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Better Artificial Intelligence (AI) Stock: SoundHound AI vs. C3.ai

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The adoption of artificial intelligence (AI) software is increasing at an incredible pace because of the productivity and efficiency gains this technology is capable of delivering, and the good part is that this niche is likely to sustain a healthy growth rate over the long run.

According to ABI Research, the AI software market is expected to clock a compound annual growth rate (CAGR) of 25% through 2030, generating $467 billion in annual revenue at the end of the decade. That’s why it would be a good time to take a closer look at the prospects of SoundHound AI (SOUN -1.42%) and C3.ai (AI -0.37%) — two pure-play AI companies that could help investors capitalize on a couple of fast-growing niches within the AI software market — and check which one of them is worth buying right now.

Image source: Getty Images.

The case for SoundHound AI

SoundHound AI provides a voice AI platform where its customers can create conversational AI assistants and voice-based AI agents that can be deployed for multiple uses, such as taking orders in restaurants, car infotainment systems, and customer service applications, among others.

This particular market is growing at a nice clip, as deploying AI-powered voice solutions can help companies improve productivity and efficiency, since they will be able to automate tasks. Companies can now significantly improve their customer interaction experiences, thanks to the availability of round-the-clock multilingual AI agents and assistants.

Not surprisingly, SoundHound AI has been witnessing a robust growth in demand for its voice AI solutions, which explains the solid revenue growth in the past year.

SOUN Revenue (TTM) Chart
SOUN Revenue (TTM) data by YCharts.

But here’s what investors should look forward to: The conversational AI market could grow at an annual average rate of almost 24% through 2030, generating over $41 billion in annual revenue by the end of the decade. SoundHound AI has been growing at a much faster pace than the overall market, suggesting it is gaining a bigger share of this lucrative space.

SoundHound’s revenue guidance of $167 million at the mid-point for 2025, is nearly double the revenue it reported last year. Importantly, its cumulative subscriptions and bookings backlog stood at a massive $1.2 billion last year. This metric is a measure of the potential revenue that the company expects to “realize over the coming several years,” suggesting it can maintain its healthy growth rates for a long time to come thanks to the AI-fueled opportunity it’s sitting on.

The case for C3.ai

C3.ai is a pure-play enterprise AI software platform provider that enables its customers to build generative AI applications and agentic AI solutions. The company claims that it provides 130 comprehensive enterprise AI applications ready for deployment across industries such as oil and gas, manufacturing, financial services, utilities, chemicals, defense, and others.

It has been in the news of late for receiving a bigger contract worth $450 million from the U.S. Air Force for maintaining aircraft, ground assets, and weapons systems for the next four years. However, this is just one of the many contracts that the company has been landing lately.

C3.ai’s offerings are used across diverse industries, and its customer base includes the likes of Baker Hughes, which recently expanded its partnership with the company; local and state government bodies across multiple U.S. states; and companies such as Ericsson, Bristol Myers Squibb, Chanel, and others. The company’s fast-expanding customer base and the bigger contracts that it is signing with existing customers explain why there has been an uptick in C3.ai’s growth of late.

AI Revenue (TTM) Chart
AI Revenue (TTM) data by YCharts.

The company finished fiscal 2025 (which ended on April 30) with a 25% increase in its revenue to $389 million. Management expects another 20% increase in total revenue in fiscal 2025. Consensus estimates suggest that C3.ai is likely to report similar growth next year, followed by an acceleration in fiscal 2028.

AI Revenue Estimates for Current Fiscal Year Chart
AI Revenue Estimates for Current Fiscal Year data by YCharts.

There’s a strong possibility, however, that C3.ai will exceed expectations and its own forecast for growth this year. That’s because C3.ai ended the previous fiscal year with 174 pilot projects, which it calls initial production deployments. The good part is that the company has been converting its pilots into contracts at a healthy rate.

C3.ai turned 66 of its initial production deployments into long-term contracts in fiscal 2025. The company ended fiscal 2024 with 123 pilot projects, which means that it has a conversion rate of more than 50%. So the robust increase in the company’s pilot projects last year means that it could close more such initial production deployments into full agreements in the current fiscal year, going by past trends.

So there is a strong possibility of C3.ai’s growth rate exceeding Wall Street’s expectations, which should ideally turn out to be a tailwind for its stock price in the long run.

