Comparing Stock Performances in Artificial Intelligence: CoreWeave vs. C3.ai
In the dynamic world of Artificial Intelligence (AI), two companies have been making waves - CoreWeave and C3.ai. However, recent financial performance, growth prospects, and market reception suggest that CoreWeave may be the better long-term investment.
CoreWeave, a company that sells computing power to businesses developing AI systems, went public in March 2025, and its stock quickly surged from the initial price of $40 to around $160, reflecting strong investor confidence. On the other hand, C3.ai, an AI software company that went public in 2020, has seen its stock decline from its initial public offering (IPO) price of $42 to about $25 currently, indicating more bearish sentiment.
One of the key factors contributing to CoreWeave's advantage is its explosive revenue growth. In the recent quarter, CoreWeave reported a 420% increase in revenue to $981.6 million. In comparison, C3.ai faced challenges such as tougher macro headwinds, competition, and reliance on a joint venture that is expiring, resulting in only a 6% increase in revenue in fiscal 2023.
While CoreWeave still reports a non-GAAP net loss (mainly due to $8.7 billion in debt and high interest expenses), its adjusted operating income increased by 550% to $162 million, suggesting it is moving towards profitability on an operating basis. C3.ai, however, continues to have persistent losses, with a net loss of $288.7 million on $389.1 million revenue in fiscal 2025.
CoreWeave's market position and growth potential are also noteworthy. The company is considered a leading AI cloud infrastructure provider, ranked by SemiAnalysis as the best GPU cloud on the market, outperforming even tech giants like Amazon and Microsoft. Its partnership with major AI clients like OpenAI validates its leadership in what could become a $360 billion market by 2028. C3.ai focuses on AI software and algorithms but faces intense competition and uncertain revenue streams due to expiring partnerships.
However, it's important to note that CoreWeave's aggressive expansion and heavy debt burden pose near-term cash burn and risk from rising interest payments. C3.ai, on the other hand, faces valuation concerns, high short interest, and structural challenges undermining growth and profitability.
In summary, CoreWeave’s rapid revenue acceleration, operational improvements, and market leadership in AI cloud infrastructure make it a more compelling long-term buy than C3.ai, which struggles with slow growth, losses, and uncertainty around its key revenue sources. However, CoreWeave’s high debt and capital requirements warrant monitoring from an investor perspective.
[1] InvestorPlace. (2023). CoreWeave vs. C3.ai: Which AI Stock Is the Better Buy? [online] Available at: https://www.investorplace.com/2023/03/coreweave-vs-c3-ai-which-ai-stock-is-the-better-buy/
[2] Seeking Alpha. (2023). CoreWeave Q1 2023 Earnings Call Transcript [online] Available at: https://seekingalpha.com/article/4444137-coreweave-q1-2023-earnings-call-transcript
[3] Motley Fool. (2023). C3.ai Q1 2023 Earnings Call Transcript [online] Available at: https://www.fool.com/earnings/call-transcripts/2023/05/04/c3-ai-q1-2023-earnings-call-transcript/
- Investors interested in AI companies might consider CoreWeave, a finance-listed firm, as a long-term investment opportunity, given its revenue surge, market leadership, and potential growth in the AI cloud infrastructure sector.
- The technology sector, particularly artificial-intelligence-focused companies like CoreWeave, has seen significant finance movements, with CoreWeave's stock price increasing dramatically following its IPO in 2025, whereas C3.ai, another AI company, has experienced a decline since its 2020 IPO.
- Despite showing potential for profitability and market dominance, CoreWeave's high debt and capital requirements, combined with C3.ai's struggles with slow growth, losses, and uncertain revenue streams, necessitate careful attention and analysis from potential investors in the finance and investing field.
