- Intel Capital is leading a $15 million investment in AI construction startup Buildots, which uses technology to enhance project management efficiency.
- Intel seeks to bolster its foundry ambitions through the investment amid rising construction costs and operational challenges.
OUR TAKE
Intel’s strategic investment in Buildots aligns with its broader efforts to drive efficiency through technology. It highlights Intel’s extensive construction experience as pivotal in appreciating the potential of AI in revolutionising construction process management as well.
–Ashley Wang, BTW reporter
What happened
Intel Capital, the venture capital (VC) and investment part of chipmaker Intel, revealed a strategic investment in Bulidots, an Israeli AI construction startup. The investment amounts to $15 million according to Bulidots on Thursday.
Founded six years ago, Buildots, a company that uses AI and computer vision to create digital twins of construction sites, collaborates with construction giants such as Pomerleau, NCC, and Ledcor, utilising 360-degree cameras to regularly capture on-site data to track project progress, identify bottlenecks, and optimise workflows. Buildots had previously raised around $106 million, with its most recent $60 million tranche coming two years ago.
While Intel Capital has invested billions into AI startups over the years, its decision to buy a stake in Buildots is particularly notable now, as its parent company doubles down on efforts to increase its own manufacturing capacity while trying to keep costs in check. Intel revealed plans to invest $20 billion in two new fabrication facilities at its Ocotillo campus in Arizona. Concurrently, Intel also launched a new foundry business aimed at manufacturing chips designed by other companies. These new Arizona factories are expected to be completed by early 2025.
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Why it’s important
This investment underscores Intel’s recognition of the critical role of efficiency in large-scale construction projects. As Intel intensifies its global construction efforts, including two new plants in Ohio potentially costing up to $28 billion, the need for cost control and efficiency is paramount. The tech giant’s current spending on construction is estimated at around $100 billion. Despite these investments, Intel’s Foundry business reported widening losses last year, and regulatory hurdles recently forced the cancellation of a $5.4 billion merger with Tower Semiconductor.
Buildots’ AI technology, particularly its new delay forecast feature, which predicts and mitigates potential delays, could significantly enhance efficiency in Intel’s construction projects. During beta testing, this feature reportedly reduced delay times by up to 50% in some situations. With the construction industry historically slow to embrace digitisation due to project complexity and multi-stakeholder coordination, AI innovations like those offered by Buildots represent a promising shift.
