C3 AI wins $23.3 million in trade secret suit against Cummins

A Delaware jury awarded enterprise AI firm C3.ai, Inc. $23.3 million in damages from Cummins Inc. after finding the engine manufacturer liable for misappropriating its trade secrets.

"We placed our faith in the United States justice system, and the justice system worked," Thomas M. Siebel, Chairman and Chief Executive Officer of C3 AI, said in a statement. "The jurors heard the evidence, applied the law, and unanimously concluded that Cummins misappropriated C3 AI’s trade secrets."

The unanimous verdict was returned on May 19, 2026, following a lawsuit C3 AI filed against its licensee in November 2023. According to the company, it discovered the scheme when a Cummins employee inadvertently shared internal meeting notes that documented the plan with C3 AI.

The judgment adds to recent legal troubles for Cummins, which agreed to a $1.675 billion civil penalty in December 2023 to settle claims from the U.S. Department of Justice that it unlawfully bypassed emissions tests.

In his statement, Siebel issued a sharp rebuke of Cummins’ executive team and its corporate ethics. "I respectfully suggest that the Board of Directors of Cummins take a long and hard look at the ethical grounding and core values of its senior management, including its CEO," he said, adding that the company's actions "reflect poorly on Cummins' executive management."

The verdict serves as a validation of C3 AI's intellectual property, potentially boosting investor confidence in the enterprise software company. For Cummins, the financial penalty is less significant than the potential reputational damage from multiple adverse legal findings.

This article is for informational purposes only and does not constitute investment advice.