CNBC’s Jim Cramer said the report raising concerns about OpenAI’s growth trajectory highlights the fragility of the AI-driven rally.
Artificial intelligence and data center stocks tumbled on Tuesday after a report claimed that OpenAI missed internal targets for user growth and revenue.
CNBC’s Jim Cramer said Tuesday that the market reaction to a downbeat story on OpenAI’s growth trajectory underscores just how excessive the recent AI-driven rally had become. “Anything could’ve knocked them down. A feather could have knocked these stocks down,” Cramer said on ” Squawk on the Street ,” pointing to the extreme run-up across AI names in recent weeks. “They are just ridiculous right now.” Shares of chipmakers and data center suppliers sold off on Tuesday after a Wall Street Journal report said OpenAI missed internal targets for user growth and revenue, prompting questions about whether it can sustain heavy spending on computing infrastructure. Cramer, who has repeatedly warned about parabolic moves in the AI complex, said the pullback on this kind of headline wasn’t surprising. If anything, he said, it was needed to cool these stocks off. “I’m glad they were knocked down because in 2000 they weren’t,” Cramer added, referencing the speculative period just before the dot-com bubble burst. The Journal, citing people familiar with the matter, reported that OpenAI CFO Sarah Friar warned colleagues that if revenue growth didn’t accelerate, the company would struggle to fund future compute agreements. OpenAI pushed back on the report, calling it “ridiculous.” “We’re totally aligned on buying as much compute as we can,” the company told CNBC. Cramer said he wasn’t worried about the report’s long-term for OpenAI and the AI trade, saying he trusts Friar and where the company, which recently closed a record breaking $122 billion funding round , is headed.
