Artificial intelligence remains a dominant theme for stock market participants, prompting even companies outside the technology sector to bolster their AI narratives ahead of potential public offerings. In a notable development, Barrick Gold's North American operations have signed a five-year partnership agreement with AI startup Avathon, a deal confirmed by Avathon's CEO Pervinder Johar.
Barrick is currently preparing to list a minority stake in its North American business, which accounts for the majority of its gold production, with a target completion date by the end of this year. Avathon specializes in AI-driven software designed to predict failures in costly industrial equipment while also monitoring safety risks at mining and factory sites, and this contract represents a significant win for the 14-year-old startup.
According to a person with direct knowledge of the negotiations, Barrick is expected to contribute annual sales revenue of $10 million to $20 million for Avathon, representing roughly 10% of the startup's projected revenue for the coming year. The source indicated that Avathon's annual recurring revenue has already climbed from approximately $15 million last year to over $50 million currently. Within three years, Barrick's North American unit is projected to become Avathon's second-largest client, trailing only Aramco Digital, the technology arm of Saudi Aramco.
Avathon's other prominent customers include Boeing, Airbus, and the U.S. Department of Defense, with Boeing holding about 9% of the company's shares. Driven by this sales growth, Avathon is preparing to raise more than $100 million in funding before year-end, based on a valuation of $1.4 billion set in January 2022.
Johar commented that this collaboration serves as tangible proof that physical AI is transitioning from early conceptual announcements into real-world applications within the mining, energy, and raw materials sectors. Avathon's software operates on approximately 200 AI models, enabling it to map operational workflows, monitor sites via cameras and sensors, and determine appropriate responses to changing environmental conditions.
Barrick will pay a base fee for platform access, supplemented by additional fees tied to measurable outcomes. The software will scan video feeds from Barrick's mine sites, issuing real-time alerts when safety violations occur. Additionally, Avathon's AI agents will assist with procurement and supplier contract negotiations, while also analyzing equipment performance to forecast potential breakdowns and recommend maintenance strategies that extend operational uptime.
Collaboration between Avathon and Barrick began last December, with the software already operational at select U.S. facilities since the second quarter, including the expansive Nevada Gold Mines site. Full deployment at this location is expected to conclude over the coming quarters, with the Dominican Republic identified as the next rollout target.
Prior to the Barrick agreement, Avathon announced a three-year partnership with Aramco Digital earlier this month. Aramco Digital intends to leverage Avathon's software to enhance the efficiency of towns built by Saudi Aramco for oil industry workers, automating functions such as electricity meters and billing systems. According to Raj Rao, Aramco Digital's chief growth officer, the company selected Avathon partly because the software accelerates internal access requests and approval workflows while improving supply chain logistics, equipment performance monitoring, and safety compliance checks.
These recent contracts reflect a broader wave of industrial clients adopting AI technologies. Earlier this month, equipment manufacturer Caterpillar and robotics startup FieldAI announced plans to introduce autonomous machinery into mining and construction sites. In May, robotics company Humanoid revealed intentions to deploy humanoid robots at factories operated by German industrial supplier Schaeffler. In January, Hyundai Motor and Boston Dynamics unveiled the production version of the Atlas humanoid robot, with Hyundai planning to deploy Atlas units across its facilities by 2028.