Shares of C3.ai, Inc. (AI) plummeted 5.72% in pre-market trading on Thursday following the announcement that CEO Thomas M. Siebel will transition to the role of Executive Chairman. The company has initiated a search for a new CEO, citing Siebel's recent diagnosis of an autoimmune disease resulting in significant visual impairment.

The unexpected leadership change has sparked concerns among investors about the company's future direction. C3.ai, a provider of enterprise AI software, has been striving to capitalize on the growing enthusiasm for artificial intelligence. However, the company has faced financial challenges, reporting a loss of nearly $289 million on revenue of about $389 million in its last fiscal year.

While Siebel will continue as CEO until a successor is appointed, the market reaction suggests investors are wary of potential disruptions that this leadership transition might bring. The timing of this announcement, coupled with the company's recent financial performance, appears to have heightened market sensitivity. As C3.ai searches for a new chief executive, investors will be closely watching for signals about the company's strategic direction and its ability to achieve profitability in the competitive AI sector.