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.

• 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

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