C3.ai is growing, but its business model might be unsustainable. Micron's sales of memory chips will rise as the AI market expands. IBM is carving out a defensible niche in the hybrid cloud and AI markets.

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

C3.ai announced on Monday that Microsoft will extend its partnership and provide cloud computing services through Azure to the enterprise artificial intelligence company, and C3.ai stock soared. Microsoft and C3.

C3.ai (NYSE: AI) has seen a faster rate of growth over the past several quarters thanks to its connections to artificial intelligence (AI). Its business is focused on providing turnkey AI solutions to businesses,

C3.ai sees growth with an expanded Microsoft partnership and 191 active pilots. See why AI stock is positioned for long-term growth, but wait for a pullback.