Abu Dhabi’s Presight acquires 51% stake in G42, ADNOC tech venture

ADNOC will take a 4 per cent stake in Presight currently owned by G42, in exchange for 11 per cent of its shareholding in AIQ

by Kudakwashe Muzoriwa

May 2, 2024

Presight buys 51% stake in G42, ADNOC tech JV

Image courtesy: Christopher Pike/ Getty Images

Artificial intelligence (AI) firm Presight AI Holding has acquired a majority stake in ADNOC Group and Group 42 (G42) technology joint venture, AIQ, under a new ownership structure that was announced by the three Abu Dhabi Government-backed entities on Wednesday.

Presight will hold a 51 per cent shareholding in AIQ under the new arrangement with ADNOC retaining a 49 per cent stake, valuing the firm at $1.4bn.

AIQ will continue operating as a standalone company, leveraging data to deliver transformational AI-powered solutions to the energy sector.

“AI can play a pivotal role in accelerating the energy transition and Presight’s acquisition of AIQ, with plans to serve ADNOC and the wider energy sector, further reinforces our commitment to the wellbeing of our planet and its inhabitants,” said Peng Xiao, group CEO of G42.

We’re thrilled to announce a major milestone for #AI in the energy industry through a transformative partnership with @ADNOCGroup. @PresightAI takes a majority stake of 51% in AIQ, now valued at over $1.4 billion, accelerating us towards a future where tech meets sustainability. pic.twitter.com/K1xruPQteo

— G42 (@G42ai) May 1, 2024

“The transaction will combine AIQ’s breakthrough AI energy solutions with Presight’s cross-sector big data analytics, product development, and international markets access to position AIQ as a leading energy-focused AI organisation,” the statement said.

ADNOC will take a 4 per cent stake in Presight currently owned by G42, in exchange for 11 per cent of its shareholding in AIQ, the companies said in a joint statement.

Launched in 2020 in partnership with G42, AIQ quickly established itself as a leading provider of AI solutions in the energy sector, reinforcing Abu Dhabi’s position as a leading global hub for AI.

AIQ uses AI and machine learning to optimise processes, improve planning and increase profitability for ADNOC and the wider oil and gas industry.

The transaction is subject to Presight’s shareholder and regulatory approval.

Presight accelerates AI deployment

By integrating AIQ and Presight’s big data analytics and AI offerings, the three Abu Dhabi-backed companies will realise operational efficiencies and synergies while meeting different customers’ requirements.

AI is revolutionising entire sectors and ADNOC aims to be the most AI-enabled company in the energy industry. The state-owned energy giant said in March that its use of AI generated $500m (Dhs1.84bn) of additional value in 2023.

The company said it had already integrated more than 30 AI tools across processes from field operations to corporate decision-making and planned to roll out the technology further.

The use of AI also prevented up to one million tons of carbon dioxide emissions between 2022 and 2023 – equivalent to removing around 200,000 gasoline-powered cars from the road.

Meanwhile, AIQ’s key AI tools are already driving efficiency and unlocking value across ADNOC’s operations, identifying, monitoring, and helping ADNOC to drive down emissions, and improve safety.

The company’s AI solutions are being commercialised and will be the foundation for the transformative growth of AIQ. It has already developed more than 20 AI applications and filed 16 patents.