C3 AI weighs sale after founder-CEO Siebel steps aside, sources say

C3.ai

10/11/2025 20:41

Leadership change follows Siebel stepping down due to health concerns

C3 AI's stock down over 54% in 2025 amid financial struggles

Ehikian's CEO appointment led to withdrawal of full-year financial outlook

By Milana Vinn

Nov 10 (Reuters) - Enterprise artificial intelligence software provider C3 AI AI.N is exploring a potential sale, among other options, after founder Thomas Siebel recently stepped down as CEO over health concerns, according to three people familiar with the matter.

THE DETAILS

The sales process is in its early stages and other options are on the table, including raising funds from private investors, said the people, who asked not to be named to discuss confidential matters.

Redwood City, California-based C3 provides a platform for customers like Shell and the U.S. Air Force to develop and operate large-scale artificial intelligence applications.

Its AI tools are used across the U.S. government as well as the energy and manufacturing sectors, making it a smaller rival to Palantir Technologies PLTR.O.

C3 AI did not immediately respond to a request for comment.

THE NUMBERS

C3 has a market value of about $2.15 billion.

C3 AI's stock has fallen more than 54% year-to-date amid worsening financial performance and uncertainty over its strategy and leadership.

The company reported a net loss of $116.8 million, or 86 cents per share, for its fiscal first quarter ended July 31.

Revenue fell 19% to $70.3 million from $87.2 million during the same quarter a year ago.

C3 AI also withdrew its full-year financial outlook when it reported earnings on September 3, which it attributed to the CEO change and a restructuring of its sales and services operations.

THE PEOPLE

Salesforce veteran Stephen Ehikian succeeded Siebel as CEO on September 1.

Siebel, who had transitioned to executive chairman in July, said he had an autoimmune disease that caused "significant visual impairment."

Siebel is best known for founding Siebel Systems, which he sold to Oracle in 2005 for $5.85 billion.

The company's board includes former U.S. Secretary of State Condoleezza Rice, Fortune CEO Alan Murray, and Bruce Sewell, Apple's former general counsel and secretary, among other prominent figures in finance and technology.

(Reporting by Milana Vinn in New York, additional reporting by Stephen Nellis in San Francisco; Editing by Dawn Kopecki and Richard Chang)

((Contact Milana Vinn at milana.vinn@tr.com or via Signal @MilanaVinn.01))