OpenAI’s Strategic Moves with AMD and Nvidia Highlighted

Investor Brad Gerstner highlighted on Monday that OpenAI's agreements with Nvidia and AMD are currently only announcements rather than actual deployments. The founder of Altimeter Capital stated to CNBC, 'Ultimately, the best chips will win.'

OpenAI's significant deal with AMD and its continuous efforts to enhance artificial intelligence capabilities emphasize the increasingly competitive landscape. Gerstner noted that these agreements provide further evidence that the world will remain compute-constrained despite efforts to bring massive supply online.

Experts also view this as further validation of the intensifying AI arms race, with AI becoming a crucial element in the geopolitical competition between the U.S. and China. OpenAI's Chinese competitor, DeepSeek, caused a stir last year by claiming to have a lower-cost AI model than its U.S. counterpart.

Last week, the U.S. government released a report warning of national security concerns related to DeepSeek. The National Institute of Standards and Technology's Center for AI Standards and Innovation indicated that DeepSeek more frequently provides views aligned with the Chinese Communist Party than U.S. models.

OpenAI's partnership with AMD is raising hopes that it is taking the right steps to increase production and build more complex AI models. The President of OpenAI mentioned on CNBC's 'Squawk on the Street' that '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.'