Jim Cramer, host of CNBC Mad Money, believes that the main threat to artificial intelligence deals is societal reaction, not corporate spending. He warned that a deterioration in public sentiment could crash stocks in the sector.
On air, Cramer stated that the AI industry is losing the battle for its own reputation. Meanwhile, investors are debating whether investments in data centers have grown too much. This statement came on the day when the yield on 30-year U.S. Treasury bonds reached its highest level since 2002. According to Cramer, public opinion has turned against AI. He mentioned rising electricity prices and concerns about jobs, although he does not see signs that AI has taken jobs from people. Cramer also pointed out how society reacted to the dinner at the White House featuring Jensen Huang from Nvidia and Elon Musk. According to the research group Data Center Watch, from April to June, 45 data center projects worth a total of $68 billion were frozen in the U.S. due to local protests.
Cramer believes that companies like Anthropic and OpenAI are adding fuel to the fire by openly highlighting the safety risks of their developments. He thinks the situation needs to change through proper presentation: "Companies need to start telling their story differently." Cramer did not directly discuss capital expenditures. He still calls AI the strongest investment theme of our time. Meanwhile, analysts at Goldman Sachs Research expect global investments in AI to reach about $1 trillion by 2026. In most calculations, the main contribution comes from hyperscalers – the largest cloud providers like Amazon, Microsoft, and Google. According to Apollo Global Management's chief economist Torsten Slok, credit markets have become wary of the debt burden of hyperscalers. He linked the changes to the rise in borrowing and unclear returns on AI investments.
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