Last week, AI startup Anthropic launched its most intelligent model to date, the Claude Opus 4. According to the company, Claude Opus 4, together with its other model, Claude Sonnet 4, are defining a “new standard” when it comes to AI agents and “can analyze thousands of data sources, execute long-running tasks, write human-quality content, and perform complex actions.”
However, with greater intelligence comes power, which can be dangerous if left unchecked. Anthropic’s latest model is a testament to how far intelligence has come and how dangerous it can be. Upon testing the model, the company revealed that it can sometimes resort to “extremely harmful actions” such as attempting to blackmail engineers who say they will remove it.
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The company has acknowledged that the AI model was capable of “extreme actions” if it thought its “self-preservation” was threatened. It also clarified how such responses have been “rare and difficult to elicit”, but were “nonetheless more common than in earlier models.”
When tested, Anthropic’s Claude Opus 4 displayed troubling behavior when placed in a fictional work scenario. The model was tested by pretending it was a work assistant, providing it with fake emails that said the company may shut down, and other emails hinting that the engineer responsible for the shutdown was having an affair.
Claude Opus 4 attempted to avoid the shutdown by threatening to tell others about the engineer’s affair, demonstrating the lengths it can go to when threatened or pressured. Anthropic’s Claude isn’t the only model capable of such behavior, however. According to Aengus Lynch, an AI safety researcher at Anthropic, it’s not just Claude.
“We see blackmail across all frontier models – regardless of what goals they’re given.”
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10. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 24
On May 29, JPMorgan lowered the firm’s price target on C3.ai, Inc. (NYSE:AI) to $23 from $27 and kept an “Underweight” rating on the shares. C3.ai, Inc. (NYSE:AI) is an enterprise artificial intelligence (AI) software company involved in building and operating enterprise-scale AI applications and accelerating digital transformation.
The price target revision follows C3.ai’s fiscal Q4 report, which demonstrated mixed results. While total revenue exceeded expectations, it also revealed a dependency on professional services for outperformance. Moreover, subscription revenue, which is a key growth metric for the company, fell short of the consensus estimate by 9%.
Elaborating on subscription revenue, the firm said that a portion of the revenue includes demo licenses, which are non-recurring and make up approximately 40% of the total subscription revenue. These licenses have led to all the sequential growth in subscription revenue. Had they been excluded, it would indicate a decline instead.
Meanwhile, Prioritized Engineering Services (PES) revenue exceeded expectations and played a main role in the professional services segment’s performance, which surpassed consensus estimates and helped compensate for the underwhelming subscription figures. Even though C3.ai reported better-than-expected profitability for the quarter, its operating margins remained deeply negative.
Overall, while Bora recognized C3.ai’s quest in Artificial Intelligence and its strategic partnerships, there have been concerns over the stock’s potential performance due to the lack of core subscription growth, the irregularity of professional services revenue, and the company’s weak profitability profile.
9. Bloom Energy Corporation (NYSE:BE)
Number of Hedge Fund Holders: 44
On May 29, Analyst Andrew Percoco of Morgan Stanley maintained a “Buy” rating on Bloom Energy Corporation (NYSE:BE) and retained the price target of $30.00. Bloom Energy Corporation (NYSE:BE) develops solid-oxide fuel cell systems for on-site power generation, helping meet the growing energy demands of AI data centers.
Percoco’s rating reaffirmation follows Bloom Energy’s recent Ohio developments. In particular, the approval by the Public Utility Commission of Ohio for projects concerning Bloom Energy, AEP, as well as data center customers such as Amazon Data Services and Cologix, was seen as a catalyst. The recent approvals allow the said projects to continue without any obstacles, removing any uncertainties along the way.
The analyst further noted how the recent Ohio legislation that restricts AEP from owning and operating fuel cell systems for customers does not have an impact on current projects filed before the restriction date. Therefore, Bloom has a clear path to move forward with AEP.
All the mentioned positive developments underscore the firm’s positive outlook toward the stock.