Machine failures at mines are a big issue. And artificial intelligence might be the way to solve it.

‍What’s happening:‍

• Israeli based artificial intelligence company Razor Labs (TA:RZR) has entered into a partnership with a prominent mining company to use their AI technology to prevent machine failure
  
• The partnership will integrate one of Razor Lab’s flagship products, known as DataMind AI, into mining operations in Australia, South Africa and the United States
  

How it works:‍

• DataMind AI uses sensors and cameras to monitor machinery and cross reference all the data it gathers to try to accurately predict future failures or maintenance
  
• Razor Lab’s then leverages artificial intelligence to build a comprehensive model to better understand when machines are getting close to failure and what early warning signs are typical prior to machine malfunction
  

Why it matters:‍

• Machine failures are an enormous risk for human safety in mining operations and artificial intelligence could potentially unlock new predictive capabilities to combat dangerous mechanical issues
  

By the numbers:‍

• Razor Labs will deploy over 8,400 unique sensors across 14 different mining locations
  
• The sensor and camera hardware alone is expected to cost over $9M
  
• In total, Razor Lab’s will receive approximately $19M to fully develop the new project
  

Market reaction:‍

• Shares of Razor Lab’s rocketed up over +300% on the announcement of their significant new partnership
  

The intrigue:‍

• Mining giants such as Glencore and Newmont are already using Razor Lab’s artificial intelligence technology for their own operations