Important points
CNBC’s Jim Cramer said Tuesday that the market’s reaction to the pessimistic article about OpenAI’s growth trajectory highlights how overdone the recent AI-driven bull market has been. “If something had happened, the stock price could have gone down. If there had been a feather, the stock price could have gone down,” Cramer said on “Squawk on the Street,” pointing to the extreme rally in AI stocks in recent weeks. “They’re really ridiculous right now.” Shares in chip makers and data center suppliers were sold off on Tuesday after a report in the Wall Street Journal that OpenAI had missed internal goals for user growth and revenue, raising questions about whether it could sustain heavy spending on computing infrastructure. Kramer, who has repeatedly warned about parabolic movements in the AI complex, said the backlash against these kinds of headlines is not surprising. Rather, he said, it was needed to cool down these stocks. “I’m glad they went bust because they didn’t go bust in 2000,” Kramer added, referring to the speculative era just before the dot-com bubble burst. Citing people familiar with the matter, the magazine reported that OpenAI Chief Financial Officer Sarah Friar warned colleagues that the company would struggle to finance future computing contracts unless revenue growth accelerates. OpenAI criticized the report as “ridiculous.” “We are fully aligned on purchasing as much compute as possible,” the company told CNBC. Cramer said he’s not worried about the report’s long-term impact on OpenAI and the AI industry, saying he has confidence in Friar and where the company, which recently closed a record $122 billion funding round, is headed.
