Yesterday‚ Baker Hughes and C3.ai announced a joint venture that will accelerate digital transformation of the oil & gas industry. The joint venture brings together Baker Hughes’ fullstream oil and gas expertise with C3.ai’s market-leading capabilities in industrial-scale enterprise AI software. The joint venture will immediately market and deploy the C3 AI Suite™‚ and other AI applications specifically for the oil & gas industry.

This is a major milestone for the global energy sector. Application of AI to the oil & gas industry will have a tremendous impact‚ both economically and environmentally. It will enable organizations to reduce costs‚ optimize production‚ increase safety and reliability‚ and decrease environmental impact. According to McKinsey & Co.‚ the potential economic value of industry-wide AI adoption in oil & gas exceeds $400 billion annually.

Baker Hughes‚ with roots that go back nearly a century‚ is one of the world’s leading oilfield services companies‚ with annual revenue exceeding $22 billion and more than 66‚000 employees. Baker Hughes works with virtually every significant oil & gas enterprise in the world‚ providing a broad range of services including exploration‚ drilling‚ and pumping.

This joint venture goes well beyond the typical partnership. Baker Hughes has taken a substantial minority equity position in C3.ai‚ and will have a seat on C3.ai’s board of directors. C3.ai will substantially enhance its engineering and data science organization‚ working in partnership with Baker Hughes to develop and market a full range of AI SaaS solutions to meet the upstream‚ midstream‚ and downstream requirements of the oil & gas industry‚ at global scale.

This joint venture also establishes a new approach to industry-specific digital transformation. It combines the deep domain expertise of Baker Hughes‚ a leader in oil & gas services‚ with C3.ai’s expertise in AI‚ machine learning‚ IoT‚ and software development‚ at global scale. Leveraging the expertise of each partner‚ this model provides a unique foundation for accelerating digital transformation by delivering solutions designed to address the industry-specific requirements of oil & gas enterprises.

Together‚ Baker Hughes and C3.ai are committed to providing the oil & gas industry’s most advanced AI and IoT software solutions. Beginning immediately‚ the C3 Oil & Gas SaaS solutions will be marketed worldwide by Baker Hughes’ 12‚000-strong sales and marketing function.

I believe this joint venture will indelibly change the competitive dynamics of the oil & gas services industry‚ arming Baker Hughes with a hypercompetitive family of AI-enabled solutions. For the enterprise AI software industry‚ this is an industry-making event‚ firmly establishing C3.ai as the world’s leading enterprise AI solution provider.

The net of this announcement is that C3.ai will be substantially growing the size of its development and services organization to better serve all of our customers.