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A regulatory filing showed that C3.ai founder and CEO Thomas Siebel sold 12.78 million shares of the artificial intelligence software company.
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The news made the company’s trading volatile on Tuesday, even as it posted better-than-expected quarterly results and boosted revenue guidance.
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Siebel noted that the company is benefiting from its new global strategic alliance with Microsoft.
C3.ai (AI) shares were volatile on Tuesday after a filing showed Chief Executive Officer (CEO) Thomas Siebel plans to sell millions of shares, offsetting better-than-expected quarterly results.
In a regulatory filing, the artificial intelligence (AI) software company said Siebel offered 12.78 million shares for sale during the second quarter of fiscal 2025.
The company noted that as of October 31, Siebel and its affiliates beneficially owned approximately 87.8% of the shares of Class B common stock and approximately 21.6% of the outstanding shares of Class A common stock.
That resulted in “beneficial ownership of shares representing approximately 53.9%” of the voting power of the company’s shares. The shares offered for sale have an expiration date of December 17, 2026.
The Siebel news offset strong second-quarter performance. C3.ai posted a loss of $0.06 per share, smaller than the loss of $0.14 per share that analysts polled by Visible Alpha had expected. Revenue rose 29% to $94.3 million, also exceeding expectations.
The company got a lift from a new global alliance deal with Microsoft (MSFT) signed in September, making C3.ai the preferred provider of AI applications on Microsoft’s Azure cloud computing platform. It will also create a Microsoft-scale go-to-market engine.
Siebel said it was “difficult to overestimate the potential of the Microsoft-C3.AI strategic alliance.” He called it “a turning point for Enterprise AI, driving growth.”
C3.ai also raised its full-year revenue estimate to $398 million from $378 million, up from its previous guidance of $370 million to $395 million. However, it expects a non-GAAP loss from operations of $105 to $135, compared to its previous forecast of $95 to $125.
Shares of C3.ai are up nearly 45% this year.
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