Gerstner is asked about Apple evaluating Perplexity and other LLM providers for potential partnerships.
“I haven't heard your thoughts on the revelation that people inside Apple were kicking the tires at Perplexity and some of the other LLM providers and AI companies.”
Gerstner explains that ARR (annual recurring revenue) gets high multiples because it's predictable like cable subscriptions.
“ARR stands for annual recurring revenue. And recurring revenue, like a monopoly cable subscription, gets a really high multiple. That's why softwares have gotten high multiples. They're very predictable.”