Buildots to cut delays on construction of Intel plants

Israeli startup BuildsIntel, which develops software to help real estate companies manage construction and monitor progress, has been hired by Intel’s construction division to improve the pace of new construction and warn of potential delays, a source familiar with the matter told Globes. The deal is estimated to be worth several million dollars.

The development comes after Buildots announced last week that it had closed a $15 million funding round led by Intel Capital, Intel’s venture capital arm, though both companies chose not to disclose their relationships with suppliers and customers. Neither company responded to Globes’ inquiry on the matter. Other investors in the round include Eyal Ofer’s OG Venture Partners, serial chip entrepreneur Avigdor Willenz, Viola, TLV Partners, Tidhar and Lightspeed Partners. Buildots has raised $120 million to date and has 200 employees, including 150 in Israel.

Intel is currently on a construction spree, building nine factories in Malaysia, the United States, Poland, Germany, Ireland and Israel. But things aren’t going well, with the average cost of building the factories running at $10 billion to $20 billion, amid cash woes, fierce competition and protracted talks over government grants.

Intel recently announced that it is postponing construction of its factories in Germany and Israel. In Israel, Intel decided to postpone construction of one of the clean rooms in the new factory, apparently due to a lack of cash and its decision to wait for more new customers to come on board.

Buildots, founded by Roy Danon, Aviv Leibovitz and Yakir Sudri, has developed a cloud-based platform that allows for real-time comparisons between the actual construction stages and the original plan, to solve problems as they arise rather than retroactively. “The construction process is 90% under control, but the remaining 10% is chaotic,” Danon told Globes after Buildots was selected as one of the most promising startups of 2022.

It’s not just a matter of the fine line between plan and execution. Buildots equips workers and construction site managers with Go-Pro cameras that scan the construction, so that a 3D model of the building or factory is created on the customer’s computer at any given moment—a model that even knows when a circuit breaker is not installed correctly or when plastering work was not done on time. The company recently launched a product of great interest to Intel: a system that it claims can reduce delays by 50% and shorten construction times by 2-4 months, in part through the use of artificial intelligence.

Buildots started with one project each for two Israeli construction giants it works with: Israel’s BST and Tidhar, which invested in the startup. Since then, the company has worked with international giants such as the US’s Build Group, the UK’s Wates, Sweden’s NCC, and Ireland’s John Paul. Today, Buildots primarily serves companies in the UK, France, and Scandinavia, including Google, Mace, Waits, Vinci, and NCC.

This article was published in Globes, Israeli Business News – en.globes.co.il – on July 15, 2024.

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