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C3.ai, Inc.
C3.ai is an enterprise artificial intelligence software company that provides AI applications and platform tools to large commercial and government customers.
C3.ai publicly positions itself as a long-term enterprise AI platform with durable and expanding demand. Management communications frequently emphasize recurring revenue, backlog growth, and broad AI adoption across industries.
However, public filings indicate that a meaningful portion of revenue may be derived from short-term, usage-based, or pilot arrangements that include broad termination rights. These structures can materially affect revenue predictability, customer retention, and downside risk.
The investigation focuses on whether the durability implied in public statements aligns with the contractual and economic reality disclosed to investors.
Public statements emphasize recurring and scalable revenue despite reliance on contracts that may be cancellable or consumption-based.
Disclosures provide limited clarity on average contract length and customer exit risk.
Evolving descriptions of remaining performance obligations may affect perceived revenue visibility.
Dependence on a limited number of large enterprise or government customers may increase volatility.
C3.ai may face exposure related to securities disclosure if revenue durability, predictability, or customer retention risks were materially mischaracterized or insufficiently disclosed.
