C3.ai, Inc. is significantly enhancing its go-to-market strategy by focusing on a rapidly growing partner ecosystem. In the fourth quarter of fiscal 2025, the company achieved an impressive 73% of its agreements through collaborations with major strategic partners, including Microsoft, AWS, and Google Cloud. Over the fiscal year, C3.ai signed a total of 193 deals through its partner network, marking a remarkable 68% increase compared to the previous year. Notably, in the fiscal fourth quarter, the company reported a staggering 419% growth in partner-supported bookings, resulting in 59 agreements facilitated through these strategic alliances.
A highlight of this period is C3.ai’s strengthened partnership with Microsoft, which includes the listing of its applications in Azure’s sales catalog. This initiative not only streamlines sales processes but also incentivizes Microsoft’s global sales team through commissions for successful sales. In total, C3.ai and Microsoft collaborated on 28 joint deals by focusing on key sectors such as manufacturing and chemicals.
To bolster this channel-centric approach, C3.ai has made substantial investments in demo licenses and enablement tools, which accounted for nearly 30% of the company’s revenues in the fiscal fourth quarter. The company is now targeting over 600 accounts in conjunction with Microsoft and is looking to scale similar partnerships with AWS and Google Cloud, as well as newly established collaborations with PwC and McKinsey QuantumBlack. Management expresses a strong optimism that these consulting partnerships will drive further scalability and enhance market penetration in the foreseeable future.
In comparison to its competitors, C3.ai’s strategy diverges notably from Palantir Technologies, which opts for a more vertically integrated model focused on direct client engagement rather than a partner-led sales approach. Although Palantir has strategic collaborations with significant institutions, such as R1 RCM in healthcare and NATO, its partnerships are not as expansive as C3.ai’s commercial partnerships.
Snowflake Inc. presents a hybrid model that combines direct sales with strong platform partnerships. Recently, it has expanded its collaboration with Microsoft, allowing customers to utilize OpenAI models through Azure and integrate Snowflake’s products into Office Copilot. Snowflake also launched a dedicated public sector entity and secured authorization from the Department of Defense, enhancing its offerings to governmental and national security sectors.
C3.ai’s robust expansion through a strategic partner ecosystem not only positions the company for immediate growth but also establishes a foundation for sustained long-term success in the competitive AI landscape.