the human capital, the capital formation on a financial level, our academic institutions. And what Donald Trump fails to realize, and the real flaw that is going to set our nation back generations, decades if not generations, is that Cro-Magnon beat Neanderthals with cooperation. Neanderthals were stronger, smarter, faster, meaner. And the key, whether you read Yuval Noah Harari on sapiens, the key to our progress is cooperation. And if you look at the modern economy, our treaties, our settlement, our free navigation

• 48:03Scott Galloway?

  enforcement by the world's largest military, our trading agreements, rule of law, respect for each other's borders, that cooperation, moving from conquest to cooperation, the last 80 years has resulted in infant mortality being cut by 90% and GDP up, you know, 17-fold. Nothing has created more prosperity than a recognition by the, by the Cro-Magnon man that cooperation is the ultimate gangster move. Donald Trump has decided to regress the species known as the United States. And just to go, and again, in my next life, I'm coming back as a Navy SEAL or Broadway

• 48:46Scott Galloway?

  dancer and anthropologist, but let's assume I come back as an anthropologist. I'm not kidding. I actually think I have a really good rhythm.

• 48:54Ed Elson?

  I actually believe you. That's why I find it hilarious. I think it's probably true.

• 48:59Scott Galloway?

  I'm fascinated with adjusting people. Anyways, so if you have any pain, come over. I think I can get rid of it.

• 49:06Ed Elson?

  I go away.

• 49:07Scott Galloway?

  So there's a wonderful anthropologist named Robin Dunbar, who famously estimated that humans can maintain roughly 150 meaningful social relationships. But the wonder of the modern world is that we coordinate millions of relationships via money, corporations, laws, markets, religion, nations, norms. Norms are essentially technologies for getting people who will never meet to cooperate, right? You don't bump into people, you don't take their shit. You sit, you, if someone older than you comes into this, well, you sit up and you let them sit down. A pencil, the simplest thing, 20 cents. No one person can make a pencil.

• 49:49Scott Galloway?

  It takes cedar, graphite, metal, rubber, mining, shipping, machinery, finance, retail. Your breakfast this morning, Ed, was a multinational joint venture. Coffee was from Colombia, the machine was from Italy, wheat and fertilizer from the Midwest and Qatar, respectively. You know, before 9:00 AM, you've depended and had relationships with more strangers than a medieval king encountered in his lifetime. And the fact that we decide to alienate so many relationships and abuse our largest consumer, they've said, I have an idea. I'm not giving up on cooperation.

• 50:31Scott Galloway?

  I'm just going to start cooperating with a 300 million, second-largest regional economy in the world, that is the EU. What happened yesterday? Wasn't the EU letting Carney in, it was them crowning Carney president of the EU. And right now, essentially, Europe has found the leader it needed, and that is Mark Carney. And this should send shivers down the spine of America, because we've gone from a 60% or 70% control of shareholder value globally to 30%. And the other 40% now has the crisis they needed for cloud cover around things like what I call backset. I think the UK is going to figure out a way to go back to the EU and the EU will forgive,

• 51:15Scott Galloway?

  like, bygones be bygones. I advise a hedge fund, I came to me, had a lunch with them in LA, he said, give me alpha, give me ideas. And I said, the only real idea I have right now is $130 billion is the amount of goods and services Canada buys from the EU. They buy $870 billion of US goods. That $740 billion in business is looking for a new supplier. I think any Finnish company that calls a Canadian company that's getting its supplies from a Minneapolis company has a really good shot at getting that business right now. So this is geopolitically continues to provide evidence of the greatest leakage

• 51:59Scott Galloway?

  of power and prosperity in history, and that is from America to the to the other democracies, but specifically to China, longer conversation. And how and how we could give up this much power and prosperity comes back to a very basic flaw in one member of our species, and that is an inability to recognize that the reason our species has been so successful is because we cooperate, whereas he takes this weird business aggressive conquer intimidate coerce. But this is a big moment. This is a big moment for Canada, and more specifically, it's a really big moment for

• 52:38Scott Galloway?

  what I call the great, the great pivot, and that is a incredible transfer of power from the biggest democracy to other democracies, and unfortunately, most specifically to China.

• 52:49Ed Elson?

  And I think that that's something that Mark Carney is actively addressing, that he actively addressed in his speech to the European Union, is that difference between conquest versus cooperation, or some would say positive sum thinking versus zero sum thinking. And this goes back to, it is a fundamental aspect of our economy and of markets. You talked about the pencil, which I think is a perfect analogy. Milton Friedman would talk about this a lot of the time, that markets are a positive sum game, that the more that we reach out to other nations and the more that we tread with other nations, the more is possible within our own. And it was very interesting because Mark Carney used exactly that language in his address.

• 53:34Ed Elson?

  Here is what he said.

• 53:35Speaker 12

  We are not fair weather allies. We do not pursue zero sum deals. Our commitment to the rule of law and our unyielding defense of human dignity, individual freedom, and democracy share the same deep roots, the same unwavering dedication.

