We recently published a list of 10 AI Stocks Analysts Are Watching: Latest Ratings and News. In this article, we are going to take a look at where Confluent, Inc. (NASDAQ:CFLT) stands against other AI stocks analysts are watching.
A consortium of investors led by Elon Musk recently offered $97.4 billion to buy the non-profit that controls OpenAI. Musk’s lawyer, Marc Toberoff, confirmed the news. He told Reuters that the offer was sent by email on Monday to OpenAI’s outside counsel at Wachtell, Lipton, Rosen & Katz. However, OpenAI has said that it has not yet received a formal bid from the Elon Musk-led consortium.
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According to Toberoff, the bid was in the form of a “detailed four-page Letter of Intent” to purchase OpenAI’s assets. It was signed by Musk and other investors and addressed to the board. Nevertheless, the news of not having received the bid adds confusion over Musk’s attempt to take control of the artificial startup that has seemingly started the AI arms race.
“Whether Sam Altman chose to provide or withhold this from OpenAI’s other Board members is outside of our control”
-Toberoff, referring to OpenAI’s CEO.
Whether or not an official bid has been sent to OpenAI from Musk, one thing remains clear. Sam Altman, CEO of OpenAI, is not interested in the offer. Altman told Reuters that the non-profit that controls OpenAI is not for sale. He also posted on X, counter-questioning if Musk wanted to sell Twitter for $9.74 billion instead.
“I have nothing to say. I mean, it’s ridiculous. The company is not for sale. It’s another one of his tactics to try to mess with us”.
-Altman said (on the sidelines) of an AI summit in Paris when asked about the offer.
Reuters also reported that Altman sent an internal message to OpenAI employees stating that the board, even though it had not officially reviewed the offer, would reject it based on the interest of OpenAI.
OpenAI is currently seeking a transition into a for-profit from a nonprofit entity. The company states that the transition is required to secure the capital needed for developing the best AI models. Musk, however, appears to have made the move to prevent this outcome. According to him, OpenAI’s transition to a for-profit entity would steer it away from its original mission of developing open-source, safety-focused AI that benefits humanity.
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.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A team of consultants in suits, discussing the importance of stream governance for real-time data.
Confluent, Inc. (NASDAQ:CFLT)
Number of Hedge Fund Holders: 39
Confluent, Inc. (NASDAQ:CFLT) is a technology company that provides data streaming platforms. On February 11, the company announced that it had signed a strategic partnership with Jio Platforms Limited, an Indian multi-technology company, for Jio Cloud Services. This partnership marks a significant advancement in India’s digital capabilities. The agreement will allow Confluent Cloud, Confluent’s fully managed, cloud-native data streaming platform, to be available on Jio Cloud Services. This will in turn enable businesses to get started with data streaming. Meanwhile, Confluent Platform, its full-scale data streaming platform, will be offered as a managed service for India’s consumers and enterprises. The partnership will allow enhancing India’s data streaming capabilities as data streams are fundamental for real-time and GenAI use cases.
“Confluent with Jio will enable more organizations in India to harness the power of data streaming to fuel their businesses with real-time data and provide better services to its citizens. Partnering with one of India’s most influential and innovative companies is a huge leap forward for making data streaming easily accessible and pervasive. We look forward to partnering with Jio to help organizations advance their digital capabilities with streams of constantly flowing data.”
-Erica Schultz, President of Field Operations, Confluent.
Overall, CFLT ranks 8th on our list of AI stocks analysts are watching. While we acknowledge the potential of CFLT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than CFLT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.