Intel’s Strategic Investment in AI Construction Startup Buildots
3 min read
Intel Capital is making waves with its latest investment in the AI construction startup, Buildots.
The startup specializes in creating digital twins of construction sites using AI and computer vision.
Intel’s Strategic Investment
Intel Capital is leading a $15 million investment into Buildots, an AI construction startup based in Israel and the UK. This company uses AI and computer vision to create digital twins of construction sites, making the process more efficient. Buildots has previously raised around $106 million.
The company’s technology involves using 360-degree cameras to capture on-site data regularly. This data helps track project progress, identify bottlenecks, and optimize workflows. By doing so, construction giants such as Pomerleau, NCC, and Ledcor have already benefited from these innovations.
Intel Foundry’s Expansion
A few years ago, Intel announced a $20 billion investment in two new fabrication facilities in Arizona. These new facilities, named Fab 52 and Fab 62, are expected to be completed by early 2025. The goal is to ramp up the company’s manufacturing capabilities while keeping costs in check.
In addition to these new Arizona plants, Intel is also planning to build two new plants in Ohio. These plans, however, have been delayed due to market challenges. Despite these delays, overall investment in new builds and refurbishments spans four U.S. states and amounts to around $100 billion.
Challenges and Setbacks
Intel’s Foundry business faced widening losses last year. Additionally, a regulatory hurdle forced Intel to cancel a $5.4 billion merger with Tower Semiconductor. But, a commercial partnership will allow Intel to provide foundry services to Tower Semiconductor as part of a $300 million investment.
To counter setbacks, Intel is set to receive $8.5 billion in funding from the U.S. government. This is part of a broader plan to bring more chip manufacturing back to the U.S., aiming to meet increasing domestic demand.
Building Efficiencies
Improving efficiency is critical for Intel’s growth, and this is where Buildots could help. The startup’s new AI-powered delay forecast feature predicts potential delays, allowing project managers to act proactively. This feature has already reduced delay times by up to 50% during beta testing on major construction sites.
Historically, the construction industry has been slow to adopt digital technologies due to its complex nature. Multiple stakeholders, including architects, contractors, engineers, suppliers, and regulators, make coordination challenging. However, AI is changing this dynamic.
Industry Implications
AI can’t physically build structures, but it can streamline operational processes. By reducing timelines and improving efficiency, AI is revolutionizing construction management. Intel’s investment in Buildots is a significant step in this direction.
Lisa Cohen, Intel Capital’s investment director, mentioned that Intel’s experience with complex construction projects underscores the potential of AI in revolutionizing construction management. Her insights highlight the transformative potential of AI technology.
Social Media Hints
Neither Intel nor Buildots have confirmed their collaboration directly. However, Buildots has hinted at partnerships with industry giants like Intel on social media. This speculation adds an interesting layer to the ongoing narrative.
Cohen will join Buildots’ board of directors as part of the investment. Other investors in this round include Israel’s OG Tech Partners and several unnamed previous backers.
Intel’s investment in Buildots could be a game-changer for the construction industry.
By leveraging AI, Intel aims to streamline its manufacturing processes and build efficiencies.
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