Shares of artificial intelligence company C3.ai, Inc. (AI) climbed over 5% in premarket trading on Monday, December 9th, 2024, as AI stocks rallied on optimism around the sector's monetization potential and increased government focus.
The key drivers behind C3.ai's premarket soar included:
1) News that President-elect Donald Trump intends to appoint venture capitalist David Sacks as his administration's AI and crypto czar. This move signals that AI technological development will likely be a key priority under the new administration, benefiting companies like C3.ai.
2) OpenAI's launch of its paid ChatGPT Pro service at $200 per month, raising investor confidence about monetization avenues emerging for generative AI capabilities, a space where C3.ai operates.
3) Additionally, Palantir's new partnership with Booz Allen Hamilton to promote U.S. defense innovation is seen as a broadly positive indicator for C3.ai. The company has secured substantial AI deals and partnerships with the government and defense contractors, so increased investments in the sector bode well for its future prospects.
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