C3.ai (AI) is gaining ground in Thursday's trading. The company's share price was up 4.7% as of 3:30 p.m. ET. Meanwhile, the S&P 500 index was flat in the daily session, and the Nasdaq Composite index was up 0.1%.

C3.ai stock is posting gains today in conjunction with bullish momentum for speculative artificial intelligence (AI) stocks. The company's share price could also be getting a lift from news that Palantir is aiming to form a consortium to challenge traditional players in the defense industry.

C3.ai stock climbs higher on bullish AI momentum

At its policy meeting last week, the Federal Reserve announced another 25 basis-point cut for interest rates -- a move that was largely in line with the market's expectations. But Fed Chair Jerome Powell also indicated that the central banking authority now expects to serve up only two rate cuts on that level next year -- down from its previous forecast suggesting four rate cuts of 25 basis points next year.

While many growth-dependent and speculative AI stocks initially saw big sell-offs on the macroeconomic news, stocks in this category are now seeing some significant recovery. Investors have quickly become more tolerant of risk in the AI space, and C3.ai stock is climbing in conjunction with the trend.

Will C3.ai benefit from Palantir's AI consortium?

Late last week, the Financial Times reported that Palantir was teaming up with Anduril to form a consortium of companies aimed at disrupting the defense industry. With AI emerging as a key front in defense initiatives, the potential partnership could have dramatic implications.

While C3.ai was not named by the Financial Times as a company that has been approached to join Palantir and Anduril's defense-industry alliance, some investors appear to be betting that the company will be a beneficiary of the proposed consortium. C3.ai has already won U.S. defense contracts and has recently signed a partnership with Microsoft, and its established relationships could help make it an attractive candidate for new contracts in the public and private sectors.