Jim Cramer says Alphabet’s Gemini poses a serious threat to OpenAI’s ChatGPT

CNBC’s Jim Cramer explained why. alphabetGemini, a new version of ’s artificial intelligence platform, could seriously challenge the dominance of OpenAI’s ChatGPT.

“We have to recognize that Gemini is the biggest threat to ChatGPT that we’ve ever seen. There are simply no two ways about it. Gemini is essential to OpenAI,” he said. “The company, the emperor… needs to do something to fight back, because otherwise the story will be that OpenAI has no clothes.”

Alphabet announced its new Gemini model last week. Mr. Kramer praised the new version and said some on Wall Street were excited about it. sales forceMarc Benioff said he prefers the new Gemini over ChatGPT.

Kramer said Alphabet’s announcements usually don’t cause much disruption, but he said the stakes in this business are very high, noting that there’s a lot of money involved. Alphabet’s ability to integrate Gemini with its Google platform gives it an advantage over other ChatGPT challengers, Cramer continued.

Cramer said slowing growth in OpenAI users will be a problem for both the company and its business partners. He noted that OpenAI has committed approximately $1 trillion in spending and will need to continue to grow rapidly to get that funding.

Kramer emphasized that he has no intention of abandoning OpenAI completely and said the company may be developing “innovative versions of our product.” He also said that Gemini news isn’t necessarily terrible for them. oracledata center builders are one of OpenAI’s key partners because they have the ability to attract other customers and “don’t just live or die depending on OpenAI.”

“If your business still relies on ChatGPT, it’s only going to become more unstable,” Cramer says.

Alphabet and OpenAI did not respond to requests for comment.

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Disclaimer CNBC Investing Club owns stock in Salesforce.