Dive Brief:
- Cleveland-Cliffs has agreed to deploy Palantir Technologies’ artificial intelligence platform across its flat-rolled steel manufacturing footprint as part of a three-year partnership.
- The Cleveland-based company on Tuesday said it will embed AI directly into its “production planning, order entry and operational workflows to better integrate data, anticipate constraints and coordinate activities across its facilities in real time.”
- Cleveland-Cliffs hinted at this partnership in its earnings call last week, but CEO Laurenco Goncalves left out the name. At the time, he said it will “help us take a meaningful step forward in how we run the interface between operations and commercial.”
Dive Insight:
The partnership comes as manufacturers look to adopt AI to enhance their operations, cut costs and remain competitive as production processes become more digitally-driven. Companies like shipbuilder HII are starting to pilot physical AI to automate certain manufacturing tasks before scaling the robotics across their enterprises.
Cleveland-Cliffs said its agreement with Palantir will be key to driving productivity, improving performance and staying “ahead of the curve.”
“This initiative will ultimately move us from human-experience-driven planning toward a new and enhanced AI-assisted, decision-making system that scales with the complexity of our operations,” Goncalves said on an earnings call last week.
Palantir was founded in 2003 as a software provider for the intelligence community to assist with counterterrorism investigations and operations, according to its latest annual report. The Denver-based company has since expanded its offerings, including the 2023 release of its AI platform, which allows commercial and government customers to connect generative AI models with their data and operations to enhance decision-making.
Boeing began using Palantir’s AI software across its defense, space and security programs and factories in September. An investment amount was not disclosed at the time.
“After completing our pilot work with Palantir, it became clear they were the platform of choice to take our business into the future,” Goncalves said in a statement Tuesday. “What we have seen so far has been nothing short of a game changer.”
A spokesperson did not immediately respond to a request for comment about where Cleveland-Cliffs piloted Palantir’s technology and for how long before moving forward with the three-year partnership.
Cleveland-Cliffs has 32 steelmaking sites in North America, with most located in the Midwestern United States, according to its latest annual report. The company recently reported first quarter revenue of $4.9 billion, up $600 million from the previous quarter, as fewer imports enter the U.S. market and domestic demand picks up, due in part to tariffs.
It is also looking to renegotiate a labor agreement with the United Steelworkers union in the coming months, Goncalves said on the call.
