Cramer says OpenAI’s problem is funding, not Google

If OpenAI’s internal drama were one netflix CNBC’s Jim Cramer says the series will be a mix of thrillers, comedy and exciting events, with Wall Street glued to every episode.

On Tuesday, Cramer reported that CEO Sam Altman recently declared a “code red” within the company, suggesting OpenAI fears it could quickly catch up with the user traction of Google’s Gemini 3. Cramer said the comparison isn’t about which model answers questions better, because both can be wrong, but about distribution and habit.

“Gemini 3 is easy to find and trust,” Cramer said

What’s troubling investors, he said, is this market’s sense that the winner will take all and the loser will get none, if November usage data shows Gemini outpacing ChatGPT.

But the threat of competition is only part of the story. OpenAI has reportedly slowed development of other projects, such as advertising products, consumer AI agents, and a personal assistant called Pulse; Cramer says this pause creates immediate opportunities for competitors. Meta may see less pressure in the advertising business. Amazon It can save more time to reposition Alexa. Even Salesforce could find room to promote its own AI tools.

Cramer argued that the biggest risk is financial. AlphabetAmazon, Meta And Microsoft can borrow tens of billions cheaply. OpenAI, which is already heavily indebted, cannot do this. The quickest solution, Cramer said, would be to resolve his lawsuit with The New York Times and reduce legal costs or persuade Microsoft to take a larger stake and shore up the balance sheet.

The real code red is a lethal battle, Cramer said.

“All of OpenAI’s competitors have better access to credit,” Cramer said.