Gerstner cites CoreWeave's $12 billion OpenAI Stargate deal and $3 billion ServiceNow acquisition as evidence deals are happening.
“so two quick things. Number one, CoreWeave announced yesterday a $12,000,000,000 deal with OpenAI on Stargate. Those things are getting constructive. We're investors there.”
Gerstner cites CoreWeave's $12 billion OpenAI Stargate deal announced yesterday as evidence AI buildout continues.
“CoreWeave announced yesterday a $12,000,000,000 deal with OpenAI on Stargate. Those things are getting constructive. We're investors there. I I can tell you those things are getting built.”
Gerstner says CoreWeave and NVIDIA transactions are disclosed in public companies, allowing scrutiny of demand.
“These are public companies, both CoreWeave and NVIDIA. It is a disclosed transaction. It's not like this stuff's occurring in the dark at night.”
Gerstner says CoreWeave stands alone among Neo Clouds due to its performance and strategic importance to NVIDIA's Rubin deployment.
“We think CoreWeave stands alone, in terms of its performance, the software that is built on top of the cloud, its execution capability, its strategic importance to NVIDIA in terms of deploying Rubin, etcetera.”
Gerstner notes AI infrastructure stocks trade at mid-twenties multiples while CoreWeave trades at five times EBITDA.
“All of these stocks are trading in mid twenties in terms of their multiples in the case of something like CoreWeave, which has fallen out of favor, trading at five times EBITDA.”