The recent demonstration of Ge-on-Si diode lasers renews the interest in the unique carrier dynamics of Ge involving both direct (Γ) and indirect (L) valleys. Here, we report a large inherent direct gap optical gain ≥1300 cm−1 at room temperature from both tensile-strained n+ Ge-on-Si films and intrinsic Ge-on-insulator using femtosecond transmittance spectroscopy captured before direct-to-indirect valley scattering. This inherent direct gap gain is comparable to III-V semiconductors. For n+ Ge, this transient gain is ∼25× larger than its steady state gain, suggesting that reducing Γ→L or enhancing L→Γ intervalley scattering may significantly increase the optical gain of Ge lasers.