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AI’s Bold Bet: Some Soar While Others Falter Amid Turbulent Tech Transformation

AI’s Bold Bet: Some Soar While Others Falter Amid Turbulent Tech Transformation

Bitget-RWA2025/11/11 04:56
By:Bitget-RWA

- AI sector volatility highlights divergent outcomes as firms adopt agentic AI systems, with SoundHound AI and Rightmove exemplifying contrasting success and risk. - SoundHound AI's Red Lobster partnership and margin improvements reduced risk perception despite high valuation, driving analyst optimism about enterprise AI adoption. - Rightmove's 25% stock plunge followed AI investment plans that slashed 2026 profit forecasts, reflecting investor skepticism toward short-term profitability trade-offs. - C3.ai

The AI industry is experiencing rapid and significant changes as organizations grapple with the demands of deploying sophisticated agentic AI technologies. Some businesses are harnessing AI to accelerate progress and foster innovation, while others are encountering financial and operational setbacks that highlight the sector’s unpredictability. The differing outcomes for companies such as

and Rightmove reveal both the opportunities and risks associated with AI investments, and advancements in open-source solutions like Moonshot AI’s Kimi K2 are reshaping the competitive landscape.

SoundHound AI, recognized for its expertise in conversational AI, has become a standout performer during this period of upheaval. The firm posted robust third-quarter numbers, featuring stronger non-GAAP gross margins and a notable partnership with Red Lobster to implement agentic AI across the enterprise

. These achievements have led analysts to update their forecasts, with one highlighting that the Red Lobster agreement and margin gains have lessened the company’s risk, even with its premium valuation. SoundHound’s emphasis on AI-powered customer interaction is gaining traction, as new business wins and operational improvements contribute to revenue expansion.

In contrast, the UK’s property platform Rightmove saw its shares tumble by 25% after disclosing a major shift of resources toward AI development. The company is allocating £18 million to AI projects aimed at digitizing the home-buying journey, focusing on long-term transformation at the expense of immediate profits

. Although leadership stressed the importance of AI to their future plans, investors responded unfavorably to the updated 2026 profit outlook, which now anticipates operating profit growth of only 3-5% versus revenue growth of 8-10%. RBC analysts observed that this move represents a 4-6% reduction in consensus profit estimates, reflecting widespread market caution about the short-term sacrifices required for AI-driven upgrades.

The instability of the industry is further demonstrated by the difficulties facing enterprise AI company C3.ai. After founder Thomas Siebel stepped down for health reasons, the company is now considering a sale amid falling revenues and a 54% decline in its stock price this year

. With new CEO Stephen Ehikian retracting full-year guidance, investor uncertainty has grown. Adding to its woes, C3.ai is contending with a class-action lawsuit alleging it misrepresented its growth outlook and leadership stability . Even after securing a $450 million contract with the U.S. Air Force, doubts remain about the company’s ability to turn such deals into lasting profitability.

At the same time, Chinese firm Moonshot AI has shaken up AI benchmarks with its open-source Kimi K2 Thinking model. This trillion-parameter system surpasses GPT-5 and Claude 4.5 Sonnet in several key areas, achieving 44.9% on Humanity’s Last Exam and 71.3% on coding tests

. With a price point far below that of its competitors and an MIT-style open license, Kimi K2 could make advanced AI more accessible, posing a challenge to the dominance of major U.S. tech firms.

These varied stories highlight the complex challenges AI-focused companies face. While innovation and strategic alliances can drive expansion, the initial investments and operational risks of adopting AI remain substantial obstacles. For those investing in the sector, it is crucial to weigh the promise of AI’s transformative impact against the practical risks of execution and ongoing market instability.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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