Artificial intelligence adoption has been surging worldwide. Amidst this rapid growth, OpenAI, the startup known to have kicked off the AI arms race, is poised to hit its full-year targets. Last week, the company reported that its annualized revenue run rate had surged to $10 billion as of June.
The company has also been recently awarded a $200 million contract to provide the U.S. Defense Department with artificial intelligence tools, as per a statement made by the Pentagon on Monday. It noted that the work will be performed in and near Washington primarily, with an estimated completion date of July 2026.
“Under this award, the performer will develop prototype frontier AI capabilities to address critical national security challenges in both warfighting and enterprise domains.”
-The Pentagon.
The recent deal with the Pentagon marks a significant step for OpenAI, subsequently increasing the reliance on AI for government entities and society at large.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds. The hedge fund data is as of Q1 2025.
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10. C3.ai, Inc. (NYSE:AI)
Number of Hedge Fund Holders: 24
C3.ai, Inc. (NYSE:AI) is one of the 10 AI Stocks Getting Wall Street’s Attention. On June 16, the company announced that all C3 AI solutions, including the C3 Agentic AI Platform and C3 Generative AI, are now available in AWS Marketplace in the AWS Secret Region. The AWS Secret Region is an expansion of the AWS Marketplace for the U.S. Intelligence Community (ICMP) program.
Through the program, government customers can now access a digital catalog from Amazon Web Services (AWS), allowing them to discover, purchase, and deploy C3 AI’s advanced software solutions.
The availability of C3 AI’s solutions in the marketplace means federal agencies can now access a comprehensive suite of pre-built applications for mission-critical operations, including C3 Generative AI for Intelligence, C3 AI Decision Advantage, C3 AI Commander’s Dashboard, and C3 AI Contested Logistics.
“Making C3 AI applications available in AWS Marketplace in the AWS Secret Region delivers federal agencies direct access to the most state-of-the-art, advanced, secure Enterprise AI solutions on the market. This is about delivering secure, scalable AI infrastructure to execute mission-critical operations at scale — with speed, efficiency, and uncompromising security.”
– Thomas M. Siebel, Chairman and CEO of C3 AI
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.
9. CoreWeave, Inc. (NASDAQ:CRWV)
Number of Hedge Fund Holders: 36
CoreWeave, Inc. (NASDAQ:CRWV) is one of the 10 AI Stocks Getting Wall Street’s Attention. On June 16, Bank of America analyst Bradley Sills downgraded the stock to “Hold” from Buy on valuation concerns, adjusting its price target upwards from $76 to $185. Sills noted that the stock has rallied 145% since its first-quarter earnings, trading at a premium valuation of 2027 EV/EBIT of 25x.
The analyst stated that “much of the near-term upside has been priced in,” and that the stock’s valuation is at a premium to peers. The firm is optimistic about CoreWeave’s offerings amid the ongoing AI boom.
Certain developments have also proven favourable for the stock, including a new hyperscaler customer, expansion of the OpenAI agreement worth $4 billion, remarkable top-line momentum, and a lower cost of capital for recently raised debt.
Sills continues to see “solid sustained demand in CoreWeave‘s AI infrastructure market.” Even though the growth rate for capital expenditures related to artificial intelligence is surging, it remains “very healthy.”
AI infrastructure spending is estimated to reach $206 billion in 2027, a deceleration from the 65% jump observed in 2025. These estimates could move higher on a larger base. With OpenAI’s ChatGPT being the single largest consumer of AI workloads, Sills anticipates CoreWeave’s AI infrastructure market to witness continued growth.
However, elevated capital expenditure is likely to result in an estimated $21 billion of negative free cash flow through 2027. The company may have raised capital at a lower cost, but it represents only a small proportion of the overall incremental debt needed to support growth. This is why Sills is concerned about the cost of debt, as the company has funded 85% of its capex with debt in the past.
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