Shares of C3.ai Inc jumped 9.08% in overnight trading on Sunday, as artificial intelligence stocks rallied on optimism around the sector's monetization potential and government focus. C3.ai's peer BigBear.ai saw an even larger 13.6% surge, while Palantir rose 3.8%.
Boosting the bull case for AI plays was news that President-elect Trump intends to appoint venture capitalist David Sacks as his administration's AI and crypto czar. The move signals AI technological development will likely be a key priority under the new administration.
Adding fuel to the rally was OpenAI's launch of its paid ChatGPT Pro service at $200 per month, raising investor confidence about monetization avenues emerging for generative AI capabilities. OpenAI also unveiled a new AI reasoning model, furthering the space's rapid advancements.
For C3.ai specifically, Palantir's new partnership with Booz Allen Hamilton to promote U.S. defense innovation is seen as a broadly positive indicator. C3.ai has won substantial AI deals and partnerships with the government and defense contractors, so increased investments in the sector bode well.
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