Some cautious investors might worry because shares of machine learning software specialist C3.ai (NYSE:AI) ran high in early 2023. However, AI stock could continue to move higher this year. The company’s recently announced suite of artificial intelligence (AI) tools can work with OpenAI’s ChatGPT, and that’s a major advantage.
Based in California, C3.ai provides AI application software, mainly to enterprise clients. The company went from under-the-radar to sudden superstar this year. Among C3.ai’s investors is Ark Investment Management Chief Executive Cathie Wood.
There are other stocks that offer exposure to the machine learning niche market, but C3.ai specializes in AI. Yet, some investors might express concern that C3.ai shares have already gone too far, too fast. So, let’s delve into that topic now.
What’s Happening with AI Stock?
AI stock gets a “B” rating instead of an “A” because much of the company’s future growth appears to have been priced in already. The C3.ai share price already doubled from $11 to $22 this year. So, it’s understandable if prospective investors want to wait for a pullback.
If you wait too long, however, then you could end up missing out on a machine learning specialist with strong growth potential. Bear in mind, C3.ai recently secured a deal with the U.S. Air Force.
Specifically, C3.ai will work with Intelligent Waves LLC to provide AI applications for the U.S. Air Force. That’s a major coup for C3.ai, as the company is building trust with the government and one contract could lead to more, potentially lucrative contracts in the future.
C3.ai’s New Software Suite Can Work with ChatGPT
Let’s face it, some people never really cared much about machine learning until they heard about ChatGPT in the headlines. ChatGPT is making AI a top-of-mind topic, but it’s also threatening some tech businesses.
Yet, C3.ai doesn’t evidently view ChatGPT as a threat. That’s because C3.ai’s recently announced product line, known as the C3 Generative AI Product Suite, “integrates the latest AI capabilities from organizations such as Open AI . . . and the most advanced models, such as ChatGPT.”
In other words, clients don’t have to choose between C3.ai and OpenAI. They can choose both, and it’s a smart move for C3.ai to make its new product suite compatible with competitors’ machine learning offerings. The C3 Generative AI Product Suite is “scheduled for general release in March 2023,” according to the press release. So, be on the lookout for that.
What You Can Do Now
There’s no need to wage war against OpenAI and ChatGTP when C3.ai can instead offer products that are compatible with ChatGTP. That’s what C3.ai is doing, and it’s a sensible strategy.
Concerning AI stock, investors can consider taking a small position now and waiting for lower prices to add to that share position. If ChatGTP secures more government contracts, the company could grow its revenue quickly. Therefore, the C3.ai share price may have more room to run this year.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.