The battle between Alphabet Inc (NASDAQ:GOOG)(NASDAQ:GOOGL) and OpenAI for dominance in the artificial intelligence sector could spill over and impact many technology companies. TV host Jim Cramer singled out Oracle Corp (NYSE:ORCL) as a stock to watch that could lose if OpenAI falls, but possibly see strong demand elsewhere.
Oracle Stock on Watch
Oracle reported first-quarter financial results in September with revenue and earnings per share missing analyst estimates. Guidance from the company sent shares higher, with Oracle one of the most-watched large cap tech stocks in 2025.
Over the last month, Oracle stock has fallen 22% and Cramer thinks investors should be watching the stock, particularly due to the Gemini versus OpenAI battle.
On his Nov. 24 episode of "Mad Money," Cramer highlighted the recent dominance in the AI space by Alphabet's Gemini, potentially pushing OpenAI down the list when it comes to consumer usage.
"We have to recognize that Gemini's the biggest threat to ChatGPT we've seen so far. There's simply no two ways about it — Gemini's existential for OpenAI,” Cramer said.
Cramer said Gemini could have the edge as it can be integrated with Google Search.
"Maybe OpenAI has a revolutionary version of its own product in the works. I, for one, would never write them off. Nor would I say that this news is definitely bad for Oracle, their biggest business partner.”
While Cramer briefly sounded the alarm on the bad news for Oracle, related to key partner OpenAI, he remains positive on the strong demand for the company's products.
"I think that Oracle, which builds data centers better than anyone, can get lots of takers for its product. It doesn't just live or die depending on OpenAI, but it has taken on a lot of debt."
Cramer said that companies that have business hanging on OpenAI and ChatGPT "just became more precarious."
Why It's Important
OpenAI has committed to spending massive amounts on data centers in future years.
Cramer warns that slower growth for the company could become a problem for the nearly $1 trillion in spending by OpenAI and for its partners set to capitalize on the increased spending.
With new concerns around the AI trade, Cramer highlighted Oracle as a potential warning sign set back in September, during his Nov. 18 "Mad Money" show.
Cramer said Oracle's earnings report may have planted the seeds of the AI trade turning cold. The television personality said Oracle stock soared on its future growth and backlog, before reports said the majority of the future backlog belonged to OpenAI.
For Oracle stock, Cramer also said that credit default swaps are also a concern, along with recent selling of stock options by former CEO Safra Catz.
Oracle guided for its Cloud Infrastructure revenue to grow 77% to $18 billion in the current fiscal year. The segment is also expected to grow to $32 billion, $73 billion, $114 billion and $144 billion in the next four fiscal years, respectively.
Cramer sounding the alarm on Oracle stock could provide caution for investors and the risk of having too much reliance on one customer. The battle between Alphabet and OpenAI could see both companies emerge as winners in the AI race, helping Oracle along the way.
With concerns of an "AI bubble," the comments from Cramer might make investors more cautious going forward.
Oracle Stock Price
Oracle stock closed down Monday 0.50% to $200.94 versus a 52-week trading range of $118.86 to $345.72. Oracle shares are up 21% year-to-date in 2025.
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