CNBC host Jim Cramer says the artificial intelligence industry is losing the battle over public perception, and that shift could weigh on the stock market. In his view, concerns about jobs, electricity costs and safety are increasingly overshadowing the sector’s promises of economic growth and productivity gains.
Cramer said the mood change is coming at an already difficult time for markets. U.S. Treasury yields remain near multiyear highs, while more than half of S&P 500 companies are trading below their 200-day moving averages. Against that backdrop, he warned that weakening sentiment toward AI could pressure one of Wall Street’s main growth engines.
He argued that 18 months ago, data-center construction was often framed as a source of jobs and economic activity. Now, public debate is more focused on higher electricity prices, pressure on water resources and the burden on local communities. Cramer added that the message has become harder for the industry to control because leading AI developers themselves have warned about the risks of more powerful models.
As an example, he cited Reuters’ report on a leaked version of Anthropic’s IPO prospectus, which the news agency said warned that the company’s AI models pose a “catastrophic or existential risk to humanity.” He also pointed to OpenAI’s decision to hold back ChatGPT 6.1 Astra over safety concerns.
Cramer said AI companies need to do a better job of showing tangible benefits. He pointed to Meta as an example, saying the company has highlighted efforts to limit the impact of its data centers on local electricity costs and to support the communities where it invests. He also praised Meta’s new Muse AI agent, including a version designed to help small-business owners automate administrative work.
Unless the industry can make AI’s real-world benefits clearer, deteriorating public sentiment could become another headwind for an already fragile market, Cramer warned.
