12 Best Small Cap AI Stocks To Buy According to Hedge Funds

8. C3.ai Inc. (NYSE:AI)

Market Cap as of December 2: $4.83 billion

Number of Hedge Fund Holders: 17

C3.ai Inc. (NYSE:AI) is a leading provider of enterprise AI software that empowers businesses across various industries to harness the power of AI to drive innovation and solve complex challenges. Its platform enables organizations to develop, deploy, and manage AI applications, while its industry-specific solutions address critical business needs such as optimizing inventory, mitigating supply chain risks, and improving sustainability.

The company has further solidified its position as an industry leader by expanding its partnership with Capgemini recently, a global technology and consulting powerhouse. This strategic move empowers C3.ai Inc. (NYSE:AI) to accelerate the adoption of AI solutions across diverse industries, including life sciences, energy, utilities, government, banking, and manufacturing.

By combining C3.ai Inc.’s (NYSE:AI) cutting-edge AI applications with Capgemini’s deep industry expertise and global implementation capabilities, the partnership aims to deliver transformative solutions that drive operational excellence, boost productivity, and reduce costs.

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.”