Applied Computing: Orbital AI Revolutionizes Energy

A Fundraising Round to Transform the Oil Industry

Applied Computing, a London-based startup, has raised $20 million in a Series A funding round. This round was led by KBR, a major engineering player, with notable participation from Databricks Ventures. This capital injection aims to support the development of a fundamental artificial intelligence (AI) model intended for the oil, gas, and petrochemical industries.

Founded in 2023, Applied Computing focuses on the complex systems of oil and gas facilities, as well as refineries and petrochemical plants. These industrial sites are equipped with thousands of sensors that measure critical variables such as temperature, pressure, speed, and viscosity. However, despite the wealth of available data, system fragmentation prevents optimal use. According to Callum Adamson, co-founder and CEO of the startup, operational decisions are often based on less than 8% of the collected data.

The Challenge of Data Integration

Operators of these facilities already possess a vast amount of information, but the rapid integration of sensor readings, technical documents, and scientific principles remains a major challenge. Adamson emphasizes the importance of enabling real-time communication between these three data sources to enhance analysis and forecasting. "That's the real key," he stated in an interview with TechCrunch.

Unlike traditional language models that focus on word prediction, Applied Computing's Orbital model integrates time series, physics-based models, and linguistic models. This approach allows for predicting the state of a facility by analyzing sensor data while considering physical and chemical laws, as well as specific operational constraints. Orbital also enables technicians to simulate how a change in one part of a facility could affect the rest of its operations.

Unmatched Speed of Execution

One of Orbital's main strengths is its ability to quickly detect anomalies, identify their causes, and model the potential impacts of proposed solutions. This process, which previously took days or even weeks, can now be completed in just a few minutes. Adamson claims that this speed allows operators to reduce their energy consumption while maintaining optimal production levels. He stated that the product can compress investigations that used to take days or weeks into just a few seconds.

This promise of efficiency gains has quickly convinced many industry players. In less than 18 months, Applied Computing has transitioned from an emerging startup to a company generating millions in double-digit recurring annual revenue. Although the startup has not disclosed the exact number of its clients, it confirmed that its model is being used by upstream oil and gas companies, as well as publicly traded refining and petrochemical firms.

Strategic Partnerships

Among Applied Computing's partners are the Indian energy company Wipro and KBR, which has integrated Orbital into its digital platform INSITE 3.0 dedicated to energy projects. KBR is also using the product to optimize ammonia production. Adamson mentioned that the startup is collaborating with a "large U.S. upstream operator" and plans to announce a partnership with a major European oil company soon.

However, the market that Applied Computing is entering is already well-occupied by established industrial software providers and specialized AI startups. Companies like AspenTech and AVEVA offer simulation and modeling solutions for industrial operations, while Cognite and Seeq focus on industrial data analysis.

A Unique Asset in AI

Adamson argues that Applied Computing's true strength lies in its ability to bring together AI researchers to develop a model as advanced as Orbital. "This is an AI problem, not a data or energy problem," he stated. He noted that the company's real asset is not access to industrial data or process knowledge, but rather the ability to gather AI researchers to build a model capable of competing with Orbital. He also emphasized that the operational data obtained through Orbital deployments is valuable, as it is generally not publicly accessible.

The partnership with KBR provides Applied Computing with valuable access to operational data and industry expertise, as well as introductions to potential clients. The startup plans to use the $20 million raised to expand internationally, recruit talent in research and engineering, and explore new deployments with energy sector clients.

International Expansion

Applied Computing recently announced the opening of an office in Houston, complementing its headquarters in London and its operational hub in Bengaluru. This expansion into the U.S. brings the startup closer to two of its North American clients, and an extension into the Middle East is also in preparation. Adamson stated that the U.S. base brings the startup closer to two existing clients in North America.