• 53:58Ed Elson?

  So I think this is really coming down to a dispute over what actually is the driver of prosperity. And I mean, the economists, even the old school economists were just, they'd say it plainly, Donald Trump has it completely wrong. This is not the way that you build wealth for a nation. And to your point about Canada looking to other countries and looking for other trade partners, I totally agree that that is going to continue, but I would also point out, it's already started. If we look at Canada's trade with other countries so far this year, it's already increased 17%. So you have huge amounts of trade that is certainly going to be rerouted away from

• 54:39Ed Elson?

  the US and towards other nations, things like critical minerals, which actually, America does depend on Canada for in a lot of ways, uranium, nickel, all of these minerals and materials that are required for technology infrastructure, for military equipment, and which, of course, we also rely on China for, and look where that got us in our trade war with China. So suddenly, this means that America is going to have less diversification available to them for some of the most important materials in the world. And then also crude oil, Canada makes up more than half of America's crude oil imports. And usually, I'd say, no big deal, but here we are in the middle of an energy crisis, and we're depleting our emergency oil reserves by the day.

• 55:21Ed Elson?

  And so, yeah, we are in a situation where Canada actually does have some leverage here. And I think that the most important thing, I mean, Canada isn't that much of a threat on its own, but when you combine it with Europe, and when you treat them as the same entity, suddenly, you're talking about a $25.5 trillion economy, which is actually larger than the economy of China, and it is creeping up on the economy of the United States, which is roughly $32 trillion economy. So suddenly, there's, there's real leverage here. And I think that this is something that Mark Carney understands. He seems to really understand it, especially in his targeting of swing states in America,

• 56:02Ed Elson?

  where he is specifically putting tariffs on materials that are going to affect various swing states throughout the US, like Wisconsin, like Pennsylvania, and he sees how leverage actually works and how he can use it to get what he wants. And I, I could not agree with you more on this. I do think that this is a very important shift in the way the global order and the global economy is actually set up.

• 56:28Scott Galloway?

  Yeah, I always come back to Churchill, the only thing worse than fighting with your allies is fighting without them. And Timothy Snyder summarized it perfectly, we're in the midst of superpower suicide. You know, imagine having wonderful, wonderful friends that did everything from hid your kids from people looking for your kids to planning to do harm to them. That's what Canada did when they hid our diplomats, and then they returned to the embassy, putting themselves at huge, huge risk. You do a lot of trade, 70%, they're totally economically dependent upon us, and we've decided, okay, you couldn't have been a better friend, we couldn't have had a better relationship,

• 57:09Scott Galloway?

  you followed us into Afghanistan, no questions asked, I know, let's fuck with you. It just, it's just so. You wouldn't, you wouldn't ever be friends with this person. You would think this person had lost their, their shit. And when I say this person, I mean, the United States. And the silver lining here is I think this might be the crisis that helps the EU get its shit together and says, all right, we need to have one, we have to have a multilateral technology investment regulation policy that creates capital formation, the whole is greater than the sum of its parts. I do think, and I had a conversation yesterday with a presidential candidate, I said, there's a big opportunity to talk about going the other way if you're elected, and having the

• 57:53Scott Galloway?

  mother of all multilateral trade agreements and get, basically, take NAFTA and the EU and the UK in massively lower tariffs and say, we're going to unlock massive growth through what is the largest, world's largest trading bloc in history. Yeah, because we're going the wrong way. We're going back to being Neanderthals.

• 58:11Ed Elson?

  I think there's a real political value there. I agree with you because, I mean, we obviously know how the Canadians feel about Americans right now, and that is, or America, and that is, they hate us. And we're seeing that in the polling data, 41% of Canadians now consider the United States an enemy to the country. 56% say Canada has more in common with the EU than with the US. And we can look at Mark Carney's approval rating, which was 55% at the beginning of the summer, which was already pretty high. And then after this whole tariff thing blows up, it's now at 70%. So he's at an all time high. So this is like the best thing to happen to Mark Carney, and Canadians are pretty much

• 58:55Ed Elson?

  unanimously rallying behind him. But what's really interesting to me is the way Americans feel about this. Americans are really upset about this on behalf of the Canadians. They oppose these tariffs against Canada more than two to one, nearly four times more Americans say the trade war with Canada is America's fault, not Canada's. And so it is a really interesting situation where you have our own nation is turning against itself and arguing, yeah, we are the bad guys, we are the bully, we do not condone the actions that we ourselves have taken. And you have to wonder what, what, how much that's going to matter in terms of actual economic policy here.

• 59:38Ed Elson?

  Will it be a case where Trump realizes, okay, the majority of the population thinks that what I'm doing is bad, ridiculous, unproductive, aggressive, hostile, you name it, and then decides to walk it back? Or will he just continue going down the path because of his pride and because of his ego and because he just can't get enough of this? I'm actually not sure what the outcome would be. What do you think?

