AI C3ai Imminent Takeover by Automation Anywhere? Rumors!

C3 ai, once a darling of the enterprise AI space, has faced headwinds since its 2020 IPO. Founded by industry veteran Thomas Siebel, the company specializes in AI applications for industries like manufacturing, energy, and defense, offering tools for predictive maintenance, supply chain optimization, and more.

However, revenue growth has decelerated sharply—fiscal 2025 saw $389 million in sales (up 25% YoY), but early 2026 figures show a 20% drop in the first half, prompting the withdrawal of full-year guidance.

Siebel's departure in November 2025 fueled talks of strategic options, including a sale or private capital raise.

Enter Automation Anywhere, a leader in robotic process automation (RPA) valued at $6.8 billion in its 2019 funding round.

Backed by investors like Salesforce Ventures, the company generates hundreds of millions in revenue from tools that automate repetitive business processes.
The merger rumors, first reported by The Information on January 27, 2026, suggest Automation Anywhere would acquire C3 ai in a reverse merger, effectively listing publicly without a traditional IPO.

Neither company has confirmed the discussions, but sources indicate talks are advanced, with potential synergies in "agentic AI"—combining C3.ai's reasoning capabilities with Automation Anywhere's execution tools.

If talks are as advanced as reported, a pre-earnings reveal might preempt leaks and stabilize sentiment. Analysts speculate a deal could close in months, pending regulatory nods—especially given both firms' federal contracts.

The rally potential? Substantial. Historical AI mergers (e.g., similar reverse listings) have delivered 20-50% premiums, pushing shares toward $15-18 if terms favor C3 ai holders.

A combined entity would boast enhanced scale in enterprise AI and RPA, competing with giants like UiPath (PATH) and Palantir (PLTR).

Short squeeze dynamics, with a 6.85 short ratio and 31% float shorted, could amplify gains—imagine a 30-50% pop on confirmation, fueled by FOMO in the AI hype cycle.

Broader trends, like OpenAI's rumored Q4 2026 IPO, underscore AI's hot streak.

Bullish on AI!