The News: C3 AI won a $500 million Department of Defense (DoD) contract that will establish a five-year Production-Other transaction agreement. The new contract will allow an accelerated timeline for any DoD agency to acquire C3 AI’s suite of enterprise AI products for modelling and simulation. Read the full press release here.
C3 AI Wins $500M Department of Defense Contract
Analyst Take: This contract bodes well for one of the leaders in the enterprise AI industry. C3 AI has been providing enterprise AI software that helps organization accelerate their digital transformations. Their comprehensive suite is efficient and cost-effective and supports configurable AI applications for fraud detection, energy management, supply network optimization and many other things. It’s no surprise that they won this new contract.
Accelerating the AI capabilities of various agencies in the DoD is critical for the safety and protection of our country as threats and risks are increasing in volume and sophistication. By tapping into their pre-built products, the DoD can shift its digital transformation into hyper drive and accelerate research projects and other intelligent application uses.
According to the press release, the agreement will prioritize the adoption of the C3 AI Suite and the C3 AI defense and intelligence applications in use by the U.S. Air Force, Space Command, RSO, F35 JPO, DISA, and others. C3 AI has clearly seen the defense industry as a critical vertical and has also deepened its leadership in this area with the earlier appointment of Lt Gen H R McMaster, US Army to the company’s advisory board.
C3 AI’s Aggressive Approach to the Market
Over the past year, the company has been aggressive in its expansion of its reach in the marketplace. New partnerships with a variety of companies have spurred the attention of the markets and technology leaders. These partnerships include:
- Cloud data platform provider Snowflake.
- Singapore-based NCS, part of the Singtel Group with deep reach into South East Asia, Australia, and New Zealand.
- ERP provider Infor, focusing on predictive maintenance for Internet of Things (IoT) devices within Infor’s Enterprise Asset Management system.
- Other partnerships with the likes of Google Cloud, and Microsoft have indicated a strong understanding of C3 AI’s strong value proposition in enterprise AI applications.
Adding this DoD contract to the list of wins for the company is great not just for the company itself but investors as well. Earlier this month, the company announced its Q2 earnings which included a 41% revenue increase YoY. With more wins adding up, I’m sure we will continue to see growth in the market. The company is positioning itself nicely to be a major player in the enterprise AI space—which it has played a large role in defining.
Disclosure: Futurum Research is a research and advisory firm that engages or has engaged in research, analysis, and advisory services with many technology companies, including those mentioned in this article. The author does not hold any equity positions with any company mentioned in this article.
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Image Credit: C3 AI
Daniel Newman is the Principal Analyst of Futurum Research and the CEO of Broadsuite Media Group. Living his life at the intersection of people and technology, Daniel works with the world’s largest technology brands exploring Digital Transformation and how it is influencing the enterprise. Read Full Bio