C3.ai Stock Jumps Amid Rumors as Strategic Assessment Fuels Both Optimism and Skepticism

C3.ai (AI) shares jumped more than 4% on Monday after

that the enterprise AI software company is weighing a possible sale as part of a strategic evaluation, following founder Thomas Siebel's recent resignation as CEO due to health reasons. The stock, which , climbed alongside broader market optimism about the company's leadership change and potential new directions. According to Reuters, which cited anonymous sources, the sale discussions are still in the preliminary phase, and the company is also .

The shift in leadership has brought increased attention to C3.ai's financial and operational hurdles. Siebel, who left the CEO role in September and now acts as executive chairman,

that has led to "significant visual impairment." His replacement, Stephen Ehikian, formerly of Salesforce, is now tasked with steadying the company after it in August, following a 19% year-over-year revenue drop and a $116.8 million net loss in its first fiscal quarter. The company is currently valued at about $2.15 billion.

Analysts have pointed out that the strategic review could result in a sale or other alternatives, though no formal bids have been made. Palantir Technologies, a larger rival in the government and industrial AI sectors, is seen as a key reference point for any potential buyers. In addition,

for $8.3 million has fueled further speculation about his departure and the company's ongoing instability.

The stock has experienced significant swings, with recent gains largely attributed to short-term trading rather than underlying business strength. Bloomberg noted that the sale process is still in its infancy and may not lead to a transaction, serving as a warning for investors. The next key event will be C3.ai's earnings report on December 3, where CEO Ehikian is expected to discuss the strategic review, federal sector demand, and the company's cash usage under his leadership.

Industry analysts remain doubtful about C3.ai's prospects for a turnaround. Palantir's strong position in the enterprise AI market, combined with C3.ai's declining sales and aggressive cost-cutting, has raised questions about its ability to compete. Still, some analysts believe the stock's sharp decline could present a "buy-the-dip" chance for those optimistic about a recovery.