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Prof G Markets · 3 min · Nov 2, 2026

Apple's restraint has outperformed the AI arms race

Scott Galloway

Scott Galloway argues that strong leadership means choosing what not to pursue, and points to Apple's decisions on AI, VR and its car project.

The episode’s best minutes

Full analysis
  1. 32:58Big Tech now depends on capital markets to fund its AI buildout4 min
  2. 41:50Apple's restraint has outperformed the AI arms race3 min
  3. 52:52Circular AI financing could amplify market risk4 min
  4. 2 more moments in the full episode
“It's not only what they decide to do, it's what they decide not to do.”
Scott Gallowayat 42:50 · Prof G Markets
42:50

Takeaways

  1. Apple has avoided spending at the scale of AI rivals.
  2. Scott links restraint to Apple's stronger year-to-date performance.
  3. Ed sees risk if Apple lacks a compelling next product.

About this segment

Scott Galloway argues that strong leadership means choosing what not to pursue, and points to Apple's decisions on AI, VR and its car project. Ed counters that Apple still needs to show what growth engine comes next.

Scott Galloway, Host

From “The Stock Market Is Already Pricing In A Democratic Sweep”, Nov 2, 2026. Watch the full episode

Transcript

Transcribed by machine (Whisper) from the episode’s audio, so a word may be off here and there.

  1. 42:03

    would say or at least it's a fun time to be a stock picker i've spent a lot of time on boards And basically, you kind of have two jobs on a board. I mean, three. If you're on the audit committee, just make sure there's not fraud. So let's assume you're able to do that. But the two primary roles of a director are, one, if and when to sell the company. But most importantly, your job is to make sure you have the right guy or gal.

  2. 42:27

    And I always said there's always two board meetings. There's the actual board meeting, and then there's a board meeting in the parking lot when you're worried about the CEO and the two or three most powerful people on the board, which is usually the largest shareholder in two voices that everyone kind of nods because they've been on the board or they're very smart. And those people meet in the parking lot and say, I'm worried about Bob. And should we be talking about if Bob is the right guy and if we need to make a change? And I've spent a lot of time trying to suss out what are the attributes?

  3. 42:53

    and behaviors of great CEOs. And one of the most underrated attributes, and I think core to a great CEO and a great leadership team is the following. It's not only what they decide to do, it's what they decide not to do. Do they have the discipline to say, this is a great idea, it's a great market. It's not the right idea, the right market for us at this moment. And of the MAG-7 to this point, of the mag seven who has decided not to engage in the ai arms race apple and who has the strongest year-to-date stock performance i think it's apple ding ding ding ding apple has significantly outperformed the other six that are either the arms race or engaging in the arms race and apple does not get enough credit they're constantly second-guessed why don't you have a cheaper computer? Why aren't you in AI? Why aren't you in search? They have more discipline

  4. 43:52

    around what not to do than any company of that size. They put one chip down on VR. I think they spent a billion dollars on it. Meta spent 60 on it. They are better at saying no. They pulled the plug on the car. I wanted them to have the car. I'm like, you got to grow, do the car. And they're like, you know what? This isn't working out. We don't like the numbers here. We don't like the ship, kill it. The only MAG-7 company that has not decided to play in traffic in the AI arms race is significantly outperforming the others who are in this AI arms race.

  5. 44:28

    In any other world, I would be instinctively agreeing with you on this because I'm such a