**C3 AI Explores Potential Sale Following CEO Thomas Siebel’s Departure**
C3 AI is reportedly exploring a possible sale after its founder and longtime CEO, Thomas Siebel, stepped down due to health concerns. According to sources cited by Reuters, the enterprise AI software company is considering several strategic options, including raising private capital, as it navigates a challenging financial landscape.
**Leadership Change Amid Health Issues**
On September 1, Thomas Siebel resigned from his CEO role, citing an autoimmune disease that caused significant visual impairment. He has transitioned to serve as executive chairman. Siebel, a notable figure in Silicon Valley, is well-known for founding Siebel Systems, which was acquired by Oracle in 2005 for $5.85 billion. His departure marks the end of an era for C3 AI, a company he established to deliver large-scale AI solutions to enterprise clients.
Salesforce veteran Stephen Ehikian has been appointed as the new CEO. Ehikian’s immediate priorities include stabilizing the company and evaluating potential strategic exits or capital infusions to support the business.
**Financial Struggles and Market Impact**
C3 AI’s financial performance has significantly declined this year. The company reported a fiscal first-quarter net loss of $116.8 million (or $0.86 per share), compared to a loss of $0.16 per share in the prior year’s quarter. Additionally, revenue fell 19% to $70.3 million. These disappointing results, combined with ongoing restructuring efforts and Siebel’s leadership transition, led C3 AI to withdraw its full-year financial outlook in September.
Investor confidence has been shaken, resulting in the company’s stock plummeting more than 50% in 2025. Currently, C3 AI’s market capitalization stands near $2.15 billion, down from a peak of over $5 billion in 2021. The firm has also faced growing competition from Palantir Technologies and other AI-centric software companies.
Despite recent difficulties, C3 AI shares rose 6% on Monday following Reuters’ report about the potential sale, as investors speculated on the possibility of a buyout premium.
**Strategic Position and Future Prospects**
C3 AI offers artificial intelligence software solutions to corporate and government clients such as Shell and the U.S. Air Force. Its platforms support the development and operation of AI applications across sectors including energy, manufacturing, and defense.
Potential buyers could include major defense contractors, large enterprise software firms, and private equity groups interested in AI infrastructure. The company’s board features prominent members, including former U.S. Secretary of State Condoleezza Rice and Apple’s former general counsel Bruce Sewell, whose networks may influence forthcoming negotiations.
While no official bidders have been named, analysts anticipate interest from both strategic and financial investors, driven by sustained demand for enterprise AI platforms. Should a sale not materialize, management may pursue private funding to sustain operations during ongoing restructuring under the new leadership.
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C3 AI’s evolving situation highlights the challenges and opportunities within the growing enterprise AI market, as the company seeks to redefine its path forward amid leadership changes and financial headwinds.
https://blockonomi.com/c3-ai-ai-stock-surges-as-company-weighs-sale-after-founder-steps-down/