Razor Labs secured a $31.2 million Deal
15 November, 2023
The strategic deal includes the implementation of an AI system designed to predict and prevent machine failures to reduce unplanned shutdowns and maintenance costs
Razor Labs (TASE: RZR), a leader in the development of advanced technological solutions based on artificial intelligence for industrial equipment, has signed a significant partnership agreement with a leading multinational corporation, primarily operating in the mining sector, with mining sites around the world, especially in Australia, South Africa, and the United States.
The strategic deal includes the implementation of DataMind AI, Razor Labs’ leading product, an advanced artificial intelligence system designed to streamline mining operations, predicting, identifying, and preventing machine failures to reduce unplanned shutdowns and maintenance costs. The contract has been signed for a period of eight years, with an option to extend the service supply and add functional enhancements later on.
The client will purchase licenses for the DataMind AI™ product for five years for 14 mining sites. The total annual license cost is estimated at $3.3 million. The client has committed to purchase hardware equipment for $9.1 million, mainly sensors and associated equipment required to connect the client’s machines to the product and generate the necessary data. The company estimates the expected compensation for implementation services will be about $5.6 million.
Raz Roditi, Founder and CEO: “The signing of this strategic agreement constitutes an unequivocal expression of confidence in the necessity and great value our technology generates for the mining market. After reviewing our product, the client decided to implement DataMind AI™ extensively at a number of its global mining sites. This agreement lays the foundation and supports our marketing efforts in the mining industry and other potential sectors.”
Michael Zolotov, Founder and CTO: “The product we developed uses the widest variety of sensors on the market to monitor and prevent all failures in industrial machines. Just as a doctor diagnoses diseases using CT, MRI, EKG, blood tests, and more, we understand that using vibrations alone, the most common sensor in the industry today, is not enough.
The system we developed includes over ten different types of sensors and even cameras. The artificial intelligence cross-references all the information and provides the client with a simple bottom line of all the impending failures in the machines months in advance.
The technological challenge that the 8200 unit alumni team here managed to solve is the ability to analyze and integrate such diverse types of data and to perform diagnostics of hundreds of different machine failures.
This deal allows this unique technology to generate an impact on an international scale with the implementation of 8,400 sensors across 14 mining sites. The implementation will not only lead to a tremendous optimization of production processes but also to the prevention of catastrophic failures of machines that also cause injuries to the mining sites’ operational teams.”
Tomer Srulevich, CBO: “The international experience and work with giant global companies over the past two years have allowed us to affirm the substantial need for DataMindAI™’s solution in the mining sector. The deal was woven after deep collaboration and intensive work of the teams at the client’s sites and is based on the results and impact of the technology.”
The global mining market is valued at $2 trillion, with thousands of active mining sites worldwide. While Israel does not have a mining industry, Razor Labs was chosen as the technology supplier for an international company due to the company’s innovative technology that uses the broadest range of sensors in the market to monitor and prevent all malfunctions in industrial machines.
Following the IPO on the stock market for securities in 2021, the company underwent a reorganization. The process allowed the company to bring in team members with extensive business experience to leverage the company’s advanced technological capabilities and transform from a service company to a product company, penetrating new target markets. As a result of this, DataMind AI™ was launched, a leading AI solution that is already implemented at sites in Australia and Africa, with the current deal constituting a significant strategic move highlighting the importance and potential of the company’s innovative product.