“We have this similar thing going on with generative AI that we’ve seen with previous technologies,” Siebel said. “The market is way, way overvaluing.”
C3.ai, known for its enterprise AI applications that optimize supply chains, predict maintenance needs, and track sales processes, has a robust roster of clients. The company’s government contracts include partnerships with the U.S. Department of Defense and U.S. Air Force, while its private sector customers include Shell and Baker Hughes.This week, C3.ai expanded its partnerships further, announcing a collaboration with Microsoft, though the interview with Fortune occurred before the news became public.
Siebel also took aim at OpenAI, the Microsoft-backed AI pioneer valued at $157 billion after a $6 billion funding round in October. The C3.ai CEO dismissed its valuation and impact, remarking, “Nobody would be surprised if that company disappeared next Monday.
Paul Marino, chief revenue officer at Themes ETF, agreed that OpenAI’s brand recognition doesn’t guarantee long-term dominance. “Just because you’re very well known doesn’t mean that you can’t be copied, replicated, and maybe even surpassed,” he said.
Sandeep Rao noted that the competitive advantage of large language models (LLMs) often hinges more on business relationships than on underlying technology. “An LLM’s advantage isn’t necessarily dictated by quality but could be dictated by low cost barriers and ease of use with existing tech instead,” he said.
Siebel also expressed skepticism about the wave of early-stage AI startups receiving lofty valuations. AI startups with niche use cases have seen mixed results. While Casetext, focused on AI for legal work, sold to Thomson Reuters for $650 million in 2023, JasperAI, which targets marketing departments, raised $125 million at a $1.5 billion valuation but slashed its internal valuation three months later.
FAQs:
Does Casetext use AI?
Casetext uses AI for multiple purposes of its work, including legal work as well as other text-based work where it uses its best LLM models.
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