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Buildots AI Construction

Intel Capital Leads $15M Round in AI Construction Tech Startup Buildots

Buildots Ltd., an artificial intelligence company that uses computer vision to create digital twins of construction sites, announced a $15 million investment led by Intel Capital. OG Tech Partners and previous investors also participated, bringing the startup’s total raised to $121 million.

By creating a digital twin of a construction site, Buildots helps engineers capture on-site data to track project status, identify bottlenecks, and streamline workflows.

Buildots’ platform measures the efficiency of construction tasks, providing recommendations to improve performance and reduce costs, with delays shortened by up to 50%. It leverages objective site data instead of traditional subjective self-reporting, offering accurate progress updates and reliable performance metrics to mitigate risks and delays.

AI innovation can help construction firms overcome challenges and inefficiencies. Due to the complexity, costs, and numerous stakeholders in projects, even minor errors can cause significant delays and budget discrepancies. Buildots’ digital twin technology aims to solve these issues, improving overall efficiency and reducing costs.

Intel Capital’s investment in Buildots is notable as Intel Corp. is a major chipmaker and construction behemoth, engaged in multi-billion-dollar projects worldwide to expand its chip manufacturing capacity.

Intel’s projects include two $20 billion-plus chip plants in Arizona, expected to complete in 2025, and new facilities in Ohio, France, Germany, Italy, and Israel.

Intel plans to become a contract chip manufacturer under its Intel Foundry business, announced earlier this year. Its U.S. construction budget exceeds $100 billion, spanning new facilities and refurbishments. However, Intel Foundry has shown significant losses recently. To offset costs, Intel has sought backing from private equity firms like Apollo Global Management Inc., which took a 49% stake in Intel’s Fab 34 chip plant in Ireland.

Intel has also secured billions in grants from the U.S. and other governments. Today’s investment suggests Intel aims to improve construction efficiency to cut costs.

Buildots’ technology could help Intel achieve this. The startup recently announced a “delay forecast” tool using AI to predict construction delays, enabling pre-emptive action to reduce impacts. This feature has helped some firms reduce delays by up to 50%, with significant cost savings.

Intel has not confirmed using Buildots’ software in its projects, though the startup claims collaboration with the chip giant.

Buildots co-founder and CEO Roy Danon said Intel Capital recognizes the construction industry has yet to benefit from the digital age. Buildots aims to lead a transformative shift towards performance-driven construction management.

Software and technology have struggled to penetrate the construction industry due to project complexity and multiple stakeholders. However, AI advancements are changing this. Buildots joins startups like Voyage Control Ltd., which offers AI-powered project management and logistics software, and Dusty Robotics Inc., which sells AI tools for tracing blueprints on sites.

Intel Capital’s investment director Lisa Cohen, who will join Buildots’ board, said Intel’s experience with large construction projects highlights AI’s potential impact in the industry.

“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,” Cohen said.

Image: Buildots