C3.AI Stock Is Surging Tuesday: What's Going On?

C3.Ai Inc AI shares are trading higher Tuesday after the company announced a strategic alliance with Microsoft Corp MSFT to accelerate enterprise AI adoption.

What Happened: C3.AI and Microsoft announced a strategic alliance at Microsoft Ignite to accelerate the adoption of Enterprise AI on Microsoft Azure. The agreement furthers the companies’ existing partnership focused on combining C3.AI’s Enterprise AI–native application software with Microsoft’s Azure ecosystem.

The agreement positions Microsoft as the preferred cloud provider for C3.AI offerings and establishes C3.AI as a preferred AI application software provider on Microsoft Azure. 

Under the new agreement, C3.AI and Microsoft will focus on initiatives including technical integration, product development, joint delivery and joint sales and marketing.

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“C3 AI and Microsoft are committed to helping enterprise organizations across industries address complex challenges with AI to accelerate their business transformation and sustainability goals,” said Judson Althoff, executive vice president and chief commercial officer at Microsoft.

“Through our alliance, we will enhance existing capabilities and introduce new innovations that help our mutual customers maximize delivery of high-value enterprise AI solutions with Azure.”

C3.AI and Microsoft have delivered enterprise solutions for Dow, Shell, Nucor and other large organizations since their strategic alliance started in 2018.

AI Price Action: C3.AI shares were up 12% at $29.74 at the time of publication, according to Benzinga Pro.

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