6. C3.ai Inc. (NYSE:AI)
Short % of Shares Outstanding As of August 30: 22.31%
Number of Hedge Fund Holders: 18
C3.ai Inc. (NYSE:AI) is a technology company specializing in enterprise AI, providing a comprehensive suite of products that use AI to empower businesses. It allows companies to rapidly develop, deploy, and manage large-scale AI applications for various uses, and also offers pre-built, industry-specific AI applications for specific business challenges.
Its GenAI products were deployed across 15 industries and had 50,000+ inquiries in the closing fiscal quarter of 2024. In July, it achieved the AWS GenAI Competency, recognizing it as a leading AWS Partner with a successful track record in implementing GenAI technologies. It launched C3 GenAI for government programs It also recently received recognition from Constellation Research as a leading provider of AI and ML platforms.
In FQ1 2025, the company saw a 20.52% year-over-year rise in revenue, recording $87.21 million. This rise was lower than the one seen in FQ4 2024, due to tightening corporate budgets for IT and software amid macroeconomic concerns. Still, the growth was driven by subscription revenue that added $73.5 million, up 20% from a year ago, representing 84% of total revenue.
The company closed FQ1 with 71 agreements, marking a 117% year-over-year increase in new pilots (72 total), and also solidified its presence in state and local government with 25 new agreements. It formed 51 new partnerships, of which 72% of deals were closed through its partner ecosystem. Partner-supported bookings grew by 94% and signed 40 agreements with Google Cloud.
The company is facing challenges as it nears the renewal of its Baker Hughes partnership, which expires in April 2025 and accounts for over a third of its revenue. The partnership has experienced various revisions and controversies over the years.
C3.ai Inc. (NYSE:AI) stands out in the enterprise AI sector which positions it for long-term growth as the value of AI shifts from hardware to software. Analysts recognize this company as a leading AI stock due to its strong market presence and effective execution strategies.
Bireme Capital stated the following regarding C3.ai, Inc. (NYSE:AI) in its fourth quarter 2023 investor letter:
“Our final new short position is in a company called C3.ai, Inc. (NYSE:AI). Originally named “C3 Energy,” C3.ai has changed its name multiple times based on whatever hot new trend they were supposedly capitalizing on. The “energy” theme was about smart grid and cap-and-trade. Then the firm changed its name to “C3 IoT” to attempt to capitalize on the Internet of Things buzz. After that trend fizzled out, the moniker was altered once more, with the company capturing the “AI” ticker in December 2020 – a savvy move if it wants to sell stock to credulous investors, but irrelevant to its business prospects. As Kerrisdale put it, the company is a “minor, cash burning consulting and services business masquerading as a software company.”
