Salesforce CEO calls AI a 'commodity feature', says the technology bolsters enterprise software

As Wall Street worries that advancements successful artificial quality volition wounded endeavor bundle companies, Salesforce CEO Marc Benioff told CNBC's Jim Cramer a ample connection exemplary is "just a commodity feature" that strengthens his company's products.

"All these ample connection models are the same. We conscionable privation the lowest outgo one, past we plug it in," Benioff told Cramer. "We've got each the customers' data. We person our slayer apps. Those are not commodities."

Large connection models, oregon LLMs, are AI models trained connected information that tin person a assortment of functions, including information analysis, summarization and chat bot services. Leading hyperscalers, namely Google, Microsoft and OpenAI, person poured billions into processing the technology.

Salesforce banal has had a pugnacious year, adjacent arsenic the broader tech assemblage has surged. Shares person been dragged down by Wall Street's fears that AI could render immoderate endeavor bundle products redundant. Salesforce shares are down much than 25% year-to-date, portion the tech-heavy Nasdaq Composite is up much than 21%.

Benioff, successful the interrogation with Cramer, did not code his company's declining stock terms successful 2025. But helium suggested investors who "moved away" from the institution implicit the past twelvemonth "somehow deliberation bundle companies are nether duress from AI erstwhile the other is true."

"Software companies are being bolstered by AI, powered by it," Benioff continued.

Salesforce shares popped connected Thursday aft the institution posted a immense net beat, with the banal finishing up 3.66%. While gross came successful a small light, Salesforce upped its revenue guidance for the existent quarter.

Benioff boasted astir the show of Agentforce — his company's merchandise that automates income and lawsuit work workflows — implicit the past quarter. On the net call, helium said annualized gross from Agentforce came successful astatine at much than $500 million, increasing 330% from a twelvemonth earlier. Benioff besides said connected the telephone that Salesforce has closed implicit 18,500 Agentforce deals successful the twelvemonth since the merchandise was introduced, with 9,500 arsenic paid transactions.

"It is the fastest increasing merchandise I person ever seen successful the past of Salesforce," Benioff told Cramer.

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Disclaimer The CNBC Investing Club holds shares of Salesforce and Microsoft.