Jim Cramer’s Warning on Reckless AI Deals Amid Tech Market Declines (Dec 17, 2025)

This analysis is rooted in Jim Cramer’s December 17, 2025, “Mad Money” segment [3], where he warned investors about “circular” or “Lazy Susan” deals in the AI sector—comparing them to the 2000 dotcom bubble’s speculative practices and advising “buyer beware.” A key example cited was a potential $10 billion Amazon investment in OpenAI, where OpenAI would reciprocate by purchasing Amazon’s Trainium AI chips [1][2]—a structure Cramer argued inflates revenue without delivering clear long-term value.

Additional red flags included OpenAI’s $300 billion infrastructure deal with Oracle and Blue Owl Capital’s withdrawal from funding an Oracle data center (due to debt and overspending concerns) [2]. Critically, these warnings aligned with concurrent market movements: the S&P 500 declined 1.2% and the NASDAQ (tech-heavy index) fell 1.91% on December 17 [0], reflecting pre-existing institutional anxiety about unsustainable AI spending. OpenAI’s over $1.4 trillion in recent infrastructure commitments further amplify bubble risks [1].

1. Timely Market Sentiment Alignment
   : The December 17 market decline [0] indicates institutional investors were already acting on AI spending concerns before Cramer’s segment, suggesting his warning may reinforce rather than initiate this trend.
2. Bubble Risk Parallels
   : Cramer’s dotcom bubble comparison highlights that circular AI deals could drive artificial revenue growth—a hallmark of speculative cycles that preceded the 2000 crash.
3. Infrastructure Sustainability Scrutiny
   : OpenAI’s massive infrastructure commitments (over $1.4 trillion) [1] and Blue Owl’s withdrawal signal growing skepticism about the long-term viability of AI sector spending.

• Risks
  :
  • Short-term selling pressure on AI-related stocks (AMZN, ORCL, NVDA) could intensify due to Cramer’s large retail following [0][1][2].
  • Long-term risk of an AI bubble if reckless circular deals and excessive infrastructure spending continue.
  • Potential market volatility as investors reevaluate AI sector fundamentals.
• Opportunities
  :
  • Investors may shift focus to fundamentally sound AI investments with clear revenue models, reducing speculative activity.
  • Companies may restructure circular deals to avoid appearing speculative, enhancing market transparency.

• Event Source
  : CNBC’s “Mad Money” with Jim Cramer (YouTube video published December 17, 2025) [3].
• Core Theme
  : Caution about reckless circular AI deals and bubble-like speculation.
• Market Context
  : NASDAQ declined 1.91% and S&P 500 dropped 1.2% on December 17, reflecting AI overspending concerns [0].
• Specific Examples
  : Amazon-OpenAI $10B potential deal, OpenAI-Oracle $300B infrastructure deal, Blue Owl’s Oracle data center funding withdrawal [1][2].
• Impact Potential
  : Amplified short-term selling pressure on AI stocks; a potential shift in investor sentiment toward fundamental AI investments.