Bradley Tusk: Hard to see why investors would want OpenAI shares when they're public

Summary

Bradley Tusk discusses the soaring valuations in AI private markets, expressing skepticism about the rationality of high multiples for companies like Cursor, SpaceX, and OpenAI. He questions why investors would want OpenAI shares at a $1 trillion valuation and critiques the ecosystem that keeps companies private longer, suggesting regulatory changes to address these issues.

• AI startup Cursor is being acquired at 30x revenue.
• SpaceX and OpenAI have valuations with multiples over 40x revenue.
• Tusk questions the upside for investors in OpenAI at public offering.
• He describes late-stage VC funding as a Ponzi scheme.
• Suggests tightening rules for public pension funds to curb valuations.
• Mentions that valuations often drop significantly after IPOs.
• References Uber as an example where earlier IPO might have been better.
• Discusses the crowding out of retail and institutional investors.