Shares of C3.ai, Inc. (AI) soared 5.54% in pre-market trading on Tuesday, as investors reacted positively to recent reports of the company's expanding client base and strong revenue growth in the artificial intelligence sector.

The enterprise AI software provider has been making significant strides in growing its customer base across various industries. In its most recent quarter, C3.ai reported a 26% year-over-year increase in revenue, reaching $98.8 million. This growth has been driven by the company's success in forming partnerships with major cloud computing players like Amazon Web Services (AWS) and Microsoft Azure, allowing C3.ai to provide turnkey AI solutions on their networks.

Despite the positive revenue growth and expanding market reach, C3.ai continues to face profitability challenges. The company reported a GAAP operating loss of $87.6 million in its last quarter, although this figure improves to a $23.1 million loss when excluding stock-based compensation. While some investors remain concerned about the company's path to profitability, the pre-market surge suggests that many are focusing on C3.ai's growth potential in the booming AI market. As the demand for enterprise AI solutions continues to rise, C3.ai's expanding partnerships and pilot programs with large clients could position the company for future success in this rapidly evolving sector.