C3.ai Leverages Microsoft Cloud Collaboration to Capture Enterprise Market
Microsoft (MSFT) has expanded its partnership with artificial intelligence firm C3.ai (AI) to provide them with Azure’s cloud computing services. This afternoons news, AI’s share prices experienced a notable surge. The alliance, revealed at Microsoft’s Ignite cloud computing conference, is aimed at corporate clients.
C3.ai’s CEO, Thomas Siebel, stated that the strategic alliance enhances the adoption of corporate AI, offering clients extensive enterprise AI application software. This helps in attaining a swift return on investment in various realms such as supply chain optimization, predictive maintenance, government efficiency, ESG objective realization, and energy management.
While the stock market today saw AI’s stocks rising nearly 25% to 32.48, indicating a 9% increase in 2024, it still falls behind Palantir (PLTR) stock, which has escalated by 256% in the same period.
C3.ai is set to release its third quarter earnings on December 9. The company’s revenue growth is estimated to pick up again as more AI pilot projects transition into commercial production.
The company indicated earlier this year that its target for an adjusted profit has been shifted due to significant investments in AI. Additionally, as C3.ai transitions towards consumer priced services, profit margins are expected to be impacted in the short term.