Aswath Damodaran: The AI Boom Is Headed For A Reckoning
By Scott Galloway, Prof G Markets
Aswath Damodaran, Kerschner Family Chair in Finance Education and Professor of Finance at NYU’s Stern School of Business, joins Scott Galloway and Ed Elson to discuss AI valuations, the stock market’s resilience, and the upcoming IPOs from Anthropic, OpenAI, and SpaceX.
Timeline
00:00 Today’s episode, intro
03:57 Interview with Aswath Damodaran
05:28 What in this first quarter has struck you about the markets that we’re seeing in 2026?
07:08 Do you think the moment will arrive where the war will have an impact on the economy?
09:52 What are your thoughts on the valuations of OpenAI and Anthropic?
11:19 Why would SpaceX be worth $1.2 trillion in your mind and Anthropic be only worth $1 trillion?
13:37 Is there just greater risk to all future cash flows amongst the companies that have traditionally traded at the highest multiples?
15:26 Is it worrying that the earnings growth is too AI focused to the point that it’s actually not as durable?
17:40 Ad break
20:06 Are you concerned about the AI spending commitments?
23:22 Are you feeling worried about the similarities to the dot com bubble?
25:47 Do you think it will be worse?
26:05 Which risk do you think is the most relevant if the markets unravel?
28:22 What are your thoughts on valuations in the chip sector?
30:32 What are your thoughts on Intel and have you looked at the equivalent of the chip sector in China?
33:00 What do you make of the upcoming SpaceX, Anthropic and OpenAI IPOs?
36:06 Ad break
38:16 Do you have thoughts on OpenAI from a valuation perspective?
40:08 Do you have any thoughts on AI as a business?
42:45 Are there similarities between the doubts around Amazon then and today’s tech trends?
44:56 What are your thoughts on the OpenAI/Musk case?
46:03 What are your thoughts on the narrative that AI is going to bring about a job apocalypse?
47:29 What are your thoughts on AI disrupting higher education?
49:04 Audience questions
49:13 Does Professor Damodaran think hyperscaler data center investments can realistically pay off?
50:45 What impact would an event like that have on the global economy and AI industry, and how could investors hedge it?
51:36 Why should we trust the traders?
52:23 Could Professor Damodaran revisit his views on collectibles and art as investments, and how much cash investors should hold today?
54:35 Have you had any exposure to the Pokemon craze?
55:53 Would you say markets are becoming more mature and resilient to daily news noise?
56:54 Do you think that maybe the markets have moved from transactional to subscription revenue?
59:22 Credits
