Jim Cramer has expressed concern about OpenAI’s aggressive spending strategies, highlighting potential weaknesses in the AI growth narrative. On X, Cramer warned that investors are noticing “cracks” linked to the company’s costly data center investments. He emphasized a precarious balance, stating, “too much spending, sell” reflects rising apprehension among investors supporting AI’s stock market rally. Prominent investor Michael Burry has likened the current AI fervor to the speculative bubble preceding the 2000 dot-com crash. OpenAI has announced a staggering $1.4 trillion commitment over the next eight years for infrastructure improvements, including data centers and chip acquisitions. While CEO Sam Altman projects a $20 billion annualized revenue by 2025, analysts stress the urgent need for OpenAI to convert its growth into profitability to avert financial strains. With ongoing scrutiny from investors, the sustainability of OpenAI’s capital-heavy growth model is in question.
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Jim Cramer: AI Optimists Hope for OpenAI’s Continued Investment Amid Concerns of ‘Cracks’ Emerging
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