BigBear.ai's Customized AI Software: A Potential 10-Bagger?

BigBear.ai provides customized AI software to government entities and commercial clients. Despite being an AI software company, its low gross margin (around 30%) is a structural problem for investors due to its low potential for profits. This differs from typical software companies, which have gross margins between 70% and 90%. BigBear.ai has secured a $165 million contract with the US Army and is expanding its airport biometric technology, but its valuation should be lower due to its low gross margin.

Title: Tesla's AI Ambitions: The Upcoming Shareholder Vote and Its Implications

Tesla (NASDAQ: TSLA) shareholders are set to cast a pivotal vote this November, which could significantly alter the electric automaker's trajectory and its relationship with Elon Musk's sprawling AI empire. The proposal, disclosed in Tesla's latest proxy filing, asks whether the company should invest in xAI, Musk's newest artificial intelligence startup. Musk launched xAI in early 2023 and has since integrated it into X, his social media platform, while SpaceX, another Musk-led venture, has already invested $2 billion. Tesla's board has made no recommendation, and Musk has publicly stated that the final decision should rest with investors. However, in July, he expressed his personal view: If it was up to me, Tesla would have invested in xAI long ago [1].

The investment in xAI would involve Tesla becoming an anchor investor in Musk's broader AI ambitions. This could expand Tesla's reach into AI infrastructure and deepen its reliance on Musk's interconnected companies. Conversely, a 'no' vote would keep Tesla focused on its core businesses of cars and energy, potentially limiting its role in the high-performance AI inference race of this decade. The vote presents a philosophical decision for Tesla shareholders, as it could shape the company's identity far beyond its electric vehicle (EV) offerings.

Meanwhile, the U.S. General Services Administration (GSA) has announced a landmark agreement with ServiceNow to power AI-first modernization for the federal government. This agreement, set to boost workflow efficiencies and deliver significant cost savings, is a significant step in the AI transformation of government operations. The ServiceNow AI Platform is projected to enhance efficiency by up to 30% and streamline a wide range of business processes. The agreement also includes a simplified licensing model, offering federal agencies discounts of up to 70% off the list price on upgrades to the new Information Technology Service Management (ITSM) Pro and ITSM Pro Plus bundle [2].

Safe Pro Group Inc., a holding company focused on security and protection solutions, has secured two aerial drone services contracts in Florida. Through its Safe Pro AI unit, the company provides advanced AI-powered object detection and data analysis tools for processing drone imagery. This expansion underscores the growing demand for AI-driven security solutions in various sectors, including military and law enforcement [3].

References:
[1] https://finance.yahoo.com/news/teslas-1-billion-bet-elons-192506112.html
[2] https://www.gsa.gov/about-us/newsroom/news-releases/gsa-servicenow-strike-landmark-onegov-deal-09032025
[3] https://www.marketscreener.com/news/safe-pro-unit-obtains-2-aerial-drone-services-contracts-in-florida-ce7d59d8db8df227