Commercial milestone reflects enterprise adoption of co-created agentic AI infrastructure powering next-generation AI systems

H2O.ai today announced a significant milestone in their long-standing agentic AI co-creation collaboration with AT&T. H2O.ai will make a royalty payment to AT&T consistent with the commercial and intellectual property framework established at the outset of the collaboration.

The milestone reflects sustained enterprise demand for scalable, governed AI infrastructure designed to accelerate innovation while maintaining performance, reliability, and responsible AI standards.

From Co-Creation to Agentic AI Commercialization

Originally built to support AT&T’s massive data ecosystem and spanning hundreds of petabytes of network, operational, and customer data, the H2O AI Feature Store enables teams to reuse, govern, and operationalize machine learning features across the enterprise.

Feature engineering remains one of the most time-intensive components of AI development, often consuming up to 80% of a data scientist’s time. Without centralized infrastructure, teams repeatedly rebuild the same features, increasing cost and slowing deployment.

The H2O AI Feature Store addresses these challenges by providing:

• Offline and online feature serving for both batch training and real-time inference
• Sub-millisecond latency for production transactions
• Automatic Feature Recommendations to improve model performance
• Automatic feature drift detection and bias identification
• FeatureRank™ scoring to measure feature value across use cases
• Deep integrations with enterprise data ecosystems

“Our work with H2O.ai has always been about co-creating durable AI infrastructure that scales across AT&T’s network, operations, and customer platforms,” said Andy Markus, Chief Data and AI Officer at AT&T. “What began as a shared innovation effort has become a foundational layer for our agentic AI systems — enabling reuse, governance, and real-time intelligence across the enterprise. This milestone reflects both the strength of our teamwork and the long-term value of building AI the right way.”

Building the Foundation for Next-Generation AI

The H2O AI Feature Store serves as a core component of AT&T’s broader AI architecture, supporting predictive models, generative systems, and emerging agentic workflows.

As enterprises move from experimentation to fully operational AI systems, foundational infrastructure such as feature stores ensures structured data, governance policies, and predictive intelligence can be seamlessly integrated into advanced AI platforms.

The royalty milestone reflects a shared intellectual property framework established at launch, aligning incentives for long-term innovation and commercialization while reinforcing the durability of enterprise-grade AI architecture.

Enabling Enterprise AI at Scale

AT&T continues to use the Feature Store to power high-impact use cases including:

• Network optimization
• Fraud prevention
• Predictive maintenance
• Financial forecasting and tax calculations

“Feature Stores are the digital water-coolers for Agents sharing context and memories,” said Sri Ambati, CEO and Founder of H2O.ai. “AT&T helped co-create one of the first truly enterprise-grade Feature Stores for Predictions. Our banking customers world-wide insist on using this co-innovation over homegrown feast derivatives. This royalty milestone is a model for how large enterprises can co-create AI infrastructure that benefits the broader market.”

A Model for Strategic AI Collaboration

The royalty payment reflects a shared IP and co-created framework established at launch — aligning incentives for long-term innovation and commercial success.

As enterprises move from experimentation to scaled, operational AI systems, infrastructure components like feature stores are increasingly recognized as foundational to ROI, governance, and performance.

About H2O.ai

H2O.ai is on a mission to democratize AI for Good. As the world’s leading agentic AI company, H2O.ai converges Generative and Predictive AI to help enterprises and public sector agencies develop purpose-built Agents, SLMs and solutions on their private data. With a focus on Sovereign AI—secure, compliant, and infrastructure-flexible deployments—H2O.ai delivers solutions that align with the highest standards of data privacy and control.

Its open-source technology is trusted by over 20,000 organizations worldwide, including more than half of the Fortune 500. H2O.ai powers AI transformation for companies like AT&T, Commonwealth Bank of Australia, Singtel, Chipotle, Workday, Progressive Insurance, and NIH.

Through its AI for Good program, H2O.ai supports nonprofits, public sector agencies, and global institutions in advancing healthcare, education, disaster response, and environmental sustainability using agentic and predictive AI.

H2O.ai partners include NVIDIA, Dell Technologies, Deloitte, Ernst & Young (EY), Snowflake, AWS, Google Cloud Platform (GCP), VAST Data and MinIO. H2O.ai’s AI for Good program supports nonprofit groups, foundations, and communities in advancing education, healthcare, and environmental conservation. With a vibrant community of 2 million data scientists worldwide, H2O.ai aims to co-create valuable AI applications for all users.

H2O.ai has raised $256 million from investors, including Commonwealth Bank, NVIDIA, Goldman Sachs, Wells Fargo, Capital One, Nexus Ventures and New York Life.

For more information, visit www.h2o.ai.

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