Abu Dhabi's artificial intelligence (AI) firm Presight AI Holding has struck a deal to acquire a controlling stake in AIQ,a technology joint venture between the Abu Dhabi National Oil Company (ADNOC) and Group 42 (G42),another prominent AI company in the emirate.
The move,announced on May 1st,2024,sees Presight taking a 51% ownership position in AIQ,with ADNOC retaining a 49% stake.Previously,G42 held a 40% share in the venture.Financial details of the agreement were disclosed,with the deal valuing AIQ at over $1.4 billion based on Presight's current market value.
The strategic alliance brings together Presight's expertise in big data analytics and cross-sector application development with AIQ's established presence in the energy sector.This combination is expected to solidify AIQ's position as a leader in AI-powered solutions for the global energy industry.
Under the terms of the agreement,ADNOC will exchange a portion of its existing AIQ shares (11%) for a 4% stake in Presight currently held by G42.This exchange strengthens the financial ties between the three entities and underscores their commitment to fostering a robust AI ecosystem in Abu Dhabi.
Commenting on the development,Sultan Ahmed Al Jaber,ADNOC's Managing Director and Group CEO,highlighted the significance of the deal in propelling AI innovation within the energy sector."This strategic partnership combines the strengths of three leading Abu Dhabi entities to unlock the full potential of AI in optimizing energy production,enhancing efficiency,and driving sustainability across the industry," he said.
Presight's chairman,Mansoor Al Mansoori,echoed Al Jaber's sentiments,emphasizing the complementary nature of the collaboration."Presight's big data expertise,coupled with AIQ's proven track record in the energy domain,creates a powerful force for innovation," he stated."This venture positions us to become a global leader in delivering next-generation AI solutions for the energy sector."
The agreement is subject to shareholder and regulatory approvals.Once finalized,AIQ is expected to continue operating as a standalone company,with leadership positions filled by representatives from both ADNOC and Presight.This ensures continuity and leverages the strengths of both entities to guide AIQ's future trajectory.
The move by Presight to acquire a majority stake in AIQ reflects the growing importance of AI in the energy sector.By combining expertise in big data,energy-specific solutions,and international market access,this collaboration has the potential to revolutionize how the energy industry operates and pave the way for a more efficient and sustainable future.