Scott Galloway Questions OpenAI IPO Prospects Amid Competitive Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 05 2026
0mins
Should l Buy AMZN?
Source: Benzinga
- Fragile Competitive Edge: Scott Galloway highlights that OpenAI's competitive advantage appears weak compared to deep-tech giants like SpaceX, raising concerns about the potential withdrawal of its IPO plans, which could undermine investor confidence and market expectations.
- Brand Image Shift: Galloway notes a significant 'vibe shift' in OpenAI's brand perception, moving from positive to negative, primarily due to CEO Sam Altman's close ties with Trump, which may erode public trust in the company.
- Underperformance in Enterprise Sector: He points out that rival Anthropic is outperforming OpenAI in the enterprise sector by positioning itself as a secure, human-centric 'partner,' further intensifying market pressure on OpenAI.
- Valuation Concerns: Galloway expresses skepticism regarding OpenAI's valuation, suggesting that these factors contribute to unease among investors and the public, potentially impacting the success of its IPO.
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Analyst Views on AMZN
Wall Street analysts forecast AMZN stock price to rise
44 Analyst Rating
41 Buy
3 Hold
0 Sell
Strong Buy
Current: 204.860
Low
175.00
Averages
280.01
High
325.00
Current: 204.860
Low
175.00
Averages
280.01
High
325.00
About AMZN
Amazon.com, Inc. provides a range of products and services to customers. The products offered through its stores include merchandise and content it has purchased for resale and products offered by third-party sellers. The Company’s segments include North America, International and Amazon Web Services (AWS). It serves consumers through its online and physical stores and focuses on selection, price, and convenience. Customers access its offerings through its websites, mobile apps, Alexa, devices, streaming, and physically visiting its stores. It also manufactures and sells electronic devices, including Kindle, Fire tablet, Fire TV, Echo, Ring, Blink, and eero, and develops and produces media content. It serves developers and enterprises of all sizes, including start-ups, government agencies, and academic institutions, through AWS, which offers a set of on-demand technology services, including compute, storage, database, analytics, and machine learning, and other services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Unclear Profitability Outlook: While OpenAI forecasts annual revenues of $100 billion by 2029, CEO Sam Altman has committed to spending $1.4 trillion over the next eight years, creating a stark contrast between projected revenues and expenditures that raises sustainability concerns in the market.
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- Investor Dilemma: Companies like Amazon and Microsoft are investing in OpenAI while also developing their own AI solutions, leading to questions about the rationale behind such dual investments, as a failure of OpenAI could trigger a loss of confidence across the entire AI sector, impacting other investors significantly.
See More
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- Revenue Growth Expectations: The company projects total revenue exceeding $280 billion by 2030, with contributions from consumer and enterprise segments being roughly equal, indicating OpenAI's confidence in market demand.
- Annual Revenue Surge: OpenAI anticipates an annualized revenue run rate exceeding $20 billion in 2025, representing a 233% increase from 2024, which highlights the company's rapid expansion and improved profitability.
- Funding and IPO Outlook: OpenAI is approaching a funding round that could exceed $100 billion, attracting strategic investors like SoftBank and Amazon, with a potential pre-money valuation of $730 billion, showcasing its future IPO potential.
See More
