• CNBC's Jim Cramer says Google might have won the AI race against OpenAI for now.
• Cramer voices concern over OpenAI's massive AI investment plans and discusses worst-case scenarios, including those that require pivots in the ChatGPT use case.
• Google launched Gemini 3 last week, and users are praising the AI as one of the most advanced they have seen yet.

As users rave about Google's new Gemini 3 and Nano Banana Pro, CNBC's Jim Cramer argues that it could be the death knell for OpenAI.

“OpenAI has pledged to spend hundreds of billions of dollars to beat Alphabet -owned Google with ChatGPT. But it can't. And it won,” Cramer said in a column on Monday.

He argued that OpenAI aims to become "Google with comprehension," but this is unnecessary because Google already has Gemini, which he describes as remarkably capable and with enhanced reasoning.“In other words, Google is already everything OpenAI aspires to be,” thanks in part to Google's troves of internet data.

Gemini 3 A Hit

Google launched Gemini 3 last Tuesday, with the AI topping several benchmarks and earning praise from users and top tech executives alike. Meanwhile, its parent firm, Alphabet, is drawing attention for closing in on the coveted $4 trillion market cap - a milestone already achieved by Big Tech rivals Apple, Microsoft, and Nvidia.   

AI Investment Hypercycle

Cramer, in particular, was worried about OpenAI's massive infrastructure investment. The ChatGPT maker has pledged to spend $1.4 trillion to build about 30 gigawatts of computing assets through 2033. At the same time, capital investments from tech companies and their astronomical valuations are making some investors fret that future revenue gains from AI will not be enough to justify the current hype.

OpenAI's Worst-Case Scenario

Cramer believes OpenAI might be forced to pivot away from challenging Google and instead attack other tech giants' territories – social media (Meta), retail (Amazon), or enterprise software (Microsoft) – although each of those battles will be difficult.

In the worst-case scenario – OpenAI spending beyond its means – the company might either seek a government bailout as a "national champion" or see itself acquired by Microsoft at a reduced valuation, Cramer said.

Google Shining

For now, Google has essentially won the AI competition against OpenAI, Cramer said.

As of the last close, GOOGL stock has gained 68.3% year-to-date, the highest among the Maginificent 7 stocks. On Stocktwits, the ticker trended at number 2, with an 'extremely bullish' retail sentiment. 

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