Investor Brad Gerstner warned on Monday that OpenAI’s recent deals with Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) remain announcements rather than actual deployments. Therefore, he urged caution.
Speaking to CNBC, the Altimeter Capital founder said, “Now we will see what gets delivered. Ultimately, the best chips will win,” emphasizing that execution, not hype, will determine which companies dominate the next phase of the artificial intelligence race.
For context, AMD surged in premarket trading Monday after striking a deal with OpenAI to deploy up to 6 gigawatts of AMD Instinct GPU power for the AI company’s next-generation infrastructure.
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The rollout begins in late 2026 with a 1-gigawatt deployment of MI450 GPUs, followed by multi-phase expansions across future AMD data center chip generations.
Under the agreement, OpenAI named AMD a core compute partner, extending their collaboration into next-generation hardware and software development.
As part of the deal, AMD issued warrants for up to 160 million shares, vesting as infrastructure and performance milestones are achieved. CFO Jean Hu said the partnership could generate “tens of billions in revenue” and be “highly accretive” to earnings.
The announcement came shortly after Nvidia unveiled a $100 billion OpenAI partnership to deploy 10 gigawatts of Vera Rubin systems beginning in the second half of 2026. Bank of America analyst Vivek Arya estimated the move’s potential to deliver $300 billion to $500 billion in long-term revenue.
Gerstner noted that these agreements demonstrate more evidence that the world will remain compute-constrained despite best efforts to bring massive supply online.
The AI boom has deep geopolitical implications as well. China’s DeepSeek has drawn attention for developing cost-efficient AI models powered by domestic chips that claimed to beat bigger rivals like OpenAI. The U.S. government recently flagged the firm as a potential national security concern.
OpenAI executives, meanwhile, maintain that expanding chip partnerships is crucial to meet surging global demand for AI services.
AMD stock gained 69% year-to-date, topping the Nasdaq 100 index’s 19% returns (which includes both AMD and Nvidia). NVDA is up over 38%.
Price Actions: AMD stock was trading higher by 3.99% to $211.83 premarket at last check Tuesday. NVDA was up 0.40%.
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