C3 AI Contract with US Air Force Expanded to $450 Million

On May 29, 2025, C3.ai, Inc. (NYSE:AI) announced that the United States Air Force (USAF) Rapid Sustainment Office (RSO) has increased its contract ceiling to $450 million. The contract will run through October 2029. The expanded agreement adds $350 million to the initial $100 million ceiling.

C3 AI Contract with US Air Force Expanded to $450 Million

The funding will support the broader deployment of C3 AI’s predictive analytics and aircraft maintenance platform across the Air Force fleet. It will also enable the scaling of PANDA (Predictive Analytics and Decision Assistant), which has become the USAF RSO’s system of record for predictive maintenance. PANDA monitors components on hundreds of aircraft, including the B1-B Lancer, C-5 Galaxy, KC-135 Stratotanker, C-17 Globemaster III, and C-130J Super Hercules. The platform is powered by the C3 Agentic AI Platform and C3 AI Readiness application.

“At the scale of the US Air Force, this system has the potential to increase aircraft availability by up to 25%,” said Ed Abbo, Chief Technology Officer at C3 AI. The platform supports the Department of Defense’s initiative to improve fleet availability and reduce lifecycle costs through enhanced readiness.

C3.ai, Inc. (NYSE:AI) is an enterprise AI software company. It builds enterprise-scale AI applications for use in production environments. The company offers its solutions through products like the C3 AI Suite, C3 AI Applications, C3 AI CRM, and C3 AI Ex Machina. Some of its customers include Shell, Koch Industries, and the US Department of Defense.

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