C3.ai stock sinks following short-seller letter

Yahoo Finance Live reports on the decline of C3.ai shares after the release of the short-seller letter due to "accounting issues."

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DAVE BRIGGS: All right, let's take a look at C3.ai. Always a mover at this time of the day. Shares of the software maker seeking today as short seller Kerrisdale Capital pens a letter to C3.ai's auditor, highlighting, quote, "serious accounting and disclosure issues." C3.ai entering today's session on a tear, though, up more than 200% this year prior to the announcement of the letter. But shares now closing down more than 25%. Now, C3.ai has not responded to Yahoo Finance's request for comment.

SEANA SMITH: Yeah. And Dave, this news, of course, comes on the heels, as there has been a lot of debate recently about the safety, or lack thereof, of AI and some regulations potentially that need to be put in place in regards to AI as we move forward. Well, President Biden, he held a meeting today at the White House, talking about some of the risks and opportunities. He did this with a council of science and technology advisors.

Some of the headlines coming out of that meeting. President Biden saying that tech companies do have a responsibility to make sure that their products are safe before making them public. He also said that it remains to be seen whether or not of AI is dangerous. So not so much taking one stance versus the other on AI. And certainly, this is a conversation that's going to continue for quite some time given the fact that there are so many concerns about the risks that AI can potentially pose.

DAVE BRIGGS: And that's why Elon Musk and Steve Wozniak and Andrew Yang and tech leaders from around the country wrote that letter. The Future Life Institute, I think it is, saying, we need a six-month pause on AI. Bill Gates, for one, weighing in, did take sides, saying, no, we should not take that pause. It will solve the challenges ahead. He says, it's just too difficult to navigate how that pause would work globally. So he did, in fact, weigh in on the presumed pause.