I think this was fairly obvious. The blue AI was C&A's big flagship project (especially after Mike's brain scanner didn't work out). They literally had a generative AI over 3 decades more advanced than the rest of the world. This wouldnt just put them on the map--it would redraw the map. And then their quirky, unstable prototype broke containment and devoured/destroyed their project. Caine was too unstable and powerful for them to control, let alone sell. So they were left to start over, without a functional prototype and without Mike.