A London-based startup, Applied Computing, is making significant waves in the energy sector with its innovative approach to industrial AI. The company recently announced a substantial $20 million Series A funding round, spearheaded by engineering giant KBR, with key participation from Databricks Ventures. This investment underscores the growing confidence in Applied Computing’s mission to introduce a groundbreaking foundation AI model for the complex oil, gas, and petrochemical industries.
Founded in 2023, Applied Computing addresses a critical challenge faced by energy operators today. Modern industrial facilities, from oil rigs to refineries, are equipped with thousands of sensors meticulously monitoring everything from temperature and pressure to velocity and viscosity. However, despite this wealth of data, operators often make crucial decisions using less than 8% of the information available to them.
Revolutionizing Industrial Operations with AI
The core problem isn’t a lack of data, but rather the inability to quickly and effectively synthesize diverse data sources. Operators struggle to combine real-time sensor readings, extensive engineering documentation, and fundamental physics and chemistry principles into actionable insights. Applied Computing’s co-founder and CEO, Callum Adamson, emphasizes that the key lies in getting these three data sources to communicate seamlessly and in real-time.
This is where Applied Computing’s flagship product, Orbital, steps in. Unlike conventional large language models that predict the next word, Orbital is a sophisticated foundation model designed to predict the state of an entire facility. It achieves this by intelligently combining a time series model, a physics-based model, and a language model.
Orbital meticulously analyzes sensor data, always considering the underlying physics and chemistry of the process, alongside equipment constraints and operator activities. This comprehensive understanding allows technicians to run detailed simulations. They can explore how a change in one part of a facility might ripple through and affect the rest of its operations, providing unprecedented foresight.
Unlocking Unprecedented Speed and Efficiency
At its heart, Applied Computing is pitching unparalleled speed and predictive capability. The company asserts that Orbital can identify anomalies, pinpoint their root causes, and model the potential impact of proposed solutions across an entire facility—all within mere minutes. This capability drastically reduces investigation times that previously spanned days or even weeks, compressing them into seconds.
Such rapid analysis helps operators significantly reduce energy consumption, optimize processes, and consistently maintain output levels. This promise of efficiency has quickly resonated with the industry. Applied Computing has proudly moved from stealth mode to achieving double-digit millions in annual recurring revenue (ARR) in under 18 months.
While specific customer numbers remain undisclosed, Adamson confirms that Orbital is already in use at several “large, publicly listed” companies across upstream oil and gas, downstream refining, and petrochemical sectors. Strategic partnerships are also a cornerstone of their growth, including collaborations with Indian energy giant Wipro and KBR, who have integrated Orbital into their INSITE 3.0 digital platform for ammonia production. Applied Computing is also working with a major U.S. upstream operator and is set to announce a partnership with a prominent European oil major soon.
A Unique Approach in a Competitive Landscape
The industrial software market is certainly competitive, featuring entrenched suppliers like AspenTech and AVEVA, which offer robust simulation and AI-powered modeling solutions. Additionally, focused AI startups like Cognite and Seeq excel at the data layer, helping facilities analyze industrial data and apply AI to optimize workflows. However, Applied Computing believes its differentiator is distinct.
Callum Adamson argues that the company’s true competitive advantage, or “moat,” isn’t merely access to industrial data or process knowledge, but its ability to attract and assemble top-tier AI researchers. He posits that building a model as sophisticated and effective as Orbital is primarily an AI challenge, not solely a data or energy problem. He highlights that unique operational data gathered from real-world deployments also provides Orbital an edge, as simulated data cannot fully replicate the complexities of a live plant.
The strategic partnership with KBR further amplifies Applied Computing’s position. This collaboration provides invaluable access to proprietary operational data, deep industry expertise, and critical introductions to a broader network of potential customers. Such alliances are crucial for navigating and expanding within the energy sector.
Fueling Future Growth and Global Expansion
The recently secured $20 million Series A funding will be instrumental in fueling Applied Computing’s ambitious expansion plans. The capital is earmarked for international growth, particularly for hiring more research and engineering talent, and pursuing additional deployments with energy clients worldwide. This investment will enable the company to further refine its Orbital platform and extend its reach.
In a move to strengthen its presence in key markets, Applied Computing recently opened a new office in Houston, Texas. This new base complements its London headquarters and Bengaluru operational hub, placing the company closer to existing North American customers. With plans for expansion into the Middle East also underway, Applied Computing is clearly positioning itself to be a global leader in AI for industrial operations, promising a new era of efficiency and insight for the energy sector.
Source: TechCrunch – AI
