You've seen it on TV, you've read about it on news websites. Artificial Intelligence, commonly referred to as AI, is now the hottest industry. Stocks that are involved in this industry are taking off. I originally wrote about a form of artificial intelligence back in October of 2021 in an article called The Future of Artificial Intelligence: Can You Invest In It Now? So you may be wondering what companies are the purest plays.

BigBear.ai Holdings, Inc. (NYSE:BBAI) is soaring in the past few weeks as retail investors return to the market. What companies are well-positioned to participate in this nascent and rapidly growing market opportunity? On the surface, BigBear.ai has the right narrative. BigBear.ai is focusing on empowering customers to make the right decisions, at the right time, every time. However, spending a few moments beyond its catchy slogan and the investment case rapidly falls apart.

Artificial intelligence is the latest tech flavor of the month. Industry giants Google, Microsoft and China's Baidu have all had big AI announcements in recent days, as ChatGPT bot mania is taking the corporate world by storm. All of this AI news has helped boost shares of Baidu (BIDU), Microsoft (MSFT) and Google owner Alphabet (GOOGL) this year. However, Alphabet (GOOGL) tumbled Wednesday following a rocky demo of Bard, its rival to ChatGPT. Traders have also been bidding up the stocks of much smaller, unprofitable companies that are trying to make a name for themselves in the AI arms race.

The craze surrounding OpenAI's ChatGPT has reached small-cap artificial intelligence stocks, as investors relay excitement over the potential future of the space. Under-the-radar firms BigBear.ai and SoundHound AI have both seen bullish runs in recent months. In January alone, BigBear saw an increase of 356%, while SoundHound climbed 56%. BigBear.ai is rooted in artificial intelligence, and the firm's breadth of products offer applications to industries including healthcare, government and manufacturing. SoundHound, meanwhile, focuses on conversational intelligence, which integrates AI interactions with users that is voice activated.

… developing and deploying technical expertise and innovative solutions in artificial intelligence (AI), machine learning (ML), cyber security, …

BigBear.ai is the new leader in decision dominance serving the national defense and intelligence communities. The Company delivers high-end capabilities across the data and digital spectrum to deliver information superiority and decision support. Headquartered in Columbia, Maryland, BigBear.ai has additional locations in Virginia, Massachusetts, and California.

The Securities and Exchange Commission (SEC) is poised to put a damper on Special Purpose Acquisition Company (SPAC) IPOs and mergers: it deepened its investigation into potential conflicts of interest in SPAC underwriting processes, and brought charges against prominent SPACs. Find below an analytical digest of the AI SPAC's state of affairs. A special purpose acquisition company (SPAC) is a company with no commercial operations that is formed strictly to raise capital through an IPO for the purpose of acquiring an existing company. IPO investors have no idea what company they ultimately will be investing in.) SPACs seek underwriters and institutional investors before offering shares to the public.