The verdict

While it is clear both SoundHound and C3.ai are growing at a nice pace because of AI, the former’s growth rate is much higher. However, to buy SoundHound stock, investors will have to pay a handsome price-to-sales ratio of nearly 38. C3.ai, on the other hand, is trading at a much more attractive 8 times sales, which is almost in line with the U.S. technology sector’s average sales multiple.

So, investors looking for a mix of steady growth and attractive valuation can consider buying shares of C3.ai. However, if you have a higher appetite for risk and are willing to pay for a stock with a richer valuation, then consider buying SoundHound AI, as its faster growth could help it clock more upside, though the expensive valuation also exposes it to more volatility.



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Russia allegedly field-testing deadly next-gen AI drone powered by Nvidia Jetson Orin — Ukrainian military official says Shahed MS001 is a ‘digital predator’ that identifies targets on its own

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Ukrainian Major General Vladyslav (Владислав Клочков) Klochkov says Russia is field-testing a deadly new drone that can use AI and thermal vision to think on its own, identifying targets without coordinates and bypassing most air defense systems. According to the senior military figure, inside you will find the Nvidia Jetson Orin, which has enabled the MS001 to become “an autonomous combat platform that sees, analyzes, decides, and strikes without external commands.”

Digital predator dynamically weighs targets

With the Jetson Orin as its brain, the upgraded MS001 drone doesn’t just follow prescribed coordinates, like some hyper-accurate doodle bug. It actually thinks. “It identifies targets, selects the highest-value one, adjusts its trajectory, and adapts to changes — even in the face of GPS jamming or target maneuvers,” says Klochkov. “This is not a loitering munition. It is a digital predator.”



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Artificial Intelligence Predicts the Packers’ 2025 Season!!!

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On today’s show, Andy simulates the Packers 2025 season utilizing artificial intelligence. Find out the results on today’s all-new Pack-A-Day Podcast! #Packers #GreenBayPackers #ai To become a member of the Pack-A-Day Podcast, click here: https://www.youtube.com/channel/UCSGx5Pq0zA_7O726M3JEptA/join Don’t forget to subscribe!!! Twitter/BlueSky: @andyhermannfl If you’d like to support my channel, please donate to: PayPal: https://paypal.me/andyhermannfl Venmo: @Andrew_Herman Email: [email protected] Discord: https://t.co/iVVltoB2Hg





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Fintech sector braced for fresh wave of disruption as AI changes the game

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As artificial intelligence reshapes the business landscape, fintechs stand poised to usher in a fresh wave of disruption as the industry emerges from a prolonged slump.

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

According to a new report from Boston Consulting Group (BCG) and seasoned fintech investor QED, ‘Fintech’s Next Chapter: Scaled Winners and Emerging Disruptors’, the sector has emerged from a tough funding environment stronger, more disciplined, and with greater growth prospects than ever.

In 2024, fintech revenues grew by 21% — up from 13% in 2023 — marking a threefold increase over incumbent banks. Meanwhile, the average Ebitda margin of public fintechs climbed to 16%, and 69% of public fintechs are now profitable. Importantly, much of this performance is being driven by a new class of scaled players generating $500 million or more in annual revenue. These now account for approximately 60% of total fintech revenues.

“A class of scaled fintechs is coming of age. Investors are demanding greater maturity, and regulators want more accountability,” says Deepak Goyal, a managing director and senior partner at BCG. “Meanwhile, emerging disruptors are harnessing next-generation technologies like agentic AI and pioneering new business models, pushing established players to continuously innovate.”

The report pinpoints agentic AI as the next wave of disruption, changing the game in commerce, vertical SaaS, and personal financial management.

At the same time, challenger banks are scaling fast: 24 institutions with over $500 million in annual revenues are growing deposits at 37% annually — 30 percentage points higher than traditional banks.

The funding environment is also maturing, with private credit emerging as a key tailwind for fintech lending.

“Fintechs are winning in spaces where traditional banks have largely ceded the competitive ground, such as banking for lower-income households and buy now, pay later,” says Nigel Morris, managing partner at QED Investors. “Fintechs are growing three times faster than incumbents as they leverage digital distribution channels and increasingly utilize AI. Having emerged from the last two years with stronger fundamental unit economics and high net promoter scores, it’s easy to see why there’s an appetite for IPO-ready companies that deliver profitable growth. Fintech is ushering in a new era in financial services.”



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