One of the most attractive artificial intelligence (AI) investments in 2023 has been C3.ai (NYSE: AI). When someone searches online for "AI stocks," it's often the first to come up, making it a natural entry point for many investors looking to gain exposure to this massive trend. With the stock up around 150% this year, it's safe to say that it has benefited from this search optimization.

However, one key concern that many investors (including myself) have with C3.ai is its unprofitability. Is C3.ai too unprofitable to invest in? Or is it just temporary? Let's find out.

C3.ai provides plug-in AI solutions for multiple industries. However, one area it's finding success in is the defense industry. In the first quarter of fiscal year 2024 (ended July 31), 67% of bookings (or newly added business) came from the defense industry. This is a significant change in focus, as oil and gas made up 34% (the most of any industry) of bookings in fiscal 2023. In the latest quarter, oil and gas made up a minuscule 1.5%.

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Source Fool.com