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Formerly an obscure company, machine learning software specialist C3.ai (NYSE:AI) is now a focal point for investors of all stripes. AI stock offers pure-play exposure to the red-hot artificial intelligence (AI) industry, which could grow exponentially during the coming years. Plus, a team-up with Amazon (NASDAQ:AMZN), a giant in e-commerce and cloud computing, makes C3.ai a high-confidence pick for a $1,000 portfolio allocation.
You’d be hard-pressed to find a more dedicated machine-learning tech business than C3.ai. If you’re not convinced, check out the company’s best-in-class product line, the C3 Generative AI Product Suite. This “integrates the latest AI capabilities from organizations such as” OpenAI, and “the most advanced models,” including OpenAI’s ChatGPT platform.
With clients and partners in the public and private sectors, it’s tough to find a better publicly traded AI-tech specialist than C3.ai. So, let’s delve into the finer details of this machine-learning leader and its expanded arrangement with a cloud-market giant.
What’s Happening With AI Stock?
ChatGPT brought a lot of attention to the machine learning space in general, and to C3.ai in particular, this year. AI stock doubled from $11 to more than $22 in a matter of weeks, prompting skeptics to wonder if there’s a bubble afoot.
It’s a valid concern, so you don’t need to commit your entire portfolio to shares of C3.ai. A $1,000 investment makes sense, especially if you envision robust multi-year growth for the machine learning industry.
That growth could help C3.ai move quickly along its “accelerated path to profitability.” The company’s management expects C3.ai to “be operating profitably on a non-GAAP basis and be cash positive by the end of fiscal 2024.” If C3.ai achieves this objective within the proposed time frame, any “bubble” talk concerning AI stock will be null and void.
C3.ai Announces Expanded AI-Focused Collaboration with Amazon
Amazon is both an e-commerce giant and a cloud-computing leader. The company’s Amazon Web Services (AWS) business is often considered a go-to source for cloud-market customers. It’s huge news, then, that C3.ai is expanding its Strategic Collaboration Agreement (SCA) with AWS to deliver AI solutions.
Through the SCA, C3.ai and AWS seek to “solve customers’ critical business challenges across a variety of industries, including defense and intelligence as well as state and local government.” C3.ai has actually been doing this for a while, with major public-sector clients like the U.S. Air Force.
However, the expanded SCA with AWS will enhance C3.ai’s ability to serve a broad range of clients. In particular, C3.ai will integrate applications “such as C3 AI Law Enforcement, with AWS services including Amazon Comprehend, and co-sell the C3 AI Platform and applications with AWS.”
In other words, both companies will benefit greatly from the SCA. AWS will bring its “scalability, innovation, and agility” to the table, while C3.ai will provide its “industry-leading software.”
Jeff Kratz, General Manager, Worldwide Public Sector Partners at AWS, sees this expanded collaboration benefiting the clients as well. The SCA “will help C3 AI enhance their offerings to provide outstanding solutions for our customers,” Kratz assures.
Now’s a Great Time to Invest $1,000 in AI Stock
So now, you know that C3.ai is teaming up with the almighty Amazon and is on an “accelerated path to profitability.” If you’re bullish on machine learning in general, then it’s easy to see why AI stock is a prime pick.
Still, this doesn’t mean you have to go overboard with your investment in C3.ai. If you’re ready to make a move, consider buying $1,000 worth of C3.ai shares. Then, you can just “set it and forget it” for a few years, and hopefully, you’ll enjoy multi-bagger returns.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.
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