Machine learning is a red-hot trend in 2023. Consequently, BigBear.ai (NYSE:BBAI) is suddenly on financial traders’ radars.

However, don’t assume that BBAI stock will give you pure-play exposure to the conversational artificial intelligence (AI) market. Be sure to learn as much as you can about BigBear.ai so you can know exactly what you’re getting into as a prospective shareholder.

A recently established, AI-focused collaboration between governments in the U.S. and Europe has accelerated investors’ interest in machine learning. Traders are buzzing about OpenAI and its ChatGPT platform, and they’re on the lookout for the “next ChatGPT.”

It’s up to you, whether you want to go down that route. Just be aware that BigBear.ai isn’t trying to be the “next” anything. It’s a unique company that should be assessed based on its own advantages and drawbacks, and not based on hype or buzzwords.

What’s Happening with BBAI Stock?

There are gigantic companies with financial interests in machine learning, and with stocks that aren’t prone to huge price swings. In contrast, BBAI stock represents a mid-sized company and is volatile, so it’s not appropriate for all investors.

Believe it or not, shares of BigBear.ai have gone as low as 58 cents and as high as $16.12 during the past 12 months. More recently, they hovered between $3 and $4.

The point is, BBAI stock is a fast mover and any share positions should be small. Just as importantly, though, prospective investors should know exactly what BigBear.ai does.

Conversational AI – the type of technology that could power a search engine or online, chat-based customer service – is all the rage now. However, that’s not BigBear.ai’s specialty. Rather, the company tends to focus on “visual anticipatory intelligence and optimization” (including cybersecurity and threat detection), simulation models, data curation/enrichment and predictive analysis, among other services.

Contract with U.S. Military Adds Value to BigBear.ai

The ChatGPT craze certainly brought attention to BigBear.ai. An event that really enhances the company’s value proposition, however, is BigBear.ai’s contract with the U.S. military.

Specifically, BigBear.ai has inked a deal with the U.S. Air Force that’s worth $900 million. It’s a 10-year, Indefinite Delivery/Indefinite Quantity (IDIQ) contract allowing BigBear.ai to “compete for task orders.” These orders include “delivering capabilities, systems, and synthetic environments to the Air Force as a prime contractor.”

The arrangement includes an expectation that the orders will be completed by 2032. So, BigBear.ai will be quite busy during the next decade, but that shouldn’t be a problem. Perhaps BigBear.ai can become the U.S. government’s go-to source for machine-learning-focused solutions over the coming years.

What You Can Do Now

There are a couple of potential pitfalls for prospective investors of BBAI stock. They might not realize that it’s a fast-moving, volatile asset. Also, it’s not appropriate for someone who only wants to find the “next ChatGPT.”

So, feel free to do your due diligence on BigBear.ai and discover what makes the company interesting on its own merits. If you can handle big price moves, you might decide to take a small share position in BigBear.ai.

On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.