C3 AI U.S. Air Force Rapid Sustainment Office Contract Award Increased to $450 Million

The U.S. Air Force Rapid Sustainment Office (RSO) has increased C3 AI's (NYSE: AI) contract ceiling to $450 million through October 2029, representing a $350 million expansion from the initial $100 million ceiling.

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05/29/2025 - 09:00 AM EDT

Expansion supports broad deployment of C3 AI–powered predictive maintenance across aircraft, weapons systems, and ground assets

REDWOOD CITY, Calif.--(BUSINESS WIRE)-- C3 AI (NYSE: AI), the Enterprise AI application software company, today announced that the United States Air Force (USAF) Rapid Sustainment Office (RSO) has raised the C3 AI contract ceiling to $450 million through October 2029. The additional $350 million in available scope supports the scaling of C3 AI’s predictive analytics and aircraft maintenance platform across the service’s fleet and systems.

Initially C3 AI was awarded a $100 million ceiling, which has been fully utilized to deploy PANDA, a predictive maintenance platform that delivers near-real-time insights by monitoring 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.

“We believe our program with RSO may be the largest production AI deployment in the U.S. DoD today,” said Ed Abbo, Chief Technology Officer, C3 AI. “At the scale of the U.S. Air Force, this system has the potential to increase aircraft availability by up to 25%. We consider it a great privilege to continue to serve and to expand our AI operations to assist the U.S. DoD in meeting its mission objectives.”

The Predictive Analytics and Decision Assistant (PANDA), powered by the C3 Agentic AI Platform and the C3 AI Readiness application, earned distinction as the U.S. Air Force RSO’s system of record for predictive maintenance and Condition Based Maintenance Plus (CBM+). This highly favored platform supports a Department of Defense-wide initiative to improve fleet availability and reduce lifecycle costs through improved readiness. The collaboration has significantly improved availability, driven down costs, and reduced unscheduled maintenance for hundreds of aircraft across the Air Force enterprise.

About C3.ai, Inc.

C3 AI is the Enterprise AI application software company. C3 AI delivers a family of fully integrated products including the C3 Agentic AI Platform, an end-to-end platform for developing, deploying, and operating enterprise AI applications, C3 AI applications, a portfolio of industry-specific SaaS enterprise AI applications that enable the digital transformation of organizations globally, and C3 Generative AI, a suite of large AI transformer models for the enterprise.