Artificial intelligence remains a top focus for stock investors, prompting even non-tech companies to strengthen their AI credentials before going public. The North American subsidiary of Barrick Gold fits this trend, having just sealed a five-year agreement with industrial AI startup Avathon.
Avathon CEO Pervinder Johar confirmed the partnership, which will see the company's software deployed across Barrick's mining operations. Avathon develops AI software that predicts costly equipment failures and monitors safety risks across mine and plant sites, while Barrick plans to spin off its North American business—which produces the majority of the group's gold output—and sell a minority stake, with a listing targeted by year-end.
This deal marks a significant win for the 14-year-old Avathon. A person familiar with the negotiations indicated that Barrick will contribute $10 million to $20 million in annual revenue for Avathon, representing roughly 10% of the Pleasanton, California-based startup's expected total revenue next year. The source noted that Avathon's annual recurring revenue has grown from approximately $15 million last year to over $50 million today. Over the next three years, Barrick's North American unit is projected to become Avathon's second-largest customer, trailing only Aramco Digital, the technology arm of Saudi oil giant Saudi Aramco.
Other major Avathon clients include Boeing and Airbus, which each hold 9% stakes in the company, as well as the U.S. Department of Defense. Sources say that thanks to rapid revenue growth, Avathon is preparing to complete a new funding round exceeding $100 million by the end of this year, following a valuation of $1.4 billion in January 2022. Johar stated, "This partnership is real proof that physical industrial AI has moved beyond industry slogans and is now deployed in actual business scenarios across mining, energy, and raw materials."
Avathon's software leverages approximately 200 AI models to map a company's full operational picture, using cameras and sensors for real-time site monitoring and generating response plans for changing conditions. Barrick will pay Avathon a base platform fee plus performance-based fees tied to actual business outcomes. Johar explained that Avathon's software analyzes video feeds from cameras at Barrick's mines to identify safety violations in real time, while AI agents will assist Barrick with procurement and supplier contract negotiations, and analyze equipment health to predict failures and recommend maintenance that extends asset lifespan.
Avathon and Barrick began collaborating in December, with the software already operating in select U.S. mining sites since the second quarter, including the massive Nevada gold complex. Full deployment across that site is expected within the next one to two quarters, with the Dominican Republic as the next implementation location.
Prior to the Barrick deal, Avathon announced a three-year agreement with Aramco Digital earlier this month. Aramco Digital plans to use Avathon's software to improve operational efficiency in its oil worker towns, automating electricity meters and billing systems. Raj Rao, Chief Growth Officer at Aramco Digital, said Saudi Aramco chose Avathon for its ability to accelerate internal approval workflows, optimize supply chain logistics, enhance equipment performance monitoring, and streamline safety and compliance reviews.
The string of contract wins reflects a broader surge in industrial AI procurement. Earlier this month, equipment manufacturer Caterpillar and robotics startup FieldAI announced plans to deploy autonomous machinery at mines and construction sites. In May, humanoid robot startup Humanoid revealed it would deploy robots at German industrial parts manufacturer Schaeffler's factories. And in January, Hyundai Motor and Boston Dynamics unveiled the production version of the Atlas humanoid robot, with Hyundai planning to install the model in its own plants by 2028.