Gerstner says he's seeing 4-5 billion dollar venture deals on minimal revenue, unlike prior downturns.
“We're seeing 4 or $5,600,000,000 deals get done on zero revenue, $23,000,000 in revenue. And so let me just throw out perhaps an alternative view as to why this might look a little different than the world of austerity that we saw in 2002, 2003, two thousand nine, ten, eleven.”
Gerstner describes negative reflexivity of overpriced rounds forcing companies to spend money foolishly to match valuation.
“I wouldn't have had to spend money like a fool. They nail it yet again. The negative reflexivity that occurs when you have a headline valuation,”
Gerstner says OpenAI has over $40 billion cash and could raise another $70-100 billion for a fortress balance sheet.
“If these reports are true and they're gonna raise another 70 to 100,000,000,000, they would have over a 100,000,000,000 of cash on their balance sheet.”
Gerstner states SpaceX IPO will raise approximately $75 billion and is rumored for June 12.
“It's gonna be an incredible IPO. It's gonna raise about 75 it's gonna raise about $75,000,000,000.”
Gerstner says the president asked him and Michael Dell to raise $100 billion, with tens of billions already committed.
“The president asked Michael Dell and I to go out and raise a $100,000,000,000 for these Trump accounts and we're well on our way.”