C3.ai

C3.ai was founded by Tom Siebel, the billionaire enterprise software veteran who previously built Siebel Systems (acquired by Oracle for $5.8 billion). With his track record and connections, Siebel raised hundreds of millions and took C3.ai public in December 2020 at a peak market cap exceeding $10 billion. The company built an enterprise AI platform for developing, deploying, and operating large-scale AI applications — targeting industries like energy, defense, manufacturing, and financial services. The pitch was compelling: a comprehensive AI platform from a proven enterprise software entrepreneur. But C3.ai's financials told a troubling story. Revenue growth was anemic for a company with a $10B valuation — growing from $183M in FY2021 to approximately $310M by FY2024, far below what investors expected. Customer concentration was severe: Baker Hughes (an investor and partner) accounted for a massive portion of revenue, and when that relationship shifted, it created significant uncertainty. The company also pivoted its pricing model from subscription to consumption-based in 2022, causing short-term revenue disruption that alarmed investors. C3.ai's stock collapsed from over $160 (adjusted for split) at its peak to under $25, a decline of over 85%. The company burned through hundreds of millions in cash while posting consistent losses. Short sellers published detailed reports questioning the company's reported metrics. Throughout 2023-2024, C3.ai attempted to capitalize on the generative AI hype with new products, but skeptics noted that the company had been selling enterprise AI for 14 years with limited revenue to show for it. While C3.ai continues to operate, it represents one of the most dramatic value destructions in enterprise AI — a cautionary tale about the gap between AI potential and enterprise willingness to pay.