• 1:00:01Scott Galloway?

  I think everything comes back to high school, and that is, we used to be the cool kids at the cool table, but we were nice. And sitting at our table meant you had, you did better at school, you got help with your homework, you were more economically prosperous, you got the hottest dates, you got to do the coolest things, and slowly but surely, we're now alone at that table.

• 1:00:24Scott Galloway?

  And it just, and also, again, with the metaphor of high school, they did that study on who are the most popular kids in high school. And you think, well, it's, it's the most handsome, it's best looking. No, it's not. Oh, it's the most intelligent, or it's the best out. Nope. The kids who are the most popular in high school are the ones that are the nicest. The ones that have the confidence to say, hey, Lisa, you did amazing at the game on Friday night. Hey, Bob, I love your shirt. The kids who like the most other people are the most popular kids. And what are we right now? Like, what, using high school as a metaphor, what do, we're a kid who's had a growth spurt

• 1:01:08Scott Galloway?

  and has, you know, underarm hair and is big and we're decided to start beating up everybody. At some point, the kids, the other kids rise up. So I don't, I mean, who's at our lunch table right now in the high school cafeteria? North Korea, Russia, and Argentina? How's that going to work out? Yeah, that, that's the kids we want at prom. I mean, you know, tango and vodka, that probably made for a pretty good party, but I didn't. What, what we have here is, on a fundamental level, the poorest decisions. And let me just move to it, like, this is a market show. We're not supposed to be political.

• 1:01:52Scott Galloway?

  If you're like me, in two things, one, you've benefited. The way I would describe my economic life in America is the following. Unprecedented prosperity, unfair advantage, that let me leverage my formidable talents to live a life that few people will ever experience or before me. But I had to pay the lowest taxes in history. Right? Never drafted, never really in harm's way. Crime has consistently gone down. I mean, oh, let's give him free education at the world's greatest institutions. They got four of the five Nobel Prizes last year. University of California, where 53% of the kids don't pay tuition and 67% graduate with no debt. Right?

• 1:02:35Scott Galloway?

  All of this unbelievable prosperity, standing on the shoulders of great Americans and great leaders before me, so easy to bitch into the microphone. I hope all of these TikTokers and all of these virtue signalers complaining about fucking Sydney Sweeney. I hope that a third of the bitching and virtue signaling from the left, from people like me, who have registered a lot more than we've put back into the system, get out and canvass and vote and remove the stain that is the Trump administration. Or at least start to remove this stain. And this is a market show, but there is no way to ignore that the worst thing for the markets and prosperity of Americans in a century

• 1:03:20Scott Galloway?

  is a narcissist, a psychopath, and a criminal. So I'm kind of, and I'm going to be announcing, I'm going to be doing a bit of a tour where I'm going to be canvassing with some candidates. If you're out there and you're like me and you're thinking, you know, any honest assessment is I, my generation and I have benefited more from America than I'm given. This is our moment. I really do believe that it is time for Americans to match their actions to their bitching into a mic or on social media about how outraged they are. Okay, there's a lot of that. Let's see how many of us turn out. Because this is a big opportunity coming up in a few weeks, not only for America,

• 1:04:05Scott Galloway?

  but, but for the markets. Yeah, I believe the markets will soar. If similar to what, quite frankly, what Fed Chair Walsh did, I think the markets in the world really need to see a step, step up and go, okay, we got a little out of control. We make mistakes. The arc of America is jagged, but it bends toward the righteous.

• 1:04:31Ed Elson?

  Let's take a look at the week ahead. There are no major earnings or economic data releases next week, but one thing we'll be watching is the result of the Nasdaq 100's cautiously rebalancing, which will more than double SpaceX's weighting in the index. That will take effect when the market opens on Monday morning. Could trigger significant passive buying. We will see. Scott, do you have any predictions for this week? Or in general?

• 1:04:55Scott Galloway?

  Easy. Time's man of the year is Mark Carney.

• 1:04:56Ed Elson?

  I think you're probably right. I think I would agree. My prediction, I think that Meta Muse will see significant adoption. I think it'll be rivaling ChatGPT and Claude in the next six months, specifically on the consumer side. I think this product is pretty powerful.

• 1:05:13Scott Galloway?

  I'll make another one. In the next 90 to 180 days, a country or a trading block is going to ban US frontier models.

• 1:05:24Ed Elson?

  This episode was produced by Claire Miller and Alison Weiss and engineered by Benjamin Spencer. Our video editor is Jorge Carty. Our research team is Dan Shalan, Kristin O'Donoghue, and Mia Silverio. Jake McPherson is our social producer. Drew Burrows is our technical director. Catherine Dillon is our executive producer. Thank you for listening to Prof G Markets from Prof G Media. If you liked what you heard, give us a follow and tune in tomorrow for a fresh take on the markets.