Gerstner predicts 80% of AI benefits over next three to four years will go to incumbent platforms, not venture startups.
“I think 80% of the benefits of AI over the course of the next three to four years are going to inure to the benefit of the incumbents, to the larger platforms that are already public today whose businesses will get better. Their bottom line margins will expand. Their top lines will reaccelerate.”
Gerstner proposes three investment categories instead of two: venture under $100M revenue, quasi-public over $1B, and public markets.
“One thing that we have done and I've encouraged LPs like endowments to think about is we used to have these two buckets. Right? Venture and public when I talk to technology investors.”