What if there was an internal drama at OpenAI? Netflix CNBC’s Jim Cramer says it will be a binge-worthy mix of tension, comedy and cliffhangers, and Wall Street will be glued to every episode.
On Tuesday, Kramer noted that CEO Sam Altman recently declared a “code red” within the company, suggesting OpenAI is concerned that Google’s Gemini 3 is quickly catching up in user traction. Kramer said the comparison is about distribution and habits, not which model answers the question better, since both models can be wrong.
“Gemini 3 is easy to find and easy to trust,” says Kramer.
What’s unsettling investors, he said, is the sense that if November usage data shows Gemini overtaking ChatGPT, this market could become a winner-takes-all market with losers getting nothing.
But competitive threats are only part of the story. OpenAI has reportedly slowed development of other projects, including an advertising product, a consumer AI agent, and a personal assistant called Pulse, and Cramer said this slowdown could present an immediate opportunity for rivals. Meta could ease pressure on the advertising business. Amazon You might be able to buy time to reposition Alexa. Even Salesforce may find room to promote its AI tools.
Kramer argued that the bigger risk is economic. alphabet,Amazon, meta and microsoft Tens of billions can be borrowed cheaply. OpenAI, which is already heavily in debt, can’t do that. Cramer said the quickest solution would be to settle the case with the New York Times to reduce legal costs or convince Microsoft to strengthen its balance sheet by taking a larger stake.
According to Kramer, the real Code Red is a capital war.
“All of OpenAI’s competitors have improved access to credit,” Cramer said.
