Highlights:
- Buildots uses digital twins to capture on-site data, aiding engineers in tracking project status, pinpointing bottlenecks, and streamlining construction workflows.
- The startup sees AI as highly effective in helping construction firms tackle project challenges and inefficiencies.
Buildots Ltd., an AI company specializing in using computer vision to create digital twins of construction sites, recently announced that Intel Capital leads a USD 15 M investment round.
OG Tech Partners, along with several previous investors, also participated in this round, bringing the startup’s total funding to USD 121 million.
Buildots claims that creating a digital twin of a construction site can assist engineers in capturing on-site data. This data can be utilized to monitor project progress, identify and address bottlenecks, and optimize the overall construction workflow.
The Buildots platform measures the efficiency of individual construction tasks to provide recommendations that enhance performance and reduce costs, potentially shortening delays by up to 50%. Unlike the conventional subjective self-reporting methods in the construction industry, Buildots employs objective site data. This allows the platform to accurately measure the precise status of each task, offering more accurate progress updates and reliable performance metrics. Site managers can then use these insights to mitigate risks and delays before they escalate into larger issues.
The startup asserts that AI innovation can significantly help construction firms overcome many challenges and inefficiencies in building projects. It highlights that the complexity, costs, productivity challenges, and numerous stakeholders involved in any project mean that even minor errors can lead to significant delays and budget discrepancies. Buildots is confident that its digital twin technology can tackle these challenges, boosting efficiency and cutting down construction project costs.
Similar to the venture capital arms of most major tech companies, Intel Capital has invested millions in numerous AI startups in recent years. However, its investment in Buildots is notable because its parent company, Intel Corp., is not only one of the world’s largest chipmakers but also a major player in the construction industry. Intel is currently involved in several multi-billion-dollar construction projects worldwide as it expands its chip manufacturing capacity to better compete with Asian manufacturers like Taiwan Semiconductor Manufacturing Co.
One of Intel’s construction projects is its two chip manufacturing facilities in Ocotillo, Arizona, known as Fab 52 and Fab 62. These facilities are expected to be completed in 2025 and cost more than USD 20 billion. Furthermore, Intel recently began construction on two additional chip fabrication facilities in Ohio, with a potential investment of up to USD 28 billion. Additionally, it is constructing new facilities in Israel, Germany, France, Ireland, and Italy.
These projects are integral to Intel’s strategy to establish itself as a contract chip manufacturer for other chipmakers through its Intel Foundry business, unveiled earlier this year.
Intel’s current construction expenditure in the U.S. exceeds USD 100 billion, covering new facilities and renovation projects. However, the company is facing challenges, particularly with Intel Foundry reporting substantial losses in its latest earnings call. In efforts to alleviate these financial pressures, Intel has sought support from private equity firms like Apollo Global Management Inc., which recently acquired a 49% stake in Intel’s Fab 34 chip plant in Ireland.
Intel has received substantial grants from the U.S. and other governments, highlighting its commitment to improving the efficiency of its construction operations to lower costs.
Buildots’ technology has the potential to help Intel accomplish this objective. The startup has recently launched a new tool called “delay forecast,” leveraging AI to predict potential construction delays. This allows construction managers to address issues before they escalate proactively. Buildots has indicated that this new feature has helped certain construction firms cut down delay durations by as much as 50%, leading to substantial cost savings.
However, Intel has not officially verified its use of Buildots’ software in its construction projects despite previous assertions from the startup about its collaboration with the chip giant.
Buildots Co-founder and Chief Executive Roy Danon remarked recently that Intel Capital acknowledges the construction industry’s limited adoption of digital technologies thus far. Buildots sees significant potential in revolutionizing this multitrillion-dollar global industry and aims to lead “a transformative shift towards performance-driven construction management,” Danon said.
The construction industry has encountered challenges in adopting software and technology, primarily due to the complexity and unique characteristics of large-scale building projects. The industry’s structure, which typically involves numerous stakeholders such as contractors, architects, engineers, and suppliers, also contributes to these hurdles.
However, this trend seems to be shifting with the progression of AI technologies. Buildots is accompanied in the construction technology sector by startups like Voyage Control Ltd., offering AI-driven project management and logistics software for the construction industry, and Dusty Robotics Inc., which provides AI tools for automating the tracing of building blueprints on construction sites—a task traditionally performed manually.
Lisa Cohen, Intel Capital’s investment Director who will join Buildots’ board of directors, highlighted that Intel’s extensive experience with some of the largest and most intricate construction projects globally has given it a deep understanding of the transformative potential of AI in the industry.
Cohen said, “Buildots’ visionary outlook and ability to apply AI-powered predictive analytics to increase construction efficiencies will enable a more productive future for the global construction market.”