Gerstner says MANG (Microsoft, Amazon, Nvidia, Google) went from near-zero VC investing to $25 billion last year.
“we have this explosion in venture capital investing coming out of four companies, right? He called them MANG. Microsoft, Amazon, know, Nvidia and Google.”
Gerstner argues MANG participation is distorting market prices compared to arm's length transactions with financial investors.
“I do think that it is a really important thing that you're pointing out, which is at a very minimum, I think we can say that the participation of MANG, Microsoft, Amazon, Nvidia, and Google, is distorting the price in the market in a way that wouldn't occur if it was all arm's length transaction with financial investors.”
Gerstner says MANG (Microsoft, Amazon, Nvidia, Google) went from zero to $25 billion in VC investing in six years.
“He called them MANG. Microsoft, Amazon, know, Nvidia and Google. And so as you can see on this chart, we go from almost no venture capital investing, you know, out of these folks six or seven years ago to all of a sudden this $25,000,000,000, last year in VC investing.”
Gerstner argues MANG participation is distorting AI startup valuations beyond what arm's length financial investors would pay.
“I think we can say that the participation of MANG, Microsoft, Amazon, Nvidia, and Google, is distorting the price in the market in a way that wouldn't occur if it was all arm's length transaction with financial investors.”