Scott Galloway predicted Monday that OpenAI will replace Sam Altman as CEO within six months, telling Prof G Markets listeners the AI giant needs an operator to steady the company. The New York University professor stated that Sam Altman is on the way out, characterizing him as an innovator rather than an operator suited for the current challenges facing the firm.

Galloway’s specific forecast involves OpenAI acquiring enterprise AI firm Sierra and installing co-founder Bret Taylor as chief executive. Taylor currently chairs OpenAI’s board, meaning the prediction involves him purchasing his own startup and swapping roles with the current CEO. Galloway cited Taylor’s previous tenure as Twitter’s board chair in 2022, where he oversaw the completion of Elon Musk’s $44 billion buyout, as evidence of the steady hand required.

The prediction arrives during a difficult stretch for OpenAI. Apple Inc. reportedly sued OpenAI over alleged trade secret theft, while Applications President Fiji Simo announced her departure and the company shut down its Atlas browser. Competition is also intensifying, with ChatGPT’s market share reportedly falling from 76% to 50% in a year due to pressure from rivals like Gemini, Claude, and Chinese models such as Moonshot’s Kimi K3.

Pricing pressure is emerging as a significant threat. DeepSeek is reportedly pricing output at 87 cents per million tokens compared to $45 for OpenAI’s GPT-5.6. Bret Taylor pushed back on the cheap-token narrative on CNBC, arguing that frontier models are more token efficient and may complete tasks at a lower real cost despite higher headline prices.

Financial modeling by Prof G Markets co-host Ed Elson highlights potential risks for investors. In a worst-case scenario where OpenAI’s hardware business fails, ad revenue misses by 90%, and model prices fall 80%, the company could be losing $165 billion a year by 2030. This poses a concern for Microsoft Corp., OpenAI’s largest backer, and Oracle Corp., whose debt S&P recently downgraded, citing OpenAI as a key credit risk.

Prediction markets reflect this skepticism. Traders on Polymarket see an 86% chance that Anthropic, OpenAI’s main rival, will IPO before OpenAI. A separate market assigns OpenAI only a 10% chance of having the best AI model by the end of the year.

OpenAI is set to enter the consumer hardware market with a mobile, screen-free smart speaker designed to function as an AI companion capable of controlling smart home appliances. The device aims to provide users with a portable artificial intelligence interface that can play media, respond to messages, and answer questions by leveraging OpenAI's ChatGPT offerings. This move marks a significant expansion for the company beyond its software and API offerings, integrating its technology directly into consumers' daily lives through dedicated hardware.

The speaker-like product is currently under development and will utilize GPT-Live, a recently rolled-out advanced version of the AI model. This technology enables the device to process information faster and deliver more natural responses during conversations. To enhance its understanding of user surroundings and context, the device will include a camera and sensors, offering an edge over existing smart speakers. However, exact specifications are subject to change as the product development progresses through an underlying legal process.

The OpenAI-Apple Showdown

This report follows Apple filing a lawsuit against OpenAI, accusing the company of using the iPhone maker's trade secrets to expedite the development of its consumer device. The Tim Cook-led company alleged that Tang Tan, OpenAI's Chief Hardware Officer and a former Apple vice president, used job interviews to extract confidential details from Apple employees. This legal action contrasts sharply with the 2024 collaboration between the two companies to incorporate ChatGPT into the iPhone’s software.

Hardware Development and Partnerships

In May 2025, OpenAI advanced its hardware ambitions by purchasing IO Products, a startup led by former Apple designer Jony Ive, for $6.4 billion. Earlier this year, reports indicated that OpenAI shifted its first AI hardware project manufacturing from Luxshare to Foxconn Technology Group, also known as Hon Hai Precision Industry Co., Ltd., to accelerate the launch of the Jony Ive–designed consumer device. Bloomberg's Mark Gurman noted that Apple currently has "nothing like" OpenAI's under-development device in the market.