AI has been present for years, but OpenAI's ChatGPT online chatbot boosted it in 2023. The first time AI was mass-produced, its ability to generate text, photos, movies, and computer code drew corporations to use it.
AI will add $7 trillion to the global economy in the next decade, says Goldman Sachs. PwC estimates AI would add $15.7 trillion to the global economy by 2030, while Ark Investment Management estimates $200 trillion. This is one of the biggest cash possibilities ever, regardless of the forecast.
AI monetization began before last year's mania at C3.ai and Lemonade. The $3.8 billion and $1.2 billion firms are modest compared to the trillion-dollar tech giants most investors connect with AI, like Nvidia. However, these are unique opportunities. Here's how $1,000 split evenly between C3.ai and Lemonade shares now may become $5,000 in 10 years.
C3.ai was the first enterprise AI business. C3.ai was formed in 2009 to deliver AI to organizations everywhere, like SaaS for AI. To speed technology adoption, C3.ai offers over 40 ready-made and customisable solutions to enterprises in over 10 industries.
C3.ai monitors thousands of equipment items to predict and avert catastrophic breakdowns that would cause significant downtime for manufacturers and energy firms. Financial institutions use its software to detect fraud and make lending choices.
The company's sales approach relies on its strong partner network. Amazon, Microsoft, and Alphabet's Google provide C3.ai to enterprises on their cloud platforms. Customers engaged with C3.ai increased 80% year over year in the fiscal 2024 third quarter (ending Jan. 31), and its partners closed 27 of 50 new deals.
Q3 revenue for C3.ai was a record $78.4 million, up 18% year-over-year. The fourth consecutive quarter of acceleration was the fastest growth in over a year. This is due to C3.ai's revenue model change. The company no longer charges membership fees that needed lengthy discussions, but it now uses a consumption model that lets businesses sign up fast and pay for what they consume.
C3.ai stock is currently $31.70, 80% below its all-time high of $161. If the market regains its peak, a $500 investment today will return fivefold, but it won't be easy. C3.ai lost value after the 2021 tech rush since its growth slowed and AI's potential wasn't evident.
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