Department of Defense awards C3.AI $500M Other Transaction Agreement

The contract is meant to allow the agency to acquire enterprise AI products on an accelerated timeline.
Pentagon, Department of Defense, DOD
(DOD / Lisa Ferdinando)

The Department of Defense has signed an other transaction agreement with software and artificial intelligence company C3.AI that could be worth up to $500 million.

The contract would allow the DOD to acquire enterprise AI products as well as products and services for modeling and simulation on an accelerated timeline.

Other transaction agreements allow the DOD to access state-of-the-art solutions from traditional and non-traditional technology providers, typically quicker than traditional contracting methods and with business practices that reflect commercial industry standards.

C3.AI provides advanced AI analytics to several Department of Defense agencies, including the Air Force, and recently appointed former commanding general of Army Cyber Command, Ed Cardon, as chair of the business.


News of the agreement comes after C3.AI earlier this month reported a surge in growth for its public sector business, which it said was in part driven by new contracts with the Air Force and Space Force and additional work with the Missile Defense Agency.

“The new agreement has a DoD-wide scope, accelerating research projects in simulation and modelling and production deployments for operations and sustainment,” said CEO Thomas Seibel. “We are thrilled to have been selected for these important initiatives and look forward to expanding our work and finding new ways to better serve the U.S. federal government.”

According to C3.AI, its software enables the DOD to rapidly address additional use cases and to scale AI applications across all branches of the department.

John Hewitt Jones

Written by John Hewitt Jones

John is the managing editor of FedScoop, and was previously a reporter at Institutional Investor in New York City. He has a master’s degree in social policy from the London School of Economics and his writing has appeared in The Scotsman and The Sunday Times of London newspapers.

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