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CNBC’s Jim Cramer explained why he thinks Alphabet‘s new iteration of its artificial intelligence platform, Gemini, could seriously challenge the dominance of OpenAI’s ChatGPT.

“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,” he said. “The company, the emperor, better have…something to strike back, because otherwise the narrative will be that OpenAI has no clothes.”

Alphabet announced its new Gemini model last week. Cramer praised the new version and said some on Wall Street are excited about it — noting that Salesforce‘s Marc Benioff said he prefers the new Gemini to ChatGPT.

Usually, Cramer said Alphabet’s announcement wouldn’t cause a huge upset — but the stakes in this business are huge, mentioning the huge amounts of money involved. Alphabet has an edge over other ChatGPT challengers because it’s been able to integrate Gemini with its Google platform, Cramer continued.

Slower OpenAI user growth would be a problem for both the company and its business partners, Cramer said. He pointed out that OpenAI has committed to spending about $1 trillion and it needs to keep growing rapidly in order to raise that money.

Cramer stressed that he wouldn’t completely write off OpenAI, saying it’s possible the company has a “revolutionary version of its own product” in the works. He also said the Gemini news isn’t necessarily terrible for Oracle, one of OpenAI’s major partners, because the data center builder has the ability to attract other customers and “doesn’t just live or die depending on OpenAI.”

“Still, if your business is hanging on ChatGPT, it just became more precarious,” Cramer said.

Alphabet and OpenAI did not immediately respond to request for comment.

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Disclaimer The CNBC Investing Club owns shares of Salesforce.

Stock futures are little changed Monday night after major U.S. averages rebounded, driven by strength in the artificial intelligence trade and renewed hopes of a Federal Reserve interest rate cut.

Futures tied to the Dow Jones Industrial Average added 4 points, or less than 0.1%. S&P futures rose nearly 0.1%, while Nasdaq 100 futures rose more than 0.1%.

Stocks posted strong gains across the board on Monday, starting a shortened trading week off strong. The S&P 500 in the previous session gained almost 1.6%. The Nasdaq Composite jumped 2.7% and recorded its best day since May 12 as major tech names rebounded after what’s been a tough month for the sector. The Dow Jones Industrial Average closed higher by nearly 203 points, or 0.4%, meanwhile.

Google parent Alphabet was the outperformer of the “Magnificent Seven” group by a large margin, ending the day 6.3% higher. Chipmaker Broadcom was the S&P 500’s biggest gainer after the stock surged more than 11%. Investors have rallied behind both companies, which are related through their high-performance, application-specific chips, or ASICs, businesses. Nvidia — which has lost about 10% this month even after reassuring investors about strong AI demand — gained about 2%.

Although stocks attempted a slight recovery from the sell-off from the previous week, the three U.S. indexes are still tracking for a losing month. AI stocks have been responsible for much of this year’s gains, and investors are questioning tech stock valuations and whether the market will see a year-end rally or a reversal in momentum.

The S&P 500 is down about 2% in November, while the Nasdaq has lost 3.6%. The 30-stock Dow has shed 2.3% month to date.

“You saw a lot of that washout, and it really started at the end of October as we had some liquidity that came out of out of the market,” Abby Yoder, U.S. equity strategist at JPMorgan Private Bank, said Monday on CNBC’s “Closing Bell” referring to the recent pullback.

“But within this technical-driven move in terms of the AI and tech-related names, you still had this really solid fundamental backdrop in terms of the AI story and the AI spending story,” Yoder continued. “Now, I think going forward, it sets up nicely as we head into the end of the year, but I think there’s going to be a little bit more of a discerning eye.”

Separately, traders continue to watch for any news that can affect the Federal Reserve’s upcoming monetary policy decision. Markets are pricing in a more than 80% chance of a quarter percentage point cut from the Fed in December, per the CME FedWatch Tool. The probability has soared since New York Fed President John Williams said on Friday that there was room to lower rates “in the near term.” San Francisco Fed President Mary Daly told the Wall Street Journal on Monday that she supports lowering rates due to labor market concerns.

The stock market is closed on Thursday for Thanksgiving Day, and it shuts down early at 1 p.m. ET on Friday.