By C3.ai (NYSE: AI) Inc chief executive Thomas Siebel expects “exceptionally rapid growth” in the company’s federal business with Elon Musk serving as an advisor to the President.
President-elect Donald Trump have picked the billionaire to co-lead a new initiative dubbed the Department of Government Efficiency (Doge).
Doge’s mission is to streamline government operations, cut wasteful expenditures, and reduce bureaucracy.
But CEO Siebel is confident that Elon Musk won’t hurt C3’s business in his pursuit of cutting expenses as the company’s innovative AI-driven solutions are more like an investment into optimising government processes.
Government contracts propel C3.ai forward in Q2
C3.ai secured new agreements and expanded the existing ones it has with the US Department of Defense (DoD) in its second financial quarter.
“I think we’re going to see fundamental changes in the way that AI technologies are procured,” he told CNBC in an interview last night.
Chief executive Thomas Siebel is fully convinced that demand for enterprise AI applications particularly in the federal space will continue to grow dramatically under Elon Musk leading the Department of Government Efficiency.
And we are “very well positioned to serve that market now with Microsoft and other partners,” he added.
C3.ai stock is up 10% in premarket today after reporting market-beating financial results for its fiscal Q2.
What MSFT partnership means for C3.ai
CEO Thomas Siebel attributed part of the strength in the company’s recently concluded quarter to its partnership with Microsoft Corp.
“It’s difficult to overstate the potential of the Microsoft-C3.ai strategic alliance. [It’s] making it easy for businesses to adopt and deploy C3.ai applications.
This is an inflection point for enterprise AI, driving growth,” he told investors in a press release on Monday.
The New York listed firm expanded that alliance last month to include integration of its enterprise AI software on Azure.
Other notable names in C3’s partner network include Google Cloud, Amazon Web Services, and Booz Allen.
C3.ai stock surges over 100% since September
C3.ai stock may find it hard to push further to the upside
C3.ai topped Street estimates as “everything went right” in its second financial quarter.
For the full year, the enterprise artificial intelligence specialist now calls for revenue in the range of $378 million to $398 million – ahead of $383 million that analysts had forecast.
C3’s current quarter guidance was in line with consensus as well.
Nonetheless, much of the good news is perhaps baked into the C3.ai share price considering Wall Street’s highest price target on this AI firm is $42 and it’s already trading well above that level at writing.
Plus, it’s not like C3 stock pays a healthy dividend yield to appear any more attractive at least for the income investors.
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