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Published Date: 22/07/2024
SoundHound AI and C3.ai are two companies leveraging AI to drive growth, but which one is the better investment?
SoundHound AI and C3.ai are two companies leveraging AI to drive growth, but which one is the better investment?
Artificial intelligence (AI) has entered the mainstream, propelling many tech stocks to staggering gains. The AI industry is expected to see years of expansion, from $136 billion in 2023 to $827 billion by 2030. Two promising AI companies to consider investing in are SoundHound AI and C3.ai. Both are seeing strong revenue growth as customers adopt their AI products. But between the two, is one a better investment to benefit from AI's multiyear industry growth?
SoundHound AI's solutions center around speech recognition, employed to answer customer service calls, process food orders at drive-thrus, and allow drivers to use voice commands in a vehicle. The company has an impressive list of customers, including restaurant chains Chipotle and Jersey Mike's, as well as automakers Hyundai and Chrysler owner Stellantis. SoundHound's voice platform can understand 25 languages, allowing the company to generate robust revenue from every geographic area it operates in throughout the world.
C3.ai helps customers implement artificial intelligence into their organizations through a suite of custom and pre-built AI software. This software tackles various business needs, including fraud detection for banks and energy management for utility companies. Like SoundHound, C3.ai is experiencing excellent year-over-year revenue growth thanks to customers such as Shell, Consolidated Edison, and the U.S. government.
Despite strong revenue growth, neither SoundHound AI nor C3.ai are profitable. However, SoundHound's net losses are shrinking over time, and the company foresees becoming profitable in 2025. C3.ai's net losses, on the other hand, have increased annually for the last three fiscal years.
Based on SoundHound's strategic acquisition of SYNQ3, combined with its global revenue growth and goal of achieving EBITDA profitability next year, SoundHound edges out C3.ai as the better AI investment at this time.
FAQS:
FAQS:
Q: What is the expected growth of the AI industry?
A: The AI industry is expected to grow from $136 billion in 2023 to $827 billion by 2030.
Q: What is SoundHound AI's speech recognition technology used for?
A: SoundHound AI's speech recognition technology is used to answer customer service calls, process food orders at drive-thrus, and allow drivers to use voice commands in a vehicle.
Q: What is C3.ai's AI software used for?
A: C3.ai's AI software is used for various business needs, including fraud detection for banks and energy management for utility companies.
Q: Are SoundHound AI and C3.ai profitable?
A: No, neither SoundHound AI nor C3.ai are profitable, but SoundHound's net losses are shrinking over time and the company foresees becoming profitable in 2025.
Q: Which company is the better AI investment?
A: Based on SoundHound's strategic acquisition of SYNQ3, combined with its global revenue growth and goal of achieving EBITDA profitability next year, SoundHound edges out C3.ai as the better AI investment at this time.
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