The red-hot AI trade has cooled off. Jim Cramer offers a timeline of how it all went down

Core Viewpoint - Wall Street's enthusiasm for artificial intelligence (AI) investments has faced challenges, with potential further declines in AI stocks anticipated, as noted by CNBC's Jim Cramer [1] Group 1: Market Concerns - The downturn in the AI trade began in September, linked to Oracle's earnings report and significant spending commitments on AI infrastructure, particularly from OpenAI [2] - Initial investor optimism regarding Oracle's 36% stock gain was dampened by reports indicating that most future commitments were tied to OpenAI, leading to investor unease [3] - Oracle's leadership change and the departure of former CEO Safra Catz, who opposed spending plans, raised further concerns, especially as Oracle's credit default swaps doubled in two months [4] Group 2: Earnings Reports and Market Sentiment - Earnings reports from companies like Meta and Microsoft in late October, despite continued AI spending, resulted in stock declines, indicating a shift in market sentiment towards AI investments [5] - OpenAI's substantial spending commitments of over $1.4 trillion have heightened investor fears regarding the company's financial stability [6] Group 3: Financial Scrutiny - Comments from OpenAI's CFO about potentially needing federal government support for financial backing have intensified scrutiny of the company's finances, despite later clarifications that a bailout was not being sought [7] - There is a general sense of precariousness surrounding the AI sector, with calls for more financial assurances from OpenAI to restore confidence [8]