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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.