C3 AI (AI) Stock Surges as Company Weighs Sale After Founder Steps Down

TLDR

• C3 AI $AI is exploring a potential sale after CEO Thomas Siebel stepped down.

• New CEO Stephen Ehikian is reviewing options including private funding.

• The company’s stock has dropped 54% year-to-date amid weak financials.

• C3 AI lost $116.8 million last quarter and withdrew its 2025 outlook.

• Shares surged 6% Monday after Reuters broke the story.

C3 AI $AI is exploring a possible sale after founder Thomas Siebel stepped down as CEO due to health issues, according to sources cited by Reuters. The move comes as the enterprise AI software company faces steep losses and strategic uncertainty.

The sales process is in its early stages, with several alternatives under consideration. People familiar with the talks say raising new private capital remains an option if acquisition interest is limited.

C3.ai, Inc., AI

Leadership Change Amid Health Concerns

Thomas Siebel, one of Silicon Valley’s most recognizable software pioneers, left his CEO role on September 1. He cited an autoimmune disease causing “significant visual impairment” and now serves as executive chairman.

Siebel is best known for founding Siebel Systems, which Oracle acquired in 2005 for $5.85 billion. His departure from day-to-day management at C3 AI marks the end of an era for a company he founded to bring large-scale AI tools to enterprise clients.

Salesforce veteran Stephen Ehikian has taken over as CEO, tasked with stabilizing the business and exploring potential strategic exits or capital injections.

Financial Struggles and Market Reaction

C3 AI’s financial performance has deteriorated sharply this year. The company reported a fiscal first-quarter net loss of $116.8 million, or $0.86 per share, compared to a $0.16 loss per share a year earlier. Revenue dropped 19% to $70.3 million.

Amid these setbacks, the company withdrew its full-year financial outlook in September, citing restructuring efforts and leadership transition. The announcement deepened investor uncertainty, driving the stock down more than 50% in 2025.

C3 AI currently holds a market value near $2.15 billion—down from over $5 billion at its 2021 peak. The company has faced growing competition from Palantir Technologies $PLTR and other AI-focused software firms.

Despite the bleak performance, shares rose 6% Monday following Reuters’ report on the potential sale, as traders speculated about a buyout premium.

Strategic Position and Potential Buyers

C3 AI provides artificial intelligence software to corporate and government clients, including Shell and the U.S. Air Force. Its technology helps customers build and operate AI applications for energy, manufacturing, and defense industries.

Given that customer base, potential acquirers could include major defense contractors, large enterprise software firms, or private equity groups seeking exposure to AI infrastructure.

The company’s board includes prominent figures such as former U.S. Secretary of State Condoleezza Rice and Apple’s former general counsel Bruce Sewell—connections that may play a role in upcoming negotiations.

Although no bidders have been publicly named, analysts expect interest from both strategic and financial buyers as demand for enterprise AI platforms continues to grow.

If a sale fails to materialize, management may opt for a private funding round to support operations while the firm restructures under its new leadership.

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