Financial deterioration, founder steps down, "AI demon stock" C3.ai considers sale

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The once highly sought-after artificial intelligence software company C3.ai is standing at a critical crossroads. With the double blow of its founder stepping down due to illness and ongoing financial pressure, the company is considering a range of strategic options—including a direct sale—to seek a way out for its uncertain future.

On November 11, according to Reuters citing three sources familiar with the matter, the enterprise AI service provider’s sales process is still at an early stage. This move comes after its key figure and founder, Thomas Siebel, officially stepped down due to health issues, marking the company’s entry into a period of transformation filled with variables.

This news has fueled further turmoil in an already unsettled market sentiment. Since the start of 2025, C3.ai’s stock price has plummeted by over 54%. What worries investors even more is that on September 3, when the company announced its new CEO, it withdrew previously released full-year financial guidance citing leadership changes and business restructuring, deepening doubts about its strategic direction.

Sources also noted that a sale is not the only option. The C3.ai board is also evaluating other possibilities, such as raising new funds from private equity investors to support the company’s operations and restructuring. At present, C3.ai has not commented on this news.

Founder Steps Down Due to Illness

C3.ai’s recent turmoil is closely related to core leadership changes. The company’s founder and Silicon Valley legend Thomas Siebel moved to become executive chairman in July and officially stepped down as CEO on September 1. Siebel revealed that he suffers from an autoimmune disease causing “severe visual impairment.”

He was succeeded by veteran executive Stephen Ehikian, who previously served for many years at Salesforce. Siebel is famous for founding Siebel Systems and selling it to Oracle in 2005 for $5.85 billion.

Ongoing Pressure on Financial Performance

Behind the leadership changes is the increasingly severe financial reality facing C3.ai.

As of now, the company’s market capitalization is about $2.15 billion, but its stock price has halved in 2025. According to the financial report for the first fiscal quarter ending July 31, the company’s revenue fell 19% year over year—from $87.2 million in the same period last year to $70.3 million—while also posting a net loss of $116.8 million.

Weak performance and the decision to withdraw guidance are the main reasons investors have lost confidence in its prospects.

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