Brad Gerstner on OpenAI’s Chip Deals: “The Best Chips Will Win”
Investor Brad Gerstner, founder and CEO of Altimeter Capital, has cautioned that OpenAI’s recently announced partnerships with AMD and Nvidia should be seen as announcements — not deployments. Speaking to CNBC, Gerstner emphasized that the real test will be in execution: “Now we will see what gets delivered. Ultimately, the best chips will win.”
His comments come after OpenAI revealed a major multiyear deal with AMD to secure advanced AI chips, following its ongoing collaboration with Nvidia. The moves reflect OpenAI’s push to secure more computing power — the critical resource driving today’s artificial intelligence revolution.
Compute Power Still a Bottleneck
Despite the flood of investment and new partnerships, Gerstner warned that the world remains “compute-constrained.” Even as companies race to expand data center capacity and ramp up chip production, demand for AI processing far outpaces available supply.
“The AMD and Nvidia deals are more evidence that, despite best efforts to bring massive supply online, the world will remain compute-constrained,” he said.
This shortage of advanced chips has become a defining challenge in the AI boom, affecting everything from startups to global tech giants.
The Global AI Arms Race Intensifies
Industry analysts say OpenAI’s latest chip deals highlight the escalating global AI arms race — particularly between the United States and China.
China’s leading AI firm DeepSeek shook the industry last year by unveiling a lower-cost AI model built on domestically made chips. The company continues to innovate rapidly, offering open-sourced systems that have gained global attention.
However, U.S. officials have raised alarms. A new report from the National Institute of Standards and Technology (NIST) warned that DeepSeek’s models often amplify Chinese Communist Party narratives, sparking concerns over national security and information integrity.
OpenAI’s Response and Industry Collaboration
Speaking on CNBC’s “Squawk on the Street,” OpenAI President Greg Brockman said the AMD partnership marks an important step — not only for OpenAI but for the entire tech ecosystem.
“It’s not just about OpenAI,” Brockman said. “This is about the whole industry coming together to build the infrastructure needed for the next generation of AI.”
Bottom Line
OpenAI’s high-profile chip deals with AMD and Nvidia signal an ongoing race for AI compute dominance, but experts caution that promises alone won’t solve the global chip shortage. As Brad Gerstner put it, the winners won’t be determined by announcements — but by who can deliver the best-performing chips at scale.
