Applied Computing raises $20M for AI model to optimize oil and gas plant operations

Applied Computing, a London-based startup building a foundation AI model for the oil, gas, and petrochemical industry, has raised a $20 million Series A led by engineering giant KBR, with Databricks Ventures participating. Founded in 2023, Applied Computing targets oil, gas, refining, and petrochemical systems, where a single facility can have thousands of sensors measuring various parameters. The startup's co-founder and CEO, Callum Adamson, says facilities make operating decisions using less than 8% of the data available to them.

Operators collect much of this information but struggle to combine sensor readings, engineering documentation, and physics and chemistry quickly enough to analyze and make predictions. Adamson emphasizes that the key is getting these three data sources to talk to each other in real-time. Applied Computing's foundation model, Orbital, combines a time series model, a physics-based model, and a language model to predict the state of a facility.

It analyzes sensor readings, considers physics and chemistry, and recognizes a facility's equipment constraints and operator activity. Technicians can run simulations of how a change in one part of a facility could affect the rest of its operations. The startup claims Orbital can flag anomalies, investigate their causes, and model whether a proposed fix could create problems elsewhere in the facility, all within minutes.

Adamson says the product can compress investigations that previously took days or weeks into seconds, helping operators reduce energy use and maintain output. Applied Computing has gone from stealth to double-digit millions in annual recurring revenue in under 18 months. Orbital is in use at some large, publicly listed upstream oil and gas, downstream refining, and petrochemicals companies.

The startup's partners include Indian energy company Wipro and KBR, which has integrated Orbital into its INSITE 3.0 digital platform for energy projects. The company plans to use the $20 million to expand internationally, hire for research and engineering roles, and explore deployments with energy clients. Applied Computing has opened an office in Houston, adding to its headquarters in London and operational hub in Bengaluru.

Why this matters: Applied Computing's AI model has the potential to transform the oil and gas industry by optimizing plant operations and reducing energy consumption. The company's success could have a significant impact on the broader industry, as it addresses a critical challenge faced by operators. With the funding, Applied Computing can further develop its technology and expand its reach, potentially leading to widespread adoption.