If OpenAI’s internal drama were a Netflix series, CNBC’s Jim Cramer says, it would be a binge-worthy mix of tension, comedy and cliffhangers — and Wall Street would be glued to every episode.
On Tuesday, Cramer seized on reporting that CEO Sam Altman recently declared a “code red” inside the company that suggests OpenAI fears Google’s Gemini 3 may be catching up fast in user traction. Cramer said the comparison isn’t about which model answers questions better, as both can be wrong, but about distribution and habit.
“Gemini 3 is easy to find and easy to trust,” Cramer said
What rattles investors, he said, is the sense this market could become winner take all, loser take none if November usage data shows Gemini overtaking ChatGPT.
But the competitive threat is only part of the story. OpenAI has reportedly slowed development on other projects including advertising products, consumer AI agents and a personal assistant called Pulse, a pause Cramer says creates immediate openings for rivals. Meta could see less pressure on its ad business. Amazon might buy more time to reposition Alexa. Even Salesforce could find room to tout its own AI tools.
Cramer argued the bigger risk is financial. Alphabet, Amazon, Meta and Microsoft can borrow tens of billions cheaply. OpenAI, already heavily indebted, cannot. The quickest fix Cramer said would be to settle its lawsuit with The New York Times and reduce legal costs or persuade Microsoft to take an even larger stake and shore up the balance sheet.
The real code red, Cramer said, is a capital war.
“All of OpenAI’s competitors have better access to credit,” Cramer said.
