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

CNBC’s Jim Cramer explains why he thinks so AlphabetThe new version of AI platform Gemini could seriously challenge the dominance of OpenAI’s ChatGPT.

“We must recognize that Gemini is the biggest threat to ChatGPT we have seen so far. There are no two ways about it: Gemini is existential for OpenAI,” he said. “The company, the emperor, better have something to fight back against, because otherwise the narrative will be that OpenAI has no clothes.”

Alphabet announced its new Gemini model last week. Cramer praised the new version and said some people on Wall Street were excited about it. sales forceMarc Benioff in question prefers the new Gemini to ChatGPT.

Generally, Cramer said Alphabet’s announcement would not cause major upset; But the risks in this business are huge, meaning a large amount of money is at stake. Cramer added that Alphabet has an advantage over other ChatGPT competitors because of its ability to integrate Gemini with the Google platform.

Slowing OpenAI user growth will be a problem for both the company and its partners, Cramer said. He noted that OpenAI has committed to spending around $1 trillion and will need to continue growing rapidly to raise that money.

Cramer emphasized that he wouldn’t write off OpenAI completely and said the company was working on a “revolutionary version of its own product.” He also said that Gemini news isn’t necessarily terrible. SeerIt’s one of OpenAI’s main partners because the data center builder has the ability to attract other customers and “doesn’t just live and die depending on OpenAI.”

“Yet if your business is stuck on ChatGPT, the situation has become even more unstable,” Cramer said.

Alphabet and OpenAI did not immediately respond to a request for comment.

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Disclaimer CNBC Investment Club owns shares of Salesforce.