Artificial intelligence software maker C3.ai on Thursday said its founder and chief executive, Thomas Siebel, will step down for health reasons. AI stock fell on the news, though two analysts speculated the software maker could be acquired.
On Thursday, C3.ai stock fell 10.8% to close at 26. AI stock has retreated 25% in 2025.
The software maker said it has started a search for a new CEO.
"After being diagnosed with an autoimmune disease in early 2025, I have experienced significant visual impairment," said Siebel, in a news release.
"For C3 AI to reach its full potential – which I believe is spectacular – the board and I have initiated a search for a new CEO who can take the company to the next level of growth and success."
Siebel will stay on as CEO until a successor is named. Also, Siebel will also stay on as executive chairman of the board of directors. He also founded Siebel Systems, which Oracle acquired in 2005 for $5.85 billion.
Meanwhile, Wedbush analyst Dan Ives speculated that the company could be acquired.
"We believe that coming off the news that Siebert is stepping down as CEO significantly increases the chances of C3 being an M&A over the next 3 to 12 months," he said in a report.
C3.ai Stock: Siebel Voting Stake
The performance of C3.ai stock has lagged Palantir Technologies. Palantir stock has vaulted 104% in 2025.
At Citizens Software Research, analyst Patrick Walravens said in a report: "Given that Mr. Siebel still holds a large position in C3.ai, with about 27% economic ownership and 54.2% of the vote, per the company's latest proxy filed Aug. 22, 2024, we think it might be prudent for the board of directors to at least consider reviewing strategic alternatives in parallel with the new CEO search."
C3.ai's biggest customer has been energy company Baker Hughes. In May, C3.ai renewed its contract with Baker Hughes through 2028.
In the April-ended quarter, C3.ai's adjusted profit fell 45% to a loss of 16 cents per share, while revenue rose 26% to $108.7 million.
C3.ai has told analysts it expects revenue growth to accelerate as more AI pilot projects ramp up into commercial production.
In 2024, C3.ai backed off its target to turn profitable on an adjusted basis amid growing investments in artificial intelligence. Also, C3.ai is transitioning to consumption priced services.
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