Shares of C3.ai (AI 1.81%) have skyrocketed today, up by 16% as of 2:30 p.m. EDT, after the company announced that Shell has renewed a strategic agreement for another five years. The companies will accelerate the deployment of enterprise artificial intelligence (AI) and machine learning (ML) applications within Shell's operations.
C3.ai and Shell had initially formed a partnership back in 2018, with Shell selecting C3.ai's platform to improve its operating performance by using a suite of AI applications. The renewal represents an expansion of the existing relationship, with an emphasis on reliability, asset integrity, and process optimization. The news comes as part of C3.ai's Open AI Energy Initiative, an open AI ecosystem announced earlier this year that is catered to the energy industry.
"Together with Shell, we are committed to driving cleaner energy and climate initiatives globally through the power of tried, tested, and scalable enterprise AI-based solutions," C3.ai CEO Thomas Siebel said in a statement. "Our collaboration will shape the global market for AI/ML applications in the energy and resource industries."
Financial details around the renewal were not disclosed, but Shell is one of C3.ai's most prominent customers. C3.ai has previously noted that it faces customer concentration risk, with two separate clients representing 16% and 12% of revenue last fiscal quarter. Based on previous disclosures in the prospectus, Shell does not appear to account for more than 10% revenue.
C3.ai is scheduled to report fiscal fourth-quarter results tomorrow after the close.