Following its merger with a special purpose acquisition company (SPAC), the artificial intelligence loan platform Pagaya Technologies (NASDAQ: PGY) has seen its stock explode higher thanks to an extremely small public float. But one of the main underlying drivers of Pagaya's actual business fundamentals is how well the company is able to leverage its proprietary artificial intelligence technology to underwrite loans for its bank and fintech partners and investors on its platform.

With that said, let's take a look at how effective the company's loan underwriting has been so far.

Pagaya partners with banks and other fintech companies that send loan applications to the platform to underwrite with its artificial intelligence technology, which has more than 16 million data training points since inception. The company then takes those loans for its partners and either sells them to investors or securitizes the loans and sells notes to investors.

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Source Fool.com