Nvidia Is Making Money From AI. For Now
C3.ai reported a 73% increase in the cost of revenue forthe latest quarter compared to the previous year's quarter
– stating the need to overinvest to make their AI products successful.
Despite strong demand, both C3.ai and Palantir have experienced stock gains that outpace their financial gains
– suggesting uncertainty in realizing their potential.
C3.ai's CEO, Thomas Siebel, forecasted profitability on an adjusted basis by the end of the 2024 fiscal year
– while Palantir's CEO, Alexander Caedmon Karp, emphasized the challenge of monetizing the AI trend.
– The stock prices of C3.ai and Palantir have already reflected high levels of enthusiasm for AI, with C3.ai up 181% and Palantir up 138% in the year.
all AI-related stocks should experience such dramatic increases, noting that Nvidia
a key player in AI-related chips, has risen 222%.
– C3.ai shifted from a subscription-based pricing model to a consumption-based model to attract more customers.
C3.ai emphasized the need for overinvestment in AI product success
– with its total cost for producing and selling subscriptions and services increasing by 73% in the latest quarter.