C3 AI (NYSE:AI) traded 2% higher on Tuesday after announcing it has been awarded a contract by the U.S. Army to build an artificial intelligence–powered logistics system intended to support combat operations.

The selection, made by the Army’s Rapid Capabilities and Critical Technologies Office (RCCTO), tasks C3 AI with creating AI-enabled tools that can help military units forecast key needs such as parts, fuel, and munitions while operating in contested or high-risk environments. The goal is to bolster readiness and ensure units can sustain movement and operations under pressure.

The AI system will be embedded into the Brigade’s Command & Control infrastructure, where it will help coordinate resupply and distribution for forward-deployed units while reducing exposure to risk. The enhanced logistics planning is expected to support mission continuity even under rapidly changing battlefield conditions.

“The future of defense logistics is real-time, data-driven, and AI-enabled,” said Stephen Ehikian, CEO of C3 AI. “This award reflects the U.S. Army’s focus on operational speed and technological advantage — and C3 AI’s ability to deliver enterprise-scale AI systems that meet that mission.”

To accelerate development, the company will draw on capabilities in its existing C3 AI Contested Logistics and C3 AI Readiness platforms, which are already being used by the Defense Logistics Agency and the U.S. Air Force. These applications can identify shortages in mission-critical repair parts, model fuel needs, and estimate future munitions usage.

RCCTO, the Army office spearheading the project, is charged with introducing advanced technologies quickly to reduce capability gaps and prepare the service for emerging threats.

C3.ai stock price

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