C3.ai (AI) delivered manic gains early on during the AI rally, but then plateaued. Most of this was due to the company having the coveted “AI” ticker. Most of C3.ai’s revenue was locked to Baker Hughes, and it had more to do with simple software than AI or machine learning.
C3.ai has since diversified its revenue stream, but at a tremendous cost. Most AI companies have capitalized extensively on the boom, either expanding their margins or accelerating their revenue growth until it turned heads on Wall Street.
C3.ai, on the other hand, has only seen losses increase. In the July quarter of 2022, revenue came in at $65 million, and net loss was $72 million. In the July quarter of 2025 (reported this Wednesday), net loss came in at $116.8 million against total revenue of $70.26 million.
Should you buy or sell AI stock now?
Investors are rightfully getting impatient, and a turnaround is unlikely to happen overnight. Many other AI stocks trade on technicals instead of fundamentals, but given C3.ai’s declining revenue and worrying losses, even the AI ticker has failed to make it hot.
The company’s new CEO, Stephen Ehikian, is a former Trump government official who oversaw $110 billion in federal contracts. He stepped down from his government position specifically for the role of CEO at C3.ai. I would only buy AI stock if he can provably leverage his connections to bring in profitable government contracts.
But at the moment, things seem to be only getting worse. I expect AI stock to continue sliding.
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