Brad Gerstner on OpenAI's dealmaking with AMD, Nvidia: 'The best chips will win'

Investor Brad Gerstner shared important insights regarding OpenAI's recent partnerships with AMD and Nvidia, emphasizing that these agreements are currently just announcements and not implementations. Speaking on CNBC, the Altimeter Capital founder stated, "Now we will see what gets delivered. Ultimately, the best chips will win." OpenAI's substantial deal with AMD highlights the escalating competition within the artificial intelligence sector. Gerstner pointed out that these partnerships reveal a growing concern about the ongoing compute constraints, despite efforts to increase chip availability. As the AI arms race intensifies, it has become a significant factor in the geopolitical rivalry between the United States and China. Adding to this competitive tension, OpenAI's Chinese counterpart, DeepSeek, made headlines last year by claiming to have developed a more affordable AI model than its American counterpart. DeepSeek has continued to push the envelope, introducing new open-source models powered by domestically produced AI chips. Recently, a U.S. government report raised alarms about DeepSeek's potential national security implications, with the National Institute of Standards and Technology highlighting that its outputs often align with the views of the Chinese Communist Party more than those of U.S. models. With OpenAI's collaboration with AMD, there is a renewed optimism about the potential to boost production and develop more sophisticated AI models. OpenAI's President remarked, "What we're really seeing is a world where there's going to be absolute compute scarcity, because there's going to be so much demand for AI services, and not just from OpenAI, really from the whole ecosystem. That's why it's so important for this whole industry to come together."