C3.ai stock experiences volatility amidst short seller allegations and CEO response.

C3.ai's stock rose 11% after responding to short seller Kerrisdale Capital's claims about the company's accounting. The company denied Kerrisdale's allegations about unbilled receivables and gross margin, stating that the short seller's claim that their gross margin from the Baker Hughes arrangement is 99%+ is not true. C3.ai's shares had plummeted 38% over the previous two days following the release of Kerrisdale's report. However, the stock skyrocketed 22% on Friday as investors poured into the artificial intelligence stock on the last day of the first quarter of the year.