The CEO of the $16.6 billion tech-focused firm Altimeter believes that OpenAI’s next model will change its fortune in a big way.
In a new episode of the All-In Podcast, Brad Gerstner says people have become ultra-bearish on OpenAI as rivals Anthropic and Google grab headlines with their latest frontier models.
According to Gerstner, there’s a lot of fear, uncertainty and doubt for OpenAI, which he notes could mark the turning point for the ChatGPT creator as it gears up for the release of the AI model Spud.
“But I think you would be seriously foolish to count out OpenAI. And I think we’re why we’re at peak OpenAI FUD. And I’ll tell you, it starts with great researchers and great models. And I think when you see the Spud model, they’re about ready to release it. I think it’s going to be an excellent model that shows they’re firmly on the wave. If you look at what’s going on with Codex, incredible ramp on Codex, fastest-ramping model with 5.4, I think 5.5 or Spud, whatever we’re going to call it, it’s going to be an even faster ramp.”
Spud is the internal codename for OpenAI’s next major frontier model, widely believed to be GPT 5.5. The model is being designed for autonomous agents that can handle complex tasks and workflows.
According to Gerstner, Spud will be comparable to Anthropic’s “most powerful” frontier model, Mythos.
“People are using Spud, so it is being previewed… They’re telling us that it’s an incredible model on par with Mythos. And that it’s a very usable model in terms of how it’s packaged.”
The Altimeter founder and CEO adds that he believes the AI race can have multiple winners, considering the massive total addressable market (TAM) of intelligence.
“Now, this is the most important point, I think anybody can take away here: this is not zero-sum. The TAM of intelligence is dramatically larger than any TAM we’ve ever seen in our investing careers over the last two decades. And if you’re on the wave, which OpenAI is, you are going to be selling into the world’s biggest TAM.
They are going to build a very big company. I’m a buyer of the shares today, notwithstanding all of the vibes that you described. I think these companies are firmly on the wave.”
OpenAI is expected to make a blockbuster public market debut this year. It is currently valued at $852 billion.
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