OpenAI's strategy chief says compute is not the real edge for AI companies - 3 other things are the key

""If you just reduce compute to capital, you know, it's just money, and then you buy the physical infra," Kwon said. "We don't necessarily assume in lots of other industries or even in technology industries that if you're just the most capitalized company or organization, that you're automatically going to win." "It's how you make use of that resource and apply it to various bets," he added."

""At the country or industry level, the most important thing is "probably compute," Kwon said. Compute is needed for "the breadth and diversity of experiments that you can run on research," he added."

Compute is crucial at the industry or national level for enabling a wide breadth and diversity of experiments. At the organizational level, raw compute capacity does not guarantee winning outcomes. Scarcity can force sharper prioritization and sometimes spur innovation. Bet selection — choosing research directions, deciding when to double down and when to pivot — shapes a lab's edge. Organizational structure and capacity determine the ability to make, sustain, and evaluate bets effectively, including having the right taste and selection criteria. Effective use of resources and strategic allocation matter more than simply owning the most compute.

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