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C3.ai Inc (NYSE:AI) shares surged Tuesday after the company announced the launch of its C3 Generative AI Product Suite with the release of its first product — the C3 Generative AI for Enterprise Search.
C3.ai shares are up 28% at $20.95 per share.
The enterprise AI software provider said its first product uses a natural language interface to locate and present all relevant data for a user’s needs across the entire corpus of a company’s information systems.
The company’s new product suite utilizes AI capabilities from companies such as Open AI, Google (NASDAQ:GOOGL), and academia, and advanced models, such as ChatGPT and GPT-3 into C3 AI’s enterprise AI products.
C3 Generative AI is scheduled for general release in March 2023.
Wolfe Research analysts said in a note on Tuesday that “as of now it is unclear which of C3 AI’s 29 pre-built applications the generative modules will integrate with, and how they will add value for each of the unique end markets the different application suites serve.”
“The press release bears striking similarities to the recent BuzzFeed memo which was circulated last week in which CEO Jonah Peretti said that AI will play an increasingly large role in the companies operations, and that they plan to use Open AI’s ChatGPT to generate specific content for the site,” the analysts added.
The analysts also noted that interest, particularly from retail investors, in AI is elevated, and C3 is boosted by the fact it has AI in its name.
However, they added that based on the press release, “it is unclear what new technology or capabilities C3 AI has developed,” as the company states that the upcoming Generative AI Product Suite will be powered by Open AI, Google, and academia.
“Without details on the licensing agreements that will exist between C3 AI and these organizations, it is difficult to determine the value of the incremental revenue C3 AI may generate as a result of this new product suite. Until we get more details on the product, including pricing and fit within AI’s new consumption model, we remain hesitant to buy into recent rallies, which we believe have been driven by significant retail interest, ahead of earnings,” concluded the analysts.
