The technology industry was thrown into turmoil over the weekend after OpenAI fired CEO Sam Altman and staff threatened to quit. At the end of the day, Altman announced he would be joining Microsoft and most of OpenAI’s staff has threatened to quit.
One of the beneficiaries today is C3.ai (NYSE: AI), which has seen its stock rise as much as 8.2%. Shares are up 7.3% as of 12:40 p.m. ET.
The stock performance of C3.ai has been driven more by artificial intelligence hype than anything else this year. You can see below that revenue is up just 3% in the past year and the company is losing money, but that hasn’t mattered because the stock is up 58.3%.
Today’s move is a continuation of the speculation that eventually C3.ai will be a winner in artificial intelligence.
As of midday Monday, it looks like Microsoft was the big winner from the OpenAI shakeup. Talent has the option to go there and follow Sam Altman. Plus, the company has the infrastructure and customer touchpoints to build a huge AI business.
I don’t think what C3.ai has shown in the last year should give investors confidence that it is going to be a big winner in AI, especially now that this has become an arms race among the world’s biggest companies. That’s why I’m staying out of this pop today.
10 stocks we like better than C3.ai
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*
They just revealed what they believe are the ten best stocks for investors to buy right now… and C3.ai wasn’t one of them! That’s right — they think these 10 stocks are even better buys.
*Stock Advisor returns as of November 20, 2023
Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.
—
Blog powered by G6
Disclaimer! A guest author has made this post. G6 has not checked the post. its content and attachments and under no circumstances will G6 be held responsible or liable in any way for any claims, damages, losses, expenses, costs or liabilities whatsoever (including, without limitation, any direct or indirect damages for loss of profits, business interruption or loss of information) resulting or arising directly or indirectly from your use of or inability to use this website or any websites linked to it, or from your reliance on the information and material on this website, even if the G6 has been advised of the possibility of such damages in advance.
For any inquiries, please contact [email protected]
