OpenAI's aggressive push to dominate the artificial intelligence landscape may be showing signs of strain, according to CNBC's Jim Cramer, who warned that the company's massive spending spree could test even the strongest bulls in the AI trade.
Cramer Flags ‘Cracks' In AI Growth Narrative
Cramer took to X to voice concern over the mounting costs tied to the data center boom, saying investors are now hearing about "cracks" in the trade.
"On the one hand, it's ‘too much spending, sell,' and on the other, it is ‘too much spending, sell,'" he wrote. "The fact is that the spend is strong the bulls just want OpenAi to spend within its means. But it doesn’t seem to have enough…."
His remarks underscore growing unease among investors who have fueled AI's stock market rally but are now questioning how sustainable the capital-heavy growth model really is.
Just earlier this month, investor Michael Burry — the "Big Short" trader who famously predicted the 2008 housing crash — warned that today's AI frenzy is a speculative bubble reminiscent of the dot-com bust of 2000.
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OpenAI's $1.4 Trillion Commitment Raises Red Flags
OpenAI CEO Sam Altman last week revealed that the company has committed $1.4 trillion over the next eight years, largely for data centers, chip purchases and infrastructure expansion.
He expects OpenAI to close 2025 with a $20 billion annualized revenue run rate, but admitted that maintaining that trajectory takes a lot of work.
Analysts warn that unless OpenAI converts growth into profit soon, it could face serious financial pressure. "They've got to start generating some serious income," TECHnalysis Research's Bob O'Donnell told Yahoo Finance. "That's the part that has people kind of nervous."
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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