Terra AI, a Palo Alto-based AI platform for subsurface deposit modeling, has raised $20M in Series A funding led by Khosla Ventures with participation from BHP Ventures. The platform generates thousands of probabilistic 3D geologic models to quantify uncertainty and optimize drilling decisions for critical minerals and energy resources. The capital will accelerate deployment across mining, geothermal, and carbon storage projects.
Critical Minerals Demand Spurs AI Adoption
The timing aligns with surging demand for minerals essential to electrification and AI infrastructure. Competitors like KoBold Metals and Earth AI are also applying machine learning to exploration, but Terra AI differentiates through patented multi-model uncertainty quantification and closed-loop optimization that integrates geophysics, geochemistry, and real-time drilling data.
High Failure Rates Plague Traditional Exploration
Mining companies face exploration success rates as low as 1 in 1,000, with 98% of drilling projects resulting in busts. Exploration timelines often stretch 17 years while costs have risen dramatically. Current fragmented approaches underutilize available data and fail to account for shifting subsurface uncertainty.
Physics-Grounded Generative Models Deliver Precision
Terra AI's platform creates millions of probabilistic 3D models 125,000 times faster than traditional methods. It enables 40-60% reductions in drilling meters and 2-3x gains in prediction precision. The approach supports target screening, survey design, and dynamic drilling decisions.
As CEO John Mern noted:
"Explorers today face increasing complexities like rising project uncertainty…"
Khosla and BHP Back AI for Resource Discovery
Khosla Ventures led the round, consistent with its focus on bold AI and climate bets. BHP Ventures and prior backer Rio Tinto add strategic validation from major miners seeking to de-risk portfolios and accelerate discovery.
AI in Mining Market Expands Rapidly
The AI in mining market stands at $35.47B in 2025 and is projected to reach $828.33B by 2034 at a 41.87% CAGR, according to Precedence Research. Government initiatives including the 2026 Critical Minerals Ministerial and over $30B in US supply chain funding create additional tailwinds for faster exploration technologies.
Aggressive Hiring Signals Scaling Plans
Terra AI is hiring for senior roles in commercial, geophysics, and machine learning while sponsoring conferences such as the Geological Society of London AI in Geosciences event. The company plans to expand platform use on major resource projects following client work with Rio Tinto, Ero Copper, and Ramaco Resources.