HHS selects C3 AI to create unified data foundation for health programs

REDWOOD CITY - The U.S. Department of Health and Human Services (HHS) has selected C3 AI (NYSE:AI) to develop a unified data foundation that will integrate information across the National Institutes of Health (NIH) and the Centers for Medicare & Medicaid Services (CMS), according to a press release issued Thursday.

The enterprise AI software company will work to integrate disease-specific NIH data with Medicare, Medicaid, claims, and state registry datasets while enforcing privacy and security requirements. The project aims to establish a foundation for biomedical research, program integrity, and public health analysis.

Using C3’s Agentic AI Platform, HHS plans to improve data quality and governance while enabling new research capabilities. The platform will also help automate complex administrative workflows that are currently labor-intensive.

"HHS is taking a major step toward a modern, AI-ready architecture for national health data," said Stephen Ehikian, CEO of C3 AI. "The C3 Agentic AI Platform is built to unify large, complex systems at federal scale."

The initiative will involve collaboration with Fleet Health, whose CEO Nabeel Qureshi stated the partnership would deliver "research-ready health data that supports critical national programs and population health initiatives." Despite this positive development, InvestingPro data shows C3 AI’s stock has faced significant volatility, falling over 42% in the past six months.

This implementation represents a significant move by a federal health agency to leverage artificial intelligence for improving data integration across major health programs. The project focuses on creating an infrastructure that maintains security while enhancing data accessibility for research and operational purposes.

C3 AI, headquartered in Redwood City, California, specializes in enterprise AI application software and offers an end-to-end platform for developing and operating AI applications.

In other recent news, C3.ai reported its second-quarter fiscal 2026 earnings, surpassing expectations with an earnings per share (EPS) of -$0.25, compared to the forecasted -$0.33. The company also achieved revenue of $75.1 million, slightly exceeding the anticipated $74.93 million. Despite these results, DA Davidson maintained its Underperform rating on C3.ai, setting a price target of $13.00, and noted that the company’s guidance suggests significant revenue declines ahead. Conversely, Citizens reiterated its Market Outperform rating with a $24.00 price target, highlighting C3.ai’s strong partnerships and extensive portfolio of industry-specific AI applications. Notably, the firm emphasized C3.ai’s collaboration with Microsoft, which resulted in 100 customer agreements across 17 industries and 24 joint agreements in the fiscal second quarter. These developments reflect the mixed analyst sentiment regarding C3.ai’s future performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.