C3.ai announced that its Agentic AI platform will now integrate natively with Microsoft Copilot, Microsoft Fabric, and Azure AI Foundry, creating a single, unified enterprise AI system on the Microsoft Cloud. The move is designed to streamline reasoning, data, and model operations for customers and to shorten sales cycles through deeper access to Microsoft’s extensive customer base.
In the most recent quarter, C3.ai reported revenue of $98.8 million, a 26 % year‑over‑year increase from $78.4 million in the same period a year earlier. GAAP gross margin held steady at 59 %, while non‑GAAP gross margin remained at 69 %. The company’s non‑GAAP net loss per share narrowed to $(0.12) from $(0.13) a year earlier, reflecting disciplined cost management amid growing revenue.
The expanded Microsoft partnership is a key milestone in C3.ai’s strategy to grow recurring revenue through partner‑driven distribution. By embedding its platform into Microsoft’s Copilot, Fabric, and Azure AI Foundry, C3.ai can offer customers a seamless AI experience that leverages Microsoft’s cloud infrastructure and sales channels, thereby accelerating adoption and reducing time to value.
Thomas M. Siebel, Chairman and CEO, said the company is “broadly credited with inventing Enterprise AI” and that the new integrations will make the platform “practical, trusted, and scalable.” Stephen Ehikian, CEO, added that the collaboration with Microsoft “reinforces our commitment to delivering enterprise‑grade AI solutions that are easy to deploy and manage.”
The integration positions C3.ai against competitors such as Microsoft, Google, and AWS by deepening its reliance on a major cloud ecosystem while maintaining its unique agentic AI capabilities. The partnership is expected to broaden C3.ai’s reach across multiple industry verticals and to strengthen its competitive advantage in the rapidly evolving enterprise AI market.
Overall, the announcement signals a strategic push to convert growing revenue momentum into broader market penetration. While the company remains unprofitable, the stable margins and narrowing loss suggest that C3.ai is scaling its platform effectively, and the Microsoft integration is poised to accelerate that trajectory.
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