In this episode I dig into whether ChatGPT might get “Old Navy’d”, a concept that ties together capitalism, business strategy, and the evolving AI landscape. Using a Scott Galloway story about Gap and Old Navy as the jumping-off point, I explore what happens when a cheaper, “good-enough” alternative comes for the market leader. From Alibaba’s Qwen to DeepSeek’s leaner, lower-cost models, this episode unpacks the global economics of AI efficiency, U.S. protectionism, and what it would actually take for consumers, or companies, to switch away from OpenAI.



Main Topics Covered




The Prof G Markets podcast episode that sparked the idea



The origin story of Old Navy and its positioning against Gap



Alibaba’s Qwen and DeepSeek’s cheaper AI models



Bruce Buchanan’s three-line economic model: perceived value, price, cost



Why I think China is unlikely to dethrone OpenAI in the U.S.



The “inside job” possibility of a smaller U.S. company creating a 90%-as-good model



What could make users actually switch models (price vs. perceived value)



The “Netflix effect” and why stagnation kills perceived value



The Costco model: keep margins low and values clear



Final take: OpenAI probably won’t get Old Navy’d anytime soon, but it should



Recent ChatGPT use: Transcript research for this episode




Links & Resources for This Episode




Watch: How China’s AI Efficiency Could Gut the U.S. Economy – Prof G Markets



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Chapters
(00:00:00) - ChatGPT Curious(00:00:38) - Chat GPT(00:01:50) - ChatGPT Getting Old, Navied(00:03:26) - ChatGPT: Curious(00:05:10) - The Case for The Gap and Ikea(00:06:42) - ChatGPT vs OpenAI(00:09:55) - OpenAI's Mental Model of Economics(00:13:53) - What Could Happen With China and OpenAI?(00:18:28) - Will OpenAI Take Over Old Navy?(00:21:19) - What Would Drive a Switch to a Cheaper Model?(00:25:41) - "This Is Not a Business"(00:26:16) - Chat GPT: Will It Get Old(00:27:40) - How I Use ChatGPT(00:28:53) - Curious Podcast: Thank You!!

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