Investors seem weary of the kind of company that’s been around for a long time, has an established business model and growing revenue, but still loses money. What we do know is this: It’s a tough time to be a very mature startup or newish public tech company. We also didn’t quantify what portion of their resources go toward AI. Or maybe not.Īdditionally, although all the companies listed proudly and prominently tout their artificial intelligence focus on their websites, we didn’t assess how critical the technology is to their business models. They could be down because progress has been slower than hoped or they are behind newer startups or older incumbents in technology or adoption. Also, it should be confessed, we did not vet the quality of AI technologies from companies in our sample.
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And either way, it seems unwise to make any sample set of companies serve as representative of AI’s potential. The combination of work and studies helped germinate the idea that culminated in his legal tech startup, Composure, when Sahai had trouble finding software geared for managing workflow at a busy and growing in-house legal department. So what does it mean that AI-focused recently public companies are far off their highs even while buzz around the space is red hot? Is AI overhyped in startup circles? Is it underhyped in public markets? But no, in case you are wondering, they’re not profitable. UiPath, for instance, has over $1 billion in sales for the past year, while C3 is in the hundreds of millions. Several of the companies are also generating sizable revenue. C3 AI, a provider of configurable enterprise AI software that snagged the ticker symbol “AI,” is a $3 billion company. UiPath, for instance, has an $8.4 billion market cap. Moreover, even now, the nine companies on our list are all valued in the hundreds of millions or more. Also, the companies on our list went public around the time the market was peaking, so initial valuations were bubbly by historical standards. While those declines sound discouraging, it should be emphasized that most tech stocks are well below their 2021 heights. That works out to a decline of 76.5% from the time of their debuts. Altogether, the nine companies on our list have shed nearly $50 billion in collective market capitalization since going public.
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