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  "documentTitle": "C3.ai, Inc. (AI)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2022-02-16 00:00:00",
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      "text": "The CEO has recently claimed spending upwards of $1.0 billion to develop C3.ai. However, in 2018 a senior employee said that approximately $250 million had been spent since approximately 2010. Since this time, C3 has reported another $247 million of spending. Therefore we estimate $500 million of spending vs. the $1.0 billon claimed by the CEO. In yet another version direct from the Company in April 2020, it claimed $650 million total investment. Adding FY 2021 and YTD 22 spending to this figure results in $785 million total investment, yet again short of the $1.0 billion claim.(1)",
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      "kind": "callout",
      "text": "The CEO has recently claimed spending upwards of $1.0 billion to develop C3.ai. However, in 2018 a senior employee said that approximately $250 million had been spent since approximately 2010.",
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      "kind": "metric",
      "text": "R&D and Capex spending: $1.0 billion",
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      "kind": "quote",
      "text": "We've spent about eight years and a quarter (billion) dollars to develop the platform as a service to develop, operate and build AI and IoT applications at scale. We truly mean at enterprise scale.",
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      "kind": "quote",
      "text": "We spent hundreds of millions of dollars, perhaps approaching $1 billion on development of this technology stack where we've provided an integrated set of software services in 1 cohesive platform that provides all the services necessary and sufficient for companies to decide to develop, provision, operate enterprise AI applications.",
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      "kind": "quote",
      "text": "We were novel in using a model-driven architecture to enable organizations to rapidly design, develop, provision and operate enterprise AI applications at scale, said Siebel. We spent about a billion dollars inventing this in the last decade and it is our secret sauce.",
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      "text": "We’ve spent about eight years and a quarter (billion) dollars to develop the platform as a service to develop, operate and build AI and IoT applications at scale. We truly mean at enterprise scale. — C3 IoT: Accelerate Value from Big Data, AI, and IoT Initiatives with One Tenth the Effort in your Data Center, Intel AI video, Sept 17, 2018; We were novel in using a model-driven architecture to enable organizations to rapidly design, develop, provision and operate enterprise AI applications at scale, said Siebel. We spent about a billion dollars inventing this in the last decade and it is our secret sauce. — C3 AI's Tom Siebel: How To Scale AI, Forbes, June 11, 2021; We spent hundreds of millions of dollars, perhaps approaching $1 billion on development of this technology stack where we've provided an integrated set of software services in 1 cohesive platform that provides all the services necessary and sufficient for companies to decide to develop, provision, operate enterprise AI applications. — Piper Sandler Conference, Sept 13, 2021",
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      "text": "$ in mm, FY Ended April 30th; R&D Expense (inc. stock-comp); Capex (inc. capitalized software); R&D Expense and Capex",
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      "kind": "title",
      "text": "C3 Appears To Exaggerate Development Cost of The C3 Product Suite",
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