C3 Generative AI Now Available on AWS Marketplace
Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. C3.ai’s adjusted operating margin had slightly improved from negative 32% in fiscal 2022 to negative 26% in fiscal 2023, but it dropped back to negative 29% in the first quarter of fiscal 2024. Today, as part of AWS’s announcement to invest in generative AI for the enterprise, we are keen to highlight the meaningful collaboration between our two companies in this space. Ahead of this news, C3 AI has had the opportunity to beta test the new AWS generative AI capabilities. We have been working to integrate and leverage AWS’s powerful new capabilities within the C3 AI Platform and applications to provide the best experience for our joint customers.
I give Google full marks for the general availability of the Duet AI agent for Google Workspace and Google Cloud, which is a big deal. For me, this event marked the spot that Google Cloud was no longer following Microsoft, and I’d call it a tie right now. To be honest, it’s hard to distinguish the AI services right now between Google Cloud, AWS and Azure. You can check out other Moor Insights & Strategy coverage from Robert Kramer (data), Matt Kimball (compute), Melody Brue (modern work) and Will Townsend (networking). In this article, I will discuss, at a high level, the enhancements Google is making to support generative AI. Founded under the name C3 in 2009, this company developed some of the core components of what is now the C3 AI Platform over a decade ago.
C3 AI Platform
Buying growth stocks at a P/E less than the percentage growth in earnings (its PEG ratio) can sometimes signal an undervalued stock. C3.ai’s declining RPO reveals the impact of its aforementioned switch from stickier subscriptions to more flexible usage-based deals. The company also still generates more than 30% of its revenue from a joint venture with the energy giant Baker Hughes.
- Organizations need the most powerful chips and software to power AI and distill intelligent insights from the ever-growing amount of data out there.
- But the slowdown in deal-making activity seen last quarter could keep the company from hitting its targets.
- At the same time, C3.ai now sees its adjusted operating loss falling between $70 million and $100 million for the year, a downward revision from the prior outlook of $50 million to $75 million.
- Users can easily interact with complex applications to find relevant information and also take appropriate actions.
With a much better financial performance and a better valuation, UiPath is clearly the better AI stock to buy right now. During the three months ended July 30, UiPath raised its investments in research and development while narrowing its operating loss. Moreover, the company is confident enough about its ability to produce sustainable profits in the quarters ahead that its board of directors recently approved a $500 million share buyback program. UiPath is still losing money, but its bottom line is moving in the right direction. The company reported a 10% adjusted operating margin in its fiscal second quarter, which was a huge improvement from the negative 5% operating margin it reported in the previous-year period. UiPath’s services are practically selling themselves amid a relatively tricky economic environment for software companies.
Generative AI’s Role in Reshaping Business Dynamics: Uphoff on Industry
Get complete answers.” To generate content—churning out an essay about Plato, for instance, or about the history of AI technology—generative AI services rely entirely on publicly available data. And that’s what stands between current generative AI offerings, and what’s needed to serve the enterprise. “Since we announced C3 Generative AI, we’ve had intense interest from current customers and prospects to get these capabilities deployed and in use across their systems,” said C3 AI CEO Thomas M. Siebel. Commenting on C3.ai’s outlook, Sills said the company reiterated its Fiscal 2024 revenue outlook despite solid AI demand. Meanwhile, Wedbush analyst Daniel Ives reiterated a Buy recommendation on C3.ai stock on September 7.
All products in the C3 Generative AI suite are available for immediate customer installation. C3 Generative AI is being successfully deployed to supplement manufacturing process knowledge at Georgia-Pacific, commodity trading optimization at Flint Hills Resources, enterprise search at the U.S. Missile Defense Agency, and to improve safety during steel manufacturing at Nucor. C3 AI supports the customer to bring its generative AI application into production within 12 weeks at a cost of $250,000. After that, the customer pays per vCPU/vGPU hour, with volume discounts. Generative AI also helps develop customer relationships using data and gives marketing teams the power to enhance their upselling or cross-selling strategies.
Founder of the DevEducation project
A prolific businessman and investor, and the founder of several large companies in Israel, the USA and the UAE, Yakov’s corporation comprises over 2,000 employees all over the world. He graduated from the University of Oxford in the UK and Technion in Israel, before moving on to study complex systems science at NECSI in the USA. Yakov has a Masters in Software Development.
The models used for text generation can be Markov Chains, Recurrent Neural Networks (RNNs), and more recently, Transformers, which have revolutionized the field due to their extended attention span. Text generation has numerous applications in the realm of natural language processing, chatbots, and content creation. Google’s new Cross-Cloud Network is an open and programmable cloud networking platform that enables connectivity and security for applications across clouds and on-prem locations. Cross-Cloud Network is a portfolio of existing and new products from Google Cloud and partners. It includes machine-learning-powered security products such as Google Cloud Armor and security technologies from companies including Palo Alto Networks. Cross-Cloud Network optimizes workload performance with lower latency and higher throughput and bandwidth, which will be crucial as more organizations adopt generative AI.
It does this by learning patterns from existing data, then using this knowledge to generate new and unique outputs. GenAI is capable of producing highly realistic and complex content that mimics human creativity, making it a valuable tool for many industries such as gaming, entertainment, and product design. Recent breakthroughs in the field, such as GPT (Generative Pre-trained Transformer) and Midjourney, have significantly advanced the capabilities of GenAI.
There are signs of an acceleration in this company’s business, but there are red flags to watch out for as well.
After posting a revenue increase of 38% in fiscal 2022 (which ends in April), revenue growth slowed to just 5.6% in fiscal 2023. The company recently reported flat sales for the first quarter of fiscal Yakov Livshits 2024. Nvidia’s chips are driving many areas of the economy that consumers might take for granted, like product recommendations, customer service chatbots, and faster product development cycles.
While contracts vary from quarter to quarter, this is something to watch, as C3.ai cannot afford to struggle in one of its most valuable industries. Even if C3.ai shifts its focus to defense, this would mean a massive revenue hit for the company if oil and gas isn’t a significant contributor. UiPath significantly reduced its operating loss over the past year. C3.ai’s operating loss expanded slightly over the same time frame even though the company lowered its pace of investment in research and development. You might not be excited about using new generative artificial intelligence (AI) applications like ChatGPT in your day-to-day workflow, but your boss probably is. Both stocks have expensive valuations, but Nvidia’s forward price-to-earnings ratio of 41 based on analysts’ earnings estimates is fair.
C3.ai’s cost of providing services jumped, which caused its gross margin to drop to just 56% in the fiscal second quarter. Management is boasting about record levels of demand for AI services, but this doesn’t Yakov Livshits jibe with subscription service revenue that rose just 7.6% year over year. UiPath is targeting a 20% long-term operating margin and clients eager to deepen their relationship are helping it get there.