A few weeks ago, I decided to write about an artificial intelligence company for our December 2022 Mid-Month Update. The company was not OpenAI, the creator of ChapGPT but a public AI company that trades at a tiny fraction of OpenAI’s expected $29 billion valuation. I wrote the following about the company in that update:
I was discussing the enterprise AI software company C3.ai (AI) with my brother last weekend and was struck both by how far the stock had fallen and how much cash the company had on the balance sheet. Along with Snowflake (SNOW), C3.ai was another highly anticipated IPO in 2020 and both companies soared after going public. Snowflake, which priced its IPO at $120 per share in September 2020 went on to peak at over $400 per share three months later. C3.ai, which went public in December 2020, just days after Snowflake’s peak, priced its IPO at $42 per share and peaked the same month at nearly $184 per share. The stock currently trades at $13.04, an astounding peak-to-trough decline of 